To: Lizzie Tudor who wrote (64202 ) 6/23/1999 4:52:00 PM From: Cap_Loss_Cfwd Read Replies (1) | Respond to of 164687
Web taxes are sure thing But study members want fair levy that's easy to comply with By Curt Anderson / Associated Press WILLIAMSBURG, Va. -- The government's eventual collection of its share of Internet commerce-generated revenues is apparently as inevitable as death and, well, taxes, members of a congressional Internet tax study panel said Tuesday. "We must not allow the Internet to become a tax haven that drains the revenue governments need to provide the services that citizens demand," said commission member Joseph Guttentag, a top Treasury Department official. His view was echoed by the other federal, state and local government officials on the Advisory Commission on Electronic Commerce panel and, more importantly, by most of those representing the business sector. "Our challenge here is not to restrain the growth of the Internet but to allow the Internet to flourish," said commission member David Pottruck, president of Charles Schwab Corp. "We need to find the balance." The commission is to recommend a future tax policy for the Internet by April 2000. A three-year moratorium on new federal, state and local e-commerce taxes expires in October 2001. In 1998, Internet sales amounted to only about $170 million in lost sales taxes -- a tenth of a percent of total collections nationwide, according to a study released Tuesday by the Ernst & Young accounting firm. That compares to more than $4 billion in sales taxes lost to mail order sales. But there appears little doubt Internet commerce will continue to grow, possibly resulting in a shift by more consumers from shopping at traditional "brick and mortar" stores to cyberspace -- open 24 hours a day and with unlimited inventory.