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McCain: Internet Tax 'Pernicious'

Stumping in New Hampshire, the GOP presidential candidate says Net taxes should be 'permanently banned.'

By Michael R. Zimmerman, PC Week ©
January 11, 2000 3:10 PM PT

CONCORD, N.H. -- Presidential hopeful John McCain on Tuesday reiterated his call to keep the Internet free from taxation and out of the hands of self-serving politicians.

mccain headshot storyThough McCain spent the day stumping for his tax plan, which he officially announced here this morning, the issue seemingly dear to the Arizona senator's heart is the Internet tax ban.

In a question-and-answer session following a luncheon with the Concord Chamber of Commerce, McCain said, "I think the real pernicious tax that's out there is the Internet tax."

"My friends, that should be permanently banned," he continued. "If it wasn't for the moratorium we enacted a couple of years ago, there would have been an additional $600 million in new sales tax paid by average American citizens just over the holiday season. So I think that part of any commitment of not raising taxes should be a commitment to maintaining a permanent ban on Internet taxing."

McCain downplayed any negative impact such a ban would have on traditional "bricks-and-mortar" companies that have no Web presence.

"Actually, I see small-town businesses in New Hampshire and all over the country prospering," he said. "And I also see many of these businesses going on the Internet with their own Web sites getting significant revenues out of it and reaching people they never have before."

He added that "sales tax revenues, since we put the moratorium on, in New Hampshire and all over America, have gone up."

Rolling out the plan

Overall, the tax plan was well-received by the McCain faithful who were present to rub elbows with, or at least get a glimpse of, the current Republican front-runner in New Hampshire polls.

As of Tuesday morning, McCain led Gov. George W. Bush 41 percent to 34.

Mary Erickson, for one, liked what she heard. The New Hampshire native drove the 25 miles from her home in Hillsborough to be here for the tax-plan rollout -- a plan that calls for a whopping $237 billion in tax cuts and that raises the 15 percent income tax bracket up to $70,000 for married couples ($35,000 for single people).

The increased tax bracket would, in essence, push the number of taxpayers paying that rate by over 25 million in five years.

Erickson -- who said the first primary candidate speech she ever attended was Harry Truman's in Massachusetts -- said she's tired of the current tax situation and specifically of having to pay tax on her Social Security income.

'It's not right'

"It's not right," she said.

She's also looking for someone who tells it like it is -- a "straight-talking" person just like Hillsborough native son Franklin Pierce, the 14th U.S. president.

At the end of the speech, Erickson, with McCain's autograph in hand, strolled toward the exit and said, "I like what I heard."

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