(Colorado Gov.)Owens denounces Internet sales tax

Rocky Mountain News ^ | June 12, 2003 | M.E. Sprengelmeyer

[show me state]

WASHINGTON - Gov. Bill Owens brought his crusade against Internet sales taxes to the nation's capital Wednesday, railing against a proposal he likened to setting up a nationwide "sales tax cartel."

Owens, who founded the Center for the New American Century this year, rolled out the think tank's first policy paper Wednesday at the headquarters of the Libertarian Cato Institute.

The report criticizes a proposal called the "Streamlined Sales Tax Project," which would allow states to opt into a multistate compact and begin imposing taxes on Internet-based sales.

Even Owens conceded that the proposal is gaining momentum nationwide, as cash-strapped states are tempted by the promise of sharing in a projected $440 billion in revenues during the next 10 years.

But Owens argued it would be unfair to businesses and consumers, reduce local control and stifle Internet activity and technological innovations.

"This isn't just a nickel-and-dime tax on Americans. It amounts to real revenue," Owens said.

Even if the backers' revenue projections are correct, Owens says it's not "free money" for state and local governments because they would give up autonomy to decide which consumer goods to exempt from sales taxes.

"We have a very diverse system of sales tax in this country because, until now, we've always believed in local control on these sorts of decisions," Owens said. "In its hurry to simplify sales tax rates, certain of these exemptions enacted by elected officials at the state and local level would be wiped out by what I call the 'national sales tax cartel.' "

Besides raising revenue, the plan would be more fair to so-called brick and mortar businesses that already have to pass on sales taxes to consumers, backers of the proposal say.

In a year when many states are facing record budget deficits or cutbacks, some officials are trying to capture revenue from transactions involving Internet retailers in one state and customers in another.

Owens said he has not projected how much Internet sales taxes could generate for Colorado, which has faced its own budget problems during the past two years. But he said the state should resist joining such a compact and perhaps become a refuge for Internet retailers in the future.

"Colorado could benefit if we're the new 'Switzerland' of Internet taxation," Owens said, referring to the low taxes that once made Swiss bank accounts popular.

Owens got the highest ranking last year from the Cato Institute, based on its biannual survey of governors' fiscal management efforts.

[show me state]

Owens conceded that the proposal is gaining momentum nationwide

[show me state]

Biography

Governor
Bill Owens
Fortieth Governor of Colorado
 

Spouse:  Frances Owens Family: Married,  three children Religion:  Catholic Occupation:  Governor Elected:  November 1998 Term Expires:  January 2003 State Population:  4.3 million State Budget:  $13.8 billion Chief of Staff:  Roy Palmer Media Contacts:  Dan Hopkins Amy Sampson Governor of Colorado 136 State Capitol  Denver, CO 80203 (303) 866-2471 Phone (303) 866-2003 Fax Website www.colorado.gov

Called "the best governor in America" by National Review magazine, Bill Owens was sworn in as Colorado?s 40th Governor in January 1999. He was re-elected in 2002 with the greatest majority in Colorado history, earning a broad mandate for his innovative leadership. Gov. Owens pushed through the largest tax relief package in state history, amounting to $1 billion in cuts in rates of sales, personal income and capital gains taxes, and an elimination of the marriage penalty. As a result, he has won high marks for his fiscal leadership, earning the highest grade among the nation?s governors from The Cato Institute. His policies of low taxes and restrained government spending were cited as an example for other states in a lead editorial in The Wall Street Journal. He was recently touted as one of the major emerging leaders in American politics by The Economist magazine, and was identified as one of the country?s top ten rising political stars by syndicated columnist Robert Novak. He is the Chairman of the Republican Governors? Association. Keeping his promise to institute sweeping school reform in Colorado, Gov. Owens created an education accountability system ? including detailed, online school report cards ? that U.S. Education Rod Paige has called "the envy of the nation." His accountability system has been praised as among the best in the nation by Education Week magazine and The Heritage Foundation. He combined this model education accountability plan with five consecutive years of full state funding for public education.. Gov. Owens kept his commitment to transform Colorado?s transportation system, which had been neglected for nearly a quarter century. Through innovative policies, he accelerated road and mass transit projects that would have taken half a century to complete ? projects that will now be done in a decade. He pushed for and signed into law the largest state commitment to transportation which will invest $15 billion over the next two decades. Known as one of Colorado?s most effective policy makers prior to his election as Governor, Bill Owens served in the state House and Senate and as Colorado Treasurer. He authored landmark legislation creating charter schools, toughening prison sentences, modernizing child abuse statutes and reforming the tort system. He was a leading advocate of the Colorado Taxpayers? Bill of Rights (TABOR), which caps government spending and requires that excess funds be returned to state taxpayers. Gov. Owens, who holds a Master?s degree in public administration from the Lyndon B. Johnson School of Public Affairs at the University of Texas, worked for 20 years in the private sector with the consulting staff of Deloitte and Touche, with the Gates Corporation and as director of a trade association. The Governor is an expert on Soviet affairs and writes and lectures often on Russia. He and Colorado?s First Lady, Frances Owens, have been married for 27 years and have three children: Monica (19), Mark (16) and Brett (11).

last modified: January 22, 2003

[hauerf]

"Colorado could benefit if we're the new 'Switzerland' of Internet taxation"

No kidding. It would be an absolute gold mine.

[buffyt]

There shouldn't be a sales tax AND an income tax AND a Soc Sec tax AND property tax, etc etc anyway! There are too many taxes. We need to CUT SPENDING FIRST.

This governor is a genius!

[Loyal Buckeye]

I caught part of his speech. He is a very impressive individual.

[kevkrom]

There shouldn't be a sales tax AND an income tax AND a Soc Sec tax AND property tax, etc etc anyway! There are too many taxes.

Amen to that. While I'm in favor of a single-stage, single-rate national retail sales tax, that support is premised on income and payroll taxes being done away with.

And exemptions from sales tax is for the birds. Tax everything (but only once), and let people really see what Big Brother costs them every time they go to the store.