The DMA Supports ALEC Resolution Urging Ban on Internet Taxation

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The Direct Marketing Association, New York, said yesterday it supports a resolution adopted by the American Legislation Exchange Council urging Congress and the President to renew standing restrictions on Internet access taxes and the collection of transaction taxes.

ALEC is the nation's largest bipartisan membership association of state legislators, with nearly 2,400 members in the US. ALEC's National Task Forces provides a forum for legislators and the private sector to discuss issues, develop policies and write model legislation.

The resolution adopted by ALEC's task force recognizes the importance of the Internet for economic growth and the fact that future development of e-commerce will be retarded by taxation. It also questions whether state taxation of the Internet would violate the commerce clause of the US Constitution. In addition to urging Congress to act, it calls on state legislators to pass a comprehensive, lasting ban on Internet taxation.

"Obviously, many state legislatures want to tax the Internet, which would only serve to further boost their already existing budget surpluses while stunting the full development of this powerful new information tool," said Roscoe Starek, senior vice president, catalog industry, the DMA. "That's why ALEC's resolution is so important. It sends a clear message that many state legislators view collection of taxes at the state level as impractical, and will only serve to stunt the growth of the Internet which has such tremendous economic potential." Starek is also responsible for the DMA's work related to the Advisory Commission on Electronic Commerce.

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