[Congressional Record (Bound Edition), Volume 145 (1999), Part 19]
[Extensions of Remarks]
[Page 27635]
[From the U.S. Government Publishing Office, www.gpo.gov]



URGING UNITED STATES TO SEEK GLOBAL CONSENSUS SUPPORTING MORATORIUM ON 
     TARIFFS AND SPECIAL, MULTIPLE, AND DISCRIMINATORY TAXATION OF 
                          ELECTRONIC COMMERCE

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                               speech of

                             HON. JIM KOLBE

                               of arizona

                    in the house of representatives

                       Tuesday, October 26, 1999

  Mr. KOLBE. Mr. Speaker, I rise in strong support of H. Con. Res. 190, 
the Global Internet Tax Freedom Act. This important legislation calls 
on the administration to take a tough stand at the World Trade 
Organization Ministerial to keep the Internet tax free worldwide.
  The Internet has appeared in an era when we realize how taxation 
discourages, even thwarts commerce. Against the natural inclination of 
many, a bare-bone majority has succeeded in keeping the Internet tax-
free in the 50 United States. It is important that we continue the 
progress made here to other nations.
  I am going to attend the World Trade Organization's meeting in 
Seattle next month as a no-Internet-tax fanatic. Along with dozens of 
House colleagues, I will be preaching from House Con. Res. 190, which 
urges world leaders to make permanent a temporary moratorium on 
Internet taxes. The timing is important. I expect that dozens of 
members of the community of nations have dozens of pressing needs, and 
unique circumstances, and compelling motives to put a national checkout 
counter and tax-collector at the end of a web page.
  We all fancy ourselves as free-traders--except when there is some 
benefit derived from well, making a little innocuous exception. And the 
world's markets are made up of millions and millions of little 
exceptions. Fortunately, the Internet is too young and innocent to have 
been susceptible to those little exceptions.
  Years ago, a reporter asked the economist Milton Friedman about the 
North American Free Trade Agreement and its annexes. ``Misnomer,'' 
replied Friedman, ``That's no free trade agreement. It's managed trade. 
A real free-trade agreement would take one sentence, of if it's 
verbose, may be a paragraph.''
  My hope is that all 134 nations will embrace the simplicity and 
brilliance of that philosophy when it comes to Internet Commerce. E-
Commerce is critical to our continued growth and prosperity. We must 
leave it free to flourish worldwide.

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