“On the surface, SSTP seems to make sense by proposing to simplify the existing definitions, rules and tax rates levied by more than 7,500 taxing entities across America,” stated Jennifer Holder, Executive Vice President of NoInternetTax.org. “Scratch that surface and you’ll find that the measure violates consumer privacy and is wholly unconstitutional.”

Locke, who it has been said never saw a tax he didn’t like, was one of 44 governors who signed the brief statement urging their support of SSTP, and sent to Congress. The governors are seeking congressional approval to work on methods to overturn court decisions that forbid them to collect sales taxes on interstate e-Commerce.

“We would be among the first to agree that our complex and archaic tax system is in dire need of an overhaul. However, Governor Locke and the NGA are merely hiding behind the guise of reform and fairness, by attempting to kick down the door that will allow them to collect taxes on e-Commerce, thus imposing taxation on the Internet,” added Holder.

NoInternetTax.org spoke with Fred Morris of the governor’s office earlier this month who told Deputy Political Director Brett Mecum Locke was for streamlining the system, but against SSTP. His signature on the letter to Congress demonstrates his commitment otherwise.

Under SSTP, the governors are proposing a “streamlined” system that flattens tax rates, resulting in a de facto national sales tax and creates the national sales tax collection center. The collection center would be responsible for monitoring and collecting consumer online shopping information, such as purchases, credit cards, names and addresses. The center would use this compiled information to issue an Internet sales tax bill.

The U.S. Supreme Court has ruled twice, most recently in 1992 in Quill v. North Dakota, that it is a violation of the Commerce Clause for a state to force an out of state vendor to collect and remit taxes to a state where they have no physical presence, or nexus. Currently, taxes apply to e-Commerce in the exact same manner as they do for catalog, television and telephone sales.

“Consumers should be alarmed that this will allow for the formation of a national database that will monitor their personal information and shopping habits,” added Holder. “Governor Locke and the National Governor’s Association should be ashamed of themselves for using scare tactics to avoid discussing the real problems associated with SSTP.”

The governors have alleged that they are losing their tax revenue base to their inability to tax e-Commerce, leaving social programs, education, transportation and other core services in the lurch. These allegations are in conflict with data released by the CATO Institute, which shows that the majority of states have actually seen their revenues from sales taxes rise over the past few years, during the height of the dot.com boom. The General Accounting Office (GAO) has also reported to Congress that not a single entity has been able to demonstrate lost sales tax revenues to e-Commerce.

“Regardless of what they’re calling it, streamlining or leveling the playing field,” concluded Holder, “It all adds up to yet another route for the government to impose a tax.”

NoInternetTax.org, based in Bellevue, is a nonpartisan education and advocacy organization dedicated to protecting the Internet on the state, national and international level from burdensome regulation and taxation. For more information, visit www.NoInternetTax.org.