Legacy of the 106th Congress —Continued

Again, if you desire an opposing view on immigration, Pat Buchanan is your man. As President, Buchanan would halt illegal immigration by securing U.S. borders and strengthening internal enforcement, reduce legal immigration to 250,000 to 300,000 immigrants per year regardless of their skill set, and support a national campaign of assimilation to teach American culture, history, traditions, and the English language to foreign arrivals.

Foreign sales corporations

[HR 4987] Foreign Sales Corporations — AEA urges support for legislation designed to end the long controversy between the U.S. and the European Union over the tax treatment of certain foreign source income. Without the legislation AEA contends that U.S. high-tech firms will be placed at a major competitive disadvantage relative to their European competitors.

Once again the AEA has targeted an issue that can not be resolved in an election year, prior to the results of the nation's vote. The European Union would never strike a deal with an outgoing Administration, regardless of what Congress could do with the tax adjustment for companies operating in the region.

Having already reviewed the economic and high-tech policies of the major candidates on international issues, this bill does not stand much of a chance of making it through Congress during the 106th session.

Allow competition in procurement

[HR 3582] Federal Procurement Regulations that "Blacklist" new Contractors — AEA supports legislation that would prohibit the White House from implementing draft procurement regulations, which the AEA considers a blacklist to new federal contractors from doing business with the government.

The bill was designed to restrict the use of mandatory minimum personnel experience and educational requirements in the procurement of information technology goods or services unless sufficiently justified. Currently new contractors must endure a lengthy scrutiny of the General Accounting Office while it conducts a study of the contractor to assure that it is in compliance with federal laws.

While the Administration's study on the bill will not be completed until August next year, AEA's Archey called the proposed regulations "a misguided solution in search of a non-existent problem."

Unfortunately AEA misses the point of the so-called non-existent problem. Critics and the press attacked spokespeople like Kathy Lee Gifford and Michael Jordan for representing companies that whose business regime include child labor and sweat shop tactics that produce goods on foreign soil for shipment to the U.S.

If the federal government did not complete detailed reviews of companies operations, it would likely fall into the same trappings of working with firms that work against its core beliefs. If the AEA really wants to address the issue it should lobby the new Congress to hasten the process of administrative review and encourage speedy corporate disclosure. Rushing this bill through the House and Senate would be an error for all parties concerned.

No new e-taxes

[S 2255, HR 4202, S2775, HR 3252] Internet Tax Moratorium and E-Tax Streamlining — The AEA called on the Senate to follow the House's lead and extend the Internet tax moratorium for five years. It also urges both legislative branches to address the issue of Internet tax simplification.

Finally, the AEA is the champion of a real issue that addresses industry concerns from the largest firm to the smallest player in the industry. This is the Internet-related issue that should be transformed from bill to law without further adieu.

If Congress completes one legislative initiative that impacts the industry before the close of business on Oct. 6, extending the Internet tax moratorium is the biggest issue for the entire Internet industry.

Pink slips are becoming a common occurrence in both the old and new economies.

Layoffs of laborers in an old economy are the key to retooling the American workforce for the assimilation into the new economy. Without a painful transition, the nation's economic innovation would slow, productivity would lag, and inefficiency would not be culled.

An economy that does not change will rot as quickly as a banana under a fruit fly siege.

Many believe that the US is indisputably the most healthy economy in the world, but this might not be the case. This article from The Economist magazine, Desperately seeking a perfect model: America is widely held to be a clear winner in the world’s economic beauty contest. But have the judges really studied the figures? argues that the economies of Germany and Japan may be stronger, and uses this chart of growth over the last ten years to prove it:

If Congress fails to pass the Internet tax moratorium now, it fails the populace that the legislators were elected to represent. Operating in a tax-free arena is vital. The new economy can support federal, state, and local governments in the long-term through growth and jobs — both of which could be lost to taxes.

Let this be the legacy of the 106th Congress.

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