Clinton: no new 'Net taxes
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February 26, 1998: 12:00 p.m. ET
President goes against governors, sets moratorium on Internet sales tax talks
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WASHINGTON (CNN) - White House officials have told CNN that President Clinton Thursday will endorse a moratorium on new sales taxes on the Internet and its electronic commerce.
The moratorium is based on the Internet just emerging as an economic powerhouse and the belief that government should not stifle its growth with taxes, at least for now.
The officials said Clinton won't endorse a specific time limit for the moratorium. A House bill calls for six years, while a Senate bill calls for an unspecified period.
The president will make his announcement in a speech to a technology forum in California. His position puts him at odds with the nation's governors, who want to establish a single sales tax rate for Internet shopping.
To mollify the governors, Clinton will call for a commission to study the issue of taxing the Internet.
Government figures show Internet commerce totaled more than $8 billion last year and is expected to grow to more than $300 billion by 2002. Internet companies are required to collect sales taxes only if they ship the product to the same state in which the company is based.
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