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WYDEN INTERNET TAX MORATORIUM
BILL SIGNED INTO LAW AT WHITE HOUSE
December
3, 2004
WASHINGTON,
DC – U.S. Senator Ron Wyden attended a White House ceremony
today as President Bush signed the Internet Tax Non-Discrimination
Act (S. 150) into law. The legislation authored by Wyden, U.S.
Rep. Chris Cox (R-Calif.) and U.S. Senator George Allen (R-Va.)
extends the ban on multiple and discriminatory taxation on the
Internet until October 31st 2007. The bill, which passed in the
Senate earlier this year and cleared the House of Representatives
last month, bans three types of taxes that unfairly single out
the Internet, including regressive taxes on Internet access, multiple
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.
“This final step restores vital protections from unfair
and discriminatory taxes for Oregon Internet users, online consumers
and web entrepreneurs," said Wyden. “This law will
keep the web an active and growing means of communication, business
and education, and preserve and grow the Internet's vital contribution
to the U.S. economy."
The Internet Tax Non-Discrimination
Act extends the original Internet Tax Freedom Act of 1998, written
by Wyden and Rep. Cox. The moratorium created by that legislation
and then extended in 2001 expired in November 2003. In April,
the Senate approved S. 150 extending the protections of the expired
moratorium for the next four years as well as updating and refining
the original law.
The law signed today extends
the previous moratorium, making changes to address technological
advances, specifically with regard to broadband Internet access.
The bill updates the definition of Internet access to ensure technological
neutrality, so that the moratorium applies consistently to all
types of Internet access, including broadband (DSL, cable modem,
satellite or wireless service). Additionally, S. 150 ensures that
nothing in the original Internet Tax Freedom Act will affect State
and local taxation of voice telecommunications services (including
voice-over internet protocol, or VOIP).
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