Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Must Internet purchases be subject to sales tax - Essay Example

Comments (0) Cite this document
Must Internet purchases be subject to sales tax Advocates claim that it is only fair to the brick and mortar store that internet purchases be taxed; opponents say that Internet taxes will stifle e-commerce (Engler and Cellucci 1-3).
The crux of the argument for sales tax is so that the traditional brick and mortar store will be on par with the online store in terms of pricing…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.7% of users find it useful
Must Internet purchases be subject to sales tax
Read TextPreview

Extract of sample "Must Internet purchases be subject to sales tax"

Must Internet purchases be to sales tax Advocates claim that it is only fair to the brick and mortar store that internet purchases be taxed;opponents say that Internet taxes will stifle e-commerce (Engler and Cellucci 1-3).
The crux of the argument for sales tax is so that the traditional brick and mortar store will be on par with the online store in terms of pricing. If Internet purchases were not subject to sales tax, there would be price advantages for them, which is unfair to the traditional brick and mortar store (Engler and Cellucci 1-3; Kraul 1; MacMillan 2; Stevenson 3).
Opponents refuted the claim, pointing to a Ernst & Young study in 1998. According to Engler and Cellucci, "Ernst & Young concluded that 63% of total e-commerce sales to consumers are sales not taxable in most states". As for the taxable sales, "that same study also found that 60% of the taxable business-to-consumer Internet sales are substitutes for other types of sales, such as mail-order catalog sales by out-of state vendors, that do not currently generate sales or use tax revenue".
Proponents for Internet tax also argue that "it is not a new tax" but the enforcement of existing laws that give mail order stores the right to collect sales tax (Senate Nixes Sales Tax on Catalogue, Internet Sales 1).
However, opponents disagree. They assert that this tax has never been collected before and therefore is a new tax in substance (Senate Nixes Sales Tax on Catalogue, Internet Sales 1).
Moreover, sales of the brick and mortar store continue to grow despite the flourishing of online stores (Engler and Cellucci 1-3). A brick-and-mortar store is able to provide consumers with service that the online store is unable to offer, such as getting to try the goods or see it physically before deciding to buy it.
Furthermore, Internet taxes would require the electronic tracking of purchases (Engler and Cellucci 3). Uniform reporting requirements for online merchants, consistent periodic certified audit of retailer sales, and a mechanism for compensating online merchants for costs they incur in collecting the Internet tax from customers have to be in place (MacMillan 1). This is administratively cumbersome and would lead to higher prices (Senate Nixes Sales Tax on Catalogue, Internet Sales 1).
Lastly, the flourishing and growth of e-commerce creates jobs and drives economic growth. The imposition of Internet tax would stifle e-commerce (Engler and Cellucci 3; Kraul 1; Kudlow 1).
When all has been said and done, I feel that Internet purchases should not be taxed. Traditional brick and mortar stores would not be hurt as the online store offers different value from goods sold in brick and mortar stores. On the other hand, the imposition of Internet tax would only result in higher costs. The growth of the economy is at stake.
Engler, John and Cellucci, Paul. "Face-off: Should Purchases Made over the Internet be Taxed" Network World. 17 April 2000. 8 July 2006. .
Kudlow, Lawrence. "Why the Internet Had a Merry Christmas." Wall Street Journal. 6 January 1999. 8 July 2006. .
Kraul, Chris. "The Cutting Edge; Governments Want a Cut of the Net; Regulation: State and local agencies see untapped revenues. Opponents warn a tax could shut out consumers." Los Angeles Times. 29 July 1996. 8 July 2006. .
MacMillan, Robert. "House Bill Would Give States Net Sales-Tax Ability - Government Activity." Newsbytes News Network. 10 April 2001. 8 July 2006. .
"Senate Nixes Sales Tax on Catalogue, Internet Sales." Human Events. 30 October 1998. 8 July 2006. . Read More
Cite this document
  • APA
  • MLA
(“Must Internet purchases be subject to sales tax Essay”, n.d.)
Must Internet purchases be subject to sales tax Essay. Retrieved from
(Must Internet Purchases Be Subject to Sales Tax Essay)
Must Internet Purchases Be Subject to Sales Tax Essay.
“Must Internet Purchases Be Subject to Sales Tax Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Must Internet purchases be subject to sales tax

