Rules Committee Sends Internet Tax Moratorium to Floor


Rules Committee Sends Internet Tax Moratorium to Floor

WASHINGTON - The House Rules Committee today approved floor procedures for the consideration of legislation extending the moratorium on Internet taxes for an additional five years, announced Rules Chairman David Dreier (R-CA).

"The success of the Internet, which is built on pro-growth, pro-entrepreneurship, pro-investment principles, has been a large part of the technology boom that has created 4.8 million new jobs in the past six years," Dreier added. "We should do everything we can to avoid stifling this unprecedented growth."

The Internet Non-Discrimination Act, or H.R. 3709, extends the Internet Tax Moratorium for five years, through 2006, on three specific types of taxes - taxes on Internet access charges; double taxation by two or more states of a product bought over the Internet; and, taxes that treat Internet purchases as different from other types of sales. The legislation adds onto the three year moratorium put in place by H.R. 4328, the Internet Tax Freedom Act, passed in October 1998. H.R. 3709 also prohibits Internet access taxes in every state by striking out a grandfather clause included in H.R. 4328 that allowed states already taxing access to continue to do so.

"One of the ground rules of the information economy should be that we do not tax people for getting on the information super-highway," Dreier added. "That's why Congress should, with bipartisan support, continue to ban taxes on access to the Internet and end the long outdated tax on telephone service."

The bill will debated for1 hour under a modified open rule that provides 2 hours for the amendment process. Further information is available at: