Rick Allen: “I recollect back in 1997, I was Governor of the Commonwealth of Virginia when Senator Wyden and Congressman Chris Cox of…”

“I recollect back in 1997, I was Governor of the Commonwealth of Virginia when Senator Wyden and Congressman Chris Cox of California introduced this measure. I was one of four Governors who believed this was clearly interstate commerce. If there is anything that is interstate in nature by its architecture, design, and engineering, it is the Internet. I thought we ought to have a national policy, that it be more ubiquitous or more available, understanding that taxation harms it. I believed, as did the Senator from Oregon and Senator Sununu, this would be a great engine for innovation, growth, investment, and jobs. That is exactly what happened. The amount of revenues lost by those first, most avaricious, those desiring to go in and start taxing at the local and State level, is very small. But if you look at the economic growth led by the Internet, and the revenues that came after it--and it does not have to be a technology business; it could be a mom-and-pop startup business; it could be a major corporation; it could be somebody working from their home on eBay--you see the revenue growth, you see more jobs and, therefore, more revenue for the Government. So when you look at the effect of the localities and States not being able to tax this interstate commerce, you find that it actually has been beneficial for the economy. The lost revenues are very small.”