INTERNET NONDISCRIMINATION ACT OF 2000 -- (Extensions of Remarks - May
11, 2000)
[Page: E720]
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SPEECH OF
HON. KAREN McCARTHY
OF MISSOURI
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 applies to new, multiple, and discriminatory
taxes on the Internet.
- Ms. MCCARTHY of Missouri. Mr. Chairman, I rise to express concerns
about HR 3709, the Internet Nondiscrimination Act, a bill which extends the
moratorium contained in The Internet Tax Freedom Act of 1998 for five
additional years until 2006.
- As a former Chairman of the Ways and Means Committee of the Missouri state
house and former president of National Council of State Legislators (NCSL), I
believe we need to address this issue with an eye toward creating a win-win
situation for our states and localities, our mom and pop retailers on Main
Street and the technology sector. I am not convinced that this bill has
balanced all interests in a manner which achieves that goal.
- I want electronic commerce to prosper and I support eliminating
discriminatory taxes on this type of commerce. However, I also support finding
a way to ensure Main Street businesses and state and local governments are not
penalized by competitive advantages enjoyed by internet commerce companies. We
need a level playing field and I am committed to finding one.
- Not leveling the playing field could result in billions of dollars in lost
revenue to states. By 2003 states will lose a total of approximately $20.1
billion in revenue if businesses are not required to collect the use taxes
that are owed by purchases on electronic commerce. My state of Missouri will
lose a projected $395 million--how will Missouri make up that revenue stream
to ensure adequate funds for public education, critical infrastructure needs
and other important state programs?
- The piecemeal approach in HR 3709 prevents comprehensive solutions to the
subject of taxes on the Internet. The existing moratorium does not expire
until October 21, 2001. Merely extending the moratorium does not address the
main issue of providing a level playing field for sales tax collection. In the
coming 17 months which remain in the existing moratorium, we must consider
comprehensive solutions.
- Without a measured and thoughtful approach to addressing this complex
issue we jeopardize the basic services which our constituents rely upon from
our states and localities. We must sustain growth of the Internet and
e-commerce with an appropriate revenue collecting structure built upon a
foundation of fairness and equity to Main Street merchants.
END