FC: Clinton predicts "consensus" emerging on Internet taxes

[Declan McCullagh <declan () well com>]

PRESS CONFERENCE WITH PRESIDENT CLINTON
THE EAST ROOM, THE WHITE HOUSE
2:09 P.M. EST DATE: WEDNESDAY, MARCH 29, 2000

[...snip...]

   Q The Internet commission is meeting on electronic commerce, and they are
giving some proposals. What are your thoughts about what proposals you think
they should come out with? And also, what about the states as electronic
commerce becomes more and more available on the 'net and may take revenue from
the states?

   PRESIDENT CLINTON: Well, I think -- first of all, I supported the 
moratorium
on taxes, and I saw where Mr. Gephardt did as well a couple of days ago, and I
think that's good. I think that we should.

   I think that the process that has been set up is the right one. I don't 
know
what the solution is, but I think the states are going to have to get together
with these companies and figure out -- first of all, I don't think there should
be any access taxes or new transactional taxes or anything will overly burden
Internet commerce, because it's making a real contribution to our economy.

   The real issue is, as a higher and higher percentage of sales are conducted
over the Internet, what happens to the sales tax base of the states? Are they
going to have to go to a different kind of taxation, because they don't want to
prejudice ordinary retailers? On the other hand, some of the people in the
Internet business think that any sales tax will make them at a -- put them at a
disadvantage, because they have to charge shipping charges. So they'll -- I
think that's a matter that the states will have to work out. Since they're
basically state taxes, I think we ought to leave it to them.

   But the governors are highly attuned to economic development. They will not
lightly hurt their economies, but they also have responsibilities to fund their
schools and other public services, and I just think they're going to have to
work through it. I think, over the next year or so, you will begin to see some
kind of consensus emerge.

[...snip...]

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