Copyright 2000 eMediaMillWorks, Inc.
(f/k/a Federal
Document Clearing House, Inc.)
Federal Document Clearing House
Congressional Testimony
April 6, 2000, Thursday
SECTION: CAPITOL HILL HEARING TESTIMONY
LENGTH: 1160 words
HEADLINE:
TESTIMONY April 06, 2000 CHRISTOPHER COX REPRESENTATIVE HOUSE
COMMERCE telecommunications, trade and consumer protection CONSUMER PRIVACY
BODY:
STATEMENT OF REP. CHRISTOPHER COX HEARING OF
THE TELECOMMUNICATIONS SUBCOMMITTEE WITH GOVERNOR JIM GILMORE ON THE INTERNET
TAX COMMISSION'S FINDINGS April 6, 2000 On the Intent of
Congress with Regard to the Commission's Findings "The primary goal of the
commission was to provide federal, state, and local policymakers with a better
understanding of Internet tax issues, so that new
taxes aren't enacted as a result of ignorance,
misunderstanding, or lack of reliable data. "If we were going to have a
congressionally chartered commission recommending higher taxes
on the Internet back to Congress, we wanted that to be a two-thirds vote. We
didn't want to make it easy for the commission to come back to recommend higher
taxes. It's abundantly clear that there was no recommendation
to tax the Internet with the needed two-thirds vote. And so the
purpose of the two-, thirds provision has been met. "I agree that we are
interested in all the information that was discussed and it was certainly not
the intent of the legislation to prevent the commission from reporting back
everything that it wished to report back to us. The people of the country
deserve a report back and the fact that there was an 11-1 vote on these key
recommendations puts a lot of weight behind them." On the Commission's Findings
and Congress' Next Steps "What Governor Gilmore has been able to do is tap
expertise from across the country and around the world on the question: what
should our tax policy be in the 21st century? We cannot apply
the tax policies developed for smokestack industries to the new
economy. I am impressed with the fact that the commission has come up with so
many recommendations and that they are bold and innovative. "In the House we are
preparing to move forward quickly- before Memorial Day-with legislation to
implement the central recommendations in the commission's report to Congress. "A
first point of consensus is that the Internet should not be subject to new,
multiple, or discriminatory taxes. There is a strong commitment
from our elected leadership to make this not just a three-year moratorium, but a
long-term policy. "A second point of consensus is the repeal of the Spanish-
American War tax. This 1898 'luxury tax' on
telephones is no longer needed to fund the war with Spain. In
just the last few weeks, a bipartisan and bicameral coalition has formed to
implement this recommendation and repeal the three percent federal
telephone excise tax. On the House side, two senior Ways and
Means Committee members, Rob Portman and Bob Matsui, have introduced legislation
to repeal the tax. And just last week, a companion bill was
introduced in the Senate by two senior Finance Committee members- Chairman Bill
Roth and John Breaux. With all of this bipartisan support-directly brought about
by the Commission's report-Congress is on track to bring a final end to the
Spanish-American War. It's time to repeal the tax and declare
victory." On Governor Gilmore's Leadership "Governor Gilmore's leadership on
this commission is truly something for which we as a nation should be grateful.
He has been an extraordinary leader in the effort to guard against predatory
taxation of the Internet, starting with his steadfast commitment to enacting the
Internet Tax Freedom Act in 1998, and now with his service on
this blue-ribbon panel. "All of us in Congress who wrestled with this
legislation recognize how difficult these issues are. Whenever you are
considering changing the tax rules not just for the nation's
economy but for the global economy, there are a lot of people affected. This
task was not easy. What Governor Gilmore and his colleagues on the commission
have done by conducting their business with dignity and assembling this
substantial intellectual product is something for which Congress and the nation
must be truly appreciative."
LOAD-DATE: April 19, 2000,
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