FOR IMMEDIATE RELEASE
Media Contact:
Louis Mastria
212.790.1529
Lmastria@the-dma.org
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
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