US Survey Says Public In Favour Of Internet Taxation

by Mike Godfrey, Tax-News.com, Washington

12 July 2001

A study published this week by the Markle Foundation has revealed that 64 per cent of the American public feels that the government should develop rules to protect Internet users, even if it means some regulation, with a clear 60%majority believing that on-line purchases should be taxed the same as off-line items. The report's findings are released at a time of intense debate over key Internet policy issues in the US, ranging from antitrust to privacy regulation, open access and taxation of online commerce.

The study, 'Toward a Framework for Internet Accountability' was conducted via telephone and on-line polling and focus groups of the general public and Internet experts. Markle's research found that 63 per cent of all Americans, and a remarkable 83 per cent of those who go on-line have a positive view of the Internet. The research finds that the public identifies the Internet primarily as a source of information – with 45 percent saying their dominant image of the Internet is that of a "library" as opposed to 17 per cent who compare it to a "shopping mall" or "banking and investment office."

Yet, despite the Internet's popularity, nearly half of all Americans (45 per cent) see the Internet as a source of worry, and 70 per cent of the public said, 'you have to question most things you read on the Internet." By a margin of 54-36 per cent, the public believes it does not enjoy the same rights and protections on-line that it has in the off-line world, and 59 per cent say they don’t know who they would turn to if they had a problem on-line.

'The Internet is an increasingly important part of the lives of the American people,' said Zoë Baird, President of the Markle Foundation, at a press conference at the National Press Club, 'this research shows that they have an appreciation for the complexities involved in tackling the critical questions that will affect decisions about the Internet. They want the full range of voices and interests to be heard – from the private sector and government, to non-profit organizations and the public itself.'

By a 60-37 per cent margin, the public agreed that 'rules for governing the Internet should be mostly developed and enforced by organizations other than the government, such as Internet related companies and non-profit groups.' But by 58-35 per cent, the public indicates that it does not want to rely on industry self-regulation alone. Although it is skeptical about government, it still sees a clear place for government – by 64-32 per cent (57 to 35 in a retest in June 2001) – with the statement: 'government should develop rules to protect people when they are on the Internet, even if it requires some regulation of the Internet.'

The Markle Foundation's research is one of the broadest efforts yet conducted on opinions regarding decisions about the Internet. The study was carried out by Greenberg Quinlan Rosner Research, and was designed to examine multiple aspects of the public's and the experts' views on the governance of the Internet, and whether the public believes more needs to be done to provide protections and give them greater control on-line.

The Markle Foundation aims to promote the potential of emerging communications media and information technology to improve people's lives through a range of activities including analysis, research, public information and the development of innovative media products and services.

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