Tech heavyweights back Net taxes

"The hallmark of the system should be simplicity, efficiency, and fairness," according to a plan offered by America Online, Charles Schwab, MCI WorldCom, AT&T, Time Warner, and Gateway. The proposal is an effort to close the divide on the 19-member Advisory Commission on Electronic Commerce, according to commission members familiar with the effort.

The five-page proposal seeks simplification of state and local tax systems, while calling for "equal obligations and costs" on all sellers.

"We believe the system should not be more burdensome on a business that collects and remits taxes to several taxing jurisdictions than it is to a business that collects and remits taxes in a single taxing jurisdiction," the proposal says. "By eliminating any disparate burden on interstate commerce, states will have a pathway toward a system that extends their collection of existing state taxes to remote sellers."

States are now prevented by US Supreme Court rulings from forcing a company to collect sales taxes if that business doesn't have a physical presence in that state. But the court left open the possibility of changing that requirement if it meant tax collection would be less burdensome.

The proposal also calls for a permanent ban on any tax on Internet access -- something opponents have likened to charging admission to a shopping mall.

It seeks elimination of the 3 per cent federal excise tax on telecommunications. The proposal also asks Congress to extend the present moratorium on new and discriminatory taxes on electronic commerce by five years, while barring taxation of goods that could be downloaded when sold -- such as music or books -- regardless of whether the products are delivered electronically or physically shipped.

States and local governments would have until October 2004 to develop uniform tax rules and audit and filing procedures.

The proposal would also reshape physical-presence rules, which are now used to determine whether a business has a tax obligation in a specific state or city.

Join the PC World newsletter!

Error: Please check your email address.

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Show Comments

Cool Tech

Crucial Ballistix Elite 32GB Kit (4 x 8GB) DDR4-3000 UDIMM

Learn more >

Gadgets & Things

Lexar® Professional 1000x microSDHC™/microSDXC™ UHS-II cards

Learn more >

Family Friendly

Lexar® JumpDrive® S57 USB 3.0 flash drive 

Learn more >

Stocking Stuffer

Plox Star Wars Death Star Levitating Bluetooth Speaker

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest News Articles


GGG Evaluation Team

Kathy Cassidy


First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni


For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell


The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi


The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott


My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?