House NDC | Key Document | June 13, 2001 e-genda 2001 By New Democrat Coalition Much has changed in Washington in the past six months: the White House changed hands for the first time since the New Economy took hold, a federal government entirely controlled by Republicans turned out to be short-lived, and the unprecedented growth and prosperity we experienced in the late 1990's has slowed. But one thing hasn't changed. New Democrats in Congress, under the leadership of Reps. Cal Dooley (CA), Jim Moran (VA), Tim Roemer (IN) and Adam Smith (WA), are still leading the way on the policies that will affect the New Economy. New Democrats have a record of success fighting for policies to expand the New Economy and empower all Americans to succeed in it. Last year, New Democrats led the successful fight on H1-B visa legislation, mobilized support for passage of China PNTR and secured a shorter review period for export controls related to high performance computers. These are just a few of the major policy issues in which New Democrats played a pivotal role. Our e-genda 2001 marks our third release of a comprehensive New Economy policy agenda, and we look forward to continuing our efforts on familiar fronts, such as trade, education and research funding. We also bring new issues to the table, such as the need for a national spectrum management policy, and a Chief Information Officer in the federal government. We know that we need a comprehensive investment effort -- in our people and in research and development. Our laws and regulations must be modernized to promote innovation and the digital economy. And perhaps most importantly, we must allow our economy to grow and prosper by keeping the government efficient and our budgets balanced. Our key priorities for the New Economy include: INVEST IN EDUCATION AND A SKILLED WORKFORCE so that all Americans have the opportunity to succeed in the New Economy; FOSTER THE DIGITAL ECONOMY so that productivity and technology continue to be the engine of our economic growth; PROMOTE INNOVATION to unleash the potential to save lives and open doors to the future; ASSERT GLOBAL LEADERSHIP to open overseas markets to American goods and services; PROMOTE DIGITAL GOVERNMENT to streamline government so that Americans can get out of line and on-line to participate in their democracy; and ADOPT RESPONSIBLE FISCAL POLICIES TO ENSURE CONTINUED GROWTH to keep interest rates and the cost of capital low and to foster the environment for businesses and individuals to succeed. Investing in Education and A Skilled Workforce New Democrats believe that the first step towards preparing the American workforce for the New Economy is a world-class education system, including high quality standards and assessments for all students, the elimination of the "achievement gap" between high- and low-performing students, accountability at the state and local level, and increased investment to help all students achieve. Strengthening and Reforming Public Education New Democrats, led by Reps. Roemer, Dooley and Smith and Senators Lieberman (CT) and Bayh (IN), have introduced the "Three R's" (H.R. 345 and S. 303) which increases funding for key education programs, including Title I, teacher quality improvement, and bilingual education; requires increased accountability from states and local school districts for student achievement; and provides an unprecedented level of flexibility for supplemental programs. In exchange for greater flexibility over how federal dollars are spent, the plan puts a new focus on student achievement by making schools more accountable. New Democrats are pleased that H.R. 1, which was passed by the House of Representatives, includes many of the important principles outlined in the "Three R's" legislation. New Democrats support the use of valid and reliable annual tests in elementary and middle school in math and reading. These tests should be used both as a diagnostic tool for targeting additional resources to students who need more assistance, and to ensure that states, school districts and schools are helping all students learn to high standards. In addition, New Democrats support requiring all States to participate in the NAEP to provide a national measure of progress. New Democrats support efforts to improve the recruitment and retention of high quality teachers. Rep. David Price (NC) has introduced H.R. 839 to make federal grants available to states that provide students -- either high school seniors or students in their second year of college -- with scholarships of at least $6,500 per-year and an extensive extra-curricular program. In return, graduates would teach within the state for four years at public schools or for three years at low-performing schools. Rep. Dennis Moore (KS) has introduced H.R. 687, which would provide up to $10,000 in loan forgiveness for teachers in high poverty schools or in subject areas of greatest need. Investing in Math, Science and Technology New Democrats' support for technology in schools is as simple as ABC: Access Benefits Children. New Democrats also believe that the federal government must continue its leadership role in ensuring access to technology for schools and communities. We support increased funding for educational technology, with a sharpened focus on the integration of technology into the curriculum and professional development for teachers. New Democrats support increased investment in programs that produce more students who pursue careers in math, science and technology, including programs at the National Science Foundation that support math and science partnerships and graduate students working in K-12 