Media Advisory
IPI Policy Report - # 152 Author: Sonia Hoffman on 09/05/2000
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IPI Center for Technology Freedom Available to Discuss California Internet Tax Bill
For Immediate Release.
For Further Information, Contact: Sonia Hoffman
(888) 557-4IPI or shoffman@ipi.org
Dallas, TX: . Panicked that a tax-free Internet creates an un-level playing field between retailers and e-tailers that ultimately leaves states’ pockets high and dry, California is the newest state to role out its version of a state Internet tax plan. But what California legislators fail to realize is that a level tax playing field is also achievable by lowering sales taxes on retailers, as some states have already done.
According to a recent study by visiting scholar Dr. Merrill Matthews for the IPI Center for Technology Freedom, “The problem with the fairness argument is that it only wants to go one way—increasing taxes. If fairness were really the issue, then retailers would be indifferent as to whether state and local governments imposed an equal sales tax rate on e-tailers, eliminated sales taxes on retail stores, or somehow split the difference.”
Any aggressive attempt to prescribe sales, access, use, or some other tax concoction for non-existent budget problems could prematurely end today’s economic boom, spurred by competitive prices between retail and online sales. Without such competition, prices would be higher and sales would be lower—which would actually cost the states money.
What: “Should We Tax the Internet?”
A Policy Report from the IPI Center for Technology Freedom
Who: Dr. Merrill Matthews, IPI Visiting Scholar
When: Available immediately for TV, radio and print
By phone upon request
Where: Report copies available for download at www.ipi.org or by calling 1-888-557-4IPI
Contact: Sonia Hoffman, 888-557-4IPI or shoffman@ipi.org
The IPI Center for Technology Freedom is a non-partisan, free-market technology public policy institute based in Dallas, Texas. Please call Sonia Hoffman at 1-888-447-4IPI to arrange interviews.
