Association for Interactive Media Backs Sen. McCain's Stance On Internet Taxation.

WASHINGTON--(BUSINESS WIRE)--October 5, 1999--

"Internet Tax Moratorium Benefits All Businesses," says Top

Internet Group

Sen. John McCain (R-Ariz.), current candidate in the 2000 Presidential race, has placed himself as a frontrunner in recognizing the power of the Internet and the impact of e-commerce. He introduced legislation September 22, that seeks to ensure freedom for Internet commerce and deter anti-consumer taxation of the online marketplace. This legislation is enthusiastically endorsed by the Association for Interactive Media and many of its member companies working in E-commerce.

McCain's insight into the future of e-commerce reflects the global ramifications of the digital marketplace. "Simply," said the Senator, in his statements on introduced bills and joint resolutions (Senate, 9/22/99), "this bill would make permanent the moratorium on multiple or discriminatory taxes for ecommerce, and would encourage the Administration to urge our world trading partners to do the same."

McCain cites a recent study completed by Ernst & Young that supports passage of this legislation. The report states that if collected, total sales and use taxes going to states and localities would have amounted to a mere one-tenth of one percent of the total these governments collect annually. AIM, looking to Sen. McCain's declaration as part of his presidential platform, reacted positively to the legislation, noting that businesses locally, nationally and worldwide would benefit from the Internet Tax Freedom Act of 1999. As such, AIM and its affiliates would look to each candidate for their position on what is certainly a significant issue for any leader in the new millenium. Ben Isaacson, AIM's Acting Executive Director, spoke enthusiastically about McCain's perspective.

"Sen. McCain is quite clear when he raises the issue of how taxation effects businesses, consumers, even the U.S. position as the world leader in e-commerce," says Isaacson. "The ramifications of an unnecessary taxation structure would be wide-spread and potentially devastating to the United States economy."

The Internet Tax Freedom Act of 1999 mirrors the position of the 1998 act, but makes the 1998 three-year moratorium permanent. McCain insists that "a complete moratorium is the right approach, and we should act now to protect the engine of our economy from unnecessary regulation and taxation."

Isaacson indicated that the Internet industry would be scrutinizing the issue very closely in the coming months, and support of any candidate would hinge closely on their sensitivity to the concerns of the Internet industry. He further states that the Advisory Commission on Electronic Commerce reached a conclusion similar to McCain's with regards to Internet tariffs.

"At the Advisory Commission meetings in September," says Isaacson, "it was determined that a permanent moratorium on international tariffs will establish a global free trade zone for electronic transmissions, which is vitally important to achieve maximum growth of electronic commerce and ensure greater prosperity for all nations and all world citizens."

About AIM

Since 1993, AIM has served businesses that use the Internet. Headquartered in Washington, D.C., AIM became part of The Direct Marketing Association in late 1998. With the recent merger of the Addressable Advertising Coalition, AIM is now the largest and most influential voice for and of electronic commerce and online activity in the world. AIM membership includes online and offline merchants, advertisers, ad agencies and interactive firms, as well as hardware and software vendors that support the emergence of online content and transactions. Visit AIM online at http://www.interactivehq.org