One Hundred Days for IT
Much is being written about President George W. Bush's first 100 days in office.Much is being written about President George W. Bushs first 100 days in office. Well join the chorus but from the point of view of IT. The Bush administrations top priority has been its income tax cut plan. In principle, we see nothing to dislike here. Cutting taxes has always tended to aid in capital formation as individuals seek investment vehicles for their tax savings such as technology stocks and venture funds. The current Wall Street washout notwithstanding, the tax cuts could have benefits that will be felt in IT during the next two to five years. There is at least some risk, though, that the slowing economy will generate less tax money. That, combined with the tax cuts, could return us to the days of annual federal deficits. Meanwhile, the Bush administrations making permanent the Research and Development tax credit and increasing federal spending on R&D by 6 percent is more clearly positive for IT in that they should stimulate the creation of new technologies.
The administration has nominated Bruce P. Mehlman as assistant secretary of commerce for Technology Policy. Mehlman has favored H1-B visa expansion, permanent normal trade relations with China, crypto liberalization, and industry protections in securities and liability law. Wed remind Mehlman that merely raising the H1-B limit is not a permanent solution to our technology manpower needs.