AIM Refutes Assertions of Online Taxation Proponents.WASHINGTON--(BUSINESS WIRE)--September 20, 1999-- States Rally for Internet Taxes Before these efforts could gain much headway, however, the United States Congress preempted virtually all conceivable forms of Internet taxation. The purpose of the 1998 Internet Tax Freedom Act was to nip in the bud these incipient taxation efforts. Refuted By Leading Industry Lobbyist During Ecommerce Commission's New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Meetings The Association for Interactive Media (AIM), a Washington, D.C.-based organization working vigorously to offer a solution to the Internet taxation issue, used the Advisory Commission on Electronic Commerce's (ACEC ACEC American Council of Engineering Companies (formerly American Consulting Engineers Council) ACEC American Consulting Engineers Council (now American Council of Engineering Companies) ) recent meetings in New York last week to disprove disprove, v to refute or to prove false by affirmative evidence to the contrary. some of the distortions cities, counties and states are asserting to encourage the application of collection procedures on consumer online sales. George Isaacson, tax counsel to AIM/DMA, spoke to ACEC Commissioners, refuting many of the claims made by city, county and state governmental bodies; they are recommending to Congress that the ACEC push for an adoption of an online business taxation structure. The following is an exert from his testimony. Cities, counties, and states assert: "The growth of electronic commerce poses a danger to the financial health of state governments. Congress should expand state taxation of electronic commerce in order to protect the states' tax base." AIM affirms: "To the contrary, information technology and electronic commerce have been the two single most important factors fueling this century's largest and longest economic boom. The strong economy is a rising tide Noun 1. rising tide - the occurrence of incoming water (between a low tide and the following high tide); "a tide in the affairs of men which, taken at the flood, leads on to fortune" -Shakespeare flood tide, flood , which has raised all ships, including state tax revenues. Not only are employment levels and personal incomes at historic peaks, but state revenues, including sales tax sales tax, levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government. revenues, are also at all-time highs. As a result, most states have been able to lower tax rates or grant tax rebates to their citizens, and still tax revenues have exceeded estimates in most states. Electronic commerce is not the problem, but rather a tonic for the nation's economy and for state budgets." Cities, counties, and states assert: "States and local sales/use tax laws could easily be extended to interstate sellers without much dislocation dislocation, displacement of a body part, usually a bone. When a bone is dislocated, the ends of opposing bones are usually forced out of connection with one another. In the process, bruising of tissues and tearing of ligaments may occur. or difficulty." AIM affirms: "To the contrary, state and local taxes are ill-suited to electronic commerce because of the borderless nature of the Internet. As a result, state sales and use taxes Sales and use tax refers to:
Cities, counties, and states assert: "The sales/tax policy issues confronting the Advisory Commission on Electronic Commerce are purely domestic, without any international applications." AIM affirms: "Not true. These sales/tax policy issues are not purely domestic and there are international applications. As a result, an expanded use tax burden could only do significant damage, driving much American business offshore and giving a significant edge to foreign competitors." Ben Isaacson, Acting Executive Director of AIM, commented on these challenges, saying: "The reality is that information technology and electronic commerce are the driving force behind the largest and longest economic boom in this country's history." In fact, says Isaacson, state budgets are experiencing unprecedented surpluses, but still state and local government leaders are urging that the ACEC impose tax initiatives which may kill, or at least ground, the goose that is laying golden eggs for the U.S. economy. AIM is the only organization represented with a Commissioner on the ACEC; Stan Sokul joins government and business leaders on the 19-person commission, which is headed by Virginia Governor James Gilmore. Also seated are Michael Armstrong Michael Armstrong is the name of:
Richard Dean Parsons (born April 4, 1948), is the chairman of the board and chief executive officer of Time Warner. He is also on the board of directors of Citigroup. , President of Time Warner, Gary Locke Gary Locke may be:
"The Internet has thrived, in part, because it has not been hampered by excessive government interference and taxation," Isaacson reminds. "This Commission should approach with great caution any proposal to burden electronic commerce with a complex and confusing array of tax obligations." Isaacson also notes that a recent survey conducted by BizRate.com, a third-party consumer research firm with more than 1,700 participating online merchants, finds that 67% of Internet shoppers would purchase less online if required to pay sales tax. BizRate.com represents the view of nearly half of all people shopping online. About AIM Formed in 1993, the Association for Interactive Media (AIM), an independent subsidiary of the Direct Marketing Association (DMA (1) (Digital Media Adapter) See digital media hub. (2) (Document Management Alliance) A specification that provides a common interface for accessing and searching document databases. ), partners with its members to defend the Internet and interactive media industry in Washington, to promote consumer confidence, and to provide successful business-to-business networking opportunities. By supporting AIM, the industry ensures that there remains a healthy marketplace for products and services in the new digital economy. For more information, see the AIM Web site at http://www.interactivehq.org. |
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