IV
107TH CONGRESS
1ST SESSION
H. RES. 151
Expressing the sense of the House of Representatives on the importance
of promoting fair, efficient, and simple cross-border tax collection regimes
that maintain market neutrality and promote free trade on all sales
distribution channels within a globally networked economy.
IN THE HOUSE OF REPRESENTATIVES
MAY 24, 2001
Mr. WELLER (for himself and Mr. MATSUI) submitted the following
resolution; which was referred to the Committee on Ways and Means
RESOLUTION
Expressing the sense of the House of Representatives on
the importance of promoting fair, efficient, and simple
cross-border tax collection regimes that maintain market
neutrality and promote free trade on all sales distribution
channels within a globally networked economy.
Whereas the Internet has transformed our information and
communication infrastructure, impacting every sector of
the United States and global economy;
Whereas the Internet’s emergence as an alternative sales dis-
tribution channel for virtually all goods and services has
revolutionized the way business is conducted, the way
consumers make choices, and the way transactions are
completed;
•HRES 151 IH
Whereas the Internet’s emergence has also caused govern-
ments to reexamine and modify their methods of commu-
nicating with and providing services to citizens, as well
as the way in which they collect taxes from citizens;
Whereas the Internet’s facilitation of international cross-bor-
der trade offers a revolutionary opportunity to network
and expand national economies, creating a new global
networked economy;
Whereas governments’ tax policy decisions will greatly impact
the potential growth of this emerging global networked
economy;
Whereas tax policy decisions that create market distortions,
discourage transacting business through the Internet, or
impose greater administrative burdens on nonresident
sellers than on local sellers could stunt the potential
growth of the global networked economy, denying citizens
of nations worldwide the opportunity to enjoy higher
standards of living resulting from economic growth and
prosperity; and
Whereas tax policy decisions that maintain market neutrality
and provide for simple, efficient and fair tax rules that
balance sellers’ need for certainty with governments’ need
to collect revenues to fund services will promote rather
than stifle the emergence of the new global networked
economy: Now, therefore, be it
Resolved, That it is the sense of the House of Rep-
resentatives that—
(1) the Secretary of the Treasury should
proactively seek to identify and resolve tax policy
•HRES 151 IH
issues that will globally impact cross-border trade
through the Internet; and
(2) the United States should work in good faith
with our trading partners to ensure that any tax col-
lection regimes that attempt to impose tax collection
obligations on sellers outside the borders of the tax-
ing jurisdiction promote the continued growth of
electronic commerce by—
(A) imposing no greater administrative
burdens or compliance obligations on Internet
sellers than on any other seller;
(B) providing simple and clear rules that
allow the seller to identify, with certainty, the
amount of the tax that must be collected, and
that limit a seller’s liability in situations where
the seller has made commercially reasonable ef-
forts to determine the correct tax;
(C) allowing sellers to rely on customer-
provided information available during the
course of a transaction to determine the appro-
priate taxing jurisdiction;
(D) taxing Internet sales the same as simi-
lar products sold through traditional, physical
distribution channels, including applying the
•HRES 151 IH
same tax rates to online sales and extending ex-
emptions and thresholds to online sales; and
(E) incorporating rules that require sellers
and governments to respect the privacy inter-
ests of consumers.
Æ