Web Tax Moratorium Clears Hurdle

A five-year extension of the moratorium on taxes that target the Internet quickly cleared a House committee Thursday. It is one of three bills Republican leaders and the high-tech industry are pushing to reduce or prevent taxes in cyberspace.

Even though the current moratorium does not end until October 2001, the House Judiciary Committee rushed through the extension bill without any hearings and despite complaints that Congress was ignoring the central issue of how state sales taxes apply to electronic commerce.

As Republicans and Democrats battle for political support and campaign contributions from the high-tech sector, GOP leaders in the House plan a floor vote next week on the moratorium bill.