Digital Earthquake Insurance Debate

By Elana Varon, CIO |  Government

A majority of governors want a new, uniform sales tax system that would make it
easier for businesses to remit the revenues. Most ACEC commissioners liked the idea,
but not enough to make it a political certainty. Wyden would give states a few years to
deliver a plan, on which Congress would get to vote. He thinks the states don't really
need the approval, but they "don't want to take the political heat" for calling in Net
sales taxes they can legally collect now.

Given the passion that taxes arouse, there's bound to be plenty of heat
generated by both the pro- (including brick-and-mortar retailers) and anti- (opponents
of taxes in general) Internet tax forces before the issue is resolved. Marla Grossman,
a lobbyist representing dotcoms at Washington, D.C.-based Verner, Liipfert, Bernhard,
McPherson and Hand, thinks the issue has less impact on CIOs than pending rules about
online privacy or digital signatures.

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