[Congressional Record Volume 148, Number 28 (Wednesday, March 13, 2002)]
[Senate]
[Pages S1800-S1805]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
HIGH-TECH TASK FORCE
Mr. ALLEN. Mr. President, I rise this morning to speak about the
Senate Republican high-tech task force. Today is an important day for
our high-tech task force, as we are unveiling our policy agenda and
principles for the upcoming session and the rest of the year.
First, I express my gratitude to Senator Reid and Senator Daschle for
allowing us this half hour of time to address our colleagues on the
very important issue of technology and the policy issues that we have
faced, are facing, and will face this year.
The purpose of the high-tech task force is to advise Republican
leadership and, hopefully, others on the other side of the aisle on
issues important to the technology community. We look at ourselves as a
portal to the technology innovators and entrepreneurs to get their
ideas and messages to the Senate so that we are well informed as to the
impact of any potential changes in laws, or there may be laws that are
outdated and need to be updated or upgraded.
The advancement of technology in the United States is important. It
is important for our quality of life, for our competitiveness as a
nation. It is also very important for providing good-paying jobs for
Americans.
Technology improvements benefit our lives and our businesses and our
competitiveness in many ways. For example, in manufacturing, it allows
manufacturers to manufacture whatever the good or product is, more
efficiently, with greater quality, with less waste, and fewer toxins.
In a distribution center, if you went to a Dollar Tree or a Family
Dollar or Dollar General distribution center, you would see how they
use technology to pick different items for their various stores and
then loading them on trucks.
Technological improvements help our communications systems within our
country. It also helps education opportunities, life sciences, and
biological advancements that are allowing people to lead better,
healthier, longer lives. It can help in law enforcement and
coordination of law enforcement efforts at the State, local, and
national level. And it can provide for a better transportation system
with smart roads and smart cars, and the concept of telecommunicating,
teleworking, allowing people to have a better quality of life while not
having to fight traffic every day and have more time with their
families.
It improves in so many ways our quality of life, our efficiency, and
also our environment. On the high-tech task force, in addition to
myself, I am joined on the task force by Senators Allard, Bennett,
Brownback, Burns, Collins, Kay Bailey Hutchison, Ensign, Sessions, and
Gordon Smith, as well as ex officio members who are the ranking members
of the various important committees that deal with technology,
including the Armed Services Committee with John Warner, Banking
Committee, Phil Gramm; Senator McCain of Commerce; Senator Grassley of
Finance, and Senator Orrin Hatch, a great leader of our Judiciary
Committee.
We had many accomplishments last year. The education bill was an
important one. No child left behind. Education is the key--making sure
we have a capable population in our country so youngsters can seize the
opportunities not just of the silicon dominion of Virginia, but
technology jobs all across the country. That was a very important bill.
The clean 2-year extension of the Internet access tax moratorium was
important. I don't think there should be access taxes on the Internet,
but we were able to get a 2-year extension to prevent Internet taxes,
which would only exacerbate the digital divide.
We also passed the Export Administration Act in the Senate. We
updated those laws so computers can be sold from this country as
opposed to other countries getting them from France, Germany, or Japan.
We can compete. The House has a different view.
There was a proposed merger of ASML, a Dutch company, with SBG,
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which is a Silicon Valley group. The importance of this was helping
with the next generation of microchips. ASML has the extreme
ultraviolet lithography tools which are important for the smaller
geometries on microchips.
We were able to advocate appropriations of additional funds for
justice for anti-piracy prosecution. Intellectual property rights is
very important, and we need to enforce those. We also turned back
efforts to change the current encryption export rules--again, very
important.
Now, for the upcoming session, one of the successes was the 3-year,
30-percent bonus depreciation measure, which was finally passed last
Friday as part of the economic stimulus bill. That is important for all
businesses, but especially the technology community so businesses can
upgrade their technology and other equipment. Senator Gordon Smith was
the lead for our high-tech task force in getting that accomplishment,
which will help stimulate the economy, save and create more jobs.
