2. Under this proposal merchants may be required to collect sales taxes only by those states where they have a substantial physical presence, consistent with the established tax base and definitions of those states.

3. This proposal protects businesses in one state from being subject to the auditing and reporting requirements of those states in which it has no substantial physical presence.

4. This proposal permanently bans taxes on Internet access, and suggests no new taxes or collection schemes for e-commerce.

5. This proposal does not leave the net tax burden on consumers unchanged. Rather, it reduces the net tax burden on consumers by repealing the 3% federal excise tax on telecommunications, ending the discriminatory ad valorem taxation of interstate telecommunications, and ending above-cost fees for telecommunications infrastructure installed along right-of-ways.

6. The proposal does impose any tax, licensing or reporting requirement, collection obligation or other obligation or fee on parties other than those with a physical presence in a particular state or political subdivision.

7. By prohibiting discriminatory taxes on electronic commerce, the proposal would help spur the continued growth of the Internet sector which, in turn, should provide continued tax revenues for governments and more than offset any losses from the proposed prohibition of sales taxes.

8. This proposal guarantees no collection burdens for sellers where they lack nexus, a provision that would especially benefit small and start-up businesses. The proposal also recommends that states simplify tax collection procedures for businesses with nexus in multiple jurisdictions.

9. This proposal does not change current tax liability of consumers and ensures that sales will be taxed only by a single jurisdiction.

10. To ensure private parties are protected from governments that exist where the parties have no representation, this system maintains the constitutional principle that only merchants with a substantial physical presence in a state may be subject to its tax collection schemes.

11. This proposal would help sustain and further America's position as a global leader in the Internet sector and boost the overall competitiveness of all U.S. companies by ensuring they are not subjected to burdensome and discriminatory taxes on electronic commerce.

12. This proposal can be scaled to the international level.

13. Many of America's trading partners have extremely burdensome, anti-consumer tax imposition and collection regimes. This proposal in no way seeks to imitate those systems. This proposal seeks to "conform" to the United States Constitution, and its guidelines concerning interstate commerce.

14. The proposal is technologically feasible, and no new technology is required.

15. The proposal permanently protects the privacy of purchasers.

16. The proposal respects the sovereignty of states and Native Americans.

17. Local government autonomy is protected to the maximum extent possible while ensuring that taxes do not substantially interfere with interstate commerce.

18. Finally, the proposal is constitutional.