Internet Taxation †A Dual Issue For Both Sides :: Tax Taxes Internet Web Research Papers

Internet Taxation – A Dual Issue For Both Sides Internet Taxation is a hot button issue that has hit all sides of the spectrum in heated debates since the late nineteen nineties. This is an issue that covers many grounds. The common misconception is that Internet taxation is simply the taxing of purchases bought on the Internet either through consumer-to-consumer e-commerce or business-to-consumer e-commerce. But, while this does remain one of the issues, the most worrisome to those behind the scenes is the second half of this complex issue - the use of the Internet in lieu of a telephone line. Both of these issues could affect consumers & businesses alike, but in different ways. Some of these ways can be temporarily damaging to local economies, but it is mostly harmless and blown up to make people believe otherwise. The first thing most think of when they hear Internet taxation is the words â€Å"like a sales tax.† But it actually is much more complicated than just a simple tax on goods sold. Many politicians have long felt that the sales tax laws are damaging to some economies, confusing to locals & travelers alike, long outdated, & generally much too hard to follow, but they weren’t sure of what an internet tax could do to help this. To alleviate the burden & answer these imposing questions the Internet Tax Freedom Act (ITFA) passed in 1998 created what has become to be known as the e-Commerce Commission, formerly known as the Advisory Commission On Electronic Commerce (CAGW). This commission was supposed to attack many issues that policy makers had asked them to address. These issues included such things as: whether the existing state and local sales and use tax system is compatible with an electronic commerce environment; if electronic commerce should be taxed at all, consideri ng the difficulty of taxing such commerce; whether or not imposing or collecting tax on electronic commerce will undermine the sales and use tax base and create inequalities between sales of equivalent goods and services depending on the form or mode of delivery; whether the multiplicity of and inconsistency among existing state and local use tax laws creates an undue burden on sellers and purchasers in an electronic commerce environment, and, if so, whether it is possible to create greater consistency in state and local sales and use tax laws to facilitate application and administration of