Now, the agenda is really one based on principles. The principles we
have this year are the same as last. We have added a few issues that
have arisen recently. We want a Federal Tax Code that is appropriate
for the 21st century. That means several different things. We want to,
No. 1, continue working to make the research and development tax credit
permanent.
Secondly, we want to accelerate and reform the depreciation schedules
for technology equipment. We also want to encourage capital formation
for small technology companies. And also of recent importance we are
going to work to preserve the current tax treatment for stock options.
Just yesterday, the high-tech task force urged Leaders Daschle and
Lott to oppose any effort to consider S. 1940, which is a bill to
require above-the-line expensing of stock options. Not to get into all
the minutia of tax laws, but the fact is, passage of such legislation
would dramatically deter companies from providing rank and file
employees with stock options, and they are an important part of
compensation. That proposal will certainly be harmful for technology
companies.
We also are going to work to enhance free trade, in that it is
important for opening up fair and free trade. We will open up new
markets for our technology and our services. One must recognize that,
while computers are fairly prevalent in this country, they are not all
that prevalent in the rest of the world. Nearly half of the people in
the world have yet to make their first telephone call. Only about 2
percent of the world's population has a computer. That tells us there
are great opportunities for our technologies, as well as construction
equipment, and so forth, all over the world; and tearing down barriers
will help our jobs in this country and our technological advancements
to continue. Also, it would not only benefit our country, but it would
increase the standard of living for those who tear down those barriers
so that their citizenry can have the opportunities of advanced
technology for their quality of life, a better environment, and more
opportunities. So we are going to continue to advocate trade promotion
authority. We will also continue working to protect Internet security,
and we will continue combating terrorism.
To that end, we are going to seek advancement of the Bennett-Kyl
legislation to allow information sharing between private companies and
the Government by codifying a limited Freedom of Information Act
exemption.
We are going to support the Bush administration's budget, as far as
funding for cyber-security issues. We are going to continue working to
safeguard copyrights in the digital age. That is very important. The
private sector needs to work together with a variety of companies to do
it, rather than worry about an inept Federal Government dictating
standards in that regard.
We are going to continue promoting education and technology in a
variety of ways. There are some good ideas that we are supporting--
particularly, the President in his effort on education, proposing that
families of students who are in failing schools get a tax credit. A
$2,500 tax credit could go toward purchasing computers, peripherals,
books, and also tuition. Personally, I am for a tax credit focusing on
computers and peripherals, educational software and tutoring. It should
not just be for kids in failing schools, but for all schools, in order
to bridge the digital divide.
We are going to work to expand broadband technologies. The Patent and
Trademark Office funding is important. Those fees ought to go to the
Patent and Trademark Office and should not be diverted to other
efforts. We want to keep government out of competition with e-commerce
businesses.
Digital decency. We are for it. We want the private sector to look at
ways to put in a filter so people can enjoy the Internet as they see
fit, as opposed to the government censoring it.
In the area of legal reform, there are several areas--especially
class actions. We have these class action lawsuits filed all over the
country. The diversity of that jurisdiction, at the option of the
defendant, ought to be more easily removed to Federal court to get a
better, more expedited and fair judgment.
Also, spectrum reform is very important, particularly in rural areas.
I am going to yield in a minute to the Senator from Montana.
Before I do that, I ask unanimous consent that endorsements of these
policy principles and ideas by the Information Technology Association
of America, Information Technology Industry Council, the Business
Software Alliances, the Electronic Industries Alliance, TechNet, and
ACT be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
ITAA Lauds High Tech Task Force Agenda
Arlington, VA.--The information Technology Association of
America (ITTA) today praised the Senate Republican High Tech
Task Force as the group kicked off its 2002 agenda on Capitol
Hill.
``We look forward to working with the Republican High Tech
Task Force as well as Democrats in the Senate to achieve
sound policy that will allow the high tech industry to once
again become the engine of our U.S. economy,'' said ITTA
President Harris N. Miller, adding ``Last week's passage of
the Economic Stimulus legislation on a bipartisan basis
showed that the HTTF, under Senator Allen's leadership,
reaching across the aisle can accomplish great objectives for
the IT industry.''
