FOR IMMEDIATE RELEASE
WASHINGTON – July 31, 2001 – The Direct Marketing Association (The DMA) is urging the Senate Finance Committee to support the extension of the moratorium on Internet access taxes and on new and discriminatory taxes on the Internet. These topics are to be discussed when the committee holds hearings Wednesday, August 1 on states` requests to collect sales taxes on interstate commerce, in effect making all retailers become tax collectors for 7,600 taxing jurisdictions nationwide.
“Congress should not hold the moratorium hostage while it tries to deal with the sales tax issue,” said Frank Julian, operating vice president and tax counsel for Federated Department Stores and chairman of the DMA Use Tax Steering Committee.
Julian, who is to testify before the committee, noted the current sales tax system was developed during the Depression and has since spiraled out of control, now bursting with 7,600 taxing jurisdictions nationwide. He said it would be an enormous task for Congress and the states to develop a plan to repair the tax system with less than three months until the October 21 deadline.
“To date, we haven`t seen the movement on the side of state and local government that needs to happen for the antiquated sales tax system to be significantly simplified,” Julian said. “Congress must extend the moratorium and then develop objective criteria for substantial simplification.”
The DMA continues to call on Congress to incorporate criteria, such as one tax rate per state for all commerce, into any sales tax simplification legislation, thus ensuring a competitive and dynamic marketplace.
When: Wednesday, August 1, 2001 10 a.m.
Who: Meeting of the Senate Finance Committee
What: “Cybershopping and Sales Tax: Finding the Right Mix”
Where: Dirksen Senate Office Building Room 215