Mike Johanns on Technology Secretary of Agriculture; previously Republican NE Governor

Level playing field for Main Street vs. Internet sales tax.

The nation’s governors have a strong and unified message to Congress: deal fairly with Main Street retailers, consumers, and local governments. In a letter sent to all members of Congress late Friday, 44 governors said:

If you care about a level playing field for Main Street retail businesses and local control of states, local governments, and schools, extend the moratorium on taxing Internet access ONLY with authorization for the states to streamline and simplify the existing sales tax system. To do otherwise perpetuates a fundamental inequity and ignores a growing problem.

Currently, sales and use taxes are owed on all online transactions, but states are prohibited from requiring “remote sellers” to collect and remit those levies. A 1992 US Supreme Court decision said states can only require sellers that have a physical presence in the same state as the consumer to collect so-called use taxes. In instances when a seller does not have a physical presence, consumers are required to calculate and remit the taxes owed to their home states at the end of the year. The problem is most people are unaware that they’re supposed to pay, and states lack an effective enforcement mechanism. Online and catalog sellers, thereby, have a significant price advantage over Main Street businesses that must collect a sales tax on all transactions.

The loophole creates serious budget problems for schools, states, and local governments. A study estimated that states could lose as much as $14 billion by 2004 if they are unable to collect existing taxes on Web-based sales. Nearly half of state revenues come from sales taxes.

Prohibit the return of the Fairness Doctrine.

A bill to prevent the Federal Communications Commission from repromulgating the fairness doctrine. Amends the Communications Act of 1934 to prohibit the Federal Communications Commission (FCC), notwithstanding any other provision of any Act, from having the authority to require broadcasters to present opposing viewpoints on controversial issues of public importance, commonly referred to as the Fairness Doctrine.

No performance royalties for radio music.

CONCURRENT RESOLUTION Supporting the Local Radio Freedom Act
• Whereas the US enjoys broadcasting and sound recording industries that are the envy of the world, due to the symbiotic relationship that has existed among these industries for many decades;
• Whereas for more than 80 years, Congress has rejected repeated calls by the recording industry to impose a performance fee on local radio stations for simply playing music on the radio;
• Whereas local radio stations provide free publicity and promotion to the recording industry and performers of music in the form of radio air play, interviews with performers, introduction of new performers, and concert promotions;
• Whereas Congress found that 'the sale of many sound recordings and the careers of many performers benefited considerably from airplay and other over-the-air broadcasting;
• Whereas there are many thousands of local radio stations that will suffer severe economic hardship if any new performance fee is imposed, as will many other small businesses that play music including bars, restaurants, shopping centers and transportation facilities;
• Resolved: That Congress should not impose any new performance fee, tax, royalty, or other charge relating to the public performance of sound recordings on a local radio station for broadcasting sound recordings over-the-air, or on any business for such public performance of sound recordings.