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5/10/00 4:20 p.m.
E-Freedom!
Getting a GOP tech agenda.

By Maureen Sirhal, freelance writer

ver the party that does not want the high hand of Uncle Sam screwing up the economy, the House Republican leadership today renewed their eContract 2000, an updated version of their high-tech agenda for the coming year.

"We see high tech America as the new frontier," exulted House Majority Leader Dick Armey, " . . .the driving engine for the American economy and indeed the world economy." To that end, the contract reaffirms the House Republicans' commitment to a tax-free Internet, an economic platform plank very friendly to the high-tech industry.

There are some new tidbits, though; notably, a provision that would limit the government's hand in telecommuting, sparked by OSHA's disastrous foray into the home office. Additionally, Republicans want to advance legislation that protects worker stock options from added income taxes. The e-contract signals the direction of the Republican high-tech agenda: Loosening economic constraints will allow the industry to grow.

"We take it as a heavy responsibility . . . to always do legislatively those things that, on one hand, encourage . . . this innovation, this creativity," Armey said in his introduction, "but on the other hand, we stand as the first line of defense against government intrusion either through the form of taxation or regulation . . ."

Specifically, the plan solidifies the House Republicans' plan to pass legislation that will repeal the telephone excise tax, increase the number of H1B visas for high-tech workers, pass the digital signature legislation, and extend permanent normal trading status with China.

Notably absent from the contract was any mention of the digital divide, except as a soundbite from Rep. Goodlatte (R-Va.), who noted that taxing the Internet would create an even bigger economic gap in online access.

Instead of focusing on the digital-divide legislation, the House Republicans touted plans that reduce the costs of access, as well as initiatives like Ed flex, a part of the Elementary and Secondary Education Act that permits the states more flexibility in federal education dollars — thus freeing up funding for technology in the classrooms.

Clinton and his Democratic colleagues in the House and Senate have enthusiastically embraced federal-program proposals to do everything from training workers to training teachers to subsidizing individual Internet access for victims of the digital divide. But Republicans have taken a decidedly different route, asserting that less federal intrusion will create more opportunity.

In a tight presidential election year, it is an effort on the part of the GOP to connect more visibly with the high-tech community. Both parties have been fighting for face time with the deep pockets of Silicon Valley. But with the serious shortage of technically skilled workers, the industry is eager for the increase in H1B visas. A GOP plan to increase the cap from 115,000 to 200,000 will provide some temporary relief for the high-tech labor shortage. But the growth of the industry is just as dependent on its markets, and therefore eager for Uncle Sam to cultivate new markets, at home and abroad.

And that is one area that will be a likely point of major contention: the normalization of permanent trading status with China (PNTR). "It will open markets," said House Speaker Dennis Hastert, "Greater access to foreign markets will lead to greater growth for the high-tech industry." The Clinton administration, as part of its policy of engagement, has been pushing for permanent normalized trade status with China. The high-tech lobby has spent millions to bolster support for PNTR. With a billion-plus market, China presents unbounded opportunities for the growth of American technological preeminence, but such a vote faces intense scrutiny and opposition from the labor unions and human-rights organizations.

At the heart of campaigns like eContract is the realization that Republicans need to get themselves out into the forefront of the debate on high-tech issues. Already, public opinion weighs heavily in favor of promoting the tech industry in any way, though few Americans really understand the complexities of high-tech issues like broadband access, privacy, encryption, and all the rest. And with Clinton's recent New Markets tour, and the reputation that Al Gore maintains as a Silicon Valley ally, it is a way for Republicans to begin addressing their image of being less technologically engaged.

Still, the issues represent a clear political dividing line between Republicans and Democrats. One side is poised to let the market dictate solutions, while the other believes in creating federal programs alongside private initiatives to solve industry problems. Right now, the industry stands to benefit from playing both sides.

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