Congressmen introduce act to permanently ban Internet taxes

The three-year moratorium on Internet taxes enacted by Congress in October 1998 would be made permanent under a bill proposed Thursday by three lawmakers.

Sen. Ron Wyden (D-Ore.) joined Rep. Bob Goodlatte (R-Va.) and Rep. Christopher Cox (R-Calif.) in introducing the Internet Non-Discrimination Act, a bill that would institutionalize the temporary moratorium on taxing Internet transactions. The act will be referred to the House Judiciary Committee, of which Goodlatte is a member.

"We must continue to ensure that the Internet remains free from reckless, restrictive taxation by making the tax moratorium permanent," Goodlatte said in a release.

Many state and local government officials, including the National Governors' Association and the National League of Cities, have said excluding Internet sales from tax is a pre-emption of local taxation laws. They say the loss of sales-and-use taxes from Internet transactions will deplete local revenues and cripple traditional retailers.

"The dire predictions of state and local officials didn't come true," Wyden said Wednesday at a Senate Budget Committee hearing. "Revenues are up, Main Street retailers are expanding and setting up online. It's the convergence of the new economy with the old economy."

Featured

Stay Connected

FCW Update

Sign up for our newsletter.

I agree to this site's Privacy Policy.