U.S. Chamber of Commerce CIO Survey Finds Internet Taxation and Y2K Top Legislative Priorities for IT Executives

WASHINGTON, D.C. – A United States Chamber of Commerce survey of chief information officers (CIOs) reveals that Internet sales taxes and Y2K legal reform are the top two legislative priorities for America's leading information technology (IT) executives. Sixty-six percent of CIOs listed Internet taxation as a top concern. Last year, e-commerce generated more than $300 billion, rivaling more mature industries such as energy ($223 billion) and automobiles ($350 billion). IT executives fear that new e-commerce sales taxes could hamper business development.

"Guidelines on Internet businesses and transactions should be developed before any discussions on e-commerce taxation begin," said Chamber President and CEO Thomas J. Donohue. "Internet sales are unique and complex, and should be handled only with a complete redesign of our tax system to avoid jeopardizing our current economic prosperity."

The potential for countless Y2K lawsuits was also cited by the CIOs surveyed. Seventy-four percent called the threat "important" or "very important."

"CIOs recognize, as the Chamber does, that the potential explosion of dubious Y2K lawsuits and claims hamper Y2K compliance efforts and resources, hurts American consumers, and could slow our economic growth," said Donohue.

Recently, in response to Chamber and industry concerns, Congress passed legislation that limits frivolous Y2K-related lawsuits.

Other legislative issues highlighted in the survey include the Occupational Safety and Health Administration's (OSHA) pending ergonomics regulation, immigration labor regulations and European Union data privacy rules.

"Poorly conceived ergonomic regulations from OSHA will only create more problems," said Donohue. "At a time when business needs to direct its energies into hiring smart, qualified workers and opening the doors to international trade opportunities, they shouldn't be focusing on costly ergonomic regulations that have not yet been scientifically proven."

The survey was conducted in conjunction with PeopleSoft, Inc., a worldwide leader in enterprise software solutions. The Chamber sent the survey to members with more than 250 employees and to several Federal agencies. A wide range of companies participated in the survey, including General Motors, Lucent Technologies, Emerson Electric and Owens-Illinois.

The U.S. Chamber of Commerce is the world's largest business federation, representing more than three million businesses and organizations of every size, sector and region.

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