E-Commerce Sales Tax Just Doesn't Register

Daily Herald (Arlington Heights, IL), August 14, 2000 | Go to article overview

E-Commerce Sales Tax Just Doesn't Register


Our booming prosperity is due chiefly to advances in technology, yet that very progress raises questions about taxation.

These tax issues, especially those pertinent to e-commerce, will be the topic examined this week at a meeting of the legislative committee of the Naperville Area Chamber of Commerce.

The two featured speakers will be Gerald Roper, president and CEO of the Chicagoland Chamber of Commerce, and me. Thanks to Roper's leadership, the Chicagoland chamber is a dynamic organization, second only to the Naperville chamber.

My presentation was requested because I am a longtime member of the Telecommunications and Information Technology Task Force of the American Legislative Exchange Council (ALEC).

ALEC is our nation's largest bipartisan association of state lawmakers, with 2,400 legislative members. ALEC's mission is to advance the Jeffersonian principles of free markets, limited government, federalism and individual liberty.

ALEC's nine national task forces are unique. Each consists of equal numbers of state legislators and private sector business members, thus inspiring public-private cooperation in understanding issues, developing practical policies and writing model legislation.

Right now there is a federal moratorium on the imposition of certain taxes on the Internet. The moratorium extends to Oct. 21, 2001, but it does not apply to state and local sales taxes, except for its prohibition from subjecting e-commerce to taxation by more than one state.

Compelling facts were reviewed at the recent day-long meeting of the task force. For example, nearly 400,000 e-commerce jobs were new last year, a 78 percent increase over the prior year. …

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