classrooms. In addition, the revenues from the H-1B program should continue to be used for computer science, engineering and mathematics scholarships, and public-private partnerships that provide professional development for teachers. The Three R's legislation requires states to establish science educational standards and assessments to ensure that we are developing our future scientists and entrepreneurs. New Democrats support H.R. 1149, introduced by New Democrat Rep. Mike Honda (CA) that would create a National Education Technology (NET) Corps that would work with school teachers and administrators to integrate technology into the classroom curriculum. This legislation would also offer a tax credit to corporations that allow their employees to participate in a local NET Corps program. New Democrat Rep. Rush Holt (NJ) has introduced H.R. 117, which would provide funds to states for the recruitment of math and science teachers, including loan forgiveness, and professional development activities, including summer workshops, for math and science teachers. This bill would also provide funding for states to establish math and science academic enrichment programs for students. Expanding Digital Opportunities No school or library can afford to be left behind in today's digital economy. New Democrats are strong supporters of the e-rate program, which has helped 98 percent of our nation's schools obtain Internet access, especially schools in high poverty and rural areas. New Democrats support full funding of the e-rate, and will oppose anticipated Republican attempts to dismantle this program or lower funding levels. New Democrats support the increased funding for the Department of Commerce's Technology Opportunities Program (TOP), which promotes the widespread use of advanced telecommunications and information technologies in the public and nonprofit sectors through matching grants to states, tribal, and local governments and other nonprofit entities. The Bush Administration would cut funding for this program to $15 million; New Democrats support the restoration of funding to $45 million. Investing in the Workforce New Democrats know that lifelong learning and job training is critical to the success of the New Economy. We support industry-driven training programs and public-private partnerships to help workers develop job skills, as well as tax incentives to spur investment in our workforce. New Democrats support legislation introduced by NDC Co-chair Rep. Jim Moran (VA) that would provide a tax credit for high-technology training expenses. H.R. 1769 would provide tax credits of 20 to 25 percent of training expenses up to $6,000 per employee to employers who provide information technology training. Additional credits are available under the bill for employers who offer IT training programs in empowerment zones, economically depressed areas, and rural areas. New Democrats support H.R. 1483, the permanent extension of Section 127 of the Internal Revenue Code for both undergraduate and graduate-level educational assistance, as introduced by Rep. Sander Levin (MI). This private sector initiative has enabled thousands of U.S. workers to expand and develop critical skills and education needed to compete in the global economy. New Democrats recognize that U.S. companies are important partners in developing a skilled workforce. New Democrats support legislation introduced by Senator Joe Lieberman (CT), S. 798, that will create a 30 percent tax credit for education expenditures for companies that provide literacy, numeracy, and English as a Second Language courses. New Democrats also support Regional Skills Alliances legislation that would create industry-led, public-private partnerships in which employers, public agencies, educational institutions, and labor unions can use matching federal funds if they pool their resources to identify and train workers for region-wide opportunities. This legislation, which will be introduced by NDC Co-Chair Jim Moran (VA), is intended to provide a demand-side initiative that would catalyze businesses to play a greater direct role in developing skills that they and their regions need. Foster the Digital Economy Economic growth, continued gains in productivity, and low unemployment are largely attributable to the advances brought about by the digital economy. New Democrats believe that public policy should promote the growth of e-commerce and include common sense protections for consumers and businesses engaging in on-line transactions. Broadband Access New Democrats remain committed to accelerating the deployment of advanced telecommunications services, especially to underserved rural and intercity areas. New Democrats realize that such access is essential if all Americans are to share in the promise of telemedicine, distance learning, business-to-business video services, and entertainment. New Democrats believe Congress must strike a balance among competing interests. New Democrats support H.R. 267, introduced by NDC member Rep. Bob Matsui (CA). It would give companies the incentive to build current-generation broadband facilities in rural and urban areas by using a very focused tax credit. It would offer any company that invests in broadband facilities in rural or intercity areas a 10 percent tax credit over the next five years, and broader credits for companies that invest in next-generation broadband services. Privacy New Democrats understand that the growth of e-commerce is predicated on trust in the medium and we believe that our newest technologies should support our oldest values. Consumer concern about the protection of personal information remains