Office of Management and Budget
Executive Office of the President
  Site Search     
 
About OMB  
- Organization Chart
- Contact OMB
 
President's Budget
- Budget Documents
- Supplementals, Budget Amendments, and Releases
Federal Management
- President's Management Agenda
- Office of Federal Financial
Management
-- Agency Audits
- Office of Federal Procurement
Policy
  -- CAS Board
-- FAIR Act Inventory
Office of Information and Regulatory Affairs
- OIRA Administrator
- Regulatory Matters
- Paperwork Requirements
- Statistical Programs & Standards
- Information Policy, IT & E-Gov
Communications & Media
- News Releases
- Speeches
Legislative Information
- Statements of Administration Policy (SAPs)
- Testimony
- Reports to Congress
Information for Agencies
- Circulars
- Memoranda
- Bulletins
- Pivacy Guidance
- Grants Management
- Reports
Site Map
First Gov  
eGov
|
May 10, 2000
(House)


H.R. 3709 - Internet Nondiscrimination Act
(Cox (R) CA and 12 cosponsors)

The Administration supports a permanent moratorium on taxation of Internet access and opposes multiple and discriminatory taxes on the Internet. The Internet is a fast-developing mode of commerce where the technology and the economics change very rapidly. Five years is a very long time in the fast-moving virtual world. Therefore, the many open questions concerning Internet taxation should be resolved in "Internet time" and not postponed for an additional five years.

The Administration supports an amendment that may be offered by Representative Delahunt (D-MA) and Representative Thune (R-SD) which would provide for a two-year extension of the current moratorium. H.R. 3709's proposed extension of the current moratorium, through 2006, would in effect enact a five-year hold on any further consideration of Internet tax issues, creating uncertainty in a vital and rapidly growing industry. In addition, the proposed five-year extension would significantly reduce the incentive for States to simplify their tax systems right now, to the detriment of all interested parties, particularly small businesses. Tax simplification and clarity in the responsibility for tax payment are essential for the establishment of a level playing field among different types of businesses, including both Internet and main-street firms. The Administration opposes H.R. 3709 because it will delay consideration of important Internet tax issues and will hinder, not foster, tax simplification efforts by the States.