Administration supports Senate passage of H.R. 1552. The Administration
believes that government should be promoting Internet usage and availability,
not discouraging it with access taxes and discriminatory taxes.
passed by the House, 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.
moratorium expired on October 21, 2001. The Administration supports
rapidly reinstating the moratorium. The Administration encourages
the Senate to pass H.R. 1552, without amendment, to enable its expeditious
enactment into law.