``In 2001, we worked on a bipartisan basis to support
passage of key tech related bills such as the extension of
the Internet tax moratorium and education reform,'' Miller
continued. ``This year, Trade Promotion Authority and
improving information security are some of ITAA's top
priorities, so we are gratified to see them also topping the
HTTF agenda.''
The Information Technology Association of America (ITTA)
provides global public policy, business networking, and
national leadership to promote the continued rapid growth of
the IT industry. ITAA consists of over 500 corporate members
throughout the U.S., and a global network of 47 countries' IT
associates. The Association plays the leading role in issues
of IT industry concern including information security, taxes
and finance policy, digital intellectual property protection,
telecommunications competition, workforce and education,
immigration, online privacy and consumer protection,
government IT procurement, human resources and e-commerce
policy. ITAA members range from the smallest IT start-ups to
industry leaders in the Internet, software, IT services, ASP,
digital content, systems integration, telecommunications, and
enterprise solution fields.
____
ITI Applauds Senate Republican Task Force Agenda, Recent Legislative
Accomplishments
Washington, DC.--The Information Technology Industry
Council (ITI) applauds the Senate Republican High-Tech Task
Force for its 2002 agenda and its work securing passage of
key legislative initiatives during the past year.
``We are pleased to support the Task Force's agenda and
would like to thank them for their work last year to secure
passage of legislation vital to the IT industry,'' said Rhett
Dawson, President of ITI.
``The 30 percent bonus depreciation provision in the
stimulus bill, Senate passage of education reform
legislation, and the two-year moratorium on Internet access
taxes were key victories for the IT industry. The work of the
Task Force was key to achieving these goals. We look forward
to a productive 2002 in which the Senate passes Trade
Promotion Authority and other important pieces of
legislation.''
ITI represents the leading U.S. providers of information
technology products and services. ITI member companies employ
more than 1 million people in the United States and exceeded
$668 billion in worldwide revenues in 2002.
The High-Tech Voting Guide is used to ITI to measure
Members of Congress' support for
[[Page S1802]]
the information technology industry and policies that ensure
the success of the digital economy. At the end of the 107th
Congress, key votes will be compiled and analyzed to assign a
``score'' to every Member of Congress.
ITI member companies include Agilent Technologies,
Amazon.com, AOL Time Warner, Apple Computer, Canon U.S.A.,
Cisco, Compaq, Corning, Dell, Eastman Kodak, EMC, Hewlett-
Packard, IBM, Intel, Lexmark, Microsoft, Motorola, National
Semiconductor, NCR, Panasonic, Siebel, Siemens, SGI, Sony,
StorageTek, Sun Microsystems, Symbol Technologies, Tektronix
and Unisys.
____
Business Software Alliance Applauds Aggressive Agenda Proposed by
Senate Republican High Tech Task Force
Washington, DC, Mar. 13.--The Business Software Alliance
(BSA) today commended the Senate Republican High Tech Task
Force following its release of an aggressive agenda for the
108th Congress aimed at benefiting the technology industry.
``The technology industry serves as a primary engine for
the U.S. economy, and the Senate Republican High Tech Task
Force deserves significant credit in laying out a clear, pro-
growth agenda,'' said Robert Holleyman. BSA's President and
CEO. ``As the nation moves toward a more positive economic
outlook, it is more important than ever to focus Congress'
attention on legislative initiatives that will secure
sustained growth, create jobs, enforce strong intellectual
property protection, promote strong security and spur
innovation. The agenda put forth today mirrors many of BSA's
own policy objectives and serves as a coherent blueprint to
achieve our shared goals.''
``The Senate Republican High Tech Task Force has served as
a vocal and influential legislative champion on policy issues
of critical importance to the high tech industry. We look
forward to continuing the partnership we have established
with the Task Force and making these goals legislative
realities,'' continued Holleyman.
Last year, BSA joined the Republican High Tech Task Force
in promoting number of successful legislative programs. Key
legislative achievements included:
An appropriations increase for anti-piracy prosecutions;
The three-year, 30-percent accelerated depreciation;
A two-year extension of the Internet Tax moratortium;
President Bush's Education Reform Act; and
Maintaining current encryption export rules.
