INTERNET NONDISCRIMINATION ACT OF 2000 -- (Extensions of Remarks - May
11, 2000)
[Page: E712]
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SPEECH OF
HON. MAX SANDLIN
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 applies to new, multiple, and discriminatory
taxes on the Internet,
- Mr. SANDLIN. Mr. Chairman, I rise today to address H.R. 3709, The Internet
Nondiscrimination Act. The Internet transformed business and commerce in a
revolutionary fashion. Congress now must face the daunting task of shaping
policy concerning its taxation.
- Mr. Chairman, I come from East Texas, a region that has a heavy
concentration of small businesses. Under law, these businesses are required to
collect sales tax. In 1992, the U.S. Supreme Court ruled that states cannot
require businesses without a physical presence in their geographic area to
collect and remit sales taxes. Small businesses were essentially rendered
uncompetitive under this ruling. These ``brick and mortar'' stores now face
extinction because they are forced to compete with online businesses who do
not have to collect state and local taxes.
- As things stand, state and local governments lose about $5 billion
annually in uncollected sales taxes on mail order purchases and are expected
to lose about $15 billion annually in uncollected sales taxes on Internet
purchases by the year 2003. I am aware that the Internet is the engine driving
current economic growth and am in no way trying to jeopardize its growth. The
Internet provides access to products that my rural constituents would not
otherwise be able to purchase. However, I believe that electronic commerce and
small business should exist on a level playing field with regard to taxation.
It is time that Congress begins to address the task of creating a fair tax
code for online retailers and their brick and mortar counterparts.
- I urge my colleagues to work toward a technology neutral, simplified,
sales tax system which guarantees that buyers and sellers are treated equally.
it is important that Congress be given and appropriate period of time to build
a consensus on the long-term solution to Internet taxation issues. We must be
careful to avoid a hasty, ill-conceived tax system that places unnecessary tax
burdens on our consumers and sellers.
- I stand in support of H.R. 3709, The Internet Nondiscrimination Act. It is
my hope that, in the future, Congress will go one legislative step further and
address the issues surrounding e-commerce taxation.
END