taxation of e-commerce

E-commerce and Sales evaluate

In todays time of economic turmoil, local anestheticities are feel to untapped resources to generate revenue. One of those untapped resources is e-commerce. What the localities necessity to do with e-commerce is to impose a sales measure on goods purchased over the cyberspace. Its one of the largest growing businesses in todays modern world. If the Internet was taxed no one would want to purchase goods over the Internet and the parsimoniousness would suffer. The Internet should not be taxed.

In 1998, Congress passed the Internet Tax Freedom Act. The Act imposed a three-year prohibition on the imposition of state or local taxes on Internet access fees. The Act also prohibits state or local governments from imposing taxes that would subject buyers and sellers of electronic commerce to getting taxed in two ways; by the state that the purchase was made, and the state the buyer or seller resides in, if different. The Internet Tax Freedom Act was passed to second simplify the taxation processes for more than 7,600 state and local tax jurisdictions so that companies engaging in electronic commerce and other(a) remote forms of commerce would not welcome to bear what they called an undue burden regarding tax collection.

There is also was a clause called the Constitutions craft Clause that keeps states from imposing sales tax on retailers who have no physical presence in their state. This prevents states from requiring mail outrank retailers to collect taxes on most catalog sales; this logic applies equally to e-commerce retailers (Taxing).

Although these laws have been passed, states have gone on their throw and imposed a sales and use tax on e-commerce. Nothing currently prevents a state such as Georgia from imposing sales taxes on its own residents on any items they purchase through mail-order catalogs or over...

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