Leahy Hails House Vote On Internet Tax Moratorium Bill And Pushes For The Senate To Finish The Job

May 10, 2000

[Sen. Patrick Leahy Wednesday applauded House action today in approving a bill that would extend for five more years the current moratorium that prevents the imposition of discriminatory NEW taxes (the moratorium does not apply to sales taxes) on Internet commerce. The moratorium covers discriminatory or multiple new taxes on e-commerce. With 30,000 different tax jurisdictions across the country, multiple taxation is a particular concern to businesses doing business online. The bill, passed Wednesday by the House of Representatives in a vote of 352-75, extends the Internet tax moratorium from Oct. 21, 2001, to the same date in 2006. Leahy is a leading cosponsor of a bill that would make the current moratorium permanent and supports the House-passed bill, which is a compromise arising from the bill Leahy has pushed for. Leahy is known as the “cyber senator” for his longtime work on and interest in Internet issues and for his efforts to promote e-commerce in Vermont and is a co-founder and the Senate co-chair of the Congressional Internet Caucus. Following are Leahy’s comments after the House vote:]

“Cyberselling is taking off in Vermont, and that is a good thing for our state’s economy. We should keep it going and growing during this critical time of innovation. Now is exactly the wrong time to invent new tax categories for the Internet, if ever.

“I applaud the House action in approving our bill, and I urge the Senate leadership to make final action on our moratorium bill a priority for the few remaining weeks of this session.”