Dianne Feinstein: “Over 5 years ago, Congress took appropriate action to pass the Internet Tax Freedom Act which encouraged the growth and…”

“Over 5 years ago, Congress took appropriate action to pass the Internet Tax Freedom Act which encouraged the growth and adoption of the Internet by exempting Internet access from State and local taxation and by protecting e-commerce transactions from multiple or discriminatory taxes. As my colleagues know, since then the Internet has grown from a tool used by a relatively small percentage of our population to a broadly utilized communications, information, entertainment, and commercial medium as well as an important vehicle for political participation. To keep promoting the growth of the Internet, many of my colleagues have made efforts to extend the Internet tax moratorium. Regrettably these efforts have stalled. Six months ago, we left unfinished business before the Senate. At the time, many of us were prepared to vote to extend the Internet tax moratorium. Unfortunately, a vote never took place because of disagreement over what components of Internet access should be free from taxation and how long the moratorium should last. As a result, the moratorium expired and State and local governments are now free to impose new taxes on the Internet.”