E-Commerce Advisory Commission Report
Gaining Bipartisan Support in Congress
Chairman Speaks to Congressional Panel

Arlington, VA - April 7, 2000 - The Advisory Commission on Electronic Commerce's report, being formally submitted to Congress next week, has already received backing from bi-partisan Congressional members. Shows of support include an introduction of legislation that permanently extends the current moratorium on Internet-related taxes and repeals the telephone tax. Yesterday, Commission Chairman, Virginia Governor James S. Gilmore, III, offered testimony on the report at a hearing in the House Subcommittee on Telecommunications, Trade and Consumer Protection.

"I feel the Commission's report will provide a solid foundation by which Congress can act in the best interests of each American citizen," said Governor James S. Gilmore, III. "Members of Congress are already moving to support key ideas presented. It's a report that we can be proud of, and it will be judged on the merits of its ideas."

Next month, House Speaker Dennis Hastert is expected to formally propose extending the tax moratorium, while Minority Leader Richard Gephardt recently called for a three-year extension of the tax moratorium as part of the Democrats' agenda. Congressman Gephardt also endorsed a phaseout of the three percent tax on telecommunications services and a ban on Internet-access taxes.

Under the proposal, the Commission voted in Dallas to:

• Reduce consumers' taxation burden by repealing the federal three-percent excise tax on telecommunications services
• Forge a meaningful pathway to simplification of states' sales and use taxation systems
• Permanently prohibit states or localities from taxing Internet access subscription charges
• Extend the current Internet Taxation moratorium legislated by the Congress on multiple and discriminatory taxation

Governor Gilmore has been asked to formally present the report to Congressional leaders in the Lincoln Room of the United States Capitol on Wednesday, April 12, followed by an address to a Newsmaker Luncheon at the National Press Club.

For more information about the Commission and its meetings, the public may visit the Commission's Web site at http://www.ecommercecommission.org.

About the Advisory Commission on Electronic Commerce

Appointed by Congress in October 1998 as part of the Internet Tax Freedom Act, the 19-member Commission has been tasked with studying the impact of federal, state, local, and international taxation and tariffs on transactions using the Internet and Internet Access. The Commission's recommendations are due to Congress no later than April 21, 2000.