____
EIA Applauds 2001 Accomplishments of Senate Republican High-Tech Task
Force; Looks Forward to Continued Legislative Successes in 2002
Arlington, VA.--Dave McCurdy, President of the Electronic
Industries Alliance (EIA) today thanked the Senate Republican
High-Tech Task Force for their 2001 legislative
accomplishments and applauded the rollout of their 2002
agenda.
McCurdy said: ``Thank Senate Republican High-Tech Task
Force has worked closely with the high-tech industry to
outline technology priorities during each legislative
session. Their involvement and advocacy of issues critical to
our industry resulted in major legislative accomplishments in
2001, including Senate passage of the Export Authorization
Administration Act and passage of a 3-year, 30 percent
accelerated depreciation provision.
``We look forward to the continued success of the High Tech
Task Force. EIA will work hard to help secure successful
completion of their 2002 agenda, which mirrors many of our
priority issues, including passage of Trade Promotion
Authority.
``Granting Trade Promotion Authority has consistently been
a priority for the technology industry. In 2000, more than
one-third of what the U.S. electronics industry produced was
exported overseas--over $200 billion in goods. This means
more than one-third of the 1.8 million employees who work for
U.S. electronics companies depend on exports for their jobs.
International trade and access to foreign markets are
critical to our continued success. We look forward to working
with the High Tech Task Force in ensuring the quick passage
of Trade Promotion Authority in 2002.''
The Electronic Industries Alliance (EIA) is a national
trade organization that includes the full spectrum of U.S.
manufacturers, representing more than 80% of the $550 billion
electronics industry. The Alliance is a partnership of
electronic and high tech association and companies whose
mission is promoting the market development and
competitiveness of the U.S. high tech industry through
domestic and international policy efforts. EIA, headquartered
in Arlington, Virginia, is comprised of more than 2,300
member companies whose products and services range from the
smallest electronic components to the most complex systems,
used by defense, space and industry, including the full range
of consumer electronic products. The industry provides more
than two million jobs for American workers.
____
TechNet Applauds Senate Republican High Tech Task Force's Agenda for
2002
Palo Alto, CA.--The Technology Network (TechNet), a
national network of high-tech and bio-tech CEOs, today
praised the Senate Republican High Tech Task Force for
releasing an agenda that is long on innovation and economic
growth and short on government regulation.
``The Republican High Tech Task Force is an important
portal for our industry, and TechNet in particular,'' said
Rick White, CEO of TechNet. ``The agenda they have laid out
is consistent with our efforts to spur broadband deployment,
expand free trade, and minimize the government's involvement
in the technology industry.''
``In particular, we appreciate the leadership the Task
Force has shown in opposing any effort to require companies
to expense stock options,'' continued White. ``This issue is
vital to the long term success and stability of our
industry.''
TechNet represents 235 technology and bio-tech companies
nationwide. The group is focused on four key issues: making
broadband ubiquitous by the end of the decade; passing bi-
partisan trade promotion authority legislation; strengthening
our education system; and keeping stock options free from
being expensed as cash.
Last week TechNet brought 30 CEOs to Washington, DC for a
series of meetings with congressional leaders. The group
spent time with Senator George Allen and other members of the
Senate Republican High Tech Task Force--discussing issues key
to the growth of the technology industry.
____
ACT Commends Work of Senate Republican High Tech Task Force on Behalf
of Entrepreneurial Tech Companies
Washington, DC.--On behalf of its three thousand small- and
mid-size high tech member companies, the Association for
Competitive Technology (ACT) today commended the work of the
Senate Republican High Tech Task Force (HTTF) in the 107th
Congress and applauded its commitment to key issues for this
session.
With the technology industry teetering on the edge of
recession, there were several critical policy decisions for
small entrepreneurial technology companies in 2001.
Thankfully, the HTTF was hard at work on behalf of the
industry. The HTTF was instrumental in securing a two year
extension to Internet tax ban, the Export Authorization
Administration Act and a new 3 year, 30 percent accelerated
depreciation schedule for technology equipment. The HTTF was
also an important force in thwarting efforts to restrict
export rules for encryption that would have been disastrous
to software companies, e-commerce and privacy.