a challenge for greater growth. New Democrats seek to build confidence among computer users by enhancing security in e-commerce transactions, combating fraud and identity theft, and promoting consumer choice while ensuring that the United States continues to be the world leader in electronic commerce. In the development and discussion of privacy, New Democrats believe that there must be differentiation between sensitive and non-sensitive data. New Democrats also seek to play a role in educating citizens about protecting their privacy. Finally, New Democrats believe that government agencies must be held to the same standard as the private sector in terms of managing personal information. New Democrats support H. Res. 159, sponsored by Reps. Smith (WA) and Dooley (CA), which recognizes the importance of the P3P specification and encourages both public and private sector web site operators to make their web sites P3P compliant. P3P is designed to empower consumers with the means for evaluating web sites- privacy standards and then making choices about how to interact with that site. New Democrats believe that widespread adoption of this technology -- among both consumers and industry -- will help address important privacy concerns. As a first step, New Democrats support the Privacy Commission Act, H.R. 583, introduced by NDC Co-Chair Rep. Jim Moran (VA) which establishes a 16 member commission to examine the threats that exist to the privacy of Americans. The legislation requires the commission to issue a report to Congress on how best to protect Americans privacy while keeping in mind the potential for unintended effects on technology development, innovation, the marketplace, and privacy needs. Cybersecurity and Information Assurance New Democrats understand that protecting our nation's critical infrastructure from cyber-terrorists and hackers is critical to our national defense and economy. New Democrats believe that the United States government and private sector should work together to protect our nation's critical infrastructure. New Democrats also understand that hiring, training and funding skilled Information Technology personnel within the government is an important part of protecting these assets. New Democrats support legislation soon to be introduced by NDC Co-Chair Rep. Jim Moran (VA) which is designed to protect electronic commerce in the United States from cyber-attacks by providing incentives for the private sector to voluntarily share information on cyber-vulnerabilities and threats with other American businesses and the United States government. The bill exempts sharing of this information from anti-trust law violations and the Freedom of Information Act. Spectrum New Democrats recognize that 3G wireless services are the next revolution in delivering critical new content and applications to consumers and businesses. New Democrats believe that spectrum management will directly impact the development of new technologies that benefit consumers and our economic growth. New Democrats support a rigorous examination of current rules and regulations related to the allocation, international harmonization and governance of spectrum to ensure that it is consistent with the growth of the New Economy. New Democrats will work with all parties to ensure that spectrum is managed efficiently while remaining mindful of public safety, national security and commercial needs. New Democrats urge the Administration to create an interagency task force charged with developing a comprehensive strategy for effective spectrum management. New Democrats call on Congress and the Administration to develop a national spectrum policy. We believe that spectrum policy must spur the development of new wireless technologies that will result in new products for consumers, including the delivery of broadband services to consumers in underserved areas. New Democrats believe that the FCC should license new technologies that reharvest and efficiently use spectrum space to provide for new services to consumers. Incentives for Entrepreneurial Investments Incentives for entrepreneurial investments is a key and often-overlooked component of economic success. New Democrats support measures to spur growth and investment in entrepreneurial and startup firms that can be the engine of economic growth and innovation. New Democrats support legislation introduced by Senator Joe Lieberman (CT), S. 798, that would increase capital investment in small businesses, including those entrepreneurial and startup firms driving economic growth by creating a zero capital gains rate for new, direct, long term investments in small businesses and extending the small business capital gains exclusions to corporate investors. The legislation also redefines small business in the tax code, and excludes incentive stock options from the application of the Alternative Minimum Tax. Modernize the Tax Code Modernizing the tax code for the New Economy is a critical challenge for the federal government, the states, and localities. New Democrats support a continued Internet taxation moratorium of 2 to 5 years. New Democrats also support the development of a comprehensive legislative strategy that fosters electronic commerce, creates a level playing field between traditional merchants and e-commerce, and results in tax simplification for consumers and business. Furthermore, we support modernization of the tax code and policies that will permit the information technology industry to continue its extraordinary contribution to our economy. Specifically, we seek changes in the current depreciation rules that would allow the IT industry to continue to