Proposal to the Advisory Commission on Five Tax-related Barriers to Internet Access

Electronic commerce has grown rapidly and the Internet is changing the way the world does business and everyone including government gains from such increasing economic integration. Unfortunately, the benefits of electronic commerce are threatened by the impulses of some elected officials to regulate and tax. In order for citizens to be able to take advantage of all the Internet offers, including e-commerce, completely depends on the Internet's accessibility. Therefore, a proposal to the Advisory Commission was made on Five Tax-related Barriers to Internet Access. These five barriers are: (1) Federal Excise Tax; (2) Discriminatory ad Valorem Taxation; (3) Internet Tolls; (4) High State and Local Taxes; and (5) Internet Access Taxes. It has been proposed and recommended that these taxes has to tear down and prevent the re-emergence of government-imposed taxes and regulations that serve only to drive up costs for consumers and retard the investments needed to strengthen and maintain the national information infrastructure.

The following questions have been addressed in this article:

) If sales taxes are to continue to be collected online, what type of system would be appropriate for purpose of collecting these taxes?
In ATR’s opinion why is it important to make the current ban permanent?
What are the four principles that was suggested by ATR that policymakers should remain strongly and faithfully?


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