Press Release - Governor Gilmore Announces Plan to Eliminate Internet Taxes


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Press Release Governor Gilmore Announces Plan to Eliminate Internet Taxes Released by Mark A. Minor on 11/09/99 of Office of the Governor of Virginia	Press Releases by Release Date by Organization Media Advisories by Release Date by Organization Opinions/Editorial by Release Date by Organization All Press Releases/ Editorial/ Media Advisories by Release Date by Organization
COMMONWEALTH of VIRGINIA Office of the Governor James S. Gilmore, III Governor FOR IMMEDIATE RELEASE November 9, 1999 Contact: Mark A. Miner Phone: (804) 692-3110 Pager: (888) 646-5017 Internet: http://www.state.va.us/governor <http://www.state.va.us/governor> GOVERNOR GILMORE ANNOUNCES PLAN TO ELIMINATE INTERNET TAXES - **No Internet Tax plan supports Internet consumers -** RICHMOND - Virginia Governor Jim Gilmore, chairman of the Advisory Commission on Electronic Commerce (ACEC), has submitted a proposal to the commission that recommends the elimination of Internet taxes. Governor Gilmore's No Internet Tax proposal is designed to nurture the growth and development of the Internet to the benefit of consumers everywhere. As chairman of the e-commerce commission, Governor Gilmore has encouraged input from all sides in the Internet tax debate and has ensured that the commission has given a fair hearing to everyone involved. "The Internet represents a marvelous tool of empowerment for people all over the world," said Governor Gilmore. "It is the most transforming technological development since the industrial revolution, and its growth must not be thwarted by taxation." Governor Gilmore's No Internet Tax proposal protects consumers from Internet taxes, makes logging on the Internet more affordable, and strengthens the U.S. economy. Governor Gilmore's No Internet Tax proposal: eliminates all sales taxes from remote Internet-based sales of goods, services and information to consumers; cuts taxes on American consumers by more than $3.3 billion by eliminating the federal excise tax on local and long-distance telephone service; cedes more than $1.7 billion annually in federal tax revenues to states to compensate them for any foregone sales taxes on Internet commerce which fund local government services; abolishes the digital divide by permitting each state to spend federal welfare dollars to purchase computers and Internet access for needy families; opposes international taxes and tariffs on U.S. electronic commerce to maintain U.S. global competitiveness in software and Internet industries. The Gilmore proposal empowers people and reduces the digital divide by cutting taxes on American consumers' access to the Internet in the amount of more than $3.3 billion annually. It bolsters expansion of the American economy and thereby increases tax revenues for governments by encouraging growth of the technology sector and by sending a positive message to Internet stock investors. It prohibits any taxes on Internet access and cuts the federal excise tax that consumers pay each month on their local and long distance telephone service. This tax amounts to 3% of consumers' monthly telephone bills. Governor Gilmore's plan proposes immediate elimination of 2% of the 3% federal excise tax. It calls on the federal government to continue the tax at 1% for three years, at which time the federal excise tax will be completely abolished. That 1% - more than $1.7 billion in federal revenues annually - will be ceded to states and localities that simplify their myriad state and local telephone taxes. These funds will compensate state and local governments for any taxes foregone to the cyber economy. The Gilmore proposal creates an even playing field for all American businesses that wish to compete in interstate commerce over the Internet by making Internet-based transactions a tax-free zone regardless of where a business has physical presence. "The Internet is driving the American economy," Governor Gilmore said. "America must enhance the Internet and the new economy by adopting pro-growth tax policies and changing the way government does business."