On the recordJuly 15, 2014
Ladies and gentlemen, the Internet Tax Freedom Act, enacted in 1998, established a temporary moratorium on multiple and discriminatory taxation of the Internet as well as new taxes on Internet access. This moratorium is due to expire on November 1 of this year. {time} 1245 Since 1998, Congress has extended the moratorium on three occasions. Unfortunately, however, H.R. 3086, the Permanent Internet Tax Freedom Act, responds to the impending expiration of the moratorium by making it permanent and ending the act's grandfather protections for States that impose such taxes prior to the act's enactment date. The approach taken in H.R. 3086 is problematic for a number of reasons. First, Congress, instead of supporting this seriously flawed legislation, should really be focusing on meaningful ways to help State and local governments, taxpayers, and local retailers. The House can do that by addressing the remote sales tax issue. In addition to extending the expiring moratorium on a temporary basis, the House should take up and send to the Senate legislation such as the Marketplace Fairness Act, which was mentioned earlier today on the floor of the House by the distinguished gentleman from Vermont (Mr. Welch). That bill incentivizes remote sellers to collect and remit sales taxes as well as require States to simplify several procedures that would benefit retailers.…





