TECHNOLOGY, THE NEW ECONOMY AND DIGITAL OPPORTUNITY FOR ALL AMERICANS -- (House of Representatives - May 15, 2000)
 

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   The SPEAKER pro tempore. Under the Speaker's announced policy of January 19, 1999, the gentleman from Illinois (Mr. WELLER) is recognized during morning hour debates for 5 minutes.

   Mr. WELLER. Mr. Speaker, I appreciate very much this opportunity today to talk about technology, the new economy and digital opportunity for all Americans, but let me begin by just sharing some statistics.

   Over 100 million U.S. adults today are using the Internet, and seven new people are on the Internet every second. 78 percent of Internet users almost always vote in national, State and local elections, compared to 64 percent of nonInternet users. It took just 5 years for the Internet to reach 50 million users, much faster than traditional electronic media. In fact, it took 13 years for television to reach 50 million and radio, 38 years.

   The Internet economy generated, just in the past couple of years, over $300 billion in revenue in 1998. It was responsible for creating 1.2 million jobs. Preliminary employment data now shows that the U.S. high technology industry employed 4.8 million workers in 1998, making it one of our Nation's largest industries, in fact, larger than steel, auto and petroleum combined. In 1997, the high tech average wage was 77 percent higher than the average U.S. private sector wage.

   I am proud to say I represent the great State of Illinois, what some call the land of Lincoln. People often do not think of Illinois as a technology center, but it is. In fact, Illinois ranks third today in technology exports and fourth in technology employment. But clearly, Illinois is one of the top 10 cyber States, as some would say, a major State that is producing new technology and new ideas.

   I have talked with many over the years, over the last few years, in particular, about what it takes and why 

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this economy is growing so well in Illinois. And, that is, they say that government has actually stayed out of the way of the new economy. The new economy has been tax free, it has been regulation free, it is trade barrier free. That is why it has been so successful, creating opportunity for so many. That is why I am pleased that House Republicans continue to lead the way in technology. Our e-contract continues to work for a tax-free, regulation-free, trade-barrier-free new economy. And, of course, one of the areas we want to focus on is the area of providing digital opportunity for all Americans.

    

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   You know, it is unfortunate that it seems the higher the income, the more likely you are on-line. Families that have incomes of $75,000 or more are nine times more likely to have a home computer, and more than 20 times more likely to have Internet access than a low or moderate income family.

   When asked why lower income families and more moderate income families do not have Internet access or a home computer, those families, those working families, cite that cost, the cost of the computer, the cost of subscribing to the Internet access, is a chief barrier.

   That is why I am so pleased that this week House Republicans once again are going to lead the way on technology. We are going to be moving legislation passed out of the Committee on Ways and Means, which I serve on, legislation to repeal a 3 percent excise tax on telephone calls, a tax that has been in place since the Spanish American War, over a century. It was a temporary tax at that time. Well, that 3 percent tax is a tax today on Internet access, because 96 percent of those who access the Internet use their telephone to go on-line. Let us pass that legislation. I hope it has strong bipartisan support.

   I also want to call attention to my colleagues in the House to two important initiatives, legislation designed to increase digital opportunities so that every American family has the opportunity to be part of today's new economy.

   I am so proud that private employers have stepped forward to help solve the so-called digital divide. I have many educators that tell me that they find that children who have a computer at home compared to those who do not tend to do better in school. They notice the difference. They believe it is in the best interests of families when it comes to doing homework as well as research where you can access the Library of Congress via the Internet for children to have a computer at home.

   I am pleased that Ford Motor Company, Intel, American Airlines and Delta Airlines have stepped forward on their own initiative to provide home computers as well as Internet access as an employee benefit. Thanks to those four companies, 600,000 American working families will now have access to computers and Internet access. That means everybody from the janitor to the laborer to the guy working on the shop floor, up through middle management, up to the CEO, will all have access, universal access to the Internet, meaning their children will have a computer at home to do school work and research for school papers and school projects. That is good news.

   Unfortunately, many other companies that would like to do this, like to provide computers and Internet access to their employees, have been advised by their tax lawyers, wait a second; if you do, you are going to cause a tax increase for your employees because the IRS and Treasury Department will call this a taxable benefit.

   That is why the Data Act is so important. Let us treat that computer and Internet access as tax free, the same as an employer-provided contribution to your pension, the same as an employer contribution to your health care.

   Mr. Speaker, that type of initiative deserves bipartisan support.

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