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WYDEN INTRODUCES LEGISLATION
TO MAKE INTERNET TAX BAN PERMANENT
Bipartisan 1998 law has successfully protected
Internet users,
online businesses from unfair and discriminatory taxation
April 19, 2005
Washington, DC –- U.S.
Senator Ron Wyden (D-Ore.) today introduced legislation to make
permanent an existing ban he authored on multiple and discriminatory
taxation on Internet access and online sales. Wyden joined U.S.
Senator George Allen (R-Va.) and U.S. Representative Chris Cox
(R-Calif.) at a press conference in Washington to unveil the bipartisan
legislation, which extends the Cox-Wyden Internet Tax Freedom
Act of 1998. That law bans three types of taxes that unfairly
single out the Internet: taxes on Internet access, double taxation
(for example, by two or more states) of a product or service bought
over the Internet, and discriminatory taxes that treat Internet
purchases differently from other types of sales. The Cox-Wyden
internet tax ban is currently set to expire in 2007.
“The Internet Tax Freedom law has created a level playing
field, stopping unfair and discriminatory tax schemes that would
wall off the Internet to many Oregon consumers and make e-commerce
impossible for Oregon business owners,” said Wyden. “Internet
users and entrepreneurs who breathed a sigh of relief at this
law’s extension should have the security of knowing its
protections will never go away.”
The Internet Tax Freedom Act was renewed and extended in late
2004 by the Internet Tax Non-Discrimination Act. In that legislation,
a number of changes were made to address recent technological
advances – including the clarification of the definition
of Internet access to ensure that the moratorium applies consistently,
ensuring that the law would not affect taxation of voice telecommunications
services (including voice-over internet protocol, or VOIP), and
protecting other Federal, State and local regulatory fees already
collected to preserve and advance the universal service program
and that are not purchased or used directly to provide Internet
access. The extension also provided limited grandfather periods
for states that already taxed Internet access in 1998, and for
those who currently tax high speed wireline and wireless Internet
access (including those that tax the so-called “last mile”).
The extension also incorporated accounting rules to address bundling,
an explicit conclusion of non-transactional taxes from the Internet
tax moratorium, and savings clauses addressing the regulation
of Internet access, universal service and E-911.
Wyden has long been one of the
Senate’s leading advocates of consumer rights and protection
in conjunction with responsible technology growth.
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Click here to read a letter
of support from the U.S. Telecom Association