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Study

Policy Recommendations

By Lawrence W. Reed, published on March 31, 2000

If government doesn't tax Internet purchases, what alternative policies make sense? Constructive alternatives have been proposed by Adam Thierer who, in addition to his position as a policy analyst for The Heritage Foundation, is an adjunct scholar with the Mackinac Center for Public Policy. In his own words, Thierer proposes the following:

ISBN: 1-890624-19-5, SKU: S2000-01
cover illustration

Internet Purchases: To Tax or Not to Tax, Here Are the Questions

  • Executive Summary
  • Introduction: To Tax or Not to Tax?
  • Governor Engler's Congressional Testimony on Internet Taxation
  • Internet Purchases and Current Law
  • Answers to Common Questions about Internet Taxation
  • Policy Recommendations
    • 1. Extend or broaden the current tax moratorium.
    • 2. Adopt a clear and constitutional nexus standard.
    • 3. Require that any sales taxes imposed on Internet sales be origin-based so that they will be consistent with the U.S. Constitution and prevailing nexus standards.
    • 4. Address broader telecommunications tax issues.
  • Conclusion
  • Acknowledgements
  • About the Author
  • End Notes

More by Lawrence W. Reed

The Perils of Predicting
From Long Shot to Victory

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