The HTTF technology agenda announced today demonstrates
that their continued commitment to providing entrepreneurial
technology companies with the ability to succeed. ACT is
especially excited by HTTF's goals for issues such as
protecting privacy, educating a workforce for the 21st
century, expanding free trade and updating our nation's tax
code to reflect the realities of the New Economy.
``The Republican Senate High Tech Task Force has been a
powerful ally for entrepreneurial technology companies. ACT
looks forward to working the issues that will be critical to
ensuring the continued success of the American technology
industry,'' said ACT President Jonathan Zuck.
ACT is a national education and advocacy group for the
technology industry. Representing mostly small- and mid-size
companies, ACT is the industry's strongest voice when it
comes to preserving competition and innovation in the high
tech sector. ACT's membership includes businesses involved in
all aspects of the IT sector including computer software and
hardware development, IT consulting and training, dot-coms.
Mr. ALLEN. I now yield to the Senator from Montana, Mr. Burns, who
has been a strong and knowledgeable advocate and leader of improving
technology. The Commonwealth of Virginia has rural areas, but not as
many as Montana. One of the ways that rural areas, whether out West, or
in the South, or in Hawaii, can benefit from technology and
communication is with leadership of people such as Senator Burns.
I yield to Senator Burns.
The ACTING PRESIDENT pro tempore. The distinguished Senator from
Montana is recognized.
Mr. BURNS. I thank my good friend from Virginia. The Senator from
Virginia has rural areas; we have frontier areas. That kind of draws a
distinction. I think the Senator from Virginia has picked up a big part
of the responsibility of furthering the agenda of high technology
because our States do have a lot of similarity, such as in distance
learning and telemedicine. These areas are isolated by mountains, where
communications and the free flow of information have eluded people. Of
course, with that in mind, I think he has picked up on what he wants to
do with his State of Virginia, so that not only Northern Virginia
benefits from research and development but the advancement of the
information age, and also that the rest of the State can participate in
it as well.
If you look at my State of Montana, you see we have similar
challenges ahead of us. I congratulate Senator
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Allen for his fine work. He has done a marvelous job chairing this
high-tech task force. Under his leadership, we were able to aid in some
victories last year, including the extension of the Internet tax
moratorium for 2 years and the inclusion of an enhanced depreciation
provision in the stimulus package that the President just signed.
Senator Allen went over the list that pretty well sets our
priorities, and not necessarily in that order; they are all very
important.
I am a member of the Internet caucus, which is a bipartisan group.
This year in our opening reception we had over 40 exhibitors. Senator
Allen came. Approximately 1,000 people attended that reception. The
free flow of information has become very important.
I want to go over a couple of points. I gave a lot of speeches before
I ever came to the Senate saying there have been three interventions
that have changed our whole way of life. It has really brought the size
of our planet down considerably. First is the jet engine, second is the
transistor, and third is the silicon chip. In a matter of hours, we can
be anywhere in the world. We can in 5 seconds exchange ideas visually
and audibly anywhere in the world, whether it be land line or through
space. The silicon chip has sped up the way we handle information. It
has changed our life forever. This planet is smaller because of those
inventions.
Look at what has happened since. As the information age came upon us,
we realized as far back as 1989 and 1990, when I first came to the
Senate, that the policies that guided the infrastructure for that flow
of information were passed in 1934. We soon understood that some policy
changes were going to have to take place before we could see gigantic
moves or an extension of the way we were to deal with the free flow of
information. As a result, it only took 6 years to pass the Telco Act of
1996 because we were trying to set policy for technologies that went
way beyond what was thought in 1935.
The free flow of information is democracy. We all base our decisions
on the information we get. As long as it is a free flow of information,
a free flow of ideas, our democracy and our Republic will remain strong
and people will participate in the political arena. Freedom equals
opportunity, but it is also held together by an ingredient called
responsibility.
We were not finished looking at the policies before we got the
Internet, this great infrastructure of information. We have to take a
look at the insurance to be sure we have sound organizations as the
gatekeepers.
