INTERNET NONDISCRIMINATION ACT OF 2000 -- (Extensions of Remarks - May
17, 2000)
[Page: E742]
---
SPEECH OF
HON. EDDIE BERNICE JOHNSON
OF TEXAS
IN THE HOUSE OF REPRESENTATIVES
Wednesday, May 10, 2000
The House in Committee of the Whole House on the State of the Union had under
consideration the bill (H.R. 3709) to make permanent the moratorium enacted by
the Internet Tax Freedom Act as it applied to new, multiple, and discriminatory
taxes on the Internet:
- Ms. EDDIE BERNICE JOHNSON. Mr. Chairman, as the Internet flourished during
its infant stages and development, the importance of access and accessibility
is key to America. It is my belief that the Internet should not be encumbered
with burdensome taxation. However, sales through the Internet without paying
taxes gets into another area, an area that could seriously effect the economy
of states such as Texas. The Internet, a technology where America is the
unquestioned world leader, should be allowed to develop and flourish without
every state and locality burdening such commerce with taxation during its
growth process.
- The purpose of H.R. 3709, sponsored by my colleague, Representative
COX, will extend for an additional five years the current three-year
moratorium on the imposition of state and local sales taxes on Internet
access, as well as any multiple or discriminatory taxes imposed on the
Internet. With this legislation, Members of Congress are attempting to find a
fair solution for traditional business and state and local authorities, while
not stifling the growth of e-commerce. Though H.R. 3709 may be attractive, the
extended five-year period may be too long. I find the amendment proposed by my
colleague, Representative DELAHUNT, more appealing. His amendment will
provide only a two-year extension of the moratorium on state and local taxes
on the Internet. This two-year period will hopefully give us time to come up
with a feasible and fair solution to this troublesome problem for states that
fund themselves through sales tax.
- Let me end by acknowledging the work that each of you have and continue to
do in order to ensure America's leadership position in the technological
world. As Members of Congress and leaders, we must realize that ill-considered
and disruptive new taxes could literally kill the initial growth stage of our
most dynamic and innovative segment of our economy--the Internet. However, now
is the opportune time to examine the relationship between taxes and the
Internet. We must find ways that will allow the Internet to play its role as a
valuable asset, while funding programs that will be beneficial for individual
states, such as Texas, who rely on sales tax for the construction of its
transportation systems and the education of our children.
END