IV
106TH CONGRESS
1ST SESSION
H. CON. RES. 190
Urging the United States to seek a global consensus supporting a moratorium
on tariffs and on special, multiple, and discriminatory taxation of elec-
tronic commerce.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 30, 1999
Mr. COX (for himself and Mr. SESSIONS) submitted the following concurrent
resolution; which was referred to the Committee on Ways and Means
CONCURRENT RESOLUTION
Urging the United States to seek a global consensus sup-
porting a moratorium on tariffs and on special, multiple,
and discriminatory taxation of electronic commerce.
Whereas electronic commerce is not bound by geography and
its borders are not easily discernible;
Whereas transmissions over the Internet are made through
packet-switching, making it impossible to determine with
any degree of certainty the precise geographic route or
endpoints of specific Internet transmissions and infeasi-
ble to separate domestic from foreign Internet trans-
missions;
Whereas inconsistent and inadministrable taxes imposed on
Internet activity by subnational and national govern-
ments threaten not only to subject consumers, businesses,
• HCON 190 IH
and other users engaged in interstate and foreign com-
merce to multiple, confusing, and burdensome taxation,
but also to restrict the growth and continued techno-
logical maturation of the Internet itself;
Whereas the complexity of the issue of domestic taxation of
electronic commerce is compounded when considered at
the global level with almost 200 separate national govern-
ments;
Whereas the First Annual Report of the United States Gov-
ernment Working Group on Electronic Commerce found
that fewer than 10,000,000 people worldwide were using
the Internet in 1995, that more than 140,000,000 people
worldwide were using the Internet in 1998, and that
more than 1,000,000,000 people worldwide will be using
the Internet in the first decade of the next century;
Whereas information technology industries have accounted
for more than one-third of real growth in the United
States’ Gross Domestic Product over the past three
years;
Whereas information technology industries employ more than
7,000,000 people in the United States, and by 2006 more
than half of the United States workforce is expected to
be employed in industries that are either major producers
or intensive users of information technology products and
services;
Whereas electronic commerce among businesses worldwide is
expected to grow from $43,000,000,000 in 1998 to more
than $1,300,000,000,000 by 2003, and electronic retail
sales to consumers worldwide are expected to grow from
$8,000,000,000 in 1998 to more than $108,000,000,000
by 2003;
• HCON 190 IH
Whereas the Internet Tax Freedom Act of 1998 enacted a
policy against special, multiple, and discriminatory tax-
ation of the Internet and electronic commerce, and stated
that United States policy should be to seek bilateral, re-
gional, and multilateral agreements to remove barriers to
global electronic commerce;
Whereas the World Trade Organization, at its May 1998
ministerial conference, adopted a declaration that all 132
member countries ‘‘will continue their current practice of
not imposing customs duties on electronic transmissions;’’
Whereas the Organization for Economic Cooperation and De-
velopment and industry groups issued a joint declaration
at an October 1998 ministerial meeting on global elec-
tronic commerce opposing special, multiple, and discrimi-
natory taxation of the electronic commerce and the
Internet;
Whereas the Committee on Fiscal Affairs of the Organization
for Economic Cooperation and Development has stated
that neutrality, efficiency, certainty, simplicity, effective-
ness, fairness, and flexibility are the broad principles that
should govern the taxation of electronic commerce;
Whereas the United States has issued joint statements on
electronic commerce with Australia, the European Union,
France, Ireland, Japan, and the Republic of Korea op-
posing special, multiple, and discriminatory taxation of
electronic commerce; and
Whereas a July 1999 United Nations Report on Human De-
velopment urged world governments to impose ‘‘bit
taxes’’ on electronic transmissions, raising concerns that
U.S. policy against special, multiple, and discriminatory
• HCON 190 IH
taxation of the Internet may be undermined: Now, there-
fore, be it
Resolved by the House of Representatives (the Senate
concurring), That the Congress—
(1) urges the President to seek a global con-
sensus supporting—
(A) a permanent international ban on tar-
iffs on electronic commerce; and
(B) an international ban on special, mul-
tiple, and discriminatory taxation of electronic
commerce and the Internet;
(2) urges the President to instruct the United
States delegation to the November 1999 World
Trade Organization ministerial meeting in Seattle,
Washington to seek to make permanent and binding
the moratorium on tariffs on electronic trans-
missions adopted by the World Trade Organization
in May 1998;
(3) urges the President to seek adoption by the
Organization for Economic Cooperation and Devel-
opment, and implementation by the group’s 29
member countries, of an international ban on spe-
cial, multiple, and discriminatory taxation of elec-
tronic commerce and the Internet; and
(4) urges the President to oppose any proposal
by any country, the United Nations, or any other