California) and Senator Ronald Wyden (D-Oregon) \nWASHINGTON - The current moratorium on taxing the Internet could become permanent if a bill to be introduced by a California Republican and an Oregon Democrat makes it through Congress and a signature from President Clinton.
Rep. Christopher Cox (R-California) and Senator Ronald Wyden (D-Oregon) announced Feb. 3 they are introducing legislation in both houses of Congress to make the current moratorium permanent. And don't be too surprised that they are - they also sponsored the current moratorium in 1998, which expires next year.
Introducing what they call the Internet Nondiscrimination Act, Cox says federal tax collections are "way up," adding state and local sales tax revenues - which supporters of Internet taxes say are lacking enough to justify taxing Internet sales nationally - "are increasing in lockstep with the explosion of commerce and information on the Internet."
"Making the moratorium on new and discriminatory Internet taxes permanent will help sustain this growth," Cox continued. "Now is the time to put an end to Internet tax discrimination once and for all."
The bill is said to have bipartisan support in both houses, with Cox hoping for a vote on the bill there by - ironically - April 15. Wyden expects a Senate vote in the spring but he did not suggest a deadline date.
The Cox-Wyden bill announcement comes as the federal Advisory Commission on Electronic Commerce is studying the Net tax issue and is expected to make recommendations to Congress over the next few months. State governors are divided on the issue, with a faction led by Virginia Republican Jim Gilmore opposing Net taxes and another faction led by Utah Republican Michael Leavitt supporting Net taxes.
