Taxation and Budget News

Cox and Wyden Introduce the Internet Non-Discrimination Act. (2/9/01) Rep. Cox and Sen. Wyden introduced companion bills in the House and Senate to extend the current moratorium on multiple and discriminatory taxes on the Internet. See, S 288 IS.

Rep. Dreier Addresses Capital Gains Taxes and Other Tech Issues. (1/22/01) House Rules Committee Chairman David Dreier gave an address on technology issues in the 107th Congress on Friday, January 19. He advocated giving the President fast track trade negotiating authority, opening markets to free trade, reducing export restraints on commercially available products, and reducing the top rate on capital gains taxes.

The FSC Tax Bill and Technology Exporters. (11/17/00) NEWS ANALYSIS. President Clinton signed a bill to replace the Foreign Sales Corporation tax regime. The bill benefits U.S. companies, such as Microsoft, Cisco, and Motorola, which sell products abroad. The EU is all but certain to challenge it at the WTO, and an EU U.S. trade war is possible.

IRS Considers Regulating Internet Speech. (10/26/00) The IRS released a document stating that it is considering whether to issue guidance regarding the application of the Internet Revenue Code to various types of Internet communications by tax exempt entities. See, IRS notice.

House Subcommittee Holds Hearing on the Tax Code and the New Economy. (9/26/00) The House Ways and Means Committee's Oversight Subcommittee held a hearing on the tax code and the New Economy on September 26. Depreciation periods, tax incentives for worker training, and the R&D tax credit were discussed.

Senate Endorses Permanent R&D Tax Credit. (7/14/00) The Senate adopted an amendment to the estate tax bill on July 13 to make the R&D tax credit permanent. However, the Senate then removed this and other amendments on July 14 before passing the bill. The 98 to 1 vote was a larger symbolic statement of support for making the tax credit permanent.

House Judiciary Committee Approves Internet Nondiscrimination Act. (5/4/00) The House Judiciary Committee amended and approved a bill to extend the temporary moratorium on new, special, and discriminatory Internet taxes enacted in October 1998. The full House will likely take up the bill next week.

Congressional Delegation Discusses Privacy and Taxes with EU. (2/24/00) Rep. Goodlatte, Rep. Boucher, and other members of a Congressional delegation are in Europe to meet with their counterparts during this week's recess of the House of Representatives. They have discussed Internet privacy and taxes.

Clinton Budget for NTIA Includes Big Increase for Digital Divide Programs. (2/8/00) The Fiscal Year 2001 budget proposal released by the Clinton administration on February 7 includes a huge increase in funding for the NTIA, to be spent largely on programs related to the "digital divide".

Clinton Budget Proposal Includes Big Increases for Agencies Which Regulate or Subsidize High-Tech. (2/8/00) The Clinton Administration released its budget proposal for Fiscal Year 2001 on Monday, February 7. This budget proposes that agencies which regulate or subsidize computer and Internet activities receive big increases.

Cox and Wyden Introduce Internet Non-Discrimination Act. (2/3/00) Rep. Chris Cox and Sen. Ron Wyden held a press conference to announce the introduction of the Internet Non-Discrimination Act, a bill to make permanent the moratorium on new discriminatory Internet taxes. See, copy of bill, statement of Rep. Cox, and statement of Sen. Wyden.

Wineries File Suit Challenging New York Law Affecting Internet Alcohol Sales. (2/3/00) Two small wineries in Virginia and California, and three wine consumers in New York, filed suit in federal court in New York City on February 3 alleging that New York State's liquor control laws, which ban direct sales from out of state wineries, violate the Constitution. See, Complaint.

House Passes Budget Bill With 5 Year Extension of R&D Tax Credit. (11/18/99) The House approved a massive $390 Billion budget bill on Thursday, November 18, which includes a five year extension of the research and development tax credit. This bill, which combines 10 other bills, and runs over 2,000 pages in its paper version, has yet to be passed by the Senate.

