[Congressional Record Volume 146, Number 61 (Wednesday, May 17, 2000)]
[Extensions of Remarks]
[Page E742]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 INTERNET NONDISCRIMINATION ACT OF 2000

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                               speech of

                       HON. EDDIE BERNICE JOHNSON

                                of texas

                    in the house of representatives

                        Wednesday, May 10, 2000

       The House in Committee of the Whole House on the State of 
     the Union had under consideration the bill (H.R. 3709) to 
     make permanent the moratorium enacted by the Internet Tax 
     Freedom Act as it applied to new, multiple, and 
     discriminatory taxes on the Internet:

  Ms. EDDIE BERNICE JOHNSON. Mr. Chairman, as the Internet flourished 
during its infant stages and development, the importance of access and 
accessibility is key to America. It is my belief that the Internet 
should not be encumbered with burdensome taxation. However, sales 
through the Internet without paying taxes gets into another area, an 
area that could seriously effect the economy of states such as Texas. 
The Internet, a technology where America is the unquestioned world 
leader, should be allowed to develop and flourish without every state 
and locality burdening such commerce with taxation during its growth 
process.
  The purpose of H.R. 3709, sponsored by my colleague, Representative 
Cox, will extend for an additional five years the current three-year 
moratorium on the imposition of state and local sales taxes on Internet 
access, as well as any multiple or discriminatory taxes imposed on the 
Internet. With this legislation, Members of Congress are attempting to 
find a fair solution for traditional business and state and local 
authorities, while not stifling the growth of e-commerce. Though H.R. 
3709 may be attractive, the extended five-year period may be too long. 
I find the amendment proposed by my colleague, Representative Delahunt, 
more appealing. His amendment will provide only a two-year extension of 
the moratorium on state and local taxes on the Internet. This two-year 
period will hopefully give us time to come up with a feasible and fair 
solution to this troublesome problem for states that fund themselves 
through sales tax.
  Let me end by acknowledging the work that each of you have and 
continue to do in order to ensure America's leadership position in the 
technological world. As Members of Congress and leaders, we must 
realize that ill-considered and disruptive new taxes could literally 
kill the initial growth stage of our most dynamic and innovative 
segment of our economy--the Internet. However, now is the opportune 
time to examine the relationship between taxes and the Internet. We 
must find ways that will allow the Internet to play its role as a 
valuable asset, while funding programs that will be beneficial for 
individual states, such as Texas, who rely on sales tax for the 
construction of its transportation systems and the education of our 
children.

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