House Republicans blamed three Clinton Administration appointees yesterday for the failure of a resolution to keep the Internet tax free.
House Commerce Committee Chairman Tom Bliley (R-VA) said the three “missed a great opportunity to help American consumers by keeping the taxman out of cyberspace.”
The three appointees, named by President Clinton to the Advisory Commission on Electronic Commerce 18 months ago are: Andrew Pincus, General Counsel for the Commerce Department; Joseph H. Guttentag, a senior advisor in the Treasury Department; and Robert Novick, general counsel to the U.S. Trade Representative.
Congress authorized creation of the 19-member panel to advise it on Internet tax matters two years ago when it adopted legislation imposing a three-year moratorium on new Internet taxes.
Earlier this week, the trio abstained from voting on a no-new tax resolution proposed by the commission chairman, Virginia Governor James A. Gilmore III (R). The measure was approved by a majority of 11 to 1 with 7 abstentions, falling short of the two-thirds required.
The abstaining members were in the so-called Leavitt camp headed by Utah Governor Mike Leavitt (R). Leavitt favored a plan for streamlining the sales tax system, and applying a uniform rate to sales by Internet, telephone and catalog.
Gilmore’s resolution recommended that no new taxes be imposed on Internet transactions, and that Congress extend the existing use-tax ban on mail order sales to cover sales over the telephone or the Internet.
House Majority Leader Dick Armey (R-TX), also blasted the Clinton appointees, threatening to “run out of town” anyone who introduces or presses for tax-the-Internet legislation.
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