[Congressional Record (Bound Edition), Volume 150 (2004), Part 19]
[Senate]
[Pages 25194-25195]
[From the U.S. Government Publishing Office, www.gpo.gov]




                       TELECOMMUNICATIONS REFORM

  Mr. ALLEN. Mr. President, I want to discuss two important ideas and 
issues that are essential, I think, for America's future and our 
opportunities. First, I thank my colleagues in the House and the Senate 
for support of S. 150, the Internet Tax Nondiscrimination Act.
  Second, I want to discuss the significant advances in broadband 
Internet technologies over the past 8 years, particularly since the 
passage of the 1996 Telecommunications Act.
  I thank the chairman of the Commerce Committee, Senator McCain, and 
the Senator from Oregon, Mr. Wyden, for their continued leadership on 
the Internet tax moratorium. I have enjoyed working both with Chairman 
McCain and Senator Wyden over the years on numerous technology-related 
projects, such as nanotechnology, WiFi, unsolicited commercial e-mail, 
or SPAM and SPYWARE. They are great teammates on these 
telecommunications and technology issues, and I thank them.
  Yesterday afternoon, the House of Representatives passed S. 150, the 
Internet Tax Nondiscrimination Act, which cleared this important 
legislation for the President's signature later this year. As 
colleagues have heard me say on many occasions, the moratorium on 
Internet taxation has been one of my top legislative priorities since 
coming to the Senate. I have held this position since 1997, in my days 
as Governor of Virginia, when I was one of only four Governors to share 
the view in support of the visionary leadership of Congressman Chris 
Cox and Senator Wyden on this issue of Internet taxation.
  I have consistently advocated policies and ideas that promote freedom 
and opportunity for all Americans. This legislation, S. 150, authored 
with Senator Wyden, protects every American from harmful, regressive 
taxes on Internet access, as well as from duplicative and predatory 
taxes on Internet transactions.
  Today, the winners are the American people. I am very pleased to see 
that this measure was a victory for those of us who stand for freedom, 
opportunity,

[[Page 25195]]

and prosperity, rather than more taxation and burdensome regulations of 
the Internet. This legislation is a real victory for American 
consumers, small businesses, rural Americans and, most important, low-
income families. It is the result of a hard-fought success that extends 
the tax moratorium for another 4 years, from the time the last one 
expired until October 31, 2007.
  Additionally, this legislation updates the previous moratorium to 
protect all types of Internet access platforms, including dial-up, 
satellite, cable modem service, DSL, wireless technology, and even next 
generation broadband networks, such as broadband over power lines.
  Basic economics indicate that for every dollar of taxation added to 
the cost of Internet access, we can expect to see lost utilization of 
opportunities for the Internet for thousands of American families, 
especially those in rural areas and those of lower income.
  With clear tax protection at the Federal level, S. 150 ensures that a 
complex, costly, and outdated telephone-like tax regime, which averages 
about 15 percent to 18 percent nationally, will not be imposed on 
Internet consumers. The guiding principle of the Internet tax 
moratorium has always been that the Internet should remain as 
accessible as possible to all people in all parts of the country 
forever. The Internet is one of our country's greatest innovations for 
individual empowerment, economic growth, and jobs.
  So extending the tax moratorium and protecting all types of broadband 
technology platforms puts this country one step closer to closing the 
economic digital divide. The fact of the matter is--there are more 
Americans empowered by the Internet today, primarily because the 
Federal policy of the United States has consciously allowed Internet 
innovators, entrepreneurs, and consumers to remain free from 
burdensome, onerous taxation and unnecessary regulation.
  I am honored that the majority of my colleagues in the Senate and the 
House have agreed to preserve this policy for another 4 years with the 
passage of S. 150. I thank all for their support.

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