Negotiations Continue for End to e-Taxes
Senate committee calls for further discussion of moratorium extension.
By: Bianca Fox
Posted: 09/28/2007
WASHINGTON - A proposed extension of a moratorium on taxes for
Internet access and goods purchased online needs further negotiations, the Senate
Commerce Committee said Thursday.
U.S. Treasury Secretary Henry
M. Paulson and Commerce Secretary Carlos M. Gutierrez had called for the
abolishment of the e-taxes on Wednesday and expressed support for Senate Bill
1453 (the Internet Tax Freedom Extension Act of 2007), which went before the
Senate Commerce Committee for markup Thursday. After meeting for an executive
session to discuss the markup, the committee decided that further negotiations
were needed.
"I
am disappointed that the Commerce Committee was unable to act on legislation to
extend the Internet tax moratorium at today's markup," Chairman Daniel K. Inouye (D-Hawaii) said Thursday after
the meeting. "But after discussions
with my colleagues, I believe that further negotiations are warranted. It is my
hope that a reasonable compromise can be reached and that the committee will be
able to take swift action in the future."
The present tax moratorium
is scheduled to expire on Nov. 1. It began in 1998 with the Internet Tax Freedom
Act, which was extended via the Internet Tax Nondiscrimination Act in 2004. In
May, the National Governors Association supported a four-year extension of the
moratorium. The current law does not prevent the collection of state taxes.
The U.S. Senate Committee on
Commerce, Science and Transportation is composed of 22 senators led by Inouye
and Vice Chairman Ted Stevens (R-Alaska).
Paulson and Gutierrez also called
for permanent moratoriums on Internet-access taxes and multiple or "discriminatory"
taxes on electronic commerce.
"The Internet is an
innovative force that opens up the vast potential economic and social benefits
of electronic commerce," Paulson and Gutierrez said in a joint statement.
"Preventing the taxation of Internet access will help sustain an
environment for innovation, ensure that consumers continue to have affordable
access to the Internet - especially high-speed Internet - and strengthen the
foundations of electronic commerce as a vital and growing part of our economy.
"Congress has an opportunity
to demonstrate bipartisan leadership by passing essential legislation before
the current moratorium expires on Nov. 1 of this year. We urge the Congress to
expedite passage of a permanent extension so that President [George W.] Bush
can sign it into law before the current moratorium expires."
