WHEREAS:
Congress is currently considering a number of competing proposals that would severely infringe upon the states’ sovereign right to impose a variety of taxes on electronic commerce, on-line data services and other internet-based products; and
WHEREAS:
These proposals would severely reduce state and local tax collections in the years to come, as internet commerce rapidly expands as a share of the economy, forcing state and local governments to raise tax rates on a dwindling base of non-electronic commerce, thereby further shifting state and local tax burdens to low-income consumers who are unable to afford a computer or internet connection in their homes; and
WHEREAS:
The economic impact of these proposals would be to tilt the playing field in favor of this emerging sector of the economy, providing a significant subsidy to companies selling their products on-line and putting existing "Main Street" businesses at a severe competitive disadvantage; and
WHEREAS:
The establishment of even a temporary moratorium on state and local taxes on this sector would give the upper hand to companies that are currently negotiating with the states to come up with a system to collect state and local sales taxes on internet and mail-order transactions and could become an extremely costly entitlement that internet-based businesses would fight to make permanent; and
WHEREAS:
It is vital that state and local sales and excise tax bases keep up with changes in the structure of the economy in order to provide adequate, predictable revenues to fund public services.
THEREFORE BE IT RESOLVED:
That AFSCME strongly opposes efforts by Congress to infringe upon the authority of state and local governments to fairly apply existing sales and excise taxes to internet-based commerce; and
BE IT FURTHER RESOLVED:
That AFSCME urges state and local officials to apply taxes both to traditional commerce and to internet commerce in a consistent manner that ensures a level playing field; and
BE IT FINALLY RESOLVED:
That AFSCME supports ongoing efforts to negotiate a national system under which both mail-order sales and internet-based companies will collect applicable state and local sales taxes on all transactions.
SUBMITTED BY:
Diane Fay, President and Delegate
Natalie Baker, Recording Secretary
AFSCME Council 93
Massachusetts