I supported the Internet Tax Freedom Act, which President Clinton signed into law. The act imposed a three-year moratorium on state and local tax and trade issues associated with electronic commerce and comparable sales activities. I do not want to prejudge the work of the Advisory Commission on Electronic Commerce, but I will tell you that I am committed to finding a solution to this issue that will allow the Internet and e-commerce to flourish, but without stripping states and localities of the revenue they need to educate our children and fight crime. Today, as a share of retail sales, Internet sales are tiny. Internet commerce should remain exempt from sales taxes.
Politicians see the Internet as another source of government cash.
As a conservative business leader, I know e-commerce is a new frontier giving families more control over their lives, creating new jobs and boosting economic growth. I have repeatedly opposed various proposals to tax the Internet or e-commerce. In fact, I have advocated making the current three-year federal moratorium on Internet taxation permanent. This new economy is still in its infancy. I sponsored the law in the Senate that put in place the current moratorium on Internet taxation.