Chamber Fights for Internet Tax Ban

 

At the spring meeting of the U.S. Chamber's Telecommunications & E-Commerce Committee,
participants discussed the importance of passing legislation to extend the moratorium on Internet taxes.

 

"It is imperative that all levels of government not impede the explosive growth we've seen on the Internet, including the growth of small e-commerce vendors, with the imposition of taxes that unfairly target online transactions," according to Phil Beram, the Chamber's chief tax counsel and director of tax policy.

 

In 1998, Congress enacted a U.S. Chamber-backed moratorium on new, multiple, or discriminatory taxes on Internet purchases and access. Extended in 2004, this moratorium expires November 1, 2007, possibly subjecting online vendors and consumers to additional taxes.

 

State and local governments have already begun objecting to efforts to extend or make permanent the moratorium, arguing that the federal government would be interfering with their ability to raise revenue.

 

The Chamber is independently lobbying members of the House and Senate to make the Internet tax moratorium permanent and has joined the Don't Tax Our Web Coalition, a group of industry and businesses fighting taxes that target electronic commerce.

 

In addition to Internet taxes, the committee talked about how Congress and the telecom industry should work together to expand access to broadband Internet connections. House Majority Whip Rep. James Clyburn (D-SC), the committee meeting's keynote speaker, touted the tremendous economic and educational gains that technology can bring to people living in underserved communities.

 

The Telecommunications & E-Commerce Committee is one of about 20 Chamber committees that gives members the opportunity to  identify relevant issues, help shape Chamber policy, and assist Chamber staff in pursuit of those policies.