WASHINGTON-Grover Norquist, president of Americans for Tax Reform, testified today in front of the House Judiciary Subcommittee on Commercial and Administrative Law, in favor of extending a permanent moratorium on Internet taxes. The Tax Freedom Act of 1998, which offered a temporary moratorium on Internet taxes, is set to expire on October 21, 2001. Two bills, S. 777 and HR 1675 in the Senate and House, respectively, have been introduced to permanently extend the moratorium. 

Americans for Tax Reform strongly believes that Congress should extend the Internet tax moratorium permanently. During the hearing, Norquist testified: "In order to ensure that this new, vibrant sector of the economy continues to grow and flourish without government intrusion, Congress must act again to protect taxpayers, and [Congress] should act now."Norquist continued: "Knowing that ten states began taxing Internet access in 1998 just before Congress acted, there is no doubt that, should this moratorium lapse without an extension, more taxes will be applied. "Bits and pieces of the Internet backbone will be taxed at different rates and across multiple jurisdictions, overwhelming companies in a sea of regulation and paperwork."Norquist served on the federal Advisory Commission on Electronic Commerce (ACEC) as a representative and advocate of taxpayers and consumers. Congress created the Commission to study and make recommendations concerning the taxation of e-commerce. Norquist is also the president of Americans for Tax Reform, a coalition of individuals and groups who oppose all federal and state tax increases.