[Congressional Record Volume 147, Number 148 (Wednesday, October 31, 2001)]
[Extensions of Remarks]
[Page E1966]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




           H.R. 1552--THE INTERNET TAX NONDISCRIMINATION ACT

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                           HON. ANNA G. ESHOO

                             of california

                    in the house of representatives

                      Wednesday, October 31, 2001

  Ms. ESHOO. Mr. Speaker, I rise in support of H.R. 1552, the Internet 
Tax Nondiscrimination Act, which extends the moratorium on Internet 
taxation. The current moratorium expires on October 21.
  As we now know the Internet has had a global economic impact on the 
way business is transacted and some of the rapid expansion of the 
Internet is due to the fact that it has remained free from restrictive 
taxes.
  There is growing concern, however, that as e-commerce continues to 
flourish, states and localities are losing more and more of their sales 
tax revenue because we lack a uniform system of collecting sales taxes 
on Internet purchases. Collecting these taxes is further complicated by 
the diverse and extensive web of taxing authorities throughout the 
country.
  We need a nondiscriminatory tax system dealing with these 
complexities which will be fair to the states, and that at the same 
time continue to foster the expansion of e-commerce. The development of 
such a plan requires a thoughtful, careful, and innovative approach 
among participants at both the state and federal levels.
  Extending the ban on Internet taxes for two years will give all 
involved entities more time to assess the impact of e-commerce on state 
revenues and to develop an equitable system of taxation and collection. 
By doing so, we can continue to reap the benefits e-commerce has to 
offer, while not sacrificing important and necessary revenue to states 
and localities.

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