House Passes Global Internet Tax Freedom Resolution. (10/26/99) 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.

Net Gambling Bill Protects Established Gambling Interests. (10/25/99) NEWS ANALYSIS. The bill now looks like it would accomplish two things. First, it would provide some protection to people from the ills of compulsive gambling, and limit the exposure of children to gambling. Second, it would protect entrenched legalized gambling interests, including state and local governments, from competition from new market entrants. And in the process, it would protect the taxes and revenues of state governments.

Rep. Cox and Sen. Wyden Introduce Internet Tax Resolution. (9/30/99) Rep. Chris Cox and Sen. Ron Wyden introduced a resolution on Thursday, September 30 calling on the United States to support global Internet tax freedom. It 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. See, Cox-Wyden resolution.

Clinton Vetoes Tax Reduction Bill Containing Extension of R&D Tax Credit; Ways and Means Approves a Second Bill with the Credit. (9/25/99) President Clinton vetoed the Taxpayer Refund and Relief Act of 1999 with much fanfare at a White House ceremony on Thursday, September 23. The comprehensive tax reduction package included a five year extension of the research and development tax credit. The high tech industry has long sought to make the credit permanent, or least to keep extending it. The House Ways and Means Committee approved a second tax reduction bill on Friday morning which includes the same 5 year extension.

Sen. McCain Introduces Bill to Expand the Internet Tax Freedom Act. (9/22/99) Sen. John McCain introduced a bill on Wednesday, September 22, that would make permanent the Internet Tax Freedom Act's three year ban on new Internet taxes, and expand the scope of the act to prohibit sales and use taxes on good and services sold through electronic commerce. See, copy of McCain bill.

Secretary Daley Backs Duty Free Cyberspace. (9/13/99) Secretary of Commerce William Daley told the GBDe conference in Paris today that the U.S. will seek a permanent extension of the moratorium on tariffs in cyberspace. He also praised industry self-regulation measures to protect consumer privacy online. See, Daley speech.

McCain Wants More H1B Visas and a Permanent Ban on Net Taxes. (8/22/99) Sen. John McCain, while on a Presidential campaign swing through California, stated that he supports a "large-scale expansion of the H1-B program". There are several bills pending in the Congress that would increase the annual cap on H1B visas, and/or create a new visa class for aliens receiving high tech degrees from U.S. universities. Sen. McCain also proposed more funding for training math and science teachers, and making permanent the three year moratorium on new Internet taxes. See, speech to the Commonwealth Club.

Sen. Hollings Introduces Bill to Tax Internet Sales. (8/2/99) Sen. Ernest Hollings introduced a bill on July 26 that would impose a national tax on Internet and direct mail sales. See, S 1433 IS.

Senate Committee and House Pass R&D Tax Credit Bills. (7/23/99) The Senate Finance Committee adopted the Taxpayer Refund Act by a vote of 13 to 7 on Wednesday, July 21. The Committee adopted by voice vote an amendment offered by Sen. Hatch to permanently extend the research and development tax credit. On Thursday, July 22, the full House approved the Financial Freedom Act on a roll call vote of 223 to 208. It contains a five year extension of the R&D tax credit. President Clinton has threatened to veto these bills.

Basic Research Subcommittee Holds Hearing on IT Bill. (7/18/99) The House Basic Research Subcommittee held a hearing on June 14 on HR 2086, a broad information technology bill, that would permanently extend the R&D tax credit, establish a grant program for universities and community colleges for students to intern at information technology companies, direct the NSF to conduct a study on the availability of encryption technologies around the world, and fund IT research.

Ways and Means Committee Approves 5 Year Extension of R&D Tax Credit. (7/15/99) The House Ways and Means Committee approved the Financial Freedom Act on Tuesday, July 13. It includes a five year extension of the research and development tax credit, and a one percent increase in the alternative incremental research credit regime. High tech companies have long sought a permanent extension of the R&D tax credit. See, Sec. 1401 of HR 2488 IH.

