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Fight Internet Taxes
Updated October
29, 1999
It didn't take long, but
the politicians are lining up now to tax the Internet. Americans for
Tax Reform believes a successful Internet depends on our ability to
keep it free of intrusive and destructive government taxes and
regulation. Right now, the federal Advisory Commission on Electronic Commerce
is studying the issues surrounding Net taxation. Generally, these
issues fall into three areas: Taxing Access, Taxing E-Commerce, and
Taxing International Trade.
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Make Your Voice Heard:
Should
Government Tax the Internet and Online
Sales? |
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The Advisory
Commission on Electronic Commerce is currently deciding
whether or not to recommend taxing Internet access and online
sales. What do you think? Should state and local
government be allowed to tax your Internet access and your
online purchases? The Commission is required by law to accept
your comments. Write to the Commission today and tell them how
you feel about government taxes on Internet access and online
purchases! The Commission e-mail address for comments is
comments@ecommercecommission.org |
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SUMMARY BACKGROUND INFORMATION |
Fight Net
Taxes!
The
Heritage Foundation has launched an online campaign to fight
Net taxes. This site offers an array of background information
on the tax issues surrounding e-commerce. Sign their online
petition! |
Little Need for Government
in E-Commerce
In attending the recent OECD ministerial
conference on electronic commerce in Ottawa, Aaron Lukas of
the Cato Institute comments on the discussions of government
bureaucrats ("surgeons") determined to help e-commerce ("the
patient"). His paper outlines the case for government to take
a "hands off" approach to e-commerce. |
Make the Internet Tax
Moratorium Permanent
The National
Taxpayers Union makes the case for a permanent
moratorium on Internet taxation in its letter to Sen. Robert
Smith endorsing his legislation. |
Voters Say, "No Net
Taxes"
A poll
commissioned by the Information Technology Association of
America found that Americans are more interested in E-commerce
and Internet growth than new E-taxes. |
Rep. Chris Cox Fights Net
Taxes
Congressman Chris Cox is a leader in the fight against
Internet taxes. His Internet Tax Freedom Act Home Page
provides a wealth of
information. |
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INTERNET ACCESS |
State, local
governments ready plans to erect "Internet
tolls"
John Moore of Sm@art Reseller
reports, "In a new take on Internet taxation, Utah and other
states plan to charge access fees to companies laying cable
for Internet and other telecommunications services along
interstate highways. " |
The Myth of an Emerging
Information Underclass
Cato Institute's Gary Dempsey dispels the
myth of an "information underclass," which is often used to
justify an array of proposed government intrusions into the
computers and pocketbooks of Internet users. "Proponents of
Internet subsidies make two false assumptions: 1) The fact
that people do not log on does not necessarily imply that they
cannot afford to do so. They may simply have other priorities.
2) Access to an Internet connection does not necessarily imply
that someone is 'information rich.' Just as living next door
to a public library doesn't by itself make a person more
knowledgeable, there is nothing automatically informative
about being wired," he writes. |
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Repeal the Gore
Tax
Named for
its chief defender, the Gore Tax is a stealth tax on long
distance telephone service. It was imposed when the Federal
Communications Commission exceeded its authority in
interpreting the 1996 Telecommunications Act. Although the Act
merely called for a discount to schools and libraries, the
government has turned a simple idea into a multi-billion
dollar boondoggle. The Gore Tax raises the cost for Internet
access by driving up Americans' telephone bills by between 5
and 6 percent. The National Taxpayers Union is
fighting for repeal of the Gore Tax through a special website
at www.goretax.com. |
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Federal Trade Commissioner Warns Against
E-Taxes
Orson Swindle, a member of the
Federal Trade Commission, warns against imposing new taxes on
electronic commerce, and the dangers such taxes pose for
consumer privacy. |
Columnist Makes Case
Against E-Taxes
James Freeman lays out the
case against taxing e-commerce in this article from Forbes
ASAP. "So, for every Valley resident who doesn't like taxes
but can't see her way clear to a tax-free Internet, I'll make
