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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Senate so that we are well informed as to the impact of any potential changes in laws, or there may be laws that are outdated and need to be updated or upgraded.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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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.
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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
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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.
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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.
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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.
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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.
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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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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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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.
END