Date: 2001-10-16
Speaker: TOM DAVIS (republican)
Chamber: H
State: Virginia

Madam Speaker. I rise today as an original sponsor and enthusiastic supporter of H.R. 1552. the Internet Tax Nondiscrimination Act. I continue to favor the fiveyear extension originally contained in this legislation and advocated by the Advisory Commission on Electronic Commerce. Such an extension would ensure predictability and foster further innovation. I will support the two year extension. however. because I believe it is of paramount importance not to allow the moratorium to expire. Despite the current downturn in the economy. the Internet continues to flourish as the most unique and vibrant global communication and commercial tool. Its important role in our society and economy continues to expand. Yet an everpresent concern plagues many of us who understand the need to foster the Internets continued growth: that government interference in the electronic marketplacewhether it be through regulation or tax policywill create barriers that interfere with the transformation of the Internet into the repository of global communications and commerce for the 21st century. Three years ago. we recognized that state and local taxation in electronic commerce would require a thorough analysis before we could formulate a balanced and restrained federal policy on the taxation of goods and services sold over the Internet. While most of us agree that regulation of the Internet would hinder technological innovation and economic growth. we also understand the legitimate needs of state and local governments who use sales tax revenue to fund services for their citizens. Therefore. we enacted a 3year moratorium on Internet access taxes and multiple and discriminatory taxes on goods and services sold over the Internet. We also created the Advisory Commission on Electronic Commerce to begin that process and identify all of the integrated issues that arise in the context of taxation and the Internet Economy. In its report issued in April 2000. the Commission recommended. among other things. that the current moratorium be extended at that time for another 5 years. I understand that some of my colleagues believe the moratorium should not last as long as 5 years and others believe that we have to address this important issue in a comprehensive manner. I wholeheartedly agree with the latter concernthis issue needs to be resolved in a methodical and holistic manner. But we need to implement a realistic time frame that will allow us to resolve each and every layer of the problems presented by taxation in a digital world. As I noted during House consideration of this legislation last year. this problem cannot be about politics. This is not a zerosum equation. and its important for the health of our economy that we resolve this complicated issue with deliberative evaluation. This is one of the most important longterm economic policy decisions that our nation will make. and I want to congratulate my colleagues. Chairman SENSENBRENNER and Congressman Cox for their steadfast leadership in ensuring that we resolve this issue before the October 21st expiration of the current moratorium. I urge all of my colleagues to support H.R. 1552 and look forward to continued efforts to address the substantive issues in this debate.