DMA Praises Introduction of Internet Tax Moratorium Bill

Washington, DC, January 5, 2007 – The Direct Marketing Association (DMA) commends Senators Ron Wyden (D-OR), John McCain (R-AZ), and John Sununu (R-NH) for introducing legislation permanently extending the current moratorium on taxing Internet access, which is set to expire on November 1, 2007.

The Permanent Internet Tax Freedom Act would prohibit taxes on Internet access, as well as banning double taxation of a product or service bought over the Internet, and discriminatory taxes that treat Internet purchases differently from other types of sales. The moratorium currently in effect was first enacted in 1998, and extended in 2004.

DMA has consistently supported the moratorium on Internet taxation as an important means of ensuring that the Web remains an effective vehicle for commerce, communication, and education.

“The ban on taxing Internet access is an important protection that helps keep the Internet affordable, and ensures a competitive open marketplace for global commerce and communications," said Jerry Cerasale, DMA’s senior vice president for government affairs. “We appreciate the bipartisan efforts of these three senators and hope that the legislation will move quickly toward approval.”

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About 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 industry 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 more than 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 – will spend an estimated $166.5 billion on direct marketing in the United States. Measured against total US sales, these advertising expenditures will generate an estimated $1.93 trillion in incremental sales. This year, direct marketing will account for 10.3 percent of total US GDP. Also, there are today 1.7 million direct marketing employees in the US alone. Their 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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