New anti-tax coalition established

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New anti-tax coalition established A new coalition called Citizens Against Net Taxes (CANT) aims to bring consumers, industry leaders and nonprofit organizations together to protest against new taxes on digital goods and services downloaded to PCs or mobile devices.

CANT launched its campaign on Monday and has an online petition which can be signed on its website.

"States are facing a real budget crisis, but legislatures must carefully evaluate the consequences of any legislation that will raise tax rates on consumers," says Larry Darby of the American Consumer Institute.

"While taxes on digital goods may appear to be an easy way to generate revenue, in reality they will work at cross purposes with efforts to stimulate the economy and protect jobs," he adds.

In urging taxpayers to sign the petition, CANT says states that impose taxes on digital goods can expect online retailers move to states with lower or no taxes.

The taxes are also likely to raise online-theft rates as consumers turn to tax-free and illegally downloadable materials, it states.

Finally, it believes the added taxes threaten to limit the use of high-speed broadband and wireless services that could help lower energy costs and further stimulate the economy.
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