GOP candidates gaining ground with Silicon Valley donors

Democrats have depended on Silicon Valley as a significant donor base—President Barack Obama raised more reelection campaign money from Bay Area donors than from those in Hollywood or New York—but Republicans are making inroads.

Speaking in New York City to tech enthusiasts last week, Republican presidential candidate Sen. Marco Rubio, R-Fla., promised to cap the number of government regulations imposed on startup businesses. Rubio, whose American Dreams book includes a chapter on “Making America Safe for Uber,” leads all candidates in Silicon Valley donations. Oracle founder Larry Ellison has donated $3 million to Rubio’s Conservative Solutions super PAC.

While fellow GOP candidate Donald Trump has criticized Rubio for being “Mark Zuckerberg’s personal senator,” the Florida senator has gained favor with Silicon Valley executives by vowing to address longstanding industry concernssuch as the desire to increase H-2B visas for skilled workers.

The needs of the innovation economy create problems for Democratic presidential candidates historically aligned with union interests. In an interview with Bloomberg News, Sen. Bernie Sanders, I-Vt., said he has “serious problems” with the unregulated nature of “sharing economy” companies like Uber, a private ridesharing business that consistently outperforms traditional taxi services. Hillary Clinton also has criticized the sharing economy as a major contributor to the rise of “permatemps”—workers who don’t earn the same benefits and job security as full time employees.

Democratic commitment to long-standing labor regulations has opened the door for Republicans to shout support for unregulated companies like Uber and Airbnb. Last week, Rubio said the on-demand economy requires an overhaul of the tax code and praised Germany for creating a new tax classification for independent contractors who work for a single company.

As Democrats bemoan the shared economy’s contribution to income inequality, Republicans increasingly highlight gains achieved by the absence of government interference. “The best innovation in our economy,” Rubio said, “is happening in the unregulated space.”

The Associated Press contributed to this report.