By: Staff reports
Senators Fear Loss Of Revenue
(The Hollywood Reporter) An extension of a moratorium on Internet sales taxes was dealt
a setback by some senators’ fears that the ban would mean a significant loss in revenue.
Lawmakers on the Senate Commerce Committee had planned to vote today on a measure that
would extend a moratorium on ‘discriminatory’ taxes that only apply to e-commerce, and
any new taxes on Internet sales. During the hearing, sticking points developed over
whether sales made over the Internet should be covered under state and local sales taxes,
and if so, how to collect the taxes.
In 1997, Congress put a temporary moratorium on creating any new taxes on Internet sales
as well as ‘discriminatory’ and multiple taxes. The moratorium expires in about 18 months.
The legislation sponsored by the chairman of the committee, Sen. John McCain (R-Ariz.)
would extend the moratorium for five years.
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