ADVISORY

FROM THE COMMITTEE ON WAYS AND MEANS
Subcommittee on Oversight

FOR IMMEDIATE RELEASE, Contact: (202) 225-7601
May 2, 2000
No. OV-18


Houghton Announces Hearing on
Internet Tax Issues

Congressman Amo Houghton (R-NY), Chairman, Subcommittee on Oversight of the Committee on Ways and Means, today announced that the Subcommittee will hold a hearing on Internet tax issues within the Committee's jurisdiction. The hearing will take place on Tuesday, May 16, 2000, in the main Committee hearing room, 1100 Longworth House Office Building, beginning at 2:00 p.m.

Oral testimony at this hearing will be from invited witnesses only. Invited witnesses include representatives from the telecommunications, software, retail, and Internet access industries as well as representatives from State and local government and consumer groups. However, any individual or organization not scheduled for an oral appearance may submit a written statement for consideration by the Committee and for inclusion in the printed record of the hearing.

BACKGROUND:

In October 1998, Congress passed the Internet Tax Freedom Act (ITFA), Title XI of the Omnibus Appropriations Act of 1998 (P.L. 105-277). The ITFA imposed a three-year moratorium on new, multiple, and discriminatory taxes on Internet access and electronic commerce and established the Advisory Commission on Electronic Commerce to examine issues related to Internet taxation.

The Advisory Commission was given 18 months, until April 2000, to study local, State, Federal, and international taxation of commerce conducted over the Internet, Internet access, and other related activities. The Commission was made up of three representatives from the Federal Government (the offices of the Secretary of Commerce, the Secretary of the Treasury, and the United States Trade Representative), eight representatives of State and local governments, and eight representatives from affected businesses. Congress required a two-thirds majority in order for the Commission to make formal recommendations.

On April 3, 2000, the Chair of the Advisory Commission, the Honorable James S. Gilmore, III, Governor of the Commonwealth of Virginia, transmitted the Commission's final report. A majority, though not the super-majority required to make formal recommendations, supported a number of measures including the repeal of the three percent Federal excise tax on telecommunications services, an extension of the current moratorium on multiple and discriminatory taxes on electronic commerce for an additional five years through 2006, and a moratorium on any international tariffs on electronic transmissions over the Internet.

In announcing the hearing, Chairman Houghton stated: "There is no question that the decisions involving taxation of the Internet and electronic commerce are bound to shape the dimensions of the new economic era. We need to make sure that all Americans have the chance to participate in the Information Age. We ought to take a few prudent steps to continue the expansion of electronic commerce and at the same time avoid crippling the infrastructure that has created so many opportunities."

FOCUS OF THE HEARING:

The focus of the hearing will be to consider matters in the report transmitted to Congress by the Advisory Commission on Electronic Commerce within the Committee's jurisdiction, and related topics, such as, the consequences of taxation of electronic commerce, telecommunications services, Internet access and measures to bridge the digital divide.

DETAILS FOR SUBMISSION OF WRITTEN COMMENTS:

Any person or organization wishing to submit a written statement for the printed record of the hearing should submit six (6) single-spaced copies of their statement, along with an IBM compatible 3.5-inch diskette in WordPerfect or MS Word format, with their name, address, and hearing date noted on a label, by the close of business, Tuesday, May 30, 2000, to A.L. Singleton, Chief of Staff, Committee on Ways and Means, U.S. House of Representatives, 1102 Longworth House Office Building, Washington, D.C. 20515. If those filing written statements wish to have their statements distributed to the press and interested public at the hearing, they may deliver 200 additional copies for this purpose to the Subcommittee on Oversight office, room 1136 Longworth House Office Building, by close of business the day before the hearing.

FORMATTING REQUIREMENTS:

Each statement presented for printing to the Committee by a witness, any written statement or exhibit submitted for the printed record or any written comments in response to a request for written comments must conform to the guidelines listed below. Any statement or exhibit not in compliance with these guidelines will not be printed, but will be maintained in the Committee files for review and use by the Committee.

1. All statements and any accompanying exhibits for printing must be submitted on an IBM compatible 3.5-inch diskette in WordPerfect or MS Word format, typed in single space and may not exceed a total of 10 pages including attachments. Witnesses are advised that the Committee will rely on electronic submissions for printing the official hearing record.

2. Copies of whole documents submitted as exhibit material will not be accepted for printing. Instead, exhibit material should be referenced and quoted or paraphrased. All exhibit material not meeting these specifications will be maintained in the Committee files for review and use by the Committee.

3. A witness appearing at a public hearing, or submitting a statement for the record of a public hearing, or submitting written comments in response to a published request for comments by the Committee, must include on his statement or submission a list of all clients, persons, or organizations on whose behalf the witness appears.

4. A supplemental sheet must accompany each statement listing the name, company, address, telephone and fax numbers where the witness or the designated representative may be reached. This supplemental sheet will not be included in the printed record.

The above restrictions and limitations apply only to material being submitted for printing. Statements and exhibits or supplementary material submitted solely for distribution to the Members, the press, and the public during the course of a public hearing may be submitted in other forms.

Symbol to Show Committee Seeks to Assist Persons with Disabilities at the Committee's facilities.The Committee seeks to make its facilities accessible to persons with disabilities. If you are in need of special accommodations, please call 202-225-1721 or 202-226-3411 TTD/TTY in advance of the event (four business days notice is requested). Questions with regard to special accommodation needs in general (including availability of Committee materials in alternative formats) may be directed to the Committee as noted above.