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Press Release
Toward Tradition Files Proposal with the Federal Advisory Commission on Electronic Commerce
Released by Elie Pieprz on 11/19/99
of Toward Tradition

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For Immediate Release
November 11, 1999 Contact: Elie Pieprz 206-236-3046

Proposal would make Internet more accessible

MERCER ISLAND -- Warning of the dangers of imposing taxes on the Internet, Toward Tradition joined with more than 20 consumer, taxpayer, and public policy organizations in presenting a plan to keep new tax collection schemes off the Internet, and tear down barriers to access.

The "e-Freedom Coalition," which includes Toward Tradition, unveiled its plan at a Washington news conference with House Budget Committee Chairman John Kasich, who pledged to introduce legislation based on the Coalition's recommendations.

"The Internet is bringing extraordinary information into the homes and offices of ordinary Americans," commented Rabbi Daniel Lapin, president of Toward Tradition. "Recent proposals to levy taxes on 'e-Commerce' or Internet access will not only put this information out of reach for some, but also jeopardize America's economic growth. Americans are reasonable people; very few of us would argue for zero taxation. The great debate is not whether to tax but how to tax and how much to tax. The great American enterprise was birthed in defiance of unjust taxation and that spirit still lies within our hearts. America has just embarked on a honeymoon with the Internet. Only a fool of a hotelier barges in on a honeymoon couple, brandishing a bill. He would likely find himself ejected without ceremony. Only foolish legislators would choose this moment to barge in on Americans discovering the delights of the Internet, brandishing a tax bill. The core principle of the information revolution has been constant and explosive reduction in the cost of computing and communications. If Congress wants our current prosperity to continue, it should follow this model, and work to lower the costs it imposes on business: In other words, reduce taxes and regulations."

The group proposes banning sales and use taxes that specifically apply to online commerce; setting clear rules to ensure that only those companies with a physical presence in a state can be compelled to collect sales taxes; and tearing down government-imposed taxes and rules that drive up the cost of Internet access – including the 3% federal excise tax on telephone service.

The plan, available online at www.e-freedom.org, takes the form of a proposal to the federal Advisory Commission on Electronic Commerce. Congress created the temporary panel to study tax issues presented by the growth of the Internet and online commerce.

Rabbi Lapin urged supporters to make their opposition to new Internet tax collection schemes known, by sending a message to the Commission at comments@ecommercecommission.org.

Toward Tradition is an educational foundation dedicated to creating a national movement of Jews allied with Christians who want to apply traditional ideas to America's cultural, political and economic life.