House Passes Global Internet Tax Freedom Resolution

(October 26, 1999) The House passed the Global Internet Tax Freedom Act by a vote of 423 to 1 on October 26. The resolution calls for a permanent moratorium on global Internet e-commerce tariffs, a ban on multiple, discriminatory, and special Internet taxes, and a condemnation of the U.N. proposal that nations impose a bit tax.

House Concurrent Resolution 190, which is known informally as the Global Internet Tax Freedom Act, was introduced in the House on September 30 by Rep. Chris Cox (R-CA). The Senate version, Sen. Con. Res. 58, was introduced by Sen. Ron Wyden (D-OR).

"This initiative takes the principle of the Internet Tax Freedom Act -- that information should not be taxed -- and extends it to the international arena," said Rep. Cox.

Rep. Chris Cox (R-CA)

Rep. Cox and Sen. Wyden also teamed up in the 105th Congress to sponsor the Internet Tax Freedom Act. After considerable effort, that bill was enacted into law in October of 1998. It created a three year moratorium within the United States.

"It is particularly important for Congress to be on record now in support of a permanent moratorium on e-commerce tariffs because of the pending meeting of the World Trade Organization in Seattle on November 30," added Rep. Cox. "A permanent moratorium on e-commerce tariffs will preserve the taxation status quo, because none of the WTO's more than 130 members currently has such a tariff. Now is the time to act-before bad things happen."

Rep. Zoe Lofgren (D-CA), who is a cosponsor, had this to say: "Mr. Speaker, I support this resolution. As you all may know, not one of the 130 members of the World Trade Organization presently imposes a tariff on the Internet. That's a good thing and may account for the Internet 's success. I'd like to make this "no tariff" policy the official policy of the WTO."

"I know there are some nations thinking of applying various taxes - value added taxes, if you will. I encourage the members of this Congress to go on record against such a thing. Electronic commerce is made possible by the bits and bytes of information that travel in packets around this country and around the world, across state and national boundaries. There are some who want to tax each bit of information that's transmitted."

"Earlier this year, the UN suggested taxing the bits that make up the e-mails we've grown accustomed to sending each other. This may suggest to you the mischief that could be caused by doing such a thing. Let's nip this bit tax idea in the bud and support this resolution that urges a world-wide ban on any bit tax."

The cosponsors of the resolution are Pete Sessions (R-TX), Jim Kolbe (R-AZ), Merrill Cook (R-UT), Ron Packard (R-CA), Dick Armey (R-TX), Mike Oxley (R-OH), Jack Metcalf (R-WA), Zoe Lofgren (D-CA), Carolyn McCarthy (D-MO), Larry Combest (R-TX), and Phil English (R-PA).

The measure passed on a roll call vote of 423 to 1. The only negative vote came from Neil Abercrombie (D-HI). Nine other members missed the vote.

Rep. Cox and Sen. Wyden are also working on a bill that would provide legislative incentives to further empower parents to protect children from inappropriate Internet content without infringing free speech rights.