The passionate debate about whether to collect sales tax on purchases made over the Internet has politicians, economists and industry searching for the right course of action to continue unprecedented economic growth while supporting the flow of revenue to states or to countries. Experts on both sides of the issue have strong convictions, leaving the legislators with some very hard choices to make during the next several years. However, as members of the congressionally appointed Advisory Commission on Electronic Commerce soon found out, today's intricate sales tax system completely changes the complexion of the matter. Auditing procedures and ensuring privacy come into play.
State sovereignty becomes an issue.
The ACEC consisted of 19 representatives from federal and state governments as well as several telecommunications companies. Theodore Waitt, president and chief executive officer of Gateway Incorporated, was the single commission member representing retailers. Arriving at a consensus with such a widely diverse group of individuals posed multiple challenges. However, several commissioners were able to agree on certain key concepts. The entire commission concurred that e-commerce holds vast potential and that it is in the national interest to create an environment that fosters continued growth.