FOR IMMEDIATE RELEASE: CONTACT:
U.S. Mayors Blast E-Commerce Commission
Report
Washington, DC -- Speaking on behalf of the nation’s mayors,
Dearborn Mayor Michael Guido, expressed strong opposition to a report
recently approved by a portion of the Advisory Commission on Electronic
Commerce. The report, which was approved by 11 of the 19 members on the
Commission, calls for numerous changes in state and local sales tax
systems that will significantly erode their tax base.
Mayor Guido and other state and local leaders joined Senators George
Vionovich (OH) and Bob Graham (FL) at a press conference in the Dirksen
Senate Office Building to reject recommendations in the report which did
not receive the necessary support required by law. Under the Internet Tax
Freedom Act, the Commission is required to include in its report to
Congress, only recommendations and findings that are approved by a 13-vote
super majority.
Both business and government representatives were appointed to the
Commission in an attempt to ensure that concerns from both camps would be
addressed. In search for a compromise however, the business and anti-tax
factions of the Commission made demands that would have required state and
local governments to exempt huge amounts of goods and services from the
sales tax. These included items such as books, magazines, movies, music on
compact disk ,electronic games and other digitized goods downloaded over
the Internet. Also, they would have been required to exempt all
functionally equivalent goods sold over the counter. Further they would
have been required to make changes in the nexus laws to exempt affiliates
and other parties from tax collection obligations.
“Instead of grappling with this issue to produce a win -win solution,
the Commission turned itself into the mouth piece for the companies that
have representatives on the Commission, who want huge tax breaks at the
expense of their competitors,” said Mayor Guido. Further, he said, “the
net effect of these recommendations would be to significantly erode the
state and local tax base.”
Mayor Guido appealed to members of Congress to “ignore this one-sided
report and adopt recommendations in a proposal supported by the Conference
and other state and local groups called the “Streamlined Sales Tax System
for the 21st Century”. Guido explained that this proposal would eliminate
the administrative burdens on local retailers and remote sellers. He also
said the proposal would use today’s technology to make the collection and
remittance of state and local taxes simpler for everyone.
The United States Conference of Mayors (http://www.usmayors.org/) is the
official nonpartisan organization of cities with populations of 30,000 or
more. There are about 1,100 such cities in the country today. Each city is
represented in the Conference by its chief elected official, the mayor.
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