Bob Kerrey: “I rise to speak against the McCain second-degree amendment which would extend the moratorium on States taxing Internet…”

“I rise to speak against the McCain second-degree amendment which would extend the moratorium on States taxing Internet transactions from 3 years to 4. The Finance Committee had knocked it back to 2 years. We thought that was a reasonable length of time, given that we allowed 15 months to restructure the IRS; 18 months in getting the Medicare Commission to do its work. We believed that 2 years was a reasonable period of time. I was willing to go along with an extension of that from 2 years to 3. To go to 4 years is just much too long a time. This is an issue where the Federal Government is intervening, saying the States can't raise taxes in a certain way. This is, in my judgment, without precedent. I am willing to support this piece of legislation. I am willing to provide this moratorium so we can reach an understanding of how we will tax these transactions. But to allow 4 years--when we allow approximately 15 months in getting a commission to restructure the IRS, and 18 months in getting Medicare, Mr. President--is an unreasonable length of time. I hope my colleagues will vote against the McCain amendment.”