October 16, 2001
Administration supports passage of H.R. 1552, the Internet Tax Nondiscrimination
Act. The Administration believes that government should be promoting
Internet usage and availability, not discouraging it with access taxes
and discriminatory taxes.
As amended, H.R. 1552 extends the Internet tax moratorium enacted by the Internet Tax Freedom Act for two years. While a five-year extension would be preferable, a two-year extension will provide additional time to analyze the impact of e-commerce on local and State tax receipts while ensuring that the growth of the Internet is not slowed by new taxes.
The Administration encourages the Congress to act expeditiously to send to the President's desk legislation extending the moratorium before it expires on October 21, 2001.