Senators Allen And Burns Introduce Bill To Make US Internet Tax Moratorium Permanent

by Mike Godfrey, Tax-news.com, Washington

30 April 2001

Following US Vice President Dick Cheney's recent call for a permanent ban on Internet access taxes, Senators George Allen (R-VA) and Conrad Burns (R-Mont) introduced a bill last week to make permanent the current Internet tax moratorium, which is set to expire in October this year. Bill S. 777, the so-called Internet Tax Non-Discrimination Act, would permanently extend the moratorium on Internet taxes, first instituted by the Internet Tax Freedom Act. Additionally, HR 1552, introduced by Congressmen Chris Cox (R-CA), Bob Goodlatte (R-VA) and Tom Davis (R-VA), would permanently prohibit Internet access taxes and continue the ban on multiple and discriminatory Internet sales taxes.

A press statement release by Senator Allen's Office said: 'Congress should not try to choose a national sales tax regime compact when the states themselves can't agree as to what form such a compact should take. Nothing in current law prevents the states from developing their own sales tax compact and petitioning Congress to provide them the legislative authority to implement it. Nothing in current law prevents Congress from granting the states such authority, nor restricts Congress from considering just such a compact petition from the states.'

Meanwhile, hot on the heels of the Information Technology Association of America (ITAA), Americans for Tax Reform (ATR), a non-partisan coalition of taxpayers and taxpayer groups who oppose all federal and state tax increases, have also applauded the Vice President's call to keep the Internet tax-free. At the end of last week, Grover Norquist, president of ATR, announced support for the introduction of appropriate legislation in both the Senate and House of Representatives.

Mr Norquist said: 'Congress has it right - by restraining the taxation ability of state and local governments, which simply serves to cripple small businesses and limit revenues, the economy will be strengthened. We applaud the leadership of Vice President Richard Cheney who again called on Congress to extend the Internet tax moratorium, and permanently ban all Internet access taxes.'

He continued: 'We firmly believe that by keeping the Internet unfettered in its ability to reach all customers, from Seattle to Siberia, global commerce will continue to develop and increase the American base market. This is predicated on the passage of a clean extension of the moratorium and the prohibition of Internet access taxes. We intend to rate the votes in Congress on these respective bills in our annual Congressional Ratings. A vote in favor of extending the moratorium and prohibiting Internet access taxes will be considered a vote for taxpayers.'

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