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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.

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