McCain to Sign E-freedom Pledge

New Hampshire Citizens for a Sound Economy (NHCSE) announced today that presidential hopeful Sen. John McCain (R-Ariz.) will sign the E-freedom declaration, pledging to eliminate discriminatory taxation of the Internet.

New Hampshire CSE Director Rich Killion praised McCain for agreeing to sign the pledge. “Senator McCain knows that taxing Internet commerce will only serve to restrict its growth,” Killion said. “By making this pledge, McCain shows he is committed to advancing innovation and not limiting commerce.”

Policymakers who would tax the nation’s leading engine of economic growth are shortsighted. These new tax schemes risk destroying the engine of our economic prosperity.

“Studies show that taxing the Internet would reduce e-commerce by 75 percent – a blow that would limit growth and kill jobs,” McCain said.

The government already has too much money, and individuals are taxed far too much. Today, every state in the nation has a surplus that most have enjoyed for two-years running. They do not need an extra cent of revenue.

The debate should be focused on cutting tax rates for consumers and small businesses, not raising taxes on the Internet.

Consumers pay between 20 percent and 40 percent in taxes on communications services – levels that are similar to alcohol and tobacco tax rates.

Consumers are still paying a phone tax originally enacted in 1898 to pay for the Spanish-America War.

We can give consumers the full benefits of high technology by removing obsolete government barriers to competition and innovation. To do that, we must protect the Internet from burdensome new tax schemes and remove the existing taxes and barriers that are preventing Americans from getting online.

Texas Gov. George W. Bush has made increasingly positive remarks about keeping the Internet free from taxation. He has pledged to extend the moratorium on Internet taxation by three to five years. Gov. Bush should join his other competitors, including Sen. McCain, Steve Forbes and Sen. Hatch and sign the E-freedom declaration and call for a permanent ban on Internet taxation.

“It’s time to ‘Just Say No’ to Internet taxes, and say ‘Yes’ to furthering commerce through technology,” Killion said.