They already wiretap the internet and silent install screen capture tools and mouse controls on peoples PC's using Microsoft updates TrustedInstaller.exe as well as digitally signed false adobe flash updates.
What they are asking for is a law that will make their work legally admissible without tipping the unethical/illegal invasion of privacy they often make. Your PC is supposed to belong to you, until they have a warrant. But that is not what they are doing.
When it comes to tapping conversations, they already have technology that can image the throat and its shaping to produce words based on a recorded history of you speaking. They've also made all "Eraser" programs whether free or payed for encrypt and hide, protecting from being written over, instead of being erased. Use Eraser on a few files in a clean partition. The use an undelete program. You will find a fully recoverable file of the exact amount of space you just erased, except now protected from being overwritten as a hidden file. I've used pay secure wipes and found the same thing.
When you have a lot of large files and manually add up how much space they are using then look at what windows says is being used by the partition you'll find a big difference. If you are using a secure wipe program such as from Acronis using an undelete program will reveal a fully recoverable section equal to what you have deleted, making up the total of what windows is showing as used on the drive.
The government is able to run a virtual host/proxy of some popular websites like PlentyofFish and Gmail. Totally controlling content on the screen and that is sent back and forth to a persons pc. The science of it all is pretty interesting. They also have technology to control and select commercials based on wording to the effect insinuating a line of thought to the people, or a response to what they are thinking or saying, they are supposed to only be monitoring. It's funny like the theme to the twilight zone. We control the vertical and horizontal of what you are seeing, able to manipulate scheduled programming and select the commercials in between on the fly.
Just don't know how specific this control extends. Due to the digital transition in cable TV, do TV's now have something akin to MAC id's so they can be identified and streamed to just one viewer. Or is it broader where it goes to a whole neighbor or a broadcasting area. Most people wouldn't notice cause the selection of commercials is targeted to the behavioral response of someone else? They alluded to this problem in Minority Report. Some people who are sensitive or intelligent committing suicide because they inadvertently are receptive/sensitive to the message being sent out. Not understanding what's going on they still experience an emotional state leading to mood changes and possible suicide based on the subtext. Though the government rarely does that, they mostly use the tv control to segue people into discussing topics they wish to hear discussed. If they can't get anything productive then they become more aggressive or obvious to warrant a response.
Doubt me if you like. But if you have "Eraser" already test what I'm saying. You'll find the program does the opposite of what you thought, tricking you with long waits and saving the content in a file that is protected from being overwritten by the journaling virtual ram write system on you drive for those in the know to access.
'The man who trades freedom for security does not deserve either.'