E-commerce Taxation

Paper Summary:

This paper examines the May 10, 2000 law passed to extend a ban on internet taxes for another five years. The writer argues that this law is unfair for two reasons. 1. The "brick and mortar" shops pay the price of lower sales since they are required by law to charge taxes and 2. The law benefits only the "technological haves" who have access to a computer and are able to do purchases on the internet. The writer discusses the move in the government to soon pass a law that could override this existing ban on tax, and start introducing partial tax on e-commerce.

From the Paper:

"Originally passed last year, the Senate overwhelmingly approved The Internet Tax Freedom Act which barred state and local governments from imposing any new taxes on Internet access, "bit" taxes on data flowing over networks, and multiple or discriminatory taxes on e-commerce. (Wired News, July 19, 1999.) The extension will be effective until October 2006, and will lengthen the current moratorium on taxing Internet access. It will also prevent ten states that allow access taxes from collecting them when the current ban expires."

More papers on E-commerce Taxation:

• Research Paper # 10788 : "E-Commerce Taxation"
• Essay # 66348 : "The Internet's Innovation: E-commerce"
• Essay # 11142 : "The internet, E-commerce & the Government"

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