Re: Introduction of Internet Non-Discrimination Act.
Date: February 3, 2000.
Source: Office of Rep. Chris Cox.
| Press Release of Rep. Chris Cox (R-CA). Re: Introduction of Internet Non-Discrimination Act. Date: February 3, 2000. Source: Office of Rep. Chris Cox. |
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Washington (Thursday, February 3, 2000)-House Policy Chairman Christopher Cox (R-Calif.) and U. S. Senator Ron Wyden (D-Ore.) today introduced the Internet Non-Discrimination Act-a bill to make permanent the existing Cox-Wyden moratorium on new, special and discriminatory Internet taxes enacted in October 1998.
The purpose of the 1998 law was to nip in the bud the incipient efforts of some 30,000 taxing jurisdictions to lay claim to a piece of the Internet. Since then, spectacular growth in the Internet is bringing the benefits of knowledge, trade, and communications to more people in more ways than ever before. It is bringing medical information-even organs for transplant-to the sick. It is bringing education to people wherever they may be, even if no school is near. It can help you find a rare book, plan a trip, get the news, or prepare for rain.
As for taxes collected by the government, they're up-way up. In the most recent month for which statistics are available, sales tax collections in the state of California are up a whopping 20 percent from last year. Similarly, sales tax revenues to states and local governments throughout the United States are increasing in lockstep with the explosion of commerce and information on the Internet.
Buoyed by the moratorium against discriminatory online taxes established by the Internet Tax Freedom Act, traditional brick-and-mortar retailers had one of their best holiday seasons-recording a nearly 8 percent jump in sales over last year. All of this growth in Internet commerce and taxable sales has fattened state budgets, which ended fiscal 1999 with a combined $35 billion in surpluses.
"The facts are in, and conclusively so: the Internet economy is generating tremendous tax revenue for state and local governments," Rep. Cox said. "Making the moratorium on new and discriminatory Internet taxes permanent will help sustain this growth. That is why Sen. Wyden and I announced this week that we will again team up to combat discriminatory taxes on the Internet and online commerce. We have just introduced the Internet Non-Discrimination Act, or INDA-a bill to make permanent the existing moratorium on new, special, and discriminatory Internet taxes. Now is the time to put an end to Internet tax discrimination once and for all."
Chairman Cox compared the art of successful taxation to plucking a goose: the object is to get the greatest amount of feathers with the least amount of squawking. "Recognizing that," he said, "policymakers will be wise to steer clear of new Internet taxes, if the object is to protect and expand the tax base. Our latest legislation will be a useful means of ensuring that result."