Washington, D.C. - Citizens Against Government Waste (CAGW) today called for the Bush Administration and 107^th Congress to follow policies that will ensure America’s continued technological and innovative preeminence.

“The U.S. high tech industry needs capital, a friendly climate, and freedom to continue its leading role in the world economy,” CAGW President Thomas A. Schatz said.  “Government should not pick winners in any marketplace, nor should  it – through excessive taxes, regulations, or litigation – create losers.  While the Clinton Administration and 106^th Congress did reach agreement on several critical pro-competitive bills, there was much more that could have been done to improve the atmosphere for tech companies.  In particular, the actions of the Clinton Justice Department – from suing entrepreneurs to banning technologies – had a chilling effect on the Nasdaq and must be avoided in the Bush Administration.”

CAGW recommends the following steps to promote growth in the technology sector.

• The Justice Department must end its unprecedented and unwarranted attack on the high tech industry.  Attorney General-designate John Ashcroft and President-elect Bush both believe that innovation, not regulation, is the key to continued success in the technology marketplace.  Ill-conceived litigation drives off investors, injures workers, and distracts the attention of successful companies in a hyper-competitive world market.

• The moratorium on Internet taxation should be maintained and extended.

• New regulation of technology should be avoided.

• Internet privacy should be enhanced through private innovation, better encryption technology, and an end to government intrusions such as Internet tracking, database development on citizens, and email wiretapping through the FBI’s “Carnivore” system.

• Government agencies should use technologies to be more transparent and user-friendly.  A bipartisan e-government commission dedicated to modernizing federal computer, financial and management systems should be created to provide recommendations for bringing the government into the Internet Age.

To promote these policies and hold lawmakers accountable, CAGW will issue technology report cards in 2001 for each member of Congress, tracking whether they vote for or against the best interests of the technology sector and the American public.

CAGW is a nonpartisan, nonprofit organization with over a million members and supporters, dedicated to eliminating waste, fraud, and abuse in government.