A pair of studies released Tuesday found a majority of Americans oppose taxing Internet sales even if it means their state and local governments stand to lose significant tax revenues.
Nearly 40% of those surveyed said they would be less likely to vote for any political candidate who favored taxing Internet sales.
The studies–one conducted by the Gallup Organization and @plan, an online market research firm–and Fabrizio-McLaughlin and Associates for the Information Technology Association of America (ITAA), were released a day after U.S. Commerce Secretary William M. Daley said that the Clinton Administration plans to seek a permanent international ban on Internet taxes.
Monday, Daley told a group of international computer and telecommunications experts at the Global Business Dialog On E-Commerce in Paris that the U.S. wants “a duty-free cyberspace” so e-commerce can grow unimpeded by government controls and taxes.
Daley also said the U.S. and the European Union have reached agreement on protecting the privacy of personal information, but did not go into detail about it. He indicated only that the agreement was “based on fair information practices principles with [a] means for consumer redress.”
Unlike the U.S. where personal information is routinely shared by businesses, including direct marketers and list companies, European business are required under a year-old E.U. edict to obtain a consumer’s written permission before providing information to third parties.
The Gallup/@plan study found that 74% of the 1,000 randomly selected active Internet users polled were against Internet sales taxes, compared with 14% in favor. Nearly 60% of respondents believe that taxing online purchased goods and services would hurt the growth of Internet commerce.
The ITAA survey of 1,000 registered voters, by comparison, found 44% against taxing Internet purchases, with a 40% in favor.
Forty-five percent said they would still oppose an Internet sales tax even if it means their state and local governments would lose revenues.
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