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Release Politicians Roll Out New Internet Tax Scheme Released by Chad Cowan on 11/19/99 of Americans for Tax Reform |
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| FOR IMMEDIATE
RELEASE: Contact: Chad
Cowan November 16, 1999202-785-0266 "Information
Superhighway-Robbery:" Plan makes a $749 TV cost $812, and they call that "fairness" WASHINGTON, DC -- The National Governors Association (NGA) – the exclusive taxpayer-subsidized club for governors – today rolled out plans for a new tax collection scheme for cyberspace that could shrink the e-commerce market by 30%, drive up prices for consumers, and shred the Constitution's Commerce Clause, according to Americans for Tax Reform. Americans for Tax Reform Director of National Campaigns Ron Nehring issued the following statement in response to the plan: "A tax collection scheme for the Internet. Now there's an idea only a politician could love. "Government coffers are overflowing with surplus tax dollars, the information economy is roaring, and technology jobs are among the best-paying in the country. So of course now the politicians roll into town with a fancy new plan to kill the goose that laid the golden egg. "The tax collectors at the NGA see the Internet as a 'problem,' and warn that 'America would have 200,000 fewer teachers and police officers educating our children and keeping our communities safe' unless the Internet is flooded with new taxes. This is alarmist rhetoric designed to spook people into supporting new taxes at a time when states and localities are flooded with surplus revenue. An excellent Cato Institute paper discussing 'The State Spending Spree of the 1990s' is available at http://www.cato.org/pubs/pas/pa-343es.html "In perhaps the most bizarre example of pretzel-logic witnessed to date, the NGA claims that banning taxation in cyberspace would HURT taxpayers. The next thing you know they'll be saying that a sale at the corner grocery store is bad for shoppers. "The NGA's panic-attack over the Internet continues with cries that banning Internet taxes somehow gives an advantage to 'Internet retailers' at the expense of 'Main Street' retailers. That distinction went out with the 'Spice Girls, as more and more 'traditional' retailers seize the Internet as a low-cost means of instantly accessing a global market. The NGA would scrap those opportunities by imposing new tax collection schemes, potentially reducing online commerce by up to 30% according to a study by the National Bureau of Economic Research (http://gsbwww.uchicago.edu/fac/austan.goolsbee/research/intertax.pdf). How many 'traditional' retailers will never have the chance to realize their global potential if the 'tax first, ask questions later' crowd gets their way? "If I buy a 36" JVC TV on 800.com today, it will cost me $749. Under the plan unveiled today, that same TV will cost me $812.66. That's definitely not a good deal for consumers. Last week, Americans for Tax Reform joined with the e-Freedom Coalition of more than 25 taxpayer, consumer and public policy groups to unveil a proposal to keep Internet taxes OFFline. The proposal is available at www.e-freedom.org. For more information, or to arrange an interview, contact Chad Cowan at 202-785-0266. | |
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