E-Commerce Commission Proposals Pass First Hurdle in Congress
House Judiciary Committee Passes Amendment Extending Moratorium, Elimination of Internet Access Charges

Arlington, VA - May 4, 2000 - The Advisory Commission on Electronic Commerce's Report to Congress cleared a major hurdle today with a victory inside the House Judiciary Committee. In today's hearing, the Committee voted overwhelmingly 29-8 to pass an amended version of HR3709, to extend the current moratorium against multiple and discriminatory taxes on Internet another five years, through October 21, 2006. The amended bill also eliminates all taxes on Internet access charges, repealing a grandfather clause currently existing under Federal law. The bill was sponsored by Christopher Cox (R-CA), and was amended by Congressmen Bob Goodlatte, (R-VA) and Rick Boucher, (D-VA). The bill codifies two key Majority Policy Proposals included in the Advisory Commission's Report to Congress.

"This Congressional action validates the Commission's efforts on behalf of the people and the Internet," said Governor Jim Gilmore, III, Commission chairman. "The Committee's action is a constructive step towards tax freedom on the Internet and is a victory for the people of the United States."

"The Judiciary Committee's favorable vote today on some of the key components of the Advisory Commission's Report proves that the Commission process was not an empty exercise, but is having a real impact on Capitol Hill," said Commission member Stan Sokul. "This is great news for the continued dynamism of the Internet economy, and for the American people."

"This is a great victory for tax payers," said Commission member Grover Norquist. "It demonstrates the strength of the Commission's majority Report to Congress. This lays the ground work for even more tax-payer friendly Internet legislation next year."

"The extension of the moratorium is a good first step," said Commission member Dean Andal. "Now the committee can get on with the real business at hand, which is developing clear nexus standards. Developing national bright-line nexus standards was the heart of the U.S. Advisory Commission's Report."

About the Advisory Commission on Electronic Commerce

Appointed by Congress in October 1998 as part of the Internet Tax Freedom Act, the 19-member Commission has been tasked with studying the impact of federal, state, local, and international taxation and tariffs on transactions using the Internet and Internet Access. The Commission's recommendations were provided to Congress on April 12, 2000, ahead of the deadline of April 21, 2000.