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Argument Not taxing Internet Commerce would deprive state and local governments of Revenue that is essential to community services and projects Yes The Internet is the future It is growing at a phenomenal rate and new businesses are popping up every minute According to the Treasury Dept in 1998 approximately 78 billion was spent over the Internet However they expect that number to exceed 70 billion this year 300 billion by 2002 and reach 145 trillion by the year 2003 This explosion of growth is good for the economy as a whole but will have a negative impact on some local economies E-commerce says we shouldnt kill the Internet with taxes But this just skillfully sidesteps the basic question Why shouldnt the Internet be taxed like everything else Well the answer is that it should Shannon argued that the Internet should compete with traditional stores on an equal footing Its fair and it levels the playing field for all businesses People buy online for lower prices more choices or greater convenience You wouldnt buy products online to simply avoid taxes No of course you wouldnt The other team and the media are leading you to believe that the Internet is a wonderful little place where you can buy and sell things and no one else is effected by it Well that just isnt true Sales transactions on the Internet will effect every person in this room whether you use the Internet or not Sales tax has long been one of the mainstays of state and local governments revenue It accounts for approximately 18 of a states revenue Local governments depend heavily on sales tax to provide a fairly steady revenue throughout the year According to Forrester Research Consulting Firm state
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