For Immediate Release Contact: Jim Campi
April 7, 2000 (202) 467-5300


Says taxes on Internet commerce are unnecessary, harmful to new economy.

(Washington, D.C.) – Citizens Against Government Waste (CAGW), America’s largest taxpayer watchdog group, today condemned the National Governors’ Association (NGA) for its increasingly shrill attempts to end the federal moratorium on taxation of e-commerce transactions.  CAGW President Thomas A. Schatz issued the following statement today in response to NGA’s continued insistence on Internet taxation.

“High tech companies are at the vanguard of America’s current economic growth.  The explosion of the Internet has been truly phenomenal.  Left to its own devices, big government would unwittingly kill the goose that is laying these golden eggs.  Taxation of e-commerce is exactly the wrong thing to do.  Americans don’t want a bureaucrat on every cyber-corner.

“State governments around the country are running budget surpluses.  They don’t need the additional tax revenue.  Unfortunately, many governors see technology creating new wealth, and can’t wait to take a bite out of it.  This kind of e-greed by government could be ruinous to the Internet economy.

“Any taxes on Internet sales would require a massive bureaucracy to monitor and collect the tax.  Enforcement of Internet taxes could give bureaucrats the ability to invade the private communications and transactions that are now unfettered throughout electronic commerce.

“Trying to tax the Internet is like trying to tax a garage sale – it can’t be done, and it would require resources that would far outweigh any return.  Any interference from governments at any level will only serve to hinder the burgeoning e-commerce market.  The free market must continue to be the driving force in the nation’s astonishing economic success.”

CAGW recently released a report on Internet taxation entitled Control, Alt, Delete:  How Taxation Threatens to Shut Down Commerce on the Internet.  The report is available on CAGW’s website,  CAGW is a nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, mismanagement and abuse in government.



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