Welcome to Senator John F. Kerry's Online Office Text Version

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At Work in Congress

Technology & The New Economy:

I am committed to finding ways to ensure that technology contributes to the growth of the economy. Although the Internet boom of the late 1990s has slowed, I believe we must continue to encourage the growth of this industry, which offers exciting, high-paying jobs for many Americans, and which has been especially important in Massachusetts.

Route 128 and other high-tech corridors across the state provide tremendous opportunities for our citizens. To those who argue that "less government" is all we need to help our economy grow, I would argue that although we should reduce taxes and regulation when it makes sense to do so, in today's global, high-tech economy we need a much more sophisticated economic strategy. For example, I believe that our country needs a renewed commitment to investment in basic research and the hard sciences, such as physics and chemistry. Federal spending in these areas has declined by more than one-third since 1970, as a share of total outlays. I am working to reverse this trend because tomorrow's high-tech innovations - and the economic gains from them - will derive directly from today's investments in these areas.

I also recognize there are some individuals and businesses who have not become a part of the "new economy." Therefore, in addition to focusing my work here in Washington on ways to help the high tech industry prosper and grow, I support legislation that will provide assistance for small businesses who need resources and information to compete effectively. I also support legislation that directs resources at improving K_12 education so that our young people will be prepared to enter the high tech workforce and so that we can remain a leader in this industry for years to come.

Senator Kerry has promoted a number of initiatives that are good for the "new" economy. Although the digital economy has been in decline from its recent boom, Senator Kerry still believes in the long-term importance of this sector and supports initiatives that will help it grow and contribute to the overall economy in the future.

Some of Senator Kerry's most important priorities include strong support of making the tax credit for research and development permanent, to encourage innovation in the long term. He has also worked to ensure that the high tech industry has enough skilled workers to enable it to continue to grow. To that end, Senator Kerry believes that the short term fixes must be coupled with long term solutions whereby we educate our own students in science, math and technology. Senator Kerry also supports legislation that would lift many restrictions on the types of products-from high performance computers to encryption software-that U.S. companies can sell abroad, so that U.S. companies can compete in the world market.

Senator Kerry has been a leader in the area of Internet privacy. In 1999, he and Senator McCain introduced legislation designed to provide consumers with a meaningful level of protections for their online privacy. Although that bill failed to move through Congress, Senator Kerry continues to try to shape the debate on Internet privacy, and he is hopeful that a bill protecting consumers' privacy can move this year. He believes it is especially important to provide substantial protections for sensitive information, such as medical and financial information, that may be supplied or obtained online.

As a member of the Conference Committee for Electronic Signatures legislation, Senator Kerry helped negotiate a final bill that gives electronic signatures the same legal recognition as handwritten signatures in order to ensure greater efficiency, cost savings, and eventual ubiquity of e-commerce. In addition, he worked for the ultimate inclusion of consumer-friendly provisions to ensure that consumers engaging in electronic transactions are provided the opportunity to give meaningful consent to the delivery of documents electronically. This was important to prevent fraud, and also should provide consumers more confidence in the medium.

Senator Kerry has worked for many years on an effort to craft compromise legislation in the area of Internet tax. Senator Kerry believes that there needs to be a level playing field between Internet retailers and bricks-and-mortar establishments, and that the Internet should not be a tax-free haven. He also recognizes that now more than ever, states need a secure tax base from which to fund education, police, firefighters and antiterrorism measures. At the same time, he believes that neither consumers nor Internet retailers should be unduly burdened with cumbersome procedures to collect taxes online. Although there currently a short-term moratorium on Internet taxes, he will continue to work to achieve a permanent solution to the problems.