DMA Lauds Senate for Further Extension of Internet Tax Moratorium to 2014

DMA Continues to Push for Permanent Moratorium, But Encouraged by

Senate Action Just Days Before Looming Deadline

Washington, DC, October 26, 2007 — The Direct Marketing Association (DMA) today commended Members of the Senate for passing a seven-year extension in advance of the Internet Tax Moratorium’s November 1, 2007, expiration date.

Commenting on the Senate’s Thursday evening vote, DMA Executive Vice President for Government Affairs and Corporate Responsibility Steven K. Berry said, “With this important vote, Members of the US Senate have sent a message to the American public — loud and clear. Congress understands that taxing the Internet at this critical juncture is irresponsible public policy that would have dire economic consequences for our nation.”

“This considerable extension wouldn’t have been possible without the bipartisan negotiations of both Senators Tom Carper (D-DE) and John Sununu (R-NH),” Berry continued. “We are grateful for the Senate’s efforts and hope the House, which last week passed a bill that would extend the current moratorium by four years, will take up this measure before time runs out on November 1, as we believe acting in advance of the expiration date remains in the best interests of the American economy.”

The Internet Tax Moratorium has been extended twice since its adoption in 1998. The moratorium prevents states and localities from imposing taxes on Internet service. If the Senate’s Thursday action is accepted by the House, the current moratorium would remain in effect until 2014.

Various forms of legislation seeking to extend the moratorium or make it permanent have received wide-spread, bipartisan support from members of both chambers of Congress as well as from the Bush Administration.

“As this legislation moves through the final stages of the legislative process on Capitol Hill, DMA will maintain its position in support of a permanent prohibition on taxing access to the Internet,” said Berry. “We continue to believe strongly that access to the Internet is far too valuable of a commodity in 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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