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Release GOVERNOR LOCKE (WA) URGED TO OPPOSE INTERNET TAXES Released by Dann Mead Smith on 11/09/99 of Washington Institute Foundation |
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| Contact: Dann Mead
Smith 206-937-9691 Urging Governor Gary Locke to oppose efforts to impose new taxes on Internet access and electronic commerce, the Washington Institute Foundation today joined with more than 20 consumer, taxpayer and public policy organizations across the country to establish the "e-Freedom Coalition." "Governor Locke can play a key role in protecting the interests of the consuming and taxpaying public," Washington Institute President Richard Derham said today, referring to the Governor's role as a member of the Federal Advisory Committee on Electronic Commerce. Derham's statement was issued in connection with the announcement of the e-Freedom Coalition's proposal to the Advisory Commission, unveiled at a press conference this morning at the National Press Club in Washington, D.C. The E-Freedom Coalition proposes a permanent ban on sales and use taxes that specifically apply to online commerce, thereby applying to E-commerce transactions the same rules that now apply to catalog sales. Further, the Coalition proposes eliminating the federal 3% excise tax on telephone service and opposes any new tax on Internet access. The Coalition's proposal is an alternative to a proposal being submitted by a group of seven organizations headed by the National Governor's Association, the National League of Cities and the Council of State Governments. "These groups represent those who spend our money," according to Derham, "and they have never met a tax source they didn't like." The proposal of the "Big Seven" entails establishing a tax collection mechanism to impose sales tax upon the purchasers of all goods and services. According to Derham, not only would the result be to increase the tax burden on purchasers of goods and services in interstate commerce, it would also impose a substantial administrative burden on any small business attempting to engage in sales over the Internet and would stifle one of the most innovative ways of connecting consumers with the sources of goods and services they desire to purchase. "The Big Seven proposal is 'lose-lose'," according to Derham. "Consumers lose, businesses lose, and only the growth in the size of government is benefited." By contrast, the e-Freedom Coalition proposal would keep government out of the way of this expanding area of commerce. Highlights of the Coalition's proposal include:
For more information or to arrange an interview, contact Dann Mead Smith at 206-937-9691. Mr. Derham will be present at the press conference at 9:15am (EST) at the National Press Club (First Amendment Lounge) in Washington, D.C., and will be available to the media while in Washington, D.C. - 30 - NOTE: Taxation on Electronic Commerce was the subject of a panel discussion at a October 26 conference in Seattle sponsored by the Washington Institute Foundation and the American Enterprise Institute. For a summary of that conference see http://www.wips.org/wifsave/ecsummary.html The Washington Institute Foundation is a non-profit, non-partisan, research and education organization in Seattle, which publishes studies and sponsors conferences and forums on public policy issues facing our state. | |
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