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 newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?