Tech. Subcommittee Holds Hearing on R&D Tax Credit. (7/2/99) The House Commerce Committee's Subcommittee on Technology held a hearing Thursday morning, July 1, on HR 2086, which would, among other things, make permanent the research and development tax credit. High-tech companies have long sought to have Congress make the credit permanent.

R&D Tax Credit Expires. (7/2/99) The Research and Development Tax Credit expired on June 30. It has expired before, and been re-extended. Several bills are pending which would make the credit permanent. Rep. Zoe Lofgren (D-CA) and others want the House to vote on a bill after the July 4 recess.

ITAA Files Amicus Brief in Microsoft Temps Case. (6/4/99) The Information Technology Association of America and other high tech industry groups filed a friend of the court brief on June 2 in the Microsoft temporary workers case. They support Microsoft's request for an en banc rehearing of the May 12 "dual employer" decision. See also, May 12 Opinion and ITAA Brief.

Senate Approves Hatch's Internet Alcohol Sales Bill. (5/21/99) The Senate adopted Sen. Hatch's Internet alcohol sales bill, the Twenty-First Amendment Enforcement Act. The Hatch bill was approved as an amendment offered by Sen. Byrd to  the juvenile crime bill on Tuesday, May 18. The juvenile crime bill, as amended, then passed the Senate on May 20. The Hatch bill makes it easier for the states to stop alcohol distributors who sell to minors, or who evade payment of sales taxes. See also, Byrd Amendment.

Hatch Introduces Bill to Make the R&D Tax Credit Permanent. (3/23/99) Senators Hatch, Baucus, and Robb held a press conference with high-tech industry leaders in Washington on Monday, March 22, to announce the introduction of a bill to make permanent the existing research and development tax credit.

Study Shows that People in Areas with Higher Sales Taxes Buy More on the Net. (3/19/99) A statistical study of buying habits shows that consumers who live in areas with higher sales taxes are more likely to make online purchases than those in areas with lower sales taxes. University of Chicago Professor Austan Goolsbee presented this finding in a seminar on March 19 at the American Enterprise Institute.

AEI's Newt Gingrich Addresses Internet Taxes. (3/19/99) Former House Speaker Newt Gingrich spoke about Internet taxes at an American Enterprise Institute event on Friday, March 19.

Appointments to Advisory Commission on E-Commerce. (12/7/98) The process of making appointments to the Advisory Commission on Electronic Commerce is under way. The Commission was created in October by the Internet Tax Freedom Act.

Senate Approves ITFA.  Summary of Contents. (10/9/98) The Senate approved S 442, the "Internet Tax Freedom Act," yesterday by a vote of 96 to 2. The bill establishes a three year moratorium on new discriminatory state and local taxes on the Internet and Internet access, and creates a commission to study the subject of Internet taxes. See, copy of S 442, as adopted.

Senate Amends Internet Tax Freedom Act. (10/7/98 11:00 PM EDT) The Senate today continued its on again, off again, consideration of S 442, the "Internet Tax Freedom Act."  In a series of votes held over about ten hours, the Senate attached an amendment offered by Sen. Coats allowing taxation of net porn, set the moratorium at three years, grandfathered existing net taxes, and expanded the scope of the study to be conducted. The Senate is scheduled to resume consideration Thurday morning.

Senate Debates Net Taxes Bill. (10/6/98 10:00 PM ET) The Senate continued its debate of S 442, the "Internet Tax Freedom Act," late today, rejecting two hostile amendments, and postponing further consideration until Wednesday morning. The fate of other tech bills which are attached to S 442 also rest on its passage before the Congress adjourns at the end of the week.

