[Congressional Record Volume 147, Number 130 (Tuesday, October 2, 2001)]
[Senate]
[Page S10056]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                            INTERNET TAXING

  Mr. McCAIN. Mr. President, the Senator from Oregon and I, along with 
the Senator from North Dakota, Mr. Dorgan, and the Senator from 
Massachusetts, Mr. Kerry, and others have been working for years on the 
issue of Internet tax. We still have not reached an agreement. The 
moratorium expires very soon.
  We will be introducing legislation today for another 2-year extension 
of the Internet tax moratorium. I hope we can get agreement on that, 
and in calmer and quieter times, we will be able to address and debate 
the issue of international taxation, which is a very difficult, very 
complicated, and an increasingly important issue to Governors, 
legislators, mayors, and city council members.
  At this point in our American history, we need an extension of a 
couple years so in calmer and quieter times we can come to some 
agreement on this very important issue. That does not mean the Senator 
from Oregon and I are opposed to Internet taxes per se, but we have a 
long way to go before we are in agreement, so we will be introducing 
legislation today. I hope we can get unanimous agreement on it and move 
forward.
  I yield to the Senator from Oregon.
  The PRESIDING OFFICER. The Senator from Oregon.
  Mr. WYDEN. Mr. President, today with Senators McCain and Leahy, I am 
introducing legislation that would extend the moratorium on 
discriminatory taxes on electronic commerce.
  Senator McCain is absolutely right. The moratorium expires in a few 
days, and we are very hopeful the bipartisan bill we are going to 
introduce today is going to help bring the Senate together on what has 
surely been a very contentious issue.
  Considerable confusion even exists as to what the current law 
entails. For example, there are countless stories written that say 
there is a ban on Internet taxes. That is absolutely incorrect. The 
only thing that is banned today is taxes that single the Internet out 
for discriminatory treatment. We are extending that ban.
  As Senator McCain has noted, there are strong feelings on both sides 
of this issue. I happen to believe very strongly that no jurisdiction 
in this country has shown they have been hurt by their inability to 
discriminate against the Internet. Certainly folks in State and local 
government feel very strongly about it, and they have a right, at this 
time of economic concern, to know where the revenue is going to be for 
their essential needs.
  Senator Dorgan, Senator Kerry, Senator Hollings, and I intend to 
continue the very constructive conversations we have had literally for 
18 months on the issue, but because it is important to move forward 
quickly, given the fact the moratorium expires, Senator McCain, Senator 
Leahy, and I are introducing our bipartisan effort today and plan to 
continue our conversation with our colleagues.

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