Specifically, before we can look at the complex area of comprehensive
spectrum reform, we should keep in mind the vital nature of spectrum to
those on the front line of homeland defense, our first responders: The
police, fire, medical, public health, and other emergency response
agencies.
We passed a bill in the last Congress that is revolutionizing the
cell phone industry. For the first time, we made 911 the national
emergency number. Now, with new technology, one can dial 911 on a cell
phone and reach the nearest first responder. Before, in the cell phone
industry, if one dialed 911, they were apt to get anybody anywhere. The
calls now go into the nearest communications center that can handle an
emergency.
Another topic that will prove of utmost importance to critical
infrastructure is the operation of a shadowy organization known as the
Internet Corporation for Names and Numbers, commonly known as ICANN.
The formation of ICANN originated with the so-called green and white
papers of the Clinton administration in 1998 that proposed the
delegation of control of the domain name system from the Commerce
Department to an entirely new organization which would be a new, not-
for-profit corporation formed by private sector Internet stakeholders.
The Clinton administration further proposed that the U.S. Government
should end its role in the Internet numbers and names address system.
Soon thereafter, ICANN was created and the Commerce Department began to
delegate the functions of the Internet domain name system to it.
In the eyes of many critics, this delegation has happened far too
swiftly. While ICANN is supposed to function by consensus of the
Internet community, its operation has often been controversial and
shrouded in mystery. Recently, even the President of ICANN, Stuart
Lynn, admitted publicly the organization is not working and needs to
undergo comprehensive structural reform because it is losing sight of
effectiveness in accomplishing our real mission.
Taking into account that the ICANN mission is ensuring the stable and
secure management of the Internet domain system, I am extremely
concerned at these developments which are so critical to our national
security.
In another area, to make the Internet more responsible and make it
respond to the users, to give the users confidence in this system, we
have to look at spamming. Spamming is the receiving of unwanted junk
mail. I do not know of a time on my address anyway that I have received
more spam than I am right now. It is a lot more than when I was in the
U.S. Marine Corps, I can tell you that. The irresponsible use of
spamming by marketers cannot be tolerated. To ensure the free flow of
information and confidence in this system, we have to take a look at
privacy.
Those are the areas we should be focusing on now in order to let this
great technology be a workhorse for us.
I thank the chairman of the high-tech task force. I applaud him for
his leadership in taking on this great responsibility. I yield the
floor.
The ACTING PRESIDENT pro tempore. The Senator from Virginia is
recognized.
Mr. ALLEN. Mr. President, I thank the Senator from Montana for his
eloquent remarks, his strong leadership, and his understanding that
with freedom come innovation and improvements in our lives.
I now yield to Senator Bennett of Utah who was chairman of this task
force previous to me but is still a leader on our task force and
someone who is greatly respected in the area of technology and, as I
mentioned earlier, he has provided the key leadership in the Senate on
cyber-security.
I yield to the Senator from Utah, Mr. Bennett.
The ACTING PRESIDENT pro tempore. The Senator from Utah is recognized
for 1 minute.
Mr. BENNETT. I thank the Chair.
Mr. President, my plea is very simple and can be stated in 1 minute:
We must, in the words of Abraham Lincoln, think anew and act anew,
recognizing that in the cyber-age, many of the attitudes we have had
about warfare, about vulnerability, about opportunity have to be
thought through entirely differently.
If we can understand that and put aside some of our old prejudices
and old ideas about technology and about regulation, we will be on the
road to the prosperity and security we need. If we cling to the old
ideas, the old paradigms with respect to information sharing and
antitrust activities, we are in for serious trouble.
So in 1 minute, that is my message. Let us think anew, let us act
anew, and let us recognize the technological age has changed
everything.
I yield the floor.
Mr. ENSIGN. Mr. President. I rise today to briefly speak about the
importance of technology to our economy and our way of life.
Just think about how technology has changed our lives over the past
few decades. Not so long ago, documents could only be sent through the
mail, computers were enormous metal boxes with limited functionality,
and the Internet--although it had been invented--was neither user
friendly nor accessible. When I was growing up, watching television
meant the handful of network channels we could get from an antenna on
the roof; and when our car broke down we'd have to hitch hike to the
next gas station or pay phone to call for help. It's hard to believe
that for my three young children, those are things of the past. They're
used to cell phones and cable TV.
