Floor Statement of House Judiciary Committee Chairman Bob Goodlatte on Conference Report Accompanying H.R. 644, “Trade Facilitation and Trade Enforcement Act of 2015”

Chairman Goodlatte: Mr. Speaker, time is short. A temporary ban on state taxation of Internet access is expiring. Section 922 of the Conference Report aids taxpayers by making this ban permanent. If the ban on Internet access taxes is not renewed, the potential tax burden on Americans would be substantial.  It is estimated that Internet access tax rates could be more than twice the average rate of all other goods and services. Low-income households could pay ten times as much as high-income households, as a share of income. Congress has passed numerous temporary bans with enormous bipartisan support. Earlier this year, a permanent ban passed the House by voice vote. Section 922 merely prevents Internet access taxes and unfair multiple or discriminatory taxes on e-commerce.  It does not tackle the issue of Internet sales taxes. My Committee is working assiduously on that issue and making progress. Studies show that taxes affect Internet adoption rates. As price rises, demand falls. The Internet has become an indispensable gateway to scientific, educational and economic opportunities.  Section 922 preserves unfettered access to one of the most unique gateways to knowledge and engines of self-improvement in all of human history. I thank the Conferees for including this pro-taxpayer provision and urge my colleagues’ support.