Congress Urged To Extend Moratorium On Internet Access Tax - InformationWeek

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Congress Urged To Extend Moratorium On Internet Access Tax

The secretaries of Treasury and Commerce sent a letter to the head of the House Judiciary Committee urging that the moratorium be extended

The secretaries of Treasury and Commerce have called on Congress to extend a five-year moratorium on taxing Internet access that is slated to expire Nov. 1.

"Our robust Internet economy has driven American economic growth, technological innovation, and global competitiveness for many years and we look to information technologies to support future growth," Commerce Secretary Donald Evans said in a statement that accompanied the release of the letter this week. "We must continue to reassure consumers, businesses, and markets that we continue to create the right environment for growth. Extending the moratorium will do that."

The letter, from Evans and Treasury Secretary John Snow, was sent to House Judiciary Committee chairman James Sensebrenner, R.-Wis., asking that the committee quickly to begin the steps needed to get a bill to President Bush before the moratorium lapses.

Though such a moratorium would prevent taxing Internet access, it wouldn't prevent governments from charging sales and use taxes for goods and service purchased online.

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