Issues in internet sales law

...? Internet Sales Law By Due This document discusses the concepts of breach of condition and warranty under the Sale of Goods Act 1979 through a case study. It also explains the application of Sale of Goods Act 1979 in the cases of sales made through the internet. It explains the remedies available to a buyer if he receives faulty goods. Keywords: Implied Condition, Faulty Goods, Sale by Description, Course of Business, Remedies, Rejection of Goods. Auction is a process in which an item is presented to a number of parties and sold to the party that makes the highest bid. When a bid is made, the bidder is said to have made an offer. When the auctioneer strikes a hammer thrice or says words like ‘Going, Going, Gone’, the offer is accepted...
8 Pages(2000 words)Essay

The use of Sales Tax

.... If an individual who lives in Chicago purchases a product from Boston, the implementation of use tax is enacted (Netzer, 20). One key aspect of use tax that must understand that use tax can only be used in certain products. For instance, if an American citizen buys furniture through a classified advertisement, they are not required to pay sales tax but a use tax. The whole essence of use tax is utilized when common taxable items for businesses are office supplies, computer equipment and other electronics (Netzer, 20). There are products that are exempt goods such as food products, magazines and newspapers. One can argue the fact that why do some outside companies charge tax for their products? Interestingly enough, the use tax is not only...
3 Pages(750 words)Essay

Sales Tax in Canada

There are various types of taxes such as the income tax, sales tax, import tax and export tax but the discussion in this paper will be based on the sales tax and its impact. Sales tax is levied by a city or state on retail prices of items (Kesselman, 2011). This tax is usually imposed by governments and collected at point of sale with the retailer to collecting and passing the tax to the state (Kesselman, 2011). There are three kinds of sales taxes levied in Canada namely the provincial sales tax PST collected by provinces; goods and services tax which is collected by federal government, Lastly, there is the harmonized sales tax (HST) which combines both PST and GST and is levied in various provinces and then shared out to partic...
7 Pages(1750 words)Term Paper

There should not be state sales taxes assessed on Internet purchases

...?There Should Not Be Sales Taxes Assessed on Internet Purchases Table of Contents Table of Contents 2 Introduction 3 Thesis ment 4 Objective Description of the Issue 4 Opinion Regarding the Issue Supported By Facts and Logic 8 Conclusion 10 Works Cited 11 Introduction Nowadays, consumers are facilitated with the opportunity of purchasing various products through internet which include cars, foods as well as clothes. Purchasing through online sources has become a common phenomenon. Generally, internet is considered as a place of selling goods or items without any sales tax. In this respect, online retailers promote that sales tax free goods or items are available for consumers in order to attract more consumers. However, this aspect...
8 Pages(2000 words)Essay

Replacing the income tax with a national sales tax

As might be expected, one of the reasons for why a value added tax/sales tax/”fair tax” has not caught on within the United States is due to the fact that a preponderance of negative trade-offs exist with regards to implementing this. As a function of seeking to understand this issue to a more full and complete degree, the following analysis will present the reader with an understanding of the way in which a federal sales tax represents both positive and negative externalities and could ultimately harm many at risk individuals within the current society. Through such a level of argumentation, this particular researcher will seek to expound upon the complexities of a federal sales tax and the manner through which the trade-offs fo...
6 Pages(1500 words)Research Paper

Should Internet Purchases be taxed

...Internet Purchases Should Internet Purchases be taxed Internet shopping is here to stay, its future growth with imposition of sales taxes on online shopping, may be a question mark. People are buying more than goods online, from the comfort of their homes or offices, than they bought before, the reason being that very few of the online stores charge sales tax, so the users get a discounted price on their purchases (thisnation, Dec 2006). Shopping online may be different in terms of experience, however money is still exchanged for goods - but the purchase may be made from a physically remote location. If tax is to be charged then how does one then resolve where to source the tax Supreme Court ruling in 1992 stopped states from collecting...
2 Pages(500 words)Essay

National Sales Tax

...-Colo.) and Billy Tauzin (R-La.) (Burton and Mastromarco). The NST would replace the individual and corporate income tax, transfer taxes, and most non-trust-fund excise taxes with a single 15 percent flat-rate tax on tangible goods and services sold at the retail level (Burton and Mastromarco). The sales tax would be exempted from intermediate levels of production. The NST defined here does not replace the payroll taxes providing revenue for Social Security and Medicare. (Burton and Mastromarco). There are a slew of items that would be taxed in addition to goods and services. Housing, financial intermediation services and government goods and services that are sold to the public would be taxed. Rent and home purchases would be taxed...
10 Pages(2500 words)Essay

