New Wyden-McCain-Leahy Bill
Would Extend Bar
On Discriminatory Taxes
On E-Commerce
[Sen. Patrick Leahy today (Tues., Oct. 2) joined Sens. Ron Wyden
(D-Ore.) and John McCain (R-Ariz.) to introduce legislation to continue
current law that prevents governments from singling out the Internet for
new kinds of discriminatory taxes and new Internet access charges. Leahy,
known as the "cyber senator" for his longtime work on and
interest in Internet issues and for his efforts to promote e-commerce in
Vermont, also was a leading supporter of the law that first launched the
Internet tax moratorium in Oct. 1998. Unless Congress acts, the current
moratorium will expire on October 21, 2001. Following are Leahy’s
comments about the new bill:]
"Although electronic
commerce is beginning to blossom, it is still in its infancy. Stability is
the key to its reaching its full potential, and creating new tax
categories for the Internet is exactly the wrong thing to do. E-commerce
should not be subject to new taxes that do not apply to other commerce.
"Indeed, without the current
moratorium, there are 30,000 different jurisdictions around the country
that could levy discriminatory or multiple Internet taxes on e-commerce.
Let’s not allow the future of electronic commerce -- with its great
potential to expand the markets of Main Street businesses -- to be crushed
by the weight of discriminatory taxation.
"We also need a national
policy to make sure that the traditional state and local sales taxes on
Internet sales are applied and collected fairly and uniformly. This
two-year extension of the current moratorium gives our governors and state
legislatures time to simplify their sales tax rules and reach consensus on
a workable national system for collecting sales taxes on e-commerce."
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Oct. 2, 2001
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