Taxes
Hype Over Net Taxes Unlikely To Survive
     While the flurry of the GOP's tax week activities have re-ignited Capitol Hill attention on Internet taxes, it's unlikely the momentum on the controversial issue will last through a tight legislative schedule and competitive presidential election year. Since a number of states rely heavily on sales taxes for their revenue, lawmakers of both parties remain divided over how or whether to extend the current sales tax system to online goods and services. A lack of consensus on the Senate Commerce Committee that forced Chairman John McCain, R-AZ, to postpone a vote on his plan, S. 2255, which would have extended the current moratorium for five years. The divisions on the panel are limited to party lines, which will make it difficult to move any Internet tax-related legislation.

Exports
Committee OKs Reducing Review Time
     The House International Relations Committee approved legislation that would allow some changes to computer export controls to be implemented more quickly than allowed by current law. The committee, on a 31-0, vote approved the bill, H.R. 3680, that would reduce from 180 days to 30 days the amount of time Congress has to review changes to computer export controls covering about 50 countries, including China, Russia and Pakistan. The bill is retroactive to Jan. 1 to include the most recent changes loosening computer export controls announced by the Clinton administration in February.

Telecom
Wireless Could Help Bridge Digital Divide
     The federal government's relatively loose hold on wireless communications regulations is what's driving the industry to soon offer wireless Internet services to those living and working outside the reach of traditional cable and telephone broadband services, industry leaders told the House Science Technology Subcommittee. Rep. Gil Gutknecht, R-MN, said the speed at which the technology is developing will be a boon to rural areas beyond the reach of high-speed cable networks or telephone digital subscriber lines (DSL). Qualcomm CEO Irwin Jacobs said that multiple competing technologies are driving costs down and making it more feasible to offer wireless Internet services.

Labor
Gephardt: Visa Issue Should Be Non-Partisan
     House Minority Leader Richard Gephardt, D-MO, accused the chief Republican sponsor of legislation that would increase the number of visas available for skilled foreigners of trying to turn the matter into a partisan issue. Gephardt made the charge in a letter sent this week to House Rules Committee Chairman David Dreier, R-CA, in response to one the Republican sent last week. In that letter, Dreier called on Gephardt to co-sponsor Dreier's bill, H.R. 3983 increasing the cap on H-1B visas. Gephardt has said that he supports the measure but has not signed on as a co-sponsor. Dreier argued that the bill, which is co-sponsored by House Majority Leader Dick Armey, R-TX, would have a better chance of quick passage if it enjoyed the support of two of the top House leaders from both parties.

Labor
House Subcommittee OKs Smith H-1B Bill
     The House Judiciary Immigration Subcommittee approved legislation proposed by subcommittee Chairman Lamar Smith, R-TX, which would eliminate the caps on the number of H1-B visas available to visiting foreign professionals through fiscal year 2002. House Judiciary Courts and Intellectual Property Subcommittee ranking member Howard Berman, D-CA, heaped criticism on the Smith proposal, saying the measure purports to eliminate the H1-B visa caps, but then ties the hands of the industry it proposes to help. It creates "an uncapped program that is impossible for employers to use," he said, adding that the measure imposes several regulatory and bureaucratic hurdles for industry that render the lack of caps moot.

Education
Ehlers Aims to Bolster Math, Science Study
     Aimed at addressing long-term workforce and education needs, Rep. Vernon Ehlers, R-MI, offered a package of three bills that would increase training, curriculum development and incentives for elementary and secondary school math and science teachers. Ehlers' bills would draw on support from the National Science Foundation, Education Department and partnerships with private businesses to create a system of grants, mentors and curriculum evaluation services to improve math and science education. Ehlers cites the demand by the high-tech industry for more high skilled foreign workers through the H1-B visa program as a reason for redoubling math and science education efforts domestically.

Trade
High Tech Firms Lobby Hill On China PNTR
     The high technology industry brought some of its big guns to Capitol Hill to tout the benefits of permanent normal trade relations with China. Jim Whittaker, Hewlett-Packard's director of international public policy and chairman of the High Tech Industry Coalition on China, told a news conference the coalition has held "several hundred meetings" with members of Congress and staff in recent weeks. Also appearing at the news conference were five high tech trade association heads, two economists, the chairman of a firm seeking to expand into China and a high tech worker. The industry appears to be heeding the call of members of Congress who urged high-tech companies to do more to push their case for PNTR.

Internet Access
Tauzin Tries New Twist On Old Debate
     In an effort to underscore the need for regulatory relief for high-speed Internet providers, Rep. Billy Tauzin, R-LA, called together a group of businesses dependent on broadband services to demonstrate their "need for speed." Tauzin, chairman of the House Commerce Telecommunications, Trade and Consumer Protection Subcommittee, said the lack of rural access to high-speed networks could "kill opportunity" for small businesses and residents living in those areas. Tauzin did not, however, directly plug his legislation, H.R. 2420, which would give the Baby Bells relief from some provisions in the 1996 Telecommunications Act and allow them to offer broadband services outside their local regions. But bill co-sponsor Rep. John Dingell, D-MI — the full committee's ranking Democrat — did not miss the chance, pointing out that cable broadband networks are not subject to the same regulations as telephone networks carrying high-speed digital subscriber line service.

Antitrust
Microsuit Questions Cut Across Party Lines
     The antitrust case against Microsoft demonstrated its imperviousness to partisan politicking as Republican and Democratic members on the House Judiciary Committee split their opinions about the appropriateness of the Justice Department's lawsuit and the proper way to seek sanctions against the software company. Questions about Microsoft dominated the oversight hearing with Assistant Attorney General Joel Klein and Federal Trade Commissioner Robert Pitofsky. Also this week, House Republican Conference Chairman J.C. Watts, R-OK, told the Attorney General Janet Reno that he was seeking two congressional investigations into inconsistencies in prosecutions conducted by the department. In a letter to Reno, Watts questioned the Justice Department's priorities in targeting Microsoft at the apparent expense of investigating "criminals who violate gun laws, election laws and threaten our national security."

Campaigns
Black Caucus Aims To Raise Tech Profile
     Members of the Congressional Black Caucus and their staff hobnobbed with Northern Virginia's high-tech community early this week to get the message out that they offer 36 votes that shouldn't be taken for granted. Thirteen caucus members toured Cable and Wireless North America, the Morino Institute, America Online and FedCenter.com, a unit of Digital Commerce. CapNet, the region's bipartisan high-tech association, arranged the tour. Caucus members said that they are intensely interested in a variety of high-tech issues that have economic and international implications, but that the high-tech community often has incorrectly assumed that the group only focuses on social and civil rights issues.

On The Hill
Lawmakers Bet On E-sign, Privacy Bills
     Sen. Patrick Leahy, D-VT, and Sen. Ron Wyden, D-OR, predicted at a Democratic Senatorial Campaign Committee meeting with high-tech executives that electronic signature and privacy legislation would be the most likely bills to pass Congress this year. While they weren't specific about which privacy measures would pass, they thought enough momentum had built for the industry to expect a successful passage. Leahy said he believes the conference on digital signature legislation is very close to reaching an agreement on a bill.
- by Sharon McLoone