Both sides of the issue stand resolute. On the other are those who believe government should keep theirhands off e-commerce and let it flourish. Throughout the process, many organizations have taken a stand on theissue, including the National Governors Association, the National Conferenceof State Legislatures, the Council of State Governments, the U.S. Conferenceof Mayors, the National League of Cities, the National Association of Countiesand the National Retail Federation. That expires Oct. 21, 2001. Nevertheless, the report recommends extending the moratorium on newand discriminatory Internet taxes until 2006, banning Internet access taxes,prohibiting sales taxes on sales of digital goods and services and eliminatingthe federal telephone tax.
Government shouldtake only what it needs and stop there.
Now that Congress has the report, Mechling said he expects it to acton the recommendations and draft a bill. Cameron Whitman, director of policy and federal relations at the NationalLeague of Cities, one of the strongest tax advocates, hopes Congress holdsoff on acting on the report. With such a system, and becausethe current moratorium only covers new taxes, she said states could simplyextend current sales taxes to the Internet, recouping lost revenues. Although the lost revenue could become an issue, Mechling said, thatwont happen for at least a decade. In terms of what happens next, Mechling expects Congress to extend theban on taxes, and then continue looking into the issue.