Sales taxes on E-Commerce? I support it. E-Commerce has become a 263 billion dollar market, many states derive a great share of their tax revenue from taxation of retail sales. There is a running debate in Congress about the implementation of new taxes on internet sales. On November 1, 2014 the Internet Tax Freedom Act is due to expire. Originally enacted into law in 1998 and renewed three times is facing an uphill battle for renewal in this time. Many state governments have been lobbying Congress for change to the current tax codes as they apply to E-Commerce retail sales.
I feel that the time has come for a major overhaul of taxation on interstate commerce. I this current environment of cash strapped local and state governments, any new method of raising additional tax revenue should be looked at. What form the new legislation will take is up to debate. Some members of The Senate and The House of Representatives are pushing for a national sales tax on all internet sales. Others feel the current system of states requiring sales taxes on E-tailers that have a physical presence in their states is just fine and should be part of the basis for a new law. The current crazy-quilt patchwork system that is in place now has many E-Commerce leaders asking Congress to step in and provide a national solution.
When the current law was enacted the internet and its E-Commence components where basically in their infancy, the intent was to not hinder the growth and commercial viability of the internet. In the sixteen years after its implementation the internet and E-Commerce has grown-up tremendously and has become a dynamic force in our world today. I just do not see the need any more for it to be extended again. The effects of allowing taxation on internet sales could be very positive for many state governments. There are exceptions in the form of the five states that do not have state sales taxes, Alaska, Delaware, Montana, New Hampshire, and Oregon they would see no benefits. Of course everyone hates taxes, from Joe consumer to the megacorporation’s but hey let’s face it taxation supports all the government services that everyone uses.
States generate thirty–two percent of their revenue from state sales taxes. This figure has been in a steady decline as more retailing has shifted from the traditional brick and mortar type of retailers, to the rapidly growing E-Commerce sector. I feel that it is totally necessary for the governments that rely on sales taxes to try to get some of that revenue back. If a new law was written that satisfies many of the concerns and uncertainties that many have expressed, I would support it.
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