Out-Foxed
I'm not the only one who thinks Dr. Bill Fox's economic forecasts are wrong. The U.S. Government Accounting Office agrees with me.

"There's a dramatic and growing revenue concern for the states from e-commerce," said William F. Fox, a tax specialist and business professor at the University of Tennessee. His research puts the annual sales tax revenue lost through e-commerce at $10 billion, although a Government Accounting Office study in 2000 put it at only about one-third that amount.

Always remember: Dr. Fox's "study" claiming a huge current and future loss in tax revenue due to e-commerce was sponsored (i.e. bought and paid for) by the Institute for State Studies. The ISS is an arm of the National Governors Association. The NGA favors Congress allowing states to extend their sales tax to online purchases by customers in other states. Fox's "study" allowed the ISS and NGA to claim there was a "crisis," always a prerequisite before any group of politicians is able to ram a tax increase down taxpayers' throats in the guise of "tax reform" and "fairness."

For more on Internet commerce and sales taxes - and demonstrations of Fox's incompetence - go here and here and here and here and here.

But mostly, go here to read Colorado Gov. Bill Owens' excellent explanation of why taxing online purchases by remote customers is inherently unfair. It's in the latter part of the post.

Happy reading.