DMA backs Internet taxation ban

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New York--Fearing state taxation of electronic commerce will have a chilling effect on the growth of the Internet, the Direct Marketing Association late this week backed a legislative effort to renew bans on taxes for Internet access and transactions. The DMA Tax & Fiscal Policy Task Force supported a resolution drafted by the American Legislation Exchange Council, which urges Congress and President Clinton to adopt a lasting ban on Internet taxes. State governments have argued, among other issues, that significant revenue streams are lost through virtual trading that lets businesses and consumers acquire goods without paying sales tax.
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