Issues In Internet Sales Law

...Internet sales Law The issue that must be considered in this context is whether quality obligations can be imposed on the Seller, since this purchase by Chris was made during an online auction. The quality of the goods that have been sold in this case is a major issue due to their claimed antiquity, since its value will depend upon the item/s being preserved in good state. They must also satisfy the criteria laid out under the SOGA on the goods being of satisfactory quality by the standards of the average reasonable buyer. The legal conditions pertaining to the sale of goods are governed by the Sale of Goods Act of 1979. Section 14(2) of the Act states that “where the seller sells goods in the course of a business, there is an implied...
12 Pages(3000 words)Essay

Issues in Internet Sales Law

... OF Issues in Internet Sales Law Essay Outline the Law relating to the passage of risk when goods are sold by either a commercial or private seller to a customer. Discuss in detail the effect and not whether the party is selling in the course of a business. 2. How would your answer differ of the goods sold were specific goods? The issue of the passing of risk is often overlooked by the parties during contractual negotiations, resulting in potential disputes in the future regarding which the party is responsible and or liable for lost or damaged goods (Butler, A.E. 2007). Most of the claims according to Butler (2007), is covered by insurance, but allocation of risk becomes important for primary insurance especially obligation actions...
12 Pages(3000 words)Essay

Sales Tax Needs to Be Imposed on Internet Transactions

Sales Tax Needs to Be Imposed on Internet Transactions
The issue of imposition of tax on internet sales has been a controversial issue in many states. From an economic viewpoint, the influence of imposing the tax on the equity and efficiency of the tax system, impacts of sales tax rates on consumer behavior, the need for a wider tax base and the state reliance on sales tax indicates that there is need to impose sales tax on all internet transactions.
A good tax system should not distort consumer behavior as consumers need to make the same choice before and after the tax has been imposed[Mag00]. Sales tax imposed equally on all consumer expenditure meets this expectation. The tax-free internet goods and services tend to be c...
2 Pages(500 words)Essay

How to Minimize Capital Gains Tax

The inhabitants pay taxes to the government and in return receives benefits and protection from the State.
In this problem involving the sale of the house of Ms. Vaughan, considerations as to the taxability of the sales include whether or not the house sold was the primary residence of the seller. Under the Capital Gains Tax (CGT) law, sales of the primary residence of a person may not be taxed.
Residency is dependent on one's length of stay, number, and frequency of trips to the place (i.e. habitual stay) and the intention to stay in that particular place. There must be intent on the part of the seller to establish such property as a primary residence as evidenced by the frequency of her return to the place and the amou...
6 Pages(1500 words)Assignment

Death Penalty Subject of Debate in United States

... in his own image’. Going by the scriptures, what right does any public authority have to grant mercy to murderers? The criminal has unjustly taken away goods, property, and lives of others and a just punishment has to be meted out to him. Death penalty is considered a violation of human rights. The Universal Declaration of Human Rights (UDHR) clearly states that no one shall be subjected to cruel or degrading punishment. The International Covenant on Civil and Political Rights (ICCPR), Article 6 of the Covenant states "no one shall be arbitrarily deprived of his life" (Amnesty, 2006). Has the criminal not subject the innocent victim to cruel punishment in taking his life? How do the supporters of human rights justify the crime...
7 Pages(1750 words)Case Study

Tax Reform Situation in American

The tax process has been reformed, changed, developed, organized and is now one of the most complicates codes of law in the world. Some of the reforms underway are still being debated and they must be examined to show how the reform process takes place in America.

Overall, American taxation involves payments from individuals to four levels of government depending on where they reside. Taxes are due to the local government i.e. district or country, to the regional bodies like schools and utility providers, to the state government and finally, to the federal government. Other than general income tax on companies and private persons, the American government collects taxes and contributions for Social Security, Medicare and...
7 Pages(1750 words)Assignment

Personal Tax And Estate Planning

On income, yet, many are of the opinion that their tax system is too complicated for understanding, bringing out supporting evidence and some even saying from the outlook of the people comparing the U.K. with other European countries and making their own standing.

