U.S. SENATOR PATRICK LEAHY

President Signs Bill Pushed By Leahy
To Reinstate And Extend Internet Tax Moratorium

Reaction Of Sen. Patrick Leahy,
A Leading Cosponsor Of The Internet Tax Moratorium Bill

[WASHINGTON (Friday, Dec. 3) – President George W. Bush Friday signed a bipartisan bill advanced by Sen. Patrick Leahy (D-Vt.) and other leaders of the ongoing Internet tax moratorium effort that will extend a ban on Internet access fees and discriminatory or multiple Internet taxes for another three years.  Leahy was at the forefront of the effort that originally put the moratorium in place in 1998, and he also took a leading role in renewing the moratorium in 2001. The legislation signed today, advanced by Sen. George Allen (R-Va.), Sen. Ron Wyden (D-Ore.), Leahy and others, retroactively reinstitutes the moratorium that expired in November 2003 and extends it through October 2007.  Leahy is co-chair and co-founder of the Congressional Internet Caucus.  Following are Leahy’s comments about the President’s signing of the bill:]

Reaction Of Sen. Patrick Leahy,
Co-Chair, Congressional Internet Caucus,
To The President’s Signing
Of The Internet Tax Non-Discrimination Act

“This has been a bipartisan effort to protect the Internet’s unique and robust potential in communications and in commerce.  Thousands of separate jurisdictions nationwide would be able to levy taxes on a single Internet user without this law, and that threat would hamper online commerce and widen the digital divide.

“In Vermont, online commerce is helping us erase the geographic barriers that historically have limited our access to major markets.  Today hundreds of Vermont firms are selling Vermont products online.  Vermont Teddy Bear Company alone employs more than 300 Vermonters, doing most of its business on the Internet.

“Electronic commerce is beginning to blossom, but it’s still in its infancy.  Stability is the key to reaching its full potential, and carving out new tax categories for the Internet is exactly the wrong thing to do.  This will keep that from happening, at least for several more years.”

# # # # #