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October 5, 1998

COMMERCE COMMITTEE TACKLES NET TAX FREEDOM ACT

By CBR Staff Writer

The US Senate Commerce Committee has voted down an amendment to the Internet Tax Freedom Act that would have allowed states to levy taxes on mail order and ecommerce shipments. The Internet Tax Freedom Act was introduced by Democratic Senator Ron Wyden as a moratorium preventing new or discriminatory taxes being levied on internet access or ecommerce. According to Reuters reports, Wyden warned colleagues that the bill is needed to head off a patchwork quilt of local taxes that could kill internet growth. A similar bill passed the House of Representatives in June (CI No 3,439). More amendments, including Senator Dan Coats’ controversial CDA II (CI No 3,499), could be added to the Internet Tax Freedom Act when it faces the Senate this week.

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