[Congressional Record Volume 165, Number 45 (Wednesday, March 13, 2019)]
[Extensions of Remarks]
[Page E295]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      INTRODUCTION OF DIGITAL GOODS AND SERVICES TAX FAIRNESS ACT

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                            HON. STEVE COHEN

                              of tennessee

                    in the house of representatives

                       Wednesday, March 13, 2019

  Mr. COHEN. Madam Speaker, I rise in support of the Digital Goods and 
Services Tax Fairness Act, a bipartisan, bicameral bill I introduced 
earlier today along with my colleague on the Judiciary Committee, 
Representative John Ratcliffe from Texas, and in the Senate, Senators 
John Thune from South Dakota and Ron Wyden from Oregon, to curb 
discriminatory taxation of digital goods and services.
  We live in an increasingly digitized world. Digital goods and 
services make consumption of entertainment media more convenient and 
have a lighter carbon footprint than their tangible analogs such as e-
books, movies, online documents and much more. In addition, many vital 
health, education, and computer systems have turned to digital goods 
and services to increase the reliability and efficiency of access to 
important data.
  The lack of a uniform framework for state taxation of digital goods 
and services has led to a patchwork of state tax laws that confuses 
consumers and unnecessarily challenges the digital economy. Consumers 
risk being taxed by multiple jurisdictions for a single download. For 
instance, three different states can currently tax the same purchase of 
a digital good or service.
  Discriminatory taxes also discourage the new, innovative, emerging 
technologies and products that American inventors continue to develop.
  The Digital Goods and Services Tax Fairness Act would ensure that 
consumers are not taxed at a higher rate for purchasing digital goods 
than they are for purchasing tangible goods by establishing a national 
framework to determine which state has the right to decide whether to 
tax a digital transaction. It would also protect consumers from 
potential multiple state taxes on a single digital purchase.
  This is common sense legislation that is necessary in our booming 
digital economy. I urge both the House and the Senate to swiftly pass 
this bill.

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