In the 6/29/00 issue of the Wall Street Journal, specifically a lengthy article on the 
revival of legislation dealing with internet taxation, the following comment was made:

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Everyone knows how sales taxes work, but few people realize that they are supposed to 
pay that same tax to their state government every time they buy a product outside the 
state's borders. This is called a "use tax."  For instance, if a person lives in New 
York and buys a stereo system in Connecticut -- either via the Internet or by mail -- 
he or she is required to keep the receipt and pay the home-state tax at year's end. 
Most states provide a line on annual tax forms to remit the tax. Few people pay this 
use tax, though, because most don't understand it, aren't aware it exists, or know 
states can't really enforce it. Most states don't bother to crack down, but this tax 
loophole could become a major problem as Internet sales proliferate.

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I feel like I’m the last person on the planet who’s heard of this tax.  Wow!  This is 
my favorite type of tax wedge – the “imaginary tax wedge”   However, I feel like I’ve 
been depriving my local Statehouse of its fair share of tax dollars.  I implore all 
list members to reopen their files for the last three tax years, compute their 
respective shortfall, and then pay the amount with interest and penalty.   If our 
local governments can’t count on the Armchair List members to do the right thing, then 
how can they expect the same from the rest of the citizenry?  Lead on.  I’ll be right 
behind you.

New York, NY

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