Kelly Ayotte on Technology

Voted NO on authorizing states to collect Internet sales taxes.

Opponent's Argument for voting No (Cnet.com): Online retailers are objecting to S.743, saying it's unreasonable to expect small businesses to comply with the detailed--and sometimes conflicting--regulations of nearly 10,000 government tax collectors. S.743 caps years of lobbying by the National Retail Federation and the Retail Industry Leaders Association, which represent big box stores. President Obama also supports the bill.

Proponent's Argument for voting Yes: Sen. COLLINS. This bill rectifies a fundamental unfairness in our current system. Right now, Main Street businesses have to collect sales taxes on every transaction, but outbecause -of-state Internet sellers don't have to charge this tax, they enjoy a price advantage over the mom-and-pop businesses. This bill would allow States to collect sales taxes on Internet sales, thereby leveling the playing field with Main Street businesses. This bill does not authorize any new or higher tax, nor does it impose an Internet tax. It simply helps ensure that taxes already owed are paid.

Opponent's Argument for voting No: Sen. WYDEN: This bill takes a function that is now vested in government--State tax collection--and outsources that function to small online retailers. The proponents say it is not going to be hard for small businesses to handle this--via a lot of new computer software and the like. It is, in fact, not so simple. There are more than 5,000 taxing jurisdictions in our country. Some of them give very different treatment for products and services that are almost identical.

Withdrew support for policing websites for copyright.

Congressional Summary:Preventing Real Online Threats to Economic Creativity and Theft of Intellectual Property Act, or the PROTECT IP Act, or PIPA (in the House, Stop Online Piracy Act or SOPA) :

• Authorizes the Attorney General to seek a court order against an Internet site facilitating online piracy to require the operator to cease and desist further activities constituting copyright infringement, unauthorized trafficking of sound recordings or videos of live musical performances, or trafficking in counterfeit labels.
• Allows an intellectual property right holder harmed by a US-directed website used for infringement, to first provide a written notification identifying the site to related payment network providers and Internet advertising services requiring such entities to suspend their services.
• Requires online service providers, Internet search engines, payment network providers, and Internet advertising services, upon receiving a court order relating to an AG action, to carry out preventative measures including withholding services from an infringing website or preventing users located in the US from accessing the infringing website.

OnTheIssues Notes: SOPA and PIPA, proponents claim, would better protect electronic copyright ("IP", or Intellectual Property). Opponents argue that SOPA and PIPA would censor the Internet. Internet users and entrepreneurs oppose the two bills; google.com and wikipedia.com held a "blackout" on Jan. 18, 2012 in protest. An alternative bill, the OPEN Act was proposed on Jan. 18 to protect intellectual property without censorship; internet businesses prefer the OPEN Act while the music and movie industries prefer SOPA and PIPA.