Before now, the scheduler system was and was used for ages though abolished, if asked, it will definitely be for the development of the country putting in mind factors like, people are the force of the economy, so taxes imposed must be fair and reasonable which will not be too demanding on the people. The abolishing of the scheduler system has definitely brought difficulties and confusion since it was based on a “Category of treatment” but now it i...
6 Pages(1500 words)Report

How Secure Is the Internet When It Comes to Personal Data

Millions of computer users worldwide every year lose invaluable data and information at the hands of stolen means employed by anyone sitting on workstation thousands of miles away from the host node. Computer privacy is one such aspect on which the researchers in the same field are working their best. Certain ways are being devised all around the globe to ascertain the manner in which computer data can be kept secret from the people who are not authorized to seek it. Internet privacy of late has become a serious issue that should be tackled with immediate effect. There are many issues at stake with respect to computer privacy such as the authority to create standards regarding the usage of personal data on one’s machine as w...
6 Pages(1500 words)Term Paper

The Issues of Sales Management

The skill, education, experience, and behavior of the sales staff determine the future of an organization. It is, therefore, companies make comprehensive recruitment plans and apply various methodologies to hire accurate salespersons. The first and foremost quality of a successful salesperson, the companies must look for, includes his consistency and determination while doing his job. If he is unable to fulfill his task through persistent efforts, he will never meet his sales targets. “One of the most important traits of top performers in sales is ego strength or having strong, healthy self-esteem and the ability to bounce back from rejection” (Lamb et al, 2005: pp 433-34) Insurance companies mostly hire such persons w...
7 Pages(1750 words)Assignment

Calculation of Income Tax

The calculations for the capital gains tax are shown in the appendix. From the calculations, it may be observed that it is advisable to sell off the business building before 05th April 2008 as you can avail of the indexation allowance and taper relief which are no more available. It may be noted that the indexation and taper relief are the allowanced granted by the government to provide for the increase in the asset value due to inflation (Chris Horne). In case you decide to sell the property after 05th April 2008 you may have to pay a higher CGT of 18,000. However in the case of the personal paintings since they have been acquired only in the year 2005 they do not stand eligible for any allowances and the capital gains will simpl...
6 Pages(1500 words)Case Study

The Subject of Legal Abortion

The simple ideology is embraced by some but the arguments are flawed when the realities of abortion are examined. Studies have shown that most women are coerced into committing this murderous act of a living human and that there is no such thing as safe abortions as many are led to believe. Pro-abortion proponents generally espouse that the rights of a non-living tissue that feels no pain are non-existent. These untruths have been widely perceived as facts. In addition, the Founding Fathers of this nation intended to shape not only the legal but the moral direction of American society as well when they drafted the Constitution, the document that defines the laws of the nation. If they were alive today, the Founders clearly would b...
8 Pages(2000 words)Coursework

Insolvent Periods of High Sales Growth

... has made over financing or over trading resulting in the cash of business being stuck for some time. It is a good move from the side of businesses to reinvest the money they have into the business but this too results in the decrease in cash in hand in some cases. One of the most crucial aspects of cash management is cash budgeting and it has been observed that many businesses especially the small ones fail to make cash budgets which eventually results in the over cash outflows from the business. Managers Actions During the period of high sales growth there is a fear of tightened cash situation for the business. This is due to the fact that business has to pay for the purchases made on time in order to avoid any amount of interest...
8 Pages(2000 words)Assignment

Organ Transplantation: Ethical Issues, Regulation and Illegal Sales of Human Organs

... and Organ Transplantation: Ethical issues, regulation and illegal sales of human organs. Introduction The society has always been a victim of many medical complications and organ transplantation has been embraced in treatment and procedures administered to patients who suffer from related health problems. Having to understand the exact meaning of organ transplantation would give us a vivid insight about the subject matter. The whole process is a surgical procedure where an organ or a tissue is removed and placed into another person. (Clinic-Clevaland 1). There is a range of organs and tissues that that can be transplanted. These include the heart, liver, lung, kidney, ear, intestine, cornea, skin, middle ear, bone, bone marrow...
9 Pages(2250 words)Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Must Internet purchases be subject to sales tax for FREE!

Contact Us