Statement on the Agreement on Internet Taxes

In my recent speech on the future of the Internet, I called for a short-term moratorium on new and discriminatory taxes that would slow down the growth of the Internet and a search for long-term solutions to the tax issues raised by electronic commerce. We cannot allow 30,000 State and local tax jurisdictions to stifle the Internet, but neither can we allow the erosion of the revenue that State and local governments need to fight crime and invest in education.

I believe that the agreement reached by groups representing State and local elected officials is an important and constructive step toward a long-term solution. I particularly want to thank Governors Leavitt and Romer for their bipartisan leadership on this important issue. I look forward to working with all parties with a stake in this issue to enact legislation this year.