pursue objectives which result in continued job growth, productivity gains, and overall economic expansion by 1) recognizing that rapid technological change has occurred and continues to take place; 2) reducing the recovery period for assets that have increasingly shorter lives; 3) reducing taxpayer compliance costs, and streamlining audits by making them simpler, less costly, and less time consuming for taxpayers and the IRS. Stock Options New Democrats support H.R. 1487 introduced by Rep. Zoe Lofgren (CA), legislation that would help high-technology workers with tax liabilities that resulted from the exercise of stock options by removing the exercise of incentive stock options from the alternative minimum tax. Promote Innovation New Democrats recognize that new approaches in public policy are necessary to keep up with the dramatic changes brought about by the New Economy. We support a regulatory environment that fosters rather than impedes innovation. Federal Research Funding New Democrats recognize that a sustained public investment in long-term, basic research is the foundation for scientific and technological leadership. Private and public investment in research and development supports innovation and training of future scientists and engineers. New Democrats are committed to increased federal research funding for the National Science Foundation, DARPA, NIH, and other federal research. New Democrats support increased research funding for NIH and the Department of Defense, but recognize that federal research funding must strike a proper balance. New Democrats oppose Republican budget cuts to six of the 11 largest R&D funding agencies including the National Science Foundation, the Environmental Protection Agency, and the Departments of Energy, Agriculture, Commerce, and Interior. New Democrats also support full funding for the Advanced Technology Program (ATP) and Small Business Innovation Research (SBIR) Program. These public-private partnerships that support development and commercialization of innovative new technologies have had tangible economic benefits. IT2Initiative The New Democrat Coalition supports the IT2 R&D initiative to double the federal commitment to fundamental research in information technology. The IT2 initiative proposes a $366 million increased investment in computing, information, and communications research and development to help expand the knowledge base in fundamental information science, train the next generation of U.S. researchers, and develop cutting edge technologies. Permanent Extension of the R&D Tax Credit New Democrats understand that we need to encourage research and development in the private sector with a permanent R&D tax credit. Continuing to extend this important credit on a yearly basis simply hampers, rather than promotes, productivity and innovation. Permanency will provide industry with the predictability they need to make long term investments in R&D. New Democrats support H.R. 41, introduced by Rep. Robert Matsui (CA) that would permanently extend the research and experimentation tax credit and increase the rates of the alternative incremental credit. New Democrats support H.R. 1137, legislation introduced by Reps. Hooley (OR), Crowley (NY) and Holt (NJ), to permanently extend the R & D tax credit and improve the credit to reward basic research and make the credit more accessible to smaller firms, universities and labs. Patent Office New Democrats believe that user fees paid to the U.S. Patent and Trademark Office (USPTO) should be used for the purpose they were intended: to fund a well managed and efficient patent office with the expertise and resources to review pending applications in a timely fashion. Innovations in science and technology have fueled the economy in the information age and a well-funded, efficient USPTO is vital to continued economic growth and prosperity. Retention of fees generated from patent applications will allow the USPTO to operate more efficiently and ensure that U.S. companies remain globally competitive. Stem Cell Research New Democrats recognize that stem cell research could lead to new treatments and cures for as many as 128 million Americans afflicted with life-threatening and debilitating diseases. The NDC supports federal funding for stem cell research and urge the Bush Administration to immediately adopt the guidelines written last year by the National Institutes of Health that would allow federally funded stem cell research while striking the appropriate balance between competing ethical concerns. Energy New Democrats want to meet our energy challenge with a progressive energy policy, one that embraces and invests in the technologies of tomorrow, spurs our people and our businesses to innovate, empowers consumers to make smart energy use decisions, and modernizes our often-outdated systems or regulations and infrastructure to fit the realities of the 21st century. In May, a group of New Democrats led by Representatives Adam Smith (WA), Ron Kind (WI), and Rick Larsen (WA), introduced principles and ideas for an energy policy. Legislation is currently being drafted. Digital Media New Democrats believe that copyright law must balance the rights and interests of artists with the free flow of information and ideas. However, copyright laws must be technology neutral" to ensure the proliferation and availability of new technologies that benefit consumers and to promote the continued growth of new media businesses. Congress should analyze the impact of copyright law to ensure that the development of new technologies and innovative applications are not stymied by narrow interpretations of existing