New Proposals to Tax the Internet
Richard A. Derham, Former President, Washington Institute, January, 2000
By enacting Initiative 695 in November 1999, Washington voters declared themselves to be overtaxed and not willing to take it anymore. Not only did they reduce state taxes by $750 million a year, the largest tax cut in state history, by repealing the Motor Vehicle Excise Tax (MVET), but they determined that all future tax increases must be referred to a public vote.
One week later, the National Governor’s Association (NGA), the National League of Cities, the Council of State Governments and other organizations representing the tax spenders of the nation, floated a proposal to increase taxes on Washington citizens and those of other states by creating a "voluntary" tax on Internet sales.