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To: Krowbar who wrote (48126)8/1/1999 11:41:00 AM
From: Father Terrence  Read Replies (1) | Respond to of 108807
 
TO ALL: Sen. Hollings Proposes National Sales Tax On E-Commerce

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AOP Alert 99:03 Saturday, July 31, 1999
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The following is a policy alert from AOP, the leading national
association for electronic commerce and communication. Information
regarding AOP may be found at aop.org.

Please give this Alert the widest possible distribution.

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Sen. Hollings Proposes National Sales Tax On E-Commerce
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Sen. Ernest "Fritz" Hollings (D-SC) has introduced a bill to
punish companies for engaging in electronic commerce by imposing
a 5 percent national sales tax on their transactions.

S.1433, entitled the "Sales Tax Safety Net and Teacher
Funding Act," targets companies that, under rulings by
the US Supreme Court, are not required to pay local sales taxes.

"This is basically for the L.L. Beans of the world," said
a Hollings spokesperson.

Hollings hopes to gain support for the anti-Internet measure by
tying the new Federal tax to education. The bill would raise
money to establish grants through the Treasury Department for
benefits and compensation to elementary and secondary school
teachers. More to the point, the Hollings bill is intended to derail
the more reasonable study of Internet taxation by the National
Advisory Commission on Electronic Commerce, an industry/government
effort that began earlier this year. The commission has been bitterly
opposed by tax authorities anxious to impose a heavier tax burden on
the Internet at the state and local levels.

The bill is based on the incorrect premise that electronic
commerce is in some way reducing the revenues to state and
local governments. In reality, those taxing authorities are
enjoying their highest tax collections in decades thanks to the
healthy economy. Further, the bill assumes that no sales taxes
are being imposed on e-commerce, when in fact 42 states already
have sales taxes on e-commerce.

The bill has been referred to the Senate Finance Committee,
where Hollings is the ranking Democratic member, for
future consideration. AOP considers it imperative that this
bill not be enacted, and that the advisory commission on
electronic commerce be allowed to complete its task as the
Congress outlined.

All AOP members are urged to immediately contact Senator
Hollings to voice opposition to this bill. All Internet
consumers, and particularly those who reside in South
Carolina, are likewise urged to write or fax the Senator.
You may also send email, though this may be less effective
since few Senators read their email. Contact information
for Senator Hollings is as follows:

The Honorable Ernest Hollings
Senator for South Carolina
125 Senate Russell Office Building
Washington, DC 20510-4002
Phone: (202) 224-6121
Fax: (202) 224-4293
Email: senator@hollings.senate.gov

Please post this message to all appropriate forums, and
forward it to Internet consumers in the state of South
Carolina for appropriate response.

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