Resist the Internet Sales Tax

Internet Tax (AHGO website)
Steve Forbes, Honorary Chairman of AHGO, doesn't want the government standing in the way of developing the Internet

The Supreme Court ruled in 1992 that retailers cannot be required to collect sales tax in a state where they do not have a physical retail presence. Back then, the battle was over companies that offered goods through catalogues; today it is about Internet retailers.

In spite of the fact that the Supreme Court has ruled on this issue, there is an organized effort in Congress to impose sales taxes on Internet purchases. Under the Marketplace Fairness Act, states could require retailers to collect tax on purchases made anywhere in the country, in clear violation of the Court's decision.

The Internet sales tax would do little to boost state economies, and any benefit would come at the cost of severe damage to state and national economies. It would also destroy smaller businesses that lack the resources to comply with the thousands of state and local taxes they would be required to collect.

Make the Internet Access Tax Moratorium Permanent

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An Internet sales tax would destroy small businesses that lack the resources to comply with state and local tax collection requirements

For the past 16 years, the Internet Tax Freedom Act has protected the American people from state and local taxes on Internet access. The low burden of entry has allowed people from all backgrounds and walks of life to access information, start businesses and connect with one another.

Congress reauthorized the moratorium in December 2014 – but only for one more year. It should be made permanent.

The Internet is a critical resource for American families, bringing new economic opportunities, educational advancement and, increasingly, healthcare access and consumer-friendly financial services. Permanently prohibiting taxes on Internet sales will encourage greater opportunity and economic growth, and promote America's global competitiveness.

Needless to say, there should be no federal regulation of the Internet of the kind demanded by President Obama.