June 16, 2003
Senators Warner and Allen
Senators Warner and Allen
PO Box 8208
Alexandria, VA 22306-8208
June 16, 2003
The Honorable John William Warner
United States Senate
225 Russell Senate Office Building
Washington, DC 20510-4601
The Honorable George F. Allen
United States Senate
204 Russell Senate Office Building
Washington, DC 20510-4604
Dear Senators Warner and Allen:
In 1998 Congress acted to put to an end taxes that unfairly single out the Internet. However, the current moratorium is scheduled to expire on November 1, 2003.
Congress must act quickly to enact H.R. 49, which eliminates taxes on Internet access, double-taxation of a product or service bought over the Internet, and discriminatory taxes that treat Internet purchases differently from other types of sales. And it must pass the bill WITHOUT any sales tax harmonization language.
If Congress does not pass a new ban on Internet access taxes and multiple and discriminatory taxes it will mean a defacto tax increase on Americans at a time when they least are able to pay it. Not only that, this tax will hit schools, libraries, hospitals and families – those who use the Internet for research, education, and most critically, communication. This is not the time to be adding a new tax on Americans trying to keep in touch with loved ones.
Therefore, Congress must pass a clean permanent extension of the moratorium, without sales tax simplification language.
Sincerely,
James Landrith
July 3, 2003
Mr. James Landrith
P.O. Box 8208
Alexandria, Virginia 22306-8208
Dear Mr. Landrith:
Thank you for contacting me to share your comments in support of S.150, the Internet Nondiscrimination Act of 2003 introduced by Senator George Allen (R-VA). The bill would permanently extend the moratorium on discriminatory taxes enacted by the Internet Tax Freedom Act. I am pleased to be a co-sponsor of this important legislation.
On November 28, 2001, President Bush signed into law, P.L.107-75, the Internet Tax Nondiscrimination Act, introduced by Representative Christopher Cox (R-CA The law extends the moratorium enacted by the Internet Tax Freedom Act through November 1, 2003.
The previous moratorium period, which was set to expire on October 21, 2001, was being used to study and develop standards for taxation of transactions on the Internet. It was effected in the final version of H.R.4328, the Omnibus Consolidated and Emergency Supplemental Appropriations Act for fiscal year 1999 (P.L.105-277). The legislation instituted a general national policy against interference with interstate commerce on the Internet or interactive computer services, and would establish a moratorium on the imposition of taxes or other charges that would interfere with the free flow of commerce via the Internet.
The law also established an Advisory Committee on Electronic Commerce, comprised of representatives from the federal government, state and local governments, the electronic commerce industry, and consumer organizations. The Commission, chaired by Virginia Governor Jim Gilmore, was responsible for studying issues related to electronic commerce including, the collection and administration of taxes on electronic commerce and other Internet activities. The Commission also examined the impact of such taxes on business and what this means for state and local governments.
In regards to Internet taxation issues, the Commission supports an extension of the current moratorium on taxation of Internet transactions through 2006, simplification of sales tax systems, and a permanent prohibition on state and local governments from taxing Internet access subscription charges. Furthermore, in order to reduce consumers’ taxation burden, the Commission advocates repealing a three-percent excise tax on telecommunications services which was first imposed in the late 1800’s during the Spanish-American War. The tax was repealed, but later reintroduced in the 1900’s as a means to supplement revenue, necessitated by U.S. participation in wars, fluctuations in U.S. economic conditions, and the federal budget deficits. Members of the Commission, however, could not reach a consensus on the details of any of the e commerce tax proposals.
Internet taxation will continue to be the subject of intense Congressional scrutiny. In order to ensure that personal interests and politics do not inhibit the flow of goods and services over the Internet, we need to determine what the imposition of additional costs on Internet transactions and further regulation of Internet commerce would mean for consumers, related industries, and state and local governments.
Again, your views on this important issue are greatly appreciated.
With kind regards, I am
Sincerely,
John Warner
JW/vas