U.S. Chamber Supports House Extension of Internet Tax Moratorium

WASHINGTON, D.C. – The United States Chamber of Commerce today applauded lawmakers on Capitol Hill for extending by two years the current moratorium on new, multiple and discriminatory taxes on Internet transactions. The "Internet Tax Nondiscrimination Act," H.R. 1552, passed the House by a voice vote.

"The growth of the Internet has revolutionized the manner in which we transact business in this country," said Joe Rubin, Chamber director of public affairs. "Federal, state and local governments must not hinder Internet commerce with complex taxes that target online transactions."

The bill brings to light an issue that is critical to American businesses – the collection of sales taxes on Internet and remote transactions. Crafting a taxation system for Internet sales requires the untangling of a large and archaic web of rules already in place for thousands of taxing jurisdictions, according to the Chamber.

Extending the moratorium ensures that American businesses and consumers are not burdened by more complex regulations while possible tax reform is explored. But the legislation does allow state and local governments to pass new sales taxes that are uniform for both online transactions and traditional retailers.

"We urged House lawmakers to pass the longest extension possible," said Rubin. "The current bill is cut and dry and we urge the Senate to follow suit."

The U.S. Chamber of Commerce is the world's largest business federation, representing more than three million businesses of every size, sector and region.

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