US Net Tax Moratorium Likely To Be Extended

by Mike Godfrey, Tax-News.com, Washington

02 October 2001

Recent events have overshadowed the internet sales tax debate in the United States, and it looks increasingly likely that the moratorium on the imposition of new legislation, set to expire this month, will be extended in order to allow the US political system to present a united front in the face of the terrorist threat.

According to former member of the Commission on Electronic Commerce, Stan Sokul, Congress does not want 'divisive issues' on the floor. 'They don't want to bring up a bill or legislation unless it's going to have broad support,' he explained.

There is speculation as to how the expected moratorium extension will be introduced, however, as the House Judiciary Committee is at present fully occupied with the anti-terrorism security package proposed by the US Attorney General, John Ashcroft.

Sokul suggests that the moratorium extension, which could cover a period of anything from six months to five years, might form part of an 'extenders package' from the Senate Finance Committee. Other US politicians have suggested that it would be more appropriate for extension legislation to piggyback on a forthcoming economic stimulus package.

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