Tech stimulus could mean 1 million jobs: report

By Kim Dixon

WASHINGTON (Reuters) - A $30 billion investment in information technology would create or save nearly 1 million U.S. jobs, according to an economic stimulus proposal released on Wednesday by a group backed by some tech companies.

The Information Technology and Innovation Foundation urged Congress to include tax credits and incentives for investments in broadband, healthcare and energy technologies as Democrats prepare a stimulus bill that could total $775 billion over two years.

"When we think about the downturn we are in, we need to be thinking more creatively," said Rob Atkinson, president of the Information Technology and Innovation Foundation.

The group gets some funding from industry, including International Business Machines Corp (IBM.N) and Cisco Systems Inc (CSCO.O), and also is supported by telecommunications companies.

But public interest group Free Press blasted the proposal as a giveaway to big companies that already control the pipes that sell broadband services, including AT&T Inc (T.N), Verizon Communications Inc (VZ.N) and Comcast Corp (CMCSA.O).

"In practice this gives the public zero guarantee the money is being used for new investment," Free Press communications director Craig Aaron wrote in the Huffington Post.

The group has its own $44 billion proposal, which includes tax credits, but also grants and a $10 billion bond proposal to spur investment. Under their plan, companies would have to apply to the Treasury department to claim the tax credits.

Consumer groups say the stimulus package should promote competition in Internet services. The U.S. now has an oligopoly of sorts, with most consumers having just two choices, either a big telephone or cable company.