Getting Schooled on E-Tax
By Michael Floyd
Apple Computer proved early on that if you seed schools with technology, students will graduate with the skills to use that technology. Borland, an early pioneer of low-cost PC software, took the concept a step further when it began seeding colleges and universities with "educational discounts" for Turbo Pascal. The result? Four years later, Turbo Pascal was (and still is) being used to build industrial-strength applications.
So, when the U.S. governors gathered at the National Governors' Association (NGA) meeting in Washington this past February to consider the Internet Development Act (IDA) of 1998, I was amused. Introduced by Governors Michael Leavitt (UT) and Roy Romer (CO), the agreement proposes a uniform tax structure among states for all e-commerce. The IDA also proposes that a common administration system be developed to process the funds. However, the IDA stipulates a period of five to six years before such taxes be administered.
I find this amusing on several levels. First I'm entertained by the popular press who, in their attempts to create headlines, cast the IDA as being at odds with the Internet Tax Freedom Act supported by the Clinton administration. This bill proposes, among other things, a six-year moratorium on any new taxes or regulations relating to Web commerce until Congress can figure out how to develop sensible policies. But these policies go far beyond the collection of sales taxes, addressing the far-reaching implications of Internet-access taxes, duties, and tariffs.<>
