WASHINGTON-Republicans and Democrats last week officially began the fight for control of America’s high-tech agenda, a battle more about broad national economic policies than about key digital issues like privacy, e-commerce taxation, cyber security and third-generation mobile-phone spectrum.
President Bush, seeking to shore up support from a high-tech industry badly battered on Wall Street, began by naming Floyd Kvamme-a high-profile Silicon Valley venture capitalist and GOP fundraiser-co-chairman of the resurrected Presidential Council of Advisors on Science and Technology. The other co-chairman will be the new director of the White House Office of Science and Technology Policy, a position yet to be filled.
“I first want you all to know that this administration has great confidence in the future of our technology industry,” Bush told a group of 150 high-tech leaders-including VoiceStream Wireless Chairman John Stanton, Dobson Cellular CEO Ed Evans and First Cellular of Southern Illinois CEO Terry Addington-at the White House last Wednesday.
Senate Democats will release their high-tech blueprint this week.
“We recognize, like you do, that the stock market may be sending a little different message right now; that people have suffered losses and there are some difficult times for some of the companies in the high-tech world,” said Bush. “But the accomplishments of the industry are rock solid. The future is incredibly bright.”
Bush, stung by criticism from Democrats and others that he is talking down the economy in order to build support for his 10-year, $1.6 trillion tax cut, appeared to make a concerted effort last week to strike a lighter note in comments about the economy generally and his economic plan specifically.
Indeed, what was billed as an unveiling of Bush’s high-tech agenda, was a repackaging of the president’s broad national priorities-including tax cuts, education reform and free trade-as well as a couple of sweeteners-deregulation and a permanent research and development tax credit-for industry.
Following the White House speech, Bush and other administration members met with high-tech executives, at which time Stanton and others flagged the issue of 3G spectrum, according to a source. The mobile-phone industry needs 3G spectrum in frequency bands held by military, educational, religious, Internet and broadcasting licensees.
Though he served as Texas governor in Austin-one of the nation’s high-tech meccas-Bush and Republicans generally have not cultivated the kind of relationship with Silicon Valley nor shown the level of interest in digital policies exhibited by New Democrats during the Clinton administration.
Bush has had to retreat on the few high-tech issues he has addressed so far. The president’s effort to reform the e-rate, a congressionally mandated initiative to give schools and libraries discounts for Internet connections, will likely not be turned into a state block-grant program. Likewise, Bush proposals to levy spectrum fees on TV licensees and to delay key broadcast auctions were not included in the budget resolution passed by the House Budget Committee. Bush’s plan to stop funding a rural telecom loan program has attracted opposition from his political base.
Senate Majority Leader Tom Daschle (R-S.D.) said Bush’s tax-cut plan will hurt the high-tech industry, claiming the president’s budget underfunds education, research and development, high-tech training and efforts to bridge the Digital Divide. The Digital Divide describes the lack of access to Internet technology in low-income, minority and rural communities.
“Democrats in Congress have a better way,” said Daschle. “We will be unveiling a comprehensive plan very soon that we have developed with industry leaders to strengthen America’s high-tech economy. Our plan combines significant tax cuts and other measures to spur innovation, productivity and growth-now and in the future. We hope to work with the president on this more substantive agenda. In this time of economic uncertainty, we can’t afford to let oversized tax cuts crowd out our ability to invest in one of the most critical parts of our economy.”
