New U.S. Study Reveals Economic Crisis Over Lost On-Line Sales Tax is Overstated

The Direct Marketing Association ("DMA"), in conjunction with on-line, off-line and catalogue companies, released a new study entitled, "A Current Calculation of Uncollected State Sales Tax Arising from Internet Growth". The study was based on U.S. Department of Commerce data and showed that the amount of potential sales tax lost as a result of on-line sales is about 85% less than the numbers stated in previous studies. The excessively high estimates in previous studies from the University of Tennessee were attributed to incorrect assumptions about e-commerce and the erroneous reliance on data from the boom years of the Internet. To view the DMA's press release, visit: http://www.the-dma.org/cgi/dispnewsstand?article=1012