Taxing and E-Commerce Essay - 2104 Words

Taxing and E-Commerce With the advent of the Internet, e-commerce exploded, and in 2003, the estimated value of online sales was 95.7 billion dollars (epaynews). It also is estimated that 30% of online users buy online (epaynews). As e-commerce and the revenues from e-commerce increase, so do the questions and problems concerning taxes. Because of the global nature of the World Wide Web, and more than 30,000 tax jurisdictions in the United States (US), (Internet Taxation) it is easy to see the complications that exist in the taxation of e-commerce. Who do you tax? How is it collected? Can taxes be collected from a sale that was made in another state, and what is considered a substantial â€Å"nexus† in the buyers state. Because 75% of the†¦show more content†¦Some of the issues with this type of tax are whether it should be per use, per month or per year. Another issue involved with this tax is how it would be implemented and whether there would be extra fees related to the type of connec tion. For example, would the fee be changed based on a DSL vs. a regular modem connection? (Internet Taxation). The second type of tax involves intangible goods or downloads such as: emails, software, music etcetera. Obviously, this tax would involve all those that access this type of material. The administration of such a tax again poses a problem, for example, how should international emails be handled or an international user who download software from an American company web site. The final type of tax that could be levied is a sales tax. Although it would only affect those who purchase items on line, it would have potential to be an enormous source of revenue. Currently, the sales tax â€Å"is the largest revenue source for federal, state and local governments.† (Internet Taxation) In 2003, online retail was estimated at 68.4 (epaynews) billion dollars, all of which would be taxable and would increase the federal state and local tax revenues. Again, administration and d ivision of revenue cause a problem, but there is also the problem of classification of the product. This is a problem because it is only subject to sales tax if it is classified as a good. As seen, there are many different types of Internet taxation to beShow MoreRelatedThe Relationship Between Taxation And Technological Developments During The Industrial Revolution1501 Words   |  7 Pagesrepresents the greatest technological revolution since the industrial revolution. Data show that there is approximately $xxx billion trade occurring through e-commerce, with xxx billion internet users and xx billion domain names as of 20142 and this number keeps changing every second. This paper takes a look at the current tax issues relating to e-commerce and profit shifting and also the new OECD framework aimed at addressing these challenges. Tax Issues Governments and tax authorities face the same problemsRead MoreE-Commerce and Sales Tax1263 Words   |  6 PagesE-Commerce and Sales Tax 5/2/2012 â€Æ' Throughout the country, states are not collecting some or any taxes on online transactions. This debate has been brought to Congress, state, and local governments as to whether taxes should be imposed on online transactions as well as who should standardize online taxing. Research shows that the estimated revenue losses in excess of $60 billion alone from online transactions. This number is only to grow with increased use of ecommerce. (McClure 2000) BothRead MoreBackground. Today, People Are Engaging In E-Commerce More1742 Words   |  7 PagesBackground Today, people are engaging in e-commerce more than ever. Traditionally American consumers shopped exclusively in local businesses and specialty mom and pop stores. These stores are essentially smaller, independently owned and operated businesses that have little influence on the market. Small businesses occupy several areas of business including retail, services, wholesaling and manufacturing. The growing acceptance of the Internet and e-commerce in the early 1990’s changed the way peopleRead MoreEssay on Internet Taxation1585 Words   |  7 Pagesafter the Web sites. And therein lies the implicit threat and the only stick the states hold: They are making a not-so-subtle threat to start suing e-commerce sites unless they start collecting state sales tax. The SSUTA group set Oct. 1 as a target date for states to start enforcement. The legal standing that the states would have to force e-commerce sites to comply is weak at best, but its the classic lawsuit threat: We may lose, but youll be forced to spend tons of money for lawyers and appearingRead MoreE-Commerce Research Proposal3067 Words   |  13 PagesHOW WILL TAXES EFFECT E-COMMERCE IN A GLOBAL ECONOMY? ABSTRACT: The rationale behind this research proposal presentation involves the process of E-commerce and Taxation as how the taxes effect e-commerce within the global economy as the Internet Tax Freedom Act, provides ban on the state taxation of Internet transactions and that the legislators are expected to vote on whether to extend the ban or to make it permanent within issues and that the decision will affect e-commerce businesses. This issueRead MoreThe New Healthcare Reform Essay919 Words   |  4 Pagesbe considered a basic right or commerce, which it has been in the new reform. The government has the right to regulate commerce among several states and is choosing to do so with health insurance. Not always considered commerce, healthcare by private insurers who could control their companies as they pleased. Now, with the government’s involvement there are new regulations requiring taxing. The taxing of individuals and companies is what makes health insurance commerce. Should the government be allowedRead MoreThe 1998 Internet Tax Freedom Act699 Words   |  3 Pageseffort to promote and preserve the commercial, educational, and informational potential of the Internet. This law bars federal, state and local governments from taxing  Internet  access and from imposing discriminatory  Internet-only taxes  such as bit taxes, bandwidth taxes, and email taxes. The law also bars multiple taxes on  electronic commerce. It does not exempt sales made on the Internet from taxation, as these may be taxed at the same state and local sales tax rate as non-Internet sales, just likeRead MoreTax Implications of E-Commerce in Nigeria4601 Words   |  19 PagesABSTRACT This paper examines the Tax Implications of E-Commerce. The issue of e-commerce and its tax implications continues to receive a high level of attention because of the fast growth of e-commerce activities. In the emerging global economy, e-commerce has increasingly become a necessary component of business strategy and a strong catalyst for economic development. The integration of information and communications technology (ICT) in business has revolutionized relationships within organizationsRead More Internet Taxation and the Expansion of E-Commerce Essay1945 Words   |  8 PagesInternet Taxation and the Expansion of E-Commerce Internet taxation is an issue concerning different aspects of the Internet and its taxing. The taxes include: (1) taxes imposed upon Internet access fees, (2) sales taxes charged to online businesses selling to other businesses, and (3) sales taxes charged to consumers buying from a business. This is a very important issue as Internet sales continue to increase and as more business is conducted over the Internet. Because of this, revenue isRead MoreApplying Alexander Hamilton and Thomas Jeffersons Social Views to the Affordable Care Act699 Words   |  3 Pagesconsideration regarding the Affordable Care Act (ACA) is the application of the Commerce Clause (Mariner, 2011). In the days of Hamilton and Jefferson, the Commerce Clause had not yet taken on the importance that it now does and, therefore, it is difficult to say precisely how either Jefferson or Hamilton might have viewed how the Commerce Clause might be applied. Based, however, on how these two men viewed commerce in gene ral, it is highly more likely that Hamilton would have viewed the ACA as a