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Advocates for a tax-free Internet urged a federal panel to recommend that Congress take a hands-off approach, but international officials argued that special treatment for e-commerce makes no sense. The first of 37 proposals examined at a two-day meeting by the Advisory Commission on Electronic Commerce was the Internet Tax Elimination Act introduced in Congress by Rep. John R. Kasich (R-Ohio) that would permanently bar sales taxes and other taxes on e-commerce. Permitting states to extend their sales taxes to Internet purchases might reduce the number of online buyers by a quarter and impose a dizzying, costly new compliance burden on businesses large and small, said Chris Wysocki, president of the 50,000-member Small Business Survival Committee.