law, but rather are enhanced by reasonable modifications that support online media and commerce. Assert Global Leadership We live in a world where international and borders are becoming increasingly porous to the flow of information and investment capital, and where the Internet is truly impervious to arbitrary boundaries. Ninety-eight percent of world trade occurs outside the United States. Growth and expansion of the U.S. economy depends on our engagement in the global economy and on attracting the best and brightest minds from around the World. New Democrats have been an essential and consistent voice and vote in support of expanding trade opportunities for U.S. goods and services. New Democrats argue that increased trade and strengthened economic partnerships are important tools to advance democracy, human rights, labor and environmental standards around the globe. New Democrats are committed to expanding the bipartisan consensus for trade, embracing economic engagement while addressing the legitimate concerns of those who are not fully sharing in the economic prosperity created by increased international trade. New Democrats also support modernizing immigration laws to attract the world's leaders in intellectual capital. Trade Promotion Authority New Democrats support Trade Promotion Authority (TPA) as a critical tool to use in opening markets to U.S. goods and services. The NDC supports TPA legislation that gives the President authority to negotiate on all trade-related issues and will work with the Administration to develop provisions that give reasonable consideration of issues relating to labor and the environment. Last month a group of House and Senate New Democrats released principles for granting the President TPA with appropriate consideration for labor and environmental standards. The principles, drafted by Rep. Cal Dooley (CA), also include an "enforcement toolbox" that gives the President maximum flexibility while not precluding the use of any specific enforcement mechanism to increase compliance with negotiated commitments. In addition, the principles declare that labor and environmental goals should have parity as negotiating objectives, and that congressional consultation on the progress of trade talks should be enhanced. The principles also call for a set of "parallel policies" to increase domestic confidence in trade, ranging from improvements to the Trade Adjustment Act to a stronger commitment to improve labor and environmental standards through international organizations. Bilateral and Multilateral Trade Negotiations New Democrats support progress on bilateral and multilateral trade negotiations that will increase the flow of U.S. goods and services to the international marketplace. New Democrats support progress on a number of fronts including agreements and negotiations including Jordan, Singapore,Vietnam, Chile, an extension of the Andean Trade Pact, the Free Trade Area of the Americas and a new WTO round. In addition New Democrats will continue to support renewal of PNTR. Framework for Global E-Commerce and Digital Trade The U.S. is the world leader in e-commerce, digital trade and information technology. New Democrats support an internationally recognized framework for global e-commerce and digital trade that addresses issues of jurisdiction and sovereignty to promote the growth of global e-commerce. New Democrats believe that current WTO obligations, rules, disciplines and commitments should apply to e-commerce. Electronically delivered good and services should receive no less favorable treatment under trade rules and commitments than like products delivered in physical form. New Democrats support H Con Res 132 introduced by Senator Joe Lieberman (CT) and Rep. Ellen Tauscher (CA) that calls on the Administration to make digital trade and the promotion of cross-border e-commerce a high priority in the trade agenda. Export Controls New Democrats have been long-time supporters of a comprehensive reform of our nation's current export control regime to ensure that the next generation of commercial products do not fall victim to burdensome export licensing requirements that were never intended to regulate widely available commercial products. New Democrats support HR 1553, which would eliminate MTOPS as a metric for measuring computer power and give the president the flexibility to choose a new system for controlling exports of high-performance computers. Trade Adjustment Act New Democrats support reauthorization and comprehensive reform of the Trade Adjustment Act to provide for education, employment, training, and other policies that will allow workers to adapt easily to dramatic economic change, and to change their place of work without fear of losing health insurance or pension benefits and gear our policies toward "expanding the winner's circle" in a rapidly changing economy, not toward the perceived ill effects of any one type of economic activity. New Democrats support a proposal by New Democrat Rep. John Larson (CT) to create a federal Office of Community Economic Adjustment in the U.S. Department of Commerce to provide a coordinated federal response to major economic dislocations, whatever their source. Sanctions Reform In recent years the imposition of unilateral sanctions by the United States has exploded, with more than 75 nations currently subject to, or threatened by, U.S. sanctions. While unilateral economic sanctions have been used as foreign policy tools for many years, they have proven to be largely ineffective in achieving their intended goal. New Democrats support sanctions reform legislation, which will soon be re-introduced by NDC