Senate Debates and Delays Internet Tax Freedom Act. (10/3/98) The U.S. Senate debated S 442, the "Internet Tax Freedom Act," on Friday, October 2, but postponed further consideration until Tuesday, October 6.  The House passed its version of the bill on June 23.  The bill would impose a temporary moratorium on new discriminatory taxes on the Internet.  While Senators debated and then rejected an amendment offered by Sen. Bumpers, they also negotiated behind closed doors over the scope of the study mandated by the bill, as well as amendments unrelated to the bill.

Senate Moves Closer to Passing Internet Tax Freedom Act. (9/30/98) The U.S. Senate moved a step closer to passing S 442, the "Internet Tax Freedom Act," on Tuesday, September 29, by voting overwhelming to invoke cloture, clearing the way for a final vote, possibly on Thursday.

Wilson Signs California Internet Tax Freedom Act. (8/25/98) California Governor Pete Wilson signed into law the California Internet Tax Freedom Act yesterday.  Similar federal legislation is likely to be passed next month. See, copy of California Act.

Senate Committee Passes Internet Tax Freedom Act. (7/29/98) The Senate Finance Committee approved the Internet Tax Freedom Act (ITFA) with amendments on Tuesday morning.  The bill is now ready to be taken up by the full Senate.

Venture Capitalists Win Big Tax Break in IRS Reform Bill. (7/10/98) Silicon Valley interests are demonstrating their growing political power in Washington. The latest evidence is the venture capital industry success in quietly pushing through the Congress a major capital gains tax break for people who invest in venture capital partnerships.

House Passes Internet Tax Freedom Act. (6/24/98) The House of Representatives passed a compromise version of the Internet Tax Freedom Act (ITFA) without opposition late Tuesday.  The Senate has yet to pass any version of the bill, which would impose a three year moratorium on new multiple or discriminatory taxes on the Internet.  President Clinton has endorsed it. See, copy of HR 4105.

Net Tax Freedom Act Approved by Judiciary Committee. (6/18/98) The Internet Tax Freedom Act was approved by the House Judiciary Committee Wednesday on a voice vote, clearing the way for it to go to the full House. The Senate has yet to take action on the bill. See, copy of HR 3529, as approved by House Jud. Comm.

House Committee Passes Internet Tax Freedom Act. (5/15/98) The House Commerce Committee passed a "consensus" version of the Internet Tax Freedom Act on Thursday by a vote of 41-0.  The bill, HR 3849, contains a three year moratorium on new state and local Internet taxes.  The bill now goes to the full House.  It has yet to pass the Senate.  See, HTML Copy of HR 3849.

ITFA Limits FCC Control over Internet. (5/15/98) The consensus version of the Internet Tax Freedom Act passed by the House Commerce Committee overwhelmingly on Thursday morning would not only protect the Internet from a myriad of potential new taxes from thousands of state and local taxing authorities -- it would restrict the Federal Communications Commission's ability to fix prices and assess regulatory fees in connection with the Internet.

Lieberman/Gregg Introduce Net Tax Freedom Bill. (4/1/98) Senators Judd Gregg (R-NH) and Joe Lieberman (D-CT) introduced yet another internet tax moratorium bill yesterday.  Their bill, S 1888, joins competing bills introduced by Rep. Chris Cox (R-CA), HR 1054, Sen. Ron Wyden (D-OR), S 442, and others.

Clinton Endorses Internet Tax Freedom Act. (2/26/98) President Clinton endorsed the Internet Tax Freedom Act (ITFA) at the Technology '98 Conference in San Francisco today.  On Tuesday, February 24, the National Governors Association adopted a resolution against the bill. However, both Gov. Pete Wilson (R-CA) and Gov. Don Beyer (R-VA) support the bill.

Text of Clinton Speech. (2/26/98) "I think America should adopt a moratorium on discriminatory taxation so that a bipartisan commission of elected officials, business leaders, consumers and representatives of the Treasury Department can carefully study the matter and come to a resolution. Therefore, I support the Internet Tax Freedom Act now before Congress, because it takes into account the rights of consumers, the needs of businesses and the overall effect of taxation on the development of Internet commerce."