Moratorium expires in October….is a National Sales Tax on the horizon?
It has been called “the hottest debate on Capitol Hill, and it isn’t going to be pretty!” by leading technology
trade magazine, Interactive Week. The current Internet Tax Freedom Act, or Internet moratorium, that bans
discriminatory taxation of the Internet will expire in October. Congress is currently debating the terms of
Key points in the debate are:
1. Consumer Privacy. States are proposing that
Internet taxes be collected through a national collection center. Consumers are concerned that this will
allow for the formation of a national database that will monitor their personal information and shopping
2. Big business v. small business. Imposing taxation on the Internet results in small
businesses being forced to comply with the laws and rules of 7,600 taxing authorities in America, instead of
those where they actually operate. Big business is already accustomed to this structure, but a move to push
compliance to smaller businesses may bankrupt them.
3. Unconstitutionality. The Supreme Court has ruled
twice previously that states do not have the right to force an out-of-state business that does not have a physical
presence in their state to collect local taxes. To do so creates a burden that violates interstate commerce.
NoInternetTax.org has been working for the past year to educate and inform consumers about the Internet Tax Freedom Act.
Your listeners will be affected by changes in this legislation.
Jennifer Holder, Executive Vice-President, is
available to discuss this issue.
To schedule an interview, or for more information, please contact Josh Dazey
About NoInternetTax.org:Based in Bellevue, Wash., NoInternetTax.org is a nonpartisan
education and advocacy organization. The mission of the organization is to protect the Internet on the state, national and
international level from burdensome regulation and taxation. For more information, please contact Josh Dazey at (425)
455-3764 or visit our Web site at: www.NoInternetTax.org.