I rise today to express my concerns with the Customs conference report. While I support the Customs provisions in this conference report, as well as the Internet tax moratorium, I cannot support the way these issues were merged in conference. I have said for years that the Internet Tax Freedom Act should be paired with e-fairness legislation because I think it is reasonable to tell the States that when we take away their ability to tax Internet access, we are giving them the ability to collect the State and local sales and use taxes already owed on remote sales. It is beyond time for Congress to give States that right. Congress's failure to act has created a burden on our States and local governments, which are losing billions in tax revenue that they need for local responsibilities. As a former mayor and State legislator, I understand how important sales tax revenue is to State and local governments for maintaining schools, fixing roads, and supporting local law enforcement, fire departments, and emergency management crews. Congress's inaction on e-fairness legislation implicitly blesses a situation in which States may be forced to raise other taxes, such as income or property taxes, to offset the growing loss of sales tax revenue. In December, in-store sales were about the same as the year before, but Internet sales grew by about 40 percent. To be clear, we are talking about a substantial loss in revenue.…
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