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Press Release

    Message of the Day

    01/18/2000

    Just Say no to Internet taxation

    Today on CSE-TV, Senator John McCain will sign the e-freedom declaration pledging to eliminate discriminatory taxation on the Internet. 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 existing taxes and barriers that are preventing Americans from getting online.

    Today, every state in the country has a surplus. Most have enjoyed surpluses 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.

    According to GOP presidential candidate Senator McCain, “Studies show that taxing the Internet would reduce e-commerce by 75 percent – a blow that would limit growth and kill jobs.”

    Consumers now pay between 20-40 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    Consumers are still paying a phone tax originally enacted in 1898 to pay for the Spanish American War.

    Governor 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. Governor Bush should join his other competitors, including Senator McCain, Steve Forbes, and Senator Hatch and sign the e-freedom declaration to call for a permanent ban on Internet taxation.