E-COMMERCE Internet Tax Panel Faces Thorny Issues (CyberTimes) House Republican leaders sent a letter to the 19-member Advisory Commission on Electronic Commerce, a commission appointed by Congress last year to report back on Internet taxation, reminding them that the reason the body was formed was to decide whether or not to tax Internet transactions, not how to tax them. House Majority Leader Dick Armey and 34 colleagues signed the letter. "We recognize the challenge you face, as members of this national commission, in trying to tackle some very important issues regarding the future of e-commerce," the letter said. "...We are concerned, however, about the fact that most of the news reports from the first commission meeting seemed to focus on how to tax the Internet, rather than whether to tax the Internet." The Congressional leaders discussed Internet taxation saying, "This idea is not a popular one in Congress or among the American people. You should also know that there are many members who will oppose any new taxes on the Internet." There are now more than 30,000 tax jurisdictions with varying tax rates and rules in the country, so the idea of taxation and the Internet opens many taxation jurisdiction issues, which Congress faces in the future. The panel is expected to begin discussing its various options today, but no final recommendations to Congress are expected until spring. [SOURCE: Cybertimes, AUTHOR: Jeri Clausing] (http://www.nytimes.com/library/tech/99/09/cyber/articles/15tax.html)
