[Congressional Record Volume 143, Number 28 (Thursday, March 6, 1997)]
[House]
[Page H786]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     TAX-FREE INTERNET ACT OF 1997

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Florida [Mr. Weldon] is recognized for 5 minutes.
  Mr. WELDON of Florida. Mr. Speaker, it is only fitting that I should 
rise now, the Representative from the home State of the alligator, to 
address a particular area of our economy that I would like to set aside 
as not eligible for taxation, and that is the Internet.
  Specifically, I have filed a bill today entitled the Tax-Free 
Internet Act of 1997. This legislation amends the Internal Revenue Code 
to declare that fees for Internet access and other online services are 
not and shall not be subject to Federal taxation. Furthermore, the bill 
would prevent any Federal department from using its funds to study the 
revenue potential of Internet taxation. I believe that this legislation 
is a strong statement in support of the free and unfettered development 
of this industry. My bill has already been endorsed by several online 
services and Internet service providers.
  America Online, one of the Nation's most widely used Internet-related 
service providers, said, and I quote, ``We commend your leadership in 
authoring and sponsoring the Tax-Free Internet Act of 1997. AOL 
strongly supports your policy efforts. Any new tax could threaten the 
continued growth of this global medium.''
  The President of Erol's online service adds, ``This legislation is a 
very positive development, and I give it my full support.''
  Mr. Speaker, we must not allow this budding industry to be smothered 
by Federal taxation. A few of the States, including my own State of 
Florida, have already initiated legislation to exempt the Internet and 
online service access fees from State and local taxes. We on the 
Federal level should do likewise.
  As the United States Internet Providers Association says of my bill: 
``We support the efforts of all informed policymakers to protect 
technology innovation and the growth of the industry through sound 
legislation. This is a step in the right direction.''
  Mr. Speaker, let us here resolve not to interfere with the 
technological phenomenon which has done so much to inform and educate 
so many millions of Americans. Let us restrain the reach of government 
so as not to smother the vitality and creativity that characterize this 
new frontier in communications.

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