The internet started as Woodstock; relatively anonymous participants free to carry on without fear of apprehension, taxation or repercussion, trusting that others shared their values of respect, reason and cooperation.As business began to stick its toes into the virtual world, the internet became Bonnaroo; vastly increased content for a bargain price, if you pay the entrance fee, wear your wristband, and don't mind congestion and occasional chaos.
Now, though, the internet has becomes a crucial part of business survival and a tool for predators of all persuasions. So the internet is evolving again, into an olympiad. Everything costs, sponsorships and advertising drive the show, everyone carries verifiable I.D., and every access is carefully monitored.
The U.S. Congress is looking at this issue closely. Their ban on taxing internet access ends in November, an opportunity that temptingly coincides with state revenue shortfalls. The Congress is also once again considering a mandatory nationwide requirement that internet vendors collect sales tax from out of state customers. One senator, according to C/Netnews.com, is even predicting we could see more debate about a tax on e-mail.
I think the internet tax and sales tax measures stand a chance of passing, despite massive consumer protest, because states believe internet shopping robs them of tax revenue and damages their local merchants. Such a measure could have an immediate impact on Amazon.com (NASDAQ:AMZN) and eBay (NASDAQ:EBAY), among others.
The e-mail tax is less likely. In defense of such a tax, however, legislators could refer to a proposal by, among others, Bill Gates, to impose a charge on e-mail as a way of fighting spam. One way or another, the spam issue is coming to a head as it continues to gobble up bandwidth.











Reader Comments (Page 1 of 1)
5-29-2007 @ 12:14PM
auction seller said...
If the national internet sales tax and the I.R.S. sales reporting requirement for the internet happens, it will be a one two punch for ebay and devastate thier sales and listings in the future. Ebay and other .coms should fight this like thier livelyhood depended on it.
5-29-2007 @ 4:03PM
Ayamore said...
Wallmart and other companies are already charging sales tax over the internet regardless what state you live in or order from. If in fact these companies actually pay the sales tax is another matter entirely. I agree that congress should do something about SPAM mail and advertising. It has gotten out of hand completely.
Advertising companies like FREDERICKS OF HOLLYWOOD and others are a nuisance and should be sued and fined into oblivion. They pop up 30 times a day on my screen. They show a naked woman with her panties down to her knees. My grandchildren use my computer to do homework and up pops FREDERICKS. I am powerless against this disgusting company. Somehow these companies get around Spam Blockers.
5-30-2007 @ 11:14AM
Tomeraider said...
There is a requirement that you collect sales tax on internet sales if the buyer is in a state where you do business. Since Walmart, Target, etc, do business in most, if not all, states, they would be required to collect AND pay these taxes.
6-05-2007 @ 11:29PM
JAMES CRANFORD said...
This notion that states are losing out on sales taxes may be partially true. however, i use the internet to buy things i cannot buy locally. having to go through that much trouble, i do not see where i owe the state anything. i can see paying taxes in the state of purchase, just like when you walk into a store in another state, but to pay taxes on it bringing it home, nope. sorry.