[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H. Con. Res. 190 Introduced in House (IH)]







106th CONGRESS
  1st Session
H. CON. RES. 190

   Urging the United States to seek a global consensus supporting a 
  moratorium on tariffs and on special, multiple, and discriminatory 
                    taxation of electronic commerce.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 30, 1999

    Mr. Cox (for himself and Mr. Sessions) submitted the following 
concurrent resolution; which was referred to the Committee on Ways and 
                                 Means

_______________________________________________________________________

                         CONCURRENT RESOLUTION


 
   Urging the United States to seek a global consensus supporting a 
  moratorium on tariffs and on special, multiple, and discriminatory 
                    taxation of electronic commerce.

Whereas electronic commerce is not bound by geography and its borders are not 
        easily discernible;
Whereas transmissions over the Internet are made through packet-switching, 
        making it impossible to determine with any degree of certainty the 
        precise geographic route or endpoints of specific Internet transmissions 
        and infeasible to separate domestic from foreign Internet transmissions;
Whereas inconsistent and inadministrable taxes imposed on Internet activity by 
        subnational and national governments threaten not only to subject 
        consumers, businesses, and other users engaged in interstate and foreign 
        commerce to multiple, confusing, and burdensome taxation, but also to 
        restrict the growth and continued technological maturation of the 
        Internet itself;
Whereas the complexity of the issue of domestic taxation of electronic commerce 
        is compounded when considered at the global level with almost 200 
        separate national governments;
Whereas the First Annual Report of the United States Government Working Group on 
        Electronic Commerce found that fewer than 10,000,000 people worldwide 
        were using the Internet in 1995, that more than 140,000,000 people 
        worldwide were using the Internet in 1998, and that more than 
        1,000,000,000 people worldwide will be using the Internet in the first 
        decade of the next century;
Whereas information technology industries have accounted for more than one-third 
        of real growth in the United States' Gross Domestic Product over the 
        past three years;
Whereas information technology industries employ more than 7,000,000 people in 
        the United States, and by 2006 more than half of the United States 
        workforce is expected to be employed in industries that are either major 
        producers or intensive users of information technology products and 
        services;
Whereas electronic commerce among businesses worldwide is expected to grow from 
        $43,000,000,000 in 1998 to more than $1,300,000,000,000 by 2003, and 
        electronic retail sales to consumers worldwide are expected to grow from 
        $8,000,000,000 in 1998 to more than $108,000,000,000 by 2003;
Whereas the Internet Tax Freedom Act of 1998 enacted a policy against special, 
        multiple, and discriminatory taxation of the Internet and electronic 
        commerce, and stated that United States policy should be to seek 
        bilateral, regional, and multilateral agreements to remove barriers to 
        global electronic commerce;
Whereas the World Trade Organization, at its May 1998 ministerial conference, 
        adopted a declaration that all 132 member countries ``will continue 
        their current practice of not imposing customs duties on electronic 
        transmissions;''
Whereas the Organization for Economic Cooperation and Development and industry 
        groups issued a joint declaration at an October 1998 ministerial meeting 
        on global electronic commerce opposing special, multiple, and 
        discriminatory taxation of the electronic commerce and the Internet;
Whereas the Committee on Fiscal Affairs of the Organization for Economic 
        Cooperation and Development has stated that neutrality, efficiency, 
        certainty, simplicity, effectiveness, fairness, and flexibility are the 
        broad principles that should govern the taxation of electronic commerce;
Whereas the United States has issued joint statements on electronic commerce 
        with Australia, the European Union, France, Ireland, Japan, and the 
        Republic of Korea opposing special, multiple, and discriminatory 
        taxation of electronic commerce; and
Whereas a July 1999 United Nations Report on Human Development urged world 
        governments to impose ``bit taxes'' on electronic transmissions, raising 
        concerns that U.S. policy against special, multiple, and discriminatory 
        taxation of the Internet may be undermined: Now, therefore, be it
    Resolved by the House of Representatives (the Senate concurring), 
That the Congress--
            (1) urges the President to seek a global consensus 
        supporting--
                    (A) a permanent international ban on tariffs on 
                electronic commerce; and
                    (B) an international ban on special, multiple, and 
                discriminatory taxation of electronic commerce and the 
                Internet;
            (2) urges the President to instruct the United States 
        delegation to the November 1999 World Trade Organization 
        ministerial meeting in Seattle, Washington to seek to make 
        permanent and binding the moratorium on tariffs on electronic 
        transmissions adopted by the World Trade Organization in May 
        1998;
            (3) urges the President to seek adoption by the 
        Organization for Economic Cooperation and Development, and 
        implementation by the group's 29 member countries, of an 
        international ban on special, multiple, and discriminatory 
        taxation of electronic commerce and the Internet; and
            (4) urges the President to oppose any proposal by any 
        country, the United Nations, or any other multilateral 
        organization to establish a ``bit tax'' on electronic 
        transmissions.
                                 <all>