Taxing internet access

Hey everyone, I have a persuasive speech for my COMS class and I have to write a letter to my senator about something I'm concerned about, so I chose something that will definitely affect me, as a webmaster and a programmer. These projects are going well, except I need a bit of help...

I'm writing about the Internet Tax Freedom Act. It was passed in 1998 to temporarily ban anyone from taxing the internet. It fostered the growth of the internet, and was so well supported that it was renewed a few times, and now bill S. 156 is going through congress to make it permanent. I'm for passing it, but there's an argument I've seen out there that's against passing it, and I can't find a counter argument.

"Soon, most of our commerce will be online. The number of sales in physical stores will dwindle, which means our taxable economy will be shrinking. Our untaxable, internet economy will be expanding, taking taxable revenue away from the physical economy. We need these taxes to pay off major debts everywhere across the US and especially from the war."

So, can any of you think of a counter argument for this?

(And if you feel so inclined, give me more arguments, its better for my letter)

Thanks,

- V

(edited title)

Specifically you're hurting state and local economies which get the sales tax revenue.

By the way ... it's not a free ride you are legally required to pay use tax most of the time. The only problem is: none of us are stupid enough to be honest.

Here's a pro and con.

Argument: I live in a tourism rich location so my purchase of daily items on amazon is offset by the millions of Germans/Japanese/French/Bostonian visitors buying 3 for $10 t-shirts and $5 cable car rides.

Argument: As a resident voter I have voted (against) many local propositions which carry increases in county or state sales tax approved by the voters. Since these taxes are to benefit my area of residence I shouldn't shirk my duty to pay my share of the bill.

(this thread should probably be moved to the lounge)

Also -- your title is misleading. You're talking specifically about Internet commerce, which is playing by the same rules as regular mail order these days, and not taxing Internet access, which is already taxed and always has been for most consumers.