We now live in a world where technology represents one of the largest
and fastest growing sectors of our economy. Technology employs millions
of Americans and was largely responsible for the tremendous economic
expansion from 1994 to 2000. Technology certainly helped fuel the
growth of my State's economy. According to the U.S. Department of
Commerce, Nevada is second in the Nation for net creation of high-tech
businesses. And I strongly encourage that growth because those
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businesses paid my constituents over $1.3 billion in wages.
Advances in technology have made our personal lives easier and our
professional lives more productive. Speed bumps in the communication
process have been eliminated and replaced with wireless phones and e-
mail. Advances in technology and the Internet now allow me to visit
regularly with my constituents in Nevada while I am working in
Washington through a real-time video teleconferencing network.
Constituents of mine back in Nevada are able to listen to my remarks
here on the Senate floor by logging on to my website.
Indeed, 10 years ago I would have never imagined technological
advances such as these, and I am certain that there will be more
unforeseen breakthroughs in the coming years.
Although new technologies greatly benefit American society, new
issues have arisen for legislators to address in order for America to
remain a world leader in technological innovation. We must grapple with
broadband deployment, copyright protection and enhanced wireless
services if we want America to have a competitive advantage.
High-speed Internet access, or broadband, will drive the economy of
tomorrow and every American household should have access to it at
reasonable rates. I believe that broadband Internet will serve as the
foundation for technological and communications advances in the future.
According to Commerce Secretary Evans, broadband is vital to America's
economy and will produce over 1 million new American jobs and an
additional $50 billion a year for our economy. The importance of this
technology cannot be underestimated, and surprisingly few Americans
have access to this service or subscribe to it due to its high cost and
its lack of desirable content. While there are a number of legislative
proposals currently before the U.S. Senate which aim to increase
broadband availability, this issue is far from resolved.
I am working with my colleagues on the Senate Commerce Committee to
address this important issue in a way that will level the regulatory
playing field for service providers, create incentives for private
investment in the networks, and preserve competition in the
marketplace. In short, instead of rolling out the red tape on private
industry, we should roll out the red carpet to allow competition in the
fairest manner possible.
As more Americans subscribe to broadband, private industry must work
cooperatively to ensure that copyrighted material is protected from
piracy. While America leads the world in software, entertainment, and
other kinds of intellectual property innovation, piracy is on the rise
and has taken a serious toll on our economy. In 2000, piracy cost
America an estimated 107,000 information technology jobs, $5.3 billion
in wages and $1.8 billion in U.S. tax revenue. It is clear that the
practice of piracy must be stopped. If not, the American economy will
continue to suffer and we will lag behind other nations in technology
innovations. We must aggressively protect copyrighted works--both at
home and abroad--that will drive the economy of tomorrow. The Commerce
Committee recently held a hearing on this important issue, and I am
aggressively working with my colleagues to stop piracy and bring a new
level of protection to copyrighted works.
Finally, Mr. President, we must encourage further advances in
wireless technology. In the last 10 years, wireless phone use has
skyrocketed, and over 132 million Americans now have a cell phone.
Prices have fallen and service quality has improved. Wireless has
expanded beyond voice to include wireless e-mail and text messaging,
like by Blackberry, which allows me to send and receive e-mail when I
am on the road.
Overseas, next generation wireless technology, such as wireless video
and Internet, have been deployed along with many other exciting new
services. Unfortunately, the United States has begun to lag behind
other nations in offering advanced wireless services. A number of
issues--such as spectrum management, spectrum harmonization, and
wireless security--demand our immediate attention in order to bring
these exciting new services home. As a member of the Senate Commerce
Committee and Co-chair of the Internet Caucus Wireless Task Force, I
will continue to work with my colleagues in the Senate to reestablish
the United States as the global leader in wireless technology.
