DMA Lauds House for Passage of Internet Tax Moratorium Extension

DMA Prefers Making Moratorium Permanent, But Encouraged by

House Action in Advance of Looming Deadline

Washington, DC, October 16, 2007 — The Direct Marketing Association (DMA) today commended members of the US House of Representatives 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. H.R. 3678 extends the Internet Tax Moratorium another four years to 2011.

“While DMA continues to advocate for a permanent ban on taxing access to the Internet, the House’s vote today to extend the Internet Tax Moratorium has sent a clear message to the American public,” said Steven K. Berry, DMA’s executive vice president for government affairs and corporate responsibility. “We appreciate the leadership of Chairman John Conyers on this important issue. House Members sent a message to the American public today — loud and clear — that they clearly understand the incredible value of the Internet to the nation’s economy and believe that allowing taxation on Internet access would certainly have an adverse impact on US businesses and the economy.”

Sponsored by Chairman of the House Judiciary Committee John Conyers (D-MI), H.R. 3678 would extend the Internet Tax Moratorium for four years, until 2011, rather than make it permanent. Various forms of legislation seeking to extend the moratorium or make it permanent have received widespread, bipartisan support from members of both chambers of Congress as well as from the Bush Administration.

“We are thankful for the extension,” Berry said. “However, as the Senate takes up this issue in the coming weeks, DMA will continue to press lawmakers for a permanent prohibition. After all, 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 (www.the-dma.org) is the leading global trade association of businesses and nonprofit organizations using and supporting multichannel direct marketing tools and techniques. DMA advocates standards for responsible marketing, promotes relevance as the key to reaching consumers with desirable 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 2007, marketers — commercial and nonprofit — are forecast to spend $173.2 billion on direct marketing in the United States. Measured against total US sales, these advertising expenditures will generate approximately $2.025 trillion in incremental sales. In 2007, direct marketing will account for 10.2 percent of total US gross domestic product. Also, there are today 1.6 million direct marketing employees in the US alone. Their collective sales efforts directly support nearly 9.0 million other jobs. That accounts for 10.6 million US jobs.

The Power of Direct: Relevance. Responsibility. Results.

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