[Congressional Record Volume 144, Number 137 (Monday, October 5, 1998)]
[Senate]
[Pages S11503-S11504]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        INTERNET TAX FREEDOM ACT

 Mr. FAIRCLOTH. Mr. President, I rise today in support of the 
Internet Tax Freedom Act. In recent years, Internet use has exploded, 
creating unprecedented opportunities for individuals and businesses. We 
must not allow a complicated patchwork of taxes to impede future 
opportunities.

[[Page S11504]]

  Growth of the Internet has presented individuals with quick access to 
unlimited information. With an estimated 100 million users connected by 
year's end, its popularity is unmistakable.
  Logically, entrepreneurs are catering to this growth through online 
sales. We are now seeing the online sale of books, airline tickets, and 
computer software. New companies are being created and old companies 
are adapting to provide products and services via the Internet. 
Companies such as Amazon.com and Dell computers are leading the way. Of 
course, large numbers of small businesses are focusing on Internet 
sales as well. Electronic Commerce generated an estimated $8 billion 
last year and is projected to generate over $300 billion in 2002.
  Mr. President, we must not underestimate the benefits of such growth. 
It leads to the creation of new businesses and jobs. And while 
companies that do this well will reap tremendous rewards, consumers 
will be the ultimate winners. They will benefit from the convenience 
and efficiency of electronic commerce. Furthermore, growth in Internet 
sales will lead to increased competition, bringing consumer choice and 
lower prices. I, therefore, believe it's vital that we protect this 
emerging industry.
  By placing a two-year moratorium on Internet access tax and 
discriminatory taxes on electronic commerce, the Internet Tax Freedom 
Act is a strong step in the right direction. I understand that many 
businesses may not have the resources or may choose not to engage in 
Internet sales. This bill doesn't discriminate against these companies 
by creating a tax haven for their competitors. It applies only to those 
taxes which specifically target the Internet. It, in effect, prevents 
discrimination against companies engaged in Internet sales.
  Mr. President, the Internet Tax Freedom Act is a bipartisan bill 
which will ensure the vitality of our nation's electronic commerce. 
Today, I offer my full support for this commonsense 
legislation.

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