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Home > Privacy and Government > Government Threats to Privacy > Anti-Privacy Law and Regulation > Taxation > Internet Sales Tax Proposals

Internet Sales Tax Proposals

The current debate about Internet taxation illustrates well how taxes threaten privacy.

In 2000, the U.S. National Governors Association (NGA) issued proposals to tax electronic commerce that would have required massive databases of consumer purchasing information. Though the NGA quickly disavowed these portions of its e-commerce tax proposals when their privacy-invading characteristics were revealed, all destination-based systems to tax electronic commerce (that is, taxing where the consumer resides rather than where the seller resides) would require consumers' purchases to be tracked and stored in databases.

Proposals for taxation of e-commerce by U.S. states continue to evolve. Privacy would be a cost of many such proposals.


Streamlined Sales Tax System for the 21st Century Web site, Federation of Tax Administrators, Multistate Tax Commission, National Conference of State Legislatures, National Governors Association

Double Standard in Dallas by Jessica Melugin, Competitive Enterprise Institute (March 24, 2000)

Internet Taxman? Nay, Virtual Peeping Tom by Sonia Arrison, Pacific Research Institute (March 17, 2000)

Internet Tax Animation, produced by PolicyCounsel.Com (2000)

Comments? (Subject: InternetTax)

[updated 04/17/02]

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