Key Members in Congress Trying to Stop the "Internet Tax Man"

In an effort to resurrect an extension of the Internet tax moratorium, blocked by Senator Dorgan (D-ND) just a few days after its expiration on October 21, several members in Congress are engaged in an intensive push to obtain Senate approval on a "clean," two-year extension of the moratorium.

Senate Minority Leader Trent Lott (R-MS) this week met with colleagues central to the debate, including Minority Whip Don Nickles (R-OK) and Senator George Allen (R-VA), to develop a strategy to raise the awareness in the Senate on the necessity to approve a House-passed two-year extension of the moratorium before states start to impose new and discriminatory taxes on the Internet, and Internet access taxes.

House Majority Leader Dick Armey (R-TX) on Wednesday wrote to Senate Majority Leader Tom Daschle (D-SD) urging Senate passage of the House bill. "We (House of Representatives) will not consider anything less than the clean, two-year extension we passed," warned Armey, noting that the two-year extension already marks a significant compromise. "If the Senate continues to refuse to take up and pass the House bill as-is, the conclusion is obvious," stated Armey. "The Senate wants to tax the Internet."

The House approved the two-year extension, H.R. 1552 sponsored by Representative Christopher Cox (R-CA), prior to the moratorium’s expiration, but the Senate failed to follow suit after Senator Dorgan derailed Senate passage of the bill. Dorgan refused to allow a vote on the measure without tying it to the controversial and completely separate issue of allowing the states to enter into a multi-state sales tax compact and force out-of-state businesses to collect and remit states’ sales and use taxes. That measure would circumvent Supreme Court precedent and eliminate rate competition between the participating states.

Senator Dorgan did introduce and try to get a vote on an eight-month extension that does not deal with the controversial sales tax issue, but the effort was nothing more than a cynical sure-to-fail attempt at political "cover," as he moved forward in blocking a Senate vote on H.R. 1552. The Center for Individual Freedom exposed Dorgan’s charade by running ads in both the Washington Times and the Bismarck Tribune, alerting taxpayers to Dorgan’s actions and labeling him the "Internet Tax Man."

The Center for Individual Freedom has and continues to support a permanent extension of the moratorium on multiple and discriminatory taxes on the Internet and Internet access taxes. But due to political realities and the fact that the Internet is now open game to aggressive state tax collectors and tax hungry states’ governors makes it imperative that the Senate immediately approve the house-passed version of H.R. 1552.

To view House Majority Leader Dick Armey’s statement, click here.

To view the Center’s ad labeling Dorgan the "Internet Tax Man," click here.

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