In conclusion, we have accomplished much over the past year on many
technology issues. The Republican High Tech Task Force has been an
effective voice for technology on Capitol Hill. Members of the Task
Force have helped secure additional funding for the Patent and
Trademark Office, encourage greater copyright enforcement within the
Department of Justice, and provide tax incentives to stimulate business
investment in technology infrastructure. I look forward to another
productive year.
Mr. SMITH of Oregon. Mr. President, as a member of the Senate High
Tech Task Force, HTTF, I am proud to speak about the importance of the
hi-tech sector, a sector of our economy that has in the past been such
an effective engine of growth in my State of Oregon.
And it is this engine of growth that needs strengthening in order to
help the Oregon economy grow.
I am so pleased that the President signed into law last weekend an
economic stimulus package that included both an extension of
unemployment benefits and the bonus depreciation changes that I and
other members of the Task Force worked so hard to pass in the Senate.
Oregon, as many of you know, had an unemployment rate of 8 percent in
January, well above the national average.
The stimulus package included a much-needed unemployment benefit
extension, one that Oregon had already qualified for because of its
high unemployment rate.
But this stimulus package also included real economic stimulus that I
believe will boost the Oregon economy.
Both this year and last I have had the privilege of introducing bonus
depreciation amendments to various economic stimulus bills in an
attempt to actually stimulate business investment.
I did this because the current Tax Code penalized businesses,
especially the hi-tech sector, by forcing them to choose between either
retaining outdated equipment to fully recover their costs or foregoing
full recovery in order to stay abreast of the latest development in the
hi-tech fields.
Businessmen, farmers, the hi-tech industry all benefit from
accelerated depreciation, and the impact on this Nation's economy will
provide greater opportunities for jobs in my home State of Oregon where
the hi-tech sector is so critical to economic recovery.
Now we must take the next step in bolstering the hi-tech community by
making permanent the R&D tax credit.
The R&D tax credit encourages investment in basic research that over
the long term can lead to the development of new, cheaper, and better
technology products and services.
Research and development is essential for long-term economic growth.
Innovations in science and technology have fueled the massive economic
expansion we witnessed over the course of the 20th century.
These advancement have improved the standard of living for nearly
every American.
Simply put, the research tax credit is an investment in economic
growth, new jobs, and important new products and processes.
The R&D credit must be made permanent: This credit was originally
enacted in 1981, and has been temporarily extended many times.
Permanent extension of long overdue.
Because this vital credit isn't permanent, it offers business less
value than it should. Business, unlike Congress, must plan and budget
in a multiyear process. Scientific enterprise does not fit neatly into
calender or fiscal years.
Research and development projects typically take a number of years,
and may even last longer than a decade.
As our business leaders plan these projects, they need to know
whether or not they can count on this tax credit.
Current uncertainty surrounding the credit has induced businesses to
allocate significantly less to research than they otherwise would if
they knew the tax credit would be available in future years.
This uncertainty undermines the entire purpose of the credit.
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Investment in R&D is important because it spurs innovation and
economic growth: Information technology was responsible for more than
one-third of real economic growth in the late 1990s.
Information technology industries account for more than $500 billion
of the annual U.S. economy. R&D is widely seen as a cornerstone of
technological innovations, which in turn serves as a primary engine of
long-term economic growth.
This tax credit will result in higher wages. Findings from a study
conducted by Coopers & Lybrand show that workers in every State will
benefit from higher wages if the research credit is made permanent.
Payroll increases as a result of gains in productivity stemming from
the credit have been estimated to exceed $60 billion over the next 12
years.
Furthermore, greater productivity from additional research and
development will increase overall economic growth in every State in the
Union. Research and development is essential for long-term economic
growth.
The tax credit is cost-effective: The R&D tax credit appears to be a
cost-effective policy instrument for increasing business R&D
investment. Some recent studies suggest that one dollar of the credit's
revenue cost leads to a one dollar increase in business R&D spending.
Bonus depreciation and the R&D tax credit are but two of many issues
that interest both the hi-tech sector and this Senator.
While I am proud of the achievement with the bonus depreciation I
will continue to work with hi-tech companies on the R&D tax credit and
many other issues to keep our economy running strong, across this
Nation and especially in my State of Oregon.
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