McCain to Lay Out Market-Oriented Technology Policy

Former Federal Communications Commission Chairman Michael Powell is drafting a technology agenda for Sen John McCain (R-AZ) that the campaign expects to release this month. While Sen Barack Obama (D-IL) backs legislative initiatives to promote Network Neutrality, diversity in media ownership and consumer privacy, Powell said Sen McCain would take a more typically Republican market-oriented approach. Powell said the highlights of McCain’s technology agenda will include proposals to:

1) Lower capital gains taxes to encourage large companies to invest profits domestically.
2) Develop an immigration policy that would allow skilled technology workers to remain in the U.S. and an education policy that would produce more engineering and computer science graduates.
3) Promote free trade and open global technology markets.
4) Create a permanent research and development tax credit. Such incentives are typically renewed every year by Congress.

McCain’s upcoming policy statement is expected to serve as a rejoinder to Obama’s technology platform. The Democrat supports “network neutrality” rules that would require broadband providers to treat most Internet traffic the same, while McCain does not. Obama also wants to draw a line on further consolidation it the media industry, which legislation backed by McCain has encouraged. One issue that underscores the difference between the candidates’ approaches to technology is high-speed Internet deployment. McCain unveiled a broadband strategy he called the “People Connect Program” during a Kentucky speech in April. Under the plan, the federal government would provide tax breaks to bring high-speed Internet to small towns. Loans also would be made available. Obama’s plan would hinge on retooling an existing government subsidy program known as the Universal Service Fund (USF) to bolster broadband deployment. The fund — supported by a levy on telephone bills -- subsidizes phone service in rural areas. It has grown exponentially in recent years and is currently being overhauled by the FCC. Congress may revisit the fund in 2009. McCain is an outspoken critic of the USF program, calling it inefficient and complaining that it lines the pockets of the phone companies. Obama would demand that the program transition to supporting broadband instead of voice communications on a certain date.
http://www.cqpolitics.com/wmspage.cfm?parm1=5&docID=news-000002912191