Herb Kohl: “I believe strongly we can and should find a reasonable replacement for the expired 1998 moratorium on taxation of…”

“I believe strongly we can and should find a reasonable replacement for the expired 1998 moratorium on taxation of internet access, a replacement that balances the fiscal needs and rights of the States and the overwhelming national interest in fostering and growing the internet economy. The McCain substitute is a solid, and I believe well intentioned, first step toward such a compromise. Its provision to extend the moratorium for 4 years seems a reasonable solution to legislating about an industry that is rapidly changing. The McCain amendment's phasing out of the current grandfather provisions over 3 years seems a reasonable compromise with those who would end the grandfather provisions immediately. The McCain amendment's provisions to exempt 'voice over Internet' services from the moratorium seem a reasonable answer to the States' concerns that their undisputed right to tax the telecommunications base be preserved. In its general framework, the McCain substitute outlines the foundation of a reasonable compromise to the highly contentious issue of taxation of internet access.”