DMA Lauds Congress for 7-Year Extension of Internet Tax Moratorium to 2014

DMA believes 7-year extension to moratorium is good for the nation’s economy, but maintains position on permanence

Washington, DC, October 30, 2007 — The Direct Marketing Association (DMA) today commended Members of the House for accepting the Senate’s seven-year extension in advance of the Internet Tax Moratorium’s November 1, 2007 expiration date.

“The DMA has worked tirelessly over the last six months to help ensure that access to the Internet is not impeded by unnecessary taxes. We are especially thankful that this priority legislation was passed by Congress in advance of the pending November 1 deadline,” said Steven K. Berry, DMA’s executive vice president for government affairs and corporate responsibility. “While we continue to believe strongly that a permanent moratorium is more beneficial to businesses, we are encouraged by the House’s action on the Senate’s seven-year extension of the Internet Tax Moratorium.”

The Internet Tax Moratorium has been extended three times since its adoption in 1998. The moratorium prevents states and localities from imposing taxes on Internet service and once signed by President Bush will 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.

“Extending the Internet Tax Moratorium by more than double the length of time of past extensions sends an important message — loud and clear — to the American public. Congress clearly understands that taxing the Internet at this critical juncture is irresponsible public policy that would have dire economic consequences for our nation. We continue to believe strongly that 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,” added Berry.

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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