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This page responds to one of the ten recommended laws proposed by C-Net to regulate the Internet.

  The problem:  The Internet exists everywhere at once; sales and transactions made over the Web may fall into any of thousands of jurisdictions, any of which might believe it has the right to tax the transaction.  With the rising tide of electronic business, governments around the country and around the world want a share; but if everyone writes their own rules, commerce will collapse.

The proposal:  "New taxes that specifically target the Internet or electronic commerce should wait until online tax jurisdictions are settled."


The survey:  At the time of my visit, 14,153 "netizens" had voted, with 98% supporting the proposal, against 2% opposing it.
Are they crazy, or is it me?
  It doesn't surprise me that any proposal billed as "no new taxes" would be so universally approved.  I approve it myself.  It's a good idea.  But will it work?

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  Jurisdictional arguments are generally settled by the courts; but the courts can't address an issue unless a case is brought, and a case can't be brought without a law.  Even if Congress passes a law which addresses the jurisdictional issues, it will not prevent any jurisdiction from passing and attempting to enforce a tax law--that will be a necessary step to determining what the jurisdictions are.  That step will become part of the process of determining jurisdiction whether or not the federal government attempts to define it.  However, action by the federal government will certainly influence the result of such a case, and so the tax moratorium should be passed--I voted for it.  Besides, any action which simplifies taxes is at least worth discussing.


Go to the Next of the Proposed Internet Laws:  Create a U. N. Net
Return to the Thoughts on Ten Internet Laws page
Return to M. Joseph Young's Law Page
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