Co-Chair Cal Dooley (CA), to improve the way the U.S. government makes decisions to impose unilateral sanctions and to create a common sense framework for the consideration of future unilateral sanctions policy. Export-Import Bank and OPIC Funding The New Democrat Coalition supports Ex-Im and OPIC funding. Both OPIC and Ex-Im are important tools for promoting US exports and help offset the trade distorting activities of foreign credit agencies. Under-funding these programs would be tantamount to unilateral disarmament. The small investment to support both of these programs is more than returned to the Treasury either directly or through increased tax revenue. Promote Digital Government New Democrats believe that we can bring government into the 21st Century by embracing technology. We can have a leaner, more efficient government and bring resources and services closer to the people through the effective use of information technology. Office of Information Technology New Democrats believe we need a coordinated effort to encourage government use of information technology. New Democrats support the proposal to create an Office of Information Technology in the Executive Office of the President, which would be led by a Chief Information Officer of the United States. The Office would provide analysis, leadership, and advice for the President and agencies. Restructuring the Immigration and Naturalization Service The Immigration and Naturalization Service must be restructured in order to expedite the application process for business and family applications. New Democrats support efforts to restructure the INS and introduce innovations such as electronic filing and signatures to alleviate paper burdens and expedite the processing of applications. Using Technology to Promote Efficient Government New Democrats want to improve public access to government resources over the Internet and promote the use of online transactions between citizens and the government. New Democrats are committed to working with both the public and private sectors in an effort to encourage government to use technology that will enhance efficiency and accessibility. New Democrats also support government procurement reform aimed at saving resources, reducing the unnecessarily long acquisition processes and ensuring that important IT software and hardware are refreshed and updated on a regular basis. Bringing Government Closer to People New Democrats believe that the government can - and should - play an important role in funding services that the private sector won't, or that cost too much for the average person to use. Examples include online career aptitude testing, skills assessment; career counseling, and basic skills and English as a second language acquisition. The federal government should consider funding the very best programs so that they are available without cost online. Cooperation not Competition The NDC supports the implementation of e-government activities with the goal of more efficient, accessible, and responsive government operations. However, the federal government should not directly compete with the private sector in e-commerce markets. Private sector competition from the federal government can have significant policy and economic implications and cause damage to developing New Economy markets. Adopt Responsible Fiscal Policies to Ensure Continued Growth Fiscal discipline is a top priority for New Democrats. We recognize that reducing the debt also reduces the cost of capital and has enormous economic benefits for the country, businesses, and families. We support a federal budget that is balanced and makes key investments in human capital and research to keep our economy strong. We also understand that demographic changes require entitlement reform so that our country stays fiscally sound while still ensuring seniors have health care and retirement security. Reducing the Debt The $5.6 trillion debt crowds out private investment, driving up interest rates. The debt also consumes over 13 percent of our federal budget, dollars that could be better used to reduce the tax burden or invest in education, federal research, or other forward-thinking investments. New Democrats have been an outspoken group in Congress on the need to prioritize debt reduction. Taxes New Democrats support reducing the tax burden on the American people and businesses to continue our economic growth. Now that the $1.35 trillion tax cut is law, New Democrats believe it is time to move forward and answer very clearly: what can we do to keep our economy going and our prosperity growing. The tax cut is just that: a tax cut. It is not a comprehensive prosperity agenda. New Democrats are committed to investing in our people and in our future. Our laws and regulations must be modernized to promote innovation and the digital economy. And we must allow our economy to grow and prosper by keeping the government efficient and the budget balanced. While markets are the best drivers of growth and innovation, New Democrats believe that public policy can and should spur innovation. New Democrats believe that the New Economy can provide opportunity to all Americans by creating good-paying jobs and increasing productivity. We will work to advance the policies embodied in this year's e-genda and are confident that this blueprint will help ensure opportunity for all Americans. Founded in 1997 by Representatives Cal Dooley (CA), Jim Moran (VA) and Tim Roemer (IN), the New Democrat Coalition is a group of 72 centrist, pro-growth members of the House of Representatives who are working to find mainstream, bipartisan solutions to our nation's problems.