Cox leads effort to create thriving e-commerce

Sue Doyle

Rep. Christopher Cox led the drive to protect commerce on the World Wide

Web, scoring a victory when the House voted Wednesday to delay adding any

new Internet taxes until 2006.

Cox (R-Newport Beach) launched the bill to prevent Internet taxation at

the federal, state and local levels in February.

“The new economy empowers individuals, but only if they can afford to

participate,” Cox said. “Lawmakers who care about the digital divide

shouldn’t tax the Internet.”

The push for a moratorium on levying the electronic economy began after

some states started to tax residents for Internet access. These states,

which did not include California, wanted to tax the monthly fee customers

pay to service providers, such as America Online.

The bill would also affect Internet shopping by barring double taxation

by two or more states for products or services purchased online. It would

also prevent double taxation of Internet start-up companies that have

services in one state and a warehouse of goods in another, but are levied

by both.

However, the bill must still pass through the Senate before it can be

introduced as federal legislation.

The issue is an important one here in Cox’s district, where many Internet

companies are based.

“The new economy is generating tremendous revenue for individuals and

government alike, more than ever in history. We can help this continue by

ensuring people that the government will not place discriminatory,

multiple or access taxes on the Internet at the federal, state or local

levels,” Cox said.