the case for a permanent online tax moratorium. I hope to
rouse a few stout-hearted capitalists to action, because
online consumers need your help," Freeman
writes. |
Internet Taxation a Top
Worry for CIOs
A study by the U.S. Chamber
of Commerce finds that 65% of corporate information officers
(CIOs) are concerned about e-commerce taxation. "Guidelines on
Internet businesses and transactions should be developed
before any discussions on e-commerce taxation begin," said
Chamber President and CEO Thomas J. Donohue in a media
release. "Internet sales are unique and complex, and should be
handled only with a complete redesign of our tax system to
avoid jeopardizing our current economic
prosperity." |
Teachers Union Sets Sights
on E-Taxes
Mike Antonucci of the Education
Intelligence Agency passed along the following quote: In
testimony before the U.S. Senate Committee on Health,
Education, Labor, and Pensions, National Education Association
President Bob Chase made a veiled hint about where states
could find additional funds for education. "State and local
systems are not prepared to tap the tremendous growth in the
service economy or in business activity increasingly oriented
toward electronic commerce," he said. |
McCain's Permanent Ban on
E-Taxes: Bill would prohibit Net
taxes
Courtney Macavinta of CNET News.com
writes, "Presidential candidate Sen. John McCain doesn't want
the Net bled to death by tax collectors--not now and not
ever." |
Tax E-Commerce, For the
Kids:
E-commerce tax pitched
as teacher's aid
"Legislation introduced in the Senate
would for the first time impose a federal tax on goods sold
over the Internet, a market momentarily considered off-limits
to politicians," writes Wendy Marinaccio of CNET
News.com |
Why Congress Must Save the
Internet from State and Local
Taxation
Adam Thierer of The Heritage Foundation summarizes
the case for federal legislation protecting the Internet from
state and local politicians who see the Net as a potential
revenue source. "State and local governments have no legal
right to tax commercial activity that falls outside their
jurisdictions. Congress should take prompt action to ensure
that states and localities are not given a chance to impose
taxes that will serve only to retard the growth and
development of this crucially important communications
medium," writes Thierer. |
An Internet Tax
Nightmare
Cato Institute's Aaron Lukas points out
how state and local politicians are using the Internet as an
excuse to raise taxes. "Clearly, the fairness argument is
intended to distract from the real agenda of covertly raising
taxes. If not, states would lower rates as they broaden the
sales tax net," he writes. |
Should Internet Sales be
Taxed?
Cato's Lukas systematically picks apart
the arguments for taxing the Internet in this commentary
article. "The truth is that the battle over taxation of
e-commerce has little to do with economic efficiency, equity
or the provision of essential services. The reality is much
simpler: state and local officials want to control an
ever-expanding portion of our incomes. E-commerce -- by
providing a means to avoid punishingly high sales tax rates --
threatens to check that impulse. No wonder the politicians are
worried," he writes. |
The Sky is NOT
Falling
Jerry Ellig of Citizens
for a Sound Economy details how state and local
governments and not losing significant sums of sales tax
revenue to the Internet. |
Why Internet Sales Taxes
Aren't Necessary
CSE's Aaron Lilly explains
the benefits of e-commerce to the overall economy, and makes
the case against imposing new taxes. |
NGA Says: Tax the
Net
The National
Governors Association wants to tax the
Internet. This taxpayer-funded club of the nation's governors
has put forth a policy proposal to impose state sales taxes on
mail-order and Internet-based sales. Although their proposal
would effectively impose a significant tax increase on
already-overtaxed consumers, their proposal is couched in
flowery language of "streamlining" state tax regimes, and
re-establishing "fairness." |
Armey to Commission: Forget
sales taxes
House Majority Leader Dick Armey
and 34 House members sent a letter to ACEC Commissioners
urging them to focus their energies on international and
access issues, rather than trying to formulate new ways for
state and local governments to gouge consumers through
e-taxes. "The Commission should remember that only Congress
can authorize one state to compel sellers in another state to
collect Internet taxes. This idea is not a popular one in
Congress or among the American people. You should also know
that there are many Members that will oppose any new taxes on
the Internet," they wrote. |
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