Empower America Applauds Senate On Passage of Legislation That Extends Internet Tax Moratorium

Today, Empower America President, J.T. Taylor praised the Senate on the recent passage of legislation that extends the moratorium on Internet-related taxes for two years, which President Bush indicated he would sign into law.

The Internet tax ban was enacted three years ago but expired Oct. 21, 2001. The Senate rejected language of the Dorgan-Enzi amendment, on a 57-43 vote, that could have led to future collection of state taxes on Internet sales. The proposal would have required a congressional vote to allow sales-tax collections after 20 states agreed to collect for each other.

Taylor said, “Although we would have preferred a permanent extension or five-year extension of the moratorium, passage of a clean two-year extension of the Internet tax moratorium was the best compromise given current political realities. We agree completely with the White House that government should be promoting Internet usage and availability, not discouraging it with access fees and discriminatory taxes.” Empower America is determined, as we look beyond the moratorium, to keep our eye on the ball. The reason for the Internet tax moratorium is to prevent access fees and new and discriminatory taxes on the Internet from crippling the Internet and economic growth. A further extension of the moratorium should not be used as a mechanism for the creation of an interstate tax cartel.

“Make no mistake about it about, national tax cartel advocates will be back with the same tired arguments for eliminating sound economic policy, tax competition, and casually overturning Supreme Court precedent as they did during the debate over extending the Internet tax moratorium this year. We can savor a small victory for the American economy and the American taxpayer, however, we must begin preparing tomorrow for the fight to come to ensure that our victory in this Internet tax battle does not lead to defeat in legislative battles yet to come.”