High-Tech Trade Group Wants Extended Internet Tax Ban

Compiled ByTonya Vinas A prominent technology trade group is promoting a five-year extension of the Internet-tax moratorium and three other "critical provisions" that should be part of any U.S. economic stimulus package. The 3,500-member AeA, Washington, D.C., says Congress should continue with the tax ban, which is set to expire Oct. 21. "Failure to extend this moratorium . . . would result in a significant chill on the high-tech industry," the group said in a statement released after its national meeting in San Jose held the first week of October. AeA members include manufacturers of software, semiconductors, electronic components, computers and networking equipment, as well as technology and communications services. In addition to the Internet-tax moratorium, the trade group is supporting an investment tax credit and accelerated capital assets depreciation; capital gains tax relief for new investment; and repeal of the Alternative Minimum Tax, which must be paid when investors exercise stock options. "The AeA board made it clear that a stimulus package with short-term, targeted and immediate results is needed to restart the economy," says AeA president and CEO William T. Archey. "The four issues we have identified directly affect the high-tech industry and have the ability to boost its current economic situation."