Internet Sales Tax

Internet Sales Tax
Student’s Name
Institutional Affiliation
Course Number and Name
Instructor’s Name
Due Date
Internet Sales Tax
Over the years, many bills have been proposed to introduce ordered regulations regarding internet sales tax. Taxing goods sold over the Internet has created a debate on whether it benefits the country, states, or online traders and its effect on online consumers. While some advantages of internet sales tax emerge, the essay argues against it because the cons outweigh the pros.
An internet sales tax should not be there because it creates logistics difficulties in taxing. Uzuner and McKnight (2001) argue that most online businesses run in ambiguous locations, making enforcement of an internet tax difficult. The tax laws would need to identify which state or authority should be associated with taxing the online business in terms of geography and sales. For instance, if a business workforce and location is in New York, the company has no connection with Illinois except for the remote sales conducted over the Internet. However, a sales tax could permit Illinois lawmakers to collect taxes from the New York company. The New York business would need to collect the sales tax from Illinois through the remote sales made to residents in Illinois and send such tax to the Illinois government. Largely, the New York business owner will need to quiz purchasers about their location and look up appropriate laws based on taxing procedures in different jurisdictions. Such complexities become time-consuming for regulators and online businesses, something brick-and-mortar businesses do not have to experience.
Another disadvantage of an internet sales tax is the unfair disadvantage it would cause to small and emerging new online businesses. When taxes are imposed on goods provided through the Internet, it is likely to cause an inc...