FC: Senate may -- or may not -- have struck a Net-tax deal

[Declan McCullagh <declan () well com>]

Two articles that rely on the USA Today report this morning:
http://cnnfn.cnn.com/2001/06/14/technology/net_taxes/
http://www.internetnews.com/ec-news/article/0,2171,4_784701,00.html

But Newsbytes reports this afternoon that there's no deal after all:
http://www.newsbytes.com/news/01/166855.html

*******

Date: Thu, 14 Jun 2001 16:09:57 -0400
To: Declan McCullagh <declan () well com>
From: James Plummer <jplummer () consumeralert org>

You may want to send this article to Politech.  The Senate and, apparently, 
the President are laying the groundwork for a sales-tax cartel that will 
keep track of what consumers buy online in government-mandated databases.

From http://www.usatoday.com/news/washdc/washphoto.htm

06/13/2001 - Updated 11:15 PM ET
Senators reach Internet tax deal
By Tom Squitieri, USA TODAY
WASHINGTON — Senate negotiators have reached a deal that would extend a 
moratorium on new Internet taxes until 2006 but open the door to increased 
collection of existing sales taxes that now go largely unpaid on Internet 
and catalogue sales.

The bipartisan compromise would not immediately change the status quo, 
under which most consumers making purchases over the Internet and through 
catalogues avoid paying sales taxes.

"No one is talking about imposing new taxes on anyone," Sen. Byron Dorgan, 
D-N.D., said.

But in a concession to state and local governments that rely on sales taxes 
for about one-third of their revenue, states would have five years to 
simplify their sales tax-collection systems. If Congress approves the plan, 
taxes on almost all Internet and catalogue purchases would then be collected.

[...]

James Plummer  jplummer () consumeralert org
Policy Analyst, Consumer Alert
Phone: 202-467-5809
Fax: 202-467-5814





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