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Press Release

    Kemp Letters to Congress Support a Tax-Free Internet

    06/06/2001

    LETTER TO SENATORS:
    June 6, 2001

    Dear Colleague:

    Attached are letters of support I have written to the sponsors of two bills that will help ensure that the Internet remains tax free: S. 664, the New Economy Tax Fairness Act (NET FAIR), sponsored by Senator Judd Gregg (R-NH), and S. 777, the Internet Tax Nondiscrimination Act (ITNA), sponsored by Senators George Allen (R- VA) and Conrad Burns (R-MT).

    These are both important pieces of legislation that I believe deserve your consideration and support.

    Very sincerely yours,

    Jack Kemp

    COPY OF LETTER SENT TO SENATOR JUDD GREGG IN SUPPORT OF S. 664:
    May 30, 2001

    The Honorable Judd Gregg
    US Senate
    Russell Senate Office Building, SR-393
    Washington, DC 20510-2904

    Dear Judd,

    I am writing in support of your bill, S.664, the New Economy Tax Fairness Act or NET FAIR, which would clarify the jurisdictional standards for the imposition of state and local business activity, sales, and use tax obligations on interstate commerce.

    NET FAIR would extend existing law that currently governs catalogue sales to the Internet prohibiting states from forcing businesses to collect sales taxes for states where they do not have a physical presence. NET FAIR would codify nexus standards across-the-board and ensure that intangible sales, web pages and servers alone do not cause nexus.

    The Internet and E-commerce have fueled job creation, increased productivity and helped to generate growth in the US economy. NET FAIR coupled with a permanent extension of the current Internet Tax Moratorium will help ensure that the Internet continues to be an engine for economic growth. This legislation also encourages tax competition since it respects a state’s sovereign right to determine its own tax policy within its own borders, thus enhancing interstate commerce.

    By enacting this bill into law we can provide legal certainty for companies and consumers that engage in interstate commerce via the Internet, telephone, or mail order. I support and appreciate your efforts to solve this problem to protect consumers and businesses from unfair and constitutionally questionable taxation on interstate commerce.

    Very sincerely yours,

    Jack Kemp

    COPY OF LETTER SENT TO SENATORS ALLEN AND BURNS IN SUPPORT OF S. 777:
    May 3, 2001

    The Honorable George F. Allen
    Dirksen Senate Office Building, SD-187
    Washington, DC 20510-2602

    Dear Senator Allen:

    I am writing to wholeheartedly endorse your bill, the Internet Tax Nondiscrimination Act (ITNA), which would permanently extend the current Internet tax moratorium. Unfortunately, state and local public interest groups are misleading Congress and the public by asserting that the ITNA would impinge on states’ taxing authority.

    The restrictions on the ability of state and local governments to tax remote sales under which they apparently chafe are imposed by the US Constitution, not the moratorium. State and local governments are just as free under the moratorium to collect their sales and use taxes as they would be in its absence.

    As Steve Forbes wrote recently in Forbes Magazine, "a vibrant Internet means more prosperity and, hence, more tax receipts." It’s time to "reboot" the tech sector and the ITNA can make a great contribution to that effort.

    It is time to enact a permanent moratorium on new and discriminatory Internet taxation. George, I support and appreciate your efforts bringing this important issue forward. Please let me know if I can be of any further assistance.

    Very sincerely yours,

    Jack Kemp