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Customs Reauthorization Bill to 'Move Soon,' Senator Predicts

Sen. John Thune, R-S.D., third-ranking member of leadership, expects a ban on Internet access taxes to move forward in the near future with customs reauthorization legislation, untouched by those who want to remove it. Thune is also eyeing consideration of the Trans-Pacific Partnership, he told reporters Jan. 12.

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Thune doubts any detractors who would prefer the Internet Tax Freedom Act (ITFA) to move along with the more controversial Marketplace Freedom Act could strip ITFA’s inclusion from the conference version of the Trade Facilitation and Trade Enforcement Act (HR-644). That trade bill stalled last month (see 1512240020). “My sense is if the customs conference report moves, ITFA will move on it,” said Thune, a backer of ITFA and a conferee for that customs conference report. “I know there’s still a lot of discussion and interest on the other issues that get drawn into that discussion. But I think if the customs conference report moves, and I think it will move soon, I think the Internet tax moratorium will be included in it, as it was reported in the House.”

One possibility under discussion is that a senator could raise a point of order to strip ITFA from the conference bill, citing lack of relevance of the ITFA provision to the underlying bill. The Senate would need 60 votes to stop that.

“I think you can expect that, that there’ll be some procedural attempts to strip that out,” said Thune. “But I don’t think the votes are going to be there. I think it’s going to be a very hard vote for people to vote to say as a matter of policy and practice in this country, that we’re going to allow taxes to go into place, that we’re going to allow states to impose taxes on the Internet. I just don’t think that’s going to happen. I know that right now, I think the vote count’s probably fairly close on that. … I think there’ll be 60 votes for keeping that in the bill.” He said he's aware of stakeholders whipping the vote but didn’t say leadership was involved in any whipping.

Thune also wants Congress to address the Trans-Pacific Partnership, a priority for the Obama administration. Sen. Orrin Hatch, R-Utah, is a key player in achieving Hill approval, Thune said: “I can’t feature a scenario where TPP moves if Senator Hatch isn’t actively engaged in supporting it. So I think [the United States Trade Representative has] got some work to do there. But that’s not to say that we couldn’t get to a place where down the road sometime later this year or maybe next year, we get it done. I think it needs to get done.” Hatch chairs the Finance Committee, where Thune is also a member. Thune referred to the deal as “very good in most respects,” with some exceptions. The “more likely scenario” is that the TPP gets addressed following the November elections, Thune said. Meanwhile, the Telecom Industry Association added its voice to supporters of the deal and urged Congress to approve it (here).