To subject it to as many as 30,000 taxing jurisdictions applying different rules of taxation would be a mistake. Americans shop over the Internet for everything from furniture and clothing to automobiles and books. Purchases are based on brand names and lowest prices.
Online customers pay with credit, debit or other electronic methods of exchange.
To assure fairness and tax equity in the marketplace, we need a clear and consistent set of ground rules that apply evenly without discrimination against one category or another of buyers and sellers. Stated simply, our existing state and local revenue structure needs to be streamlined to deal with the realities of electronic commerce and other changes. The Internet Tax Freedom Act could begin the process of developing a workable, long-term solution, but not if its only purpose is to create a discriminatory tax moratorium and special tax breaks for an already thriving industry. The Internet Tax Freedom Act is necessary to head off a rush to impose discriminatory taxes on electronic commerce. There are more than 30,000 individual taxing jurisdictions in the United States, and each and every one of them would like a piece of the rapidly growing Internet commerce pie.