October 16, 2007
HP-614

Secretaries Paulson and Gutierrez Call for Permanent Extension of Internet Tax Moratorium

Washington, DC--U.S. Treasury Secretary Henry M. Paulson and Commerce Secretary Carlos M. Gutierrez issued a statement today calling on Congress to make permanent the moratorium on Internet access taxes and on multiple or discriminatory taxes on electronic commerce. The House is scheduled to take up an extension of the Internet Tax Moratorium today.

"Although we recognize that a temporary extension is better than letting the moratorium expire, we are extremely disappointed that the legislation does not extend permanently the moratorium on Internet access taxes and on multiple or discriminatory taxes on electronic commerce.  The Internet is an innovative force that opens up the vast potential economic and social benefits of electronic commerce.

"Preventing the taxation of Internet access and keeping the Internet free of multiple or discriminatory taxes will help sustain an environment for innovation, help ensure that consumers continue to have affordable access to the Internet, and strengthen the foundations of electronic commerce as a vital and growing part of our economy. 

"We look forward to working with Congress as the process moves forward to take advantage of this bipartisan opportunity to extend the moratorium permanently."