Redstate

By Congressman Paul Broun Posted in Congressional Contributors | Economy — Comments (12) / Email this page » / Leave a comment »

The Christmas catalogues are arriving in the mail. Forget the post-Thanksgiving rush. Holiday shopping has already begun – and begins earlier each year -- thanks to the World Wide Web.

But if the Democratic Congress has its way, consumers could pay up to 17 percent more to shop online if the federal ban on the state and local taxes on Internet sales is allowed to expire on Nov. 1.

For years, Republican leaders have pushed for a permanent ban on taxing sales on the Internet – something I firmly support. Instead, Congress continues to argue about proposals that would continue a short-term ban on state and local governments from levying taxes on web sales.

The Senate has passed a seven year extension of the ban; the House, a four-year extension. The clock is ticking without a bill passed, and the only true consumer protection be a permanent Internet tax ban so no new taxes could be enacted in the future.

Democrats have cowed to the lobbying of state and local governments – including Georgia cities -- which can never get enough of Americans’ hard-earned money and want the opportunity to someday tax web sales.
The American Federation of State, County and Municipal Employees have argued against a permanent ban on the Internet tax. Even the National Governors Association recently sent a letter to Congress asking for a weak version of the bill.

But for Christmas shoppers and year-round web shoppers who like the convenience of purchasing a sweater, a book or even selling their car on the Internet, for example, the consequences could be enormous if the ban is allowed to expire.

Policy analysts predict American Internet users would see new taxes on Internet sales and taxes on access to the web, fees on downloads and perhaps even e-mail taxes. Anyone with Internet access on their handheld device such as a blackberry could also be taxed whether they shopped with it or not.

The web has become such a part of our everyday lives that many of us never leave our desk to shop. According to Forrester Research, 45.6 percent of all households purchased a product or service on the Internet in 2005. That number is expected to hit 61 percent in 2011.

Unfortunately, state and local governments are never satisfied that they have enough money to spend, thus their opposition to the permanent ban on the Internet tax. Think about it. In recent years, Georgia moved to tax rentals of movies – something unheard of 10 years ago. There is even discussion in our state of taxing haircuts, doctor visits and even if the plumber makes a trip to your house to unclog a toilet. Washington, D.C. once had a popcorn tax that applied to all popped pop corn but not unpopped kernels. Give state and local governments the opportunity and they will find dozens of creative ways to tax consumers --- the web included.

The development of the Internet has been perhaps one of the greatest economic tools known to man. It allows free sales and commerce between unknown parties across the street or across the planet. The fact it has escaped the heavy hand of the tax man thus far has been nothing short of a miracle. It’s been 10 years since Congress enacted the first temporary ban on Internet taxes, but that can only hold for so long. Special interests will eventually get their way unless the ban is made permanent.

Taxes are an unlawful taking of what rightfully belongs to hard-working Americans. If the Internet is one way consumers can escape this taking, then let’s applaud the ingenuity of the web for what is --- creative and a truly free marketplace, untouchable by government.

Broun, a Republican, represents Georgia’s 10th Congressional District.