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Policy Predictions
Haley Barbour, a former chair of the Republican National Committee, and Tom Downey, a Democratic Congressman from New York from 1975 to 1993, were on Microsoft's Redmond campus recently to speak to employees. Both men have had much exposure to issues critical to the technology business. Barbour and Downey took time to respond to this question from our employee newsletter, Micronews:
"What are your predications for the coming year for the high-tech industry with such a closely divided Congress and a new administration?"
We thought FIN members would be interested in their responses:
Tom Downey:
"Medieval maps of the world often depicted unknown lands with the legend "Here be dragons." The new, evenly divided Senate and the closely divided House face uncharted territory. Whether it is inhabited by dragons or not only time will tell.
"However, there have already been surprising developments, not the least of which is the unprecedented power-sharing arrangement in the Senate. Most observers agree that this agreement was a brilliant accomplishment for Democratic leader Senator Tom Daschle of South Dakota. This is clearly a good deal for Democrats, and it will make it much easier for them to bring legislation that they care about to the Senate floor.
"The technology community still has many powerful advocates in both bodies, and the role the high-tech community played for both parties in the recent elections ensures that the community's concerns will be heard. In one critical area, privacy, there may be a rough road ahead, because privacy policy, perhaps more than any other high-tech concern, cuts a broad swath in the consumer consciousness and is a classic issue for grassroots organizing. People who care little about market access, intellectual property, or H1-B visas and the labor supply do care about who gets to see what information about them and their families. Privacy has the potential to develop as a major issue for the tech community. "
Haley Barbour:
"The high-tech community can be proud that it helped enact a long and impressive agenda in the 106th Congress. From China trade to H1-B visa expansion, almost all of what the technology community sought it achieved. The agenda for the upcoming Congress will shift from seeking government help to primarily preventing government harm.
"With concerns over Internet privacy high on the minds of policymakers, it's likely that a legislative battle lies ahead. It will be up to the technology community to work with Congress and the administration to prevent ill-advised privacy legislation. Also sure to receive attention will be potential copyright-law changes in response to litigation involving Napster and MP3.com. Legislation to give greater legal protection to databases will resurface, as well as attempts to extend the moratorium on Internet taxation. And finally, broadband will be the focus of Congress as it grapples with the so-called "digital divide." Sure to see action will be bills to deregulate the market for the provision of broadband services, particularly allowing the regional Bell companies more flexibility.
"While not as lengthy an agenda as that of the last Congress, this year's will be equally important. The high-tech community is developing a special relationship with policymakers on both sides of the aisle. As we head into the 107th Congress, it is important that Microsoft and the industry nurture and extend that relationship. "
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High-Tech Issues on the Horizon
Both Barbour and Downey have already been proven correct on many issues. Here are some of the high-tech issues Congress and policymakers are dealing with already:
Internet: The Congressional Internet Caucus will hold its first meeting of the session on February 14. More than 30 companies will demonstrate innovative technologies for members of Congress and staff. Microsoft will display a pre-release version of its 6.0 Internet Explorer browser with P3P-based privacy-enhancing technology built in.
Privacy: The Federal Trade Commission will hold a workshop to focus on how businesses merge and exchange consumer information. Additionally, a number of bills that address privacy have been introduced in Congress, with hearings likely to be scheduled this spring.
R&D Tax Credit: As part of his $1.6 trillion tax cut plan, President Bush has included a proposal to make the R&D tax credit permanent.
Net Tax: Senator Ron Wyden (D-OR) and Representative Chris Cox (R-CA) have introduced legislation that extends the Internet tax moratorium, which is set to expire on October 31. The bill would also seek fast track authority for the Streamlined Sales Tax Project.
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Antitrust Case: Next Steps
Oral arguments before the United States Court of Appeals are scheduled for February 26 and 27, with a decision by the Appeals Court to be issued in the months following.
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Stay Involved
You can let public officials know how you feel about issues affecting Microsoft and the high-tech industry on the Freedom to Innovate Network website. To contact them, or just to stay up to date on the antitrust trial and other issues, go to:
http://www.microsoft.com/freedomtoinnovate
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