*Commission Doesn't Reach Net Tax Consensus

Share this content:
DALLAS--The Advisory Commission on Electronic Commerce failed yesterday to come up with the super majority vote required to present a formal recommendation to Congress on how the Internet should be taxed. The members expect to participate in a teleconference in the next week to continue talks for a possible compromise.

The 19-member commission -- which consists of representatives from industry and consumer groups and representatives from state, local and federal government -- was appointed by Congress in 1998 as part of the Internet Freedom Act to study the impact of federal, state, local and international taxation and tariffs using the Internet and Internet access. The commission's recommendations must be presented to Congress by April 21. Currently, there is a three-year moratorium on new, special and discriminatory taxes. Sticking points concerned state sales taxes and how e-commerce businesses are defined for state tax purposes.

The commission voted 11-1 Monday night in favor of a compromise proposal recommending Congress to enact legislation to extend the current moratorium for five years and prohibit taxation of digitized goods and products and their non-digitized counterparts. Seven members abstained, including three members from the White House administration, Utah Gov. Michael Leavitt and Washington Gov. Gary Locke. Dallas Mayor Ron Kirk cast the lone dissenting vote.

"The business proposal does not represent a consensus of all business communities, including Main Street retailers," member Robert Pincus, general counsel for the Commerce Department, said at a press conference afterward explaining why he abstained. "Many senators, governors and state representatives opposed it."

However, under the Internet Tax Freedom Act, the commission can send a report to Congress that a majority -- but not the super majority -- voted in favor of the compromise.

Next Article in Marketing Strategy

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above