|
Press
Release Pro-Growth Internet Proposal has Utah Impact Released by Jerry Young on 11/10/99 of Sutherland Institute |
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 |
| PRESS RELEASE:
November 10, 1999 For further information, contact: Jerry Young or Dr. David F. Salisbury at (801) 281-2081 SALT LAKE CITY-Deeply concerned over the dangers of imposing taxes on the Internet, a coalition of more than 20 consumer, taxpayer and public policy groups, along with two members of Congress and two members of the U.S. Advisory Commission on Electronic Commerce, presented a plan today to keep new tax collection schemes off the Internet. At issue is the ongoing demand by some governors, and other state and local officials that commerce on the Internet falls within their jurisdiction and they have the right to tax not only commerce but access as well. The e-Freedom Coalition, of which Utah's Sutherland Institute is a member, unveiled a proposal that deals with seven recommendations ranging from the repeal of existing excise taxes on telecommunications to banning states from collecting sales and user taxes on commerce conducted over the Internet. The proposal will be presented at the December meeting of the Advisory Commission in San Francisco, California. Supporting the Coalition at its news conference were Rep. John Kasich (R-OH), Chairman of the House Budget Committee, and Rep. John Boehner (R-OH). Kasich reported the text of legislation he's planning to submit, which would be called the "Internet Tax Elimination Act." That coincides with recent reports from the office of Sen. Ron Wyden (D-OR), who said he was considering legislation that would extend the current three-year moratorium on Internet taxes for an additional two years. The news conference itself came just a day after Virginia governor Jim Gilmore, who also serves as chairman of the Advisory Commission, announced his own plans to eliminate Internet taxes in support of Internet consumers. Two members of the Advisory Commission, Stan Sokul and Grover Norquist, President of Americans for Tax Reform, were in attendance at the press conference to support the Coalition's seven-point plan which takes a pro-growth position on the issue of Internet commerce. "This is a pro-growth platform that will impact the citizens of Utah dramatically," said Dr. David F. Salisbury, President of the Sutherland Institute, this morning at the Institute's Murray headquarters. "We can either be a part of that Internet growth or we can support a position that will stall and perhaps even kill the progress being made." "We most certainly do not want to follow the example of European nations," he continued. "From the beginning European nations moved to regulate and tax the Internet in their states. Today all of Europe along with the rest of the world represent less than 20 percent of all Internet commerce. In the United States, where the Internet has been allowed to grow virtually uninhibited by government intervention, the market share is over 80 percent. We cannot fall into the trap of regulating this very special phenomenon." In summary, the e-Freedom Coalition's proposal calls for reduced government-imposed barriers to Internet access; for the establishment of clear standards and definitions for the application and collection of taxes; and for the protection of consumer privacy. The Coalition proposal recommends:
2. The prohibition of discriminatory ad valorem taxation of interstate telecommunications. This would provide the same umbrella of protection to telephone lines which federal law now provides railroads, airlines and other industries critical to interstate commerce. 3. The prohibition of government from erecting Internet tolls in the form of above-cost fees for the installation of telecommunications cable along right-of-ways. 4. The simplification of state and local telecommunications taxes, filing and auditing procedures. Consumers are burdened with state and local telecommunications taxes that are too high, too complicated and too numerous. 5. The adoption of a clear, constitutional approach to e-commerce taxation. This would first require amending the Internet Tax Freedom Act (ITFA) to make permanent the current 3-year moratorium on Internet access taxes, including the repeal of any state and local taxes imposed prior to the enactment of the ITFA. Second, it would require making permanent the moratorium on discriminatory sales and use taxes because the collection of sales and user taxes would involve all of America's existing 7,400 taxing jurisdictions. Even 50 tax jurisdictions (one per state) would require the creation of a confusing, invasive, powerful domestic tax regime that would be accountable to no one. 6. The establishment of a clear "nexus" standard, and definitions to determine when companies have sufficient physical presence that they can be required by a state to collect sales taxes. The definition of "substantial nexus" is most often the subject of dispute. E-commerce will only develop to its potential by eliminating the uncertainty as to whether selling goods or services in interstate commerce creates a taxable nexus. 7. The protection of consumer privacy by prohibiting government from collecting data on individual consumer transaction. This would allow consumers and companies to make arrangements between themselves to share information. This would also prohibit the creation of new, expansive tax collection schemes for e-commerce. Privacy and security would remain in control of the electronic marketplace. *********************************************************** Daniel B. Newby Director of Operations & Development dnewby@utah-inter.net The Sutherland Institute: Shaping the Future of Utah Independence Square 111 East 5600 South, Suite 202 Murray, Utah 84107 Phone: (801) 281-2081 Fax: (801) 281-2414 Website: www.sutherlandinstitute.org If you have questions, or would like to receive membership information, please use the contact information above. We welcome your questions, comments, and suggestions. | |
 |