DMA Lauds House Judiciary Committee for Action on Internet Tax Moratorium

DMA Prefers Making Moratorium Permanent, But Encouraged by

House Move in Advance of Looming Deadline

Washington, DC, October 11, 2007 — The Direct Marketing Association (DMA) today commended Members of the House Judiciary Committee for passing H.R. 3678, the Internet Tax Freedom Amendment Act of 2007 in advance of the Internet Tax Moratorium’s November 1, 2007, expiration date. Sponsored by House Judiciary Committee Chairman John Conyers (D-MI), H.R. 3678 would extend the current Internet Tax Moratorium by another four years until 2011, rather than make it permanent.

Commenting on the House Judiciary Committee’s Wednesday afternoon vote, Steven K. Berry, DMA’s executive vice president for government affairs and corporate responsibility, said, “While DMA supported efforts by Congressman Bob Goodlatte of Virginia to offer amendments that sought to make the Internet Tax Moratorium permanent or, alternatively, extend the moratorium to six years, those positions did not prevail in committee. However, passage of a four-year extension is an important first step in the right direction, and DMA commends the members of the committee for their support for this legislation. Clearly, they understand the incredible value of the Internet to the nation’s economy, and believe that allowing taxation on Internet access at this critical juncture would certainly have an adverse impact on US businesses and the overall economy.”

DMA continues to review provisions of the legislation as passed by the full Committee yesterday. Various forms of legislation seeking to extend the moratorium or to make it permanent have received widespread, bipartisan support from members of both chambers of Congress as well as from the Bush Administration.

“DMA is thankful for the four-year extension,” said Berry. “But as this legislation continues to move through the legislative process, we will remain committed to encouraging lawmakers to make the Internet Tax Moratorium permanent, as we believe it continues to be in the best interests of the American economy to do so. Access to the Internet is far too valuable of a commodity to our economy to be impeded by various taxes at every level of government.”

About Direct Marketing Association (DMA)

The Direct Marketing Association (DMA) (www.the-dma.org) is the leading global trade association for business and nonprofit organizations that use and support multichannel direct marketing tools and techniques. DMA advocates standards for responsible marketing, promotes relevance as the key to reaching consumers with desirable and appropriate offers, and provides cutting-edge research, education, and networking opportunities to improve results throughout the end-to-end direct marketing process. Founded in 1917, DMA today represents nearly 3,600 companies from dozens of vertical industries in the US and 50 other nations, including a majority of the Fortune 100 companies, as well as nonprofit organizations.

In 2006, marketers — commercial and nonprofit — spent $166.5 billion on direct marketing in the United States. Measured against total US sales, these advertising expenditures generated $1.93 trillion in incremental sales. Direct marketing in 2006 accounted for 10.3 percent of total US gross domestic product (GDP). Today, there are 1.7 million direct marketing employees in the US alone, whose collective sales efforts directly support 8.8 million other jobs. That accounts for 10.5 million US jobs.

The Power of Direct: Relevance. Responsibility. Results.

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