House Extends Internet Tax Moratorium

By October 16, 2007Communications, Innovation, Taxation

From CQ’s Midday Update:

Despite grumbling from lawmakers who want a permanent ban, the House voted overwhelmingly Tuesday to extend for four more years a moratorium on taxation of Internet access.

The bill (HR 3678) passed 405-2, The existing ban on Internet access taxes will expire Nov. 1 unless Congress extends it by that date.

Although supporters of making the ban permanent had enough votes to amend the bill to their liking, Democratic leaders put it on the floor under suspension of the rules, a procedure that bars amendments and is usually reserved for less controversial legislation.

The NAM issued a statement on passage from our vice president for tax policy, Dorothy Coleman:

We heartily commend Rep. John Conyers (D-MI), Chairman of the House Judiciary Committee, and ranking member Lamar Smith (R-TX), for their leadership and work in moving this bill forward. We also commend the long-standing support of Rep. Anna Eshoo (D-CA) and Bob Goodlatte (R-VA) and others to extend this moratorium, and appreciate their commitment to making it an important priority of the House.

American businesses of all sizes rely on high-speed, broadband Internet access to remain competitive in the global marketplace. If the moratorium is allowed to expire, more than 7,000 tax jurisdictions will have authority to tax Internet access. U.S. manufacturers already face a 31.7 percent structural cost disadvantage compared to our nine major trading partners; allowing the ITM to expire could only add to that disadvantage.

We call on the Senate to follow the House’s lead and act quickly to extend the ITM before the November 1 deadline.

That’s just around the corner, right? November 1st, that is.

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