The Future of Internet Taxation

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Internet Taxes

Ultimately, Internet transactions will be taxed. Wherever there is the possibility of taxes, there will one day be taxes.

I purchase things I want on the Internet, not things I need. When they begin to tax Internet transactions I will no longer purchase. I don't know how many people are like me, but I would think there are a few. Certainly I don't purchase food or clothing, nor office supplies. I get these things locally. At Christmas I make purchases because I don't have to ship what I send.

So, if the purchases of the Internet are taxed then my purchases will cease. One thing that most of you are missing is that purchases over the Internet are already taxed through a states use tax. Most, if not all states, require that purchases made outside the state be declared once a year when preparing your taxes, even states like Tennessee, which does not have an income tax. They require that you pay the difference in tax from what you paid to what you would have paid in state. Therefore, if no taxes were charged on your purchase then you would owe the state the amount that would have been charged in state.

Already your ISP, cable company, or phone company charge you taxes for the use of the material used to get the service to you.

Taxes are just undercover right now, but soon they will be in BOLD print.

JW Morrison of TN @ Dec 16, 2008 18:06:52 PM

Why should internet retailers get a leg up?

Local retail stores provide jobs for people in their towns and pay taxes for the government services their businesses consume. Why should they have an automatic 9% disadvantage in competing against giant (or even small) companies from another state? Why should a buyer in any town be able to sidestep his obligation to support local government, whose services he consumes every day, while supporting businesses that give nothing back to his state or local community?

I'm no fan of sales taxes. They are regressive, corrupt, and inherently unjust. But why should brick and mortar businesses--the backbone of most communities--be burdened when online businesses are not?

Those online businesses ship their products to local customers over roads local businesses pay taxes to maintain. The safety of their shipments is protected by state and local law enforcement organizations that are funded by state and local taxes. The very viability of the localities into which goods purchased online are shipped is heavily supported by local sales taxes. There's no free lunch, but online retailers, and short sighted customers, don't want to believe that.

Bryan of WA @ Dec 05, 2008 15:18:58 PM

Internet tax

Just as state and local governments provide exemptions from sales taxes for a variety of economic activities (sales tax holidays on back to school expenses is but one example), they should be prohibited from applying sales taxes to Internet sales.

Such an exemption would benefit consumers who shop online as well. A click of the mouse uses a lot less gas than a trip to the mall, and the mail carrier and FedEx/UPS trucks delivering the goods will be coming down your street anyway. Americans work more hours than any other society. Online shopping and also saves a lot of time, a precious commodity for all of us in our society where long working hours leaves too little time for personal relationships and other interests.

The public strongly supports exempting Internet sales from state and local sales taxes. In a 2008 issue of Parade Magazine readers were asked: “Should Internet Sales Be Taxed”?

Based on 3,125 survey responses, 85% opposed taxing Internet sales. Some of the comments of those opposed:

“An Internet tax would make online shopping less attractive, reduce sales and could force many online retailers out of jobs.”

“The Internet is one of the last ways that small businesses can compete with the big guys. Leave the Internet alone!”

“We’re taxed to death already. It’s a level playing field: Local businesses collect taxes, and online retailers charge shipping. It should be the consumer’s decision which one he wants to pay.”

Congress and state legislators should listen to their constituents, who overwhelmingly oppose the taxation of Internet sales.

American Homeowners Grassroots Alliance

bruce hahn of VA @ Dec 02, 2008 21:26:39 PM

The Future of Internet Taxation/Candice Novak

What a thought provoking article: it opens up so many questions about our future and the possible ramifications of the internet. Thank you for this expose.

Sigrid Scholtz of CA @ Dec 01, 2008 11:28:37 AM

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