Question

State if you agree or disagree with the discussion summary below and why?

As the debate is still going on the taxation of online retail transactions the legislation has been presented in congress for more than 10 years. The legislation is prioritized by the national groups that represent the governors/law makers of Washington DC. By following the 1992 court decisions that include the information that the state can collect sales tax from the inhabitants/citizens those are purchasing and selling online. According to the states official as the residents are not providing the information to state tax collectors and is cost them 23.3 billion in 2012 sales tax revenue. I found an article about Amazon which states that congress is finally applying a bill that would allow states to collect tax from e-trailers. More obsessed elements on the right recommend that allowing states to accumulate sales taxes was a step on the road to a national value-added tax. State lawmakers still believe that online sales tax would help current fiscal and would provide a new source of revenue for state and local governments. This will also help the small businesses that are losing business because of the internet retailers due to sales tax issues.

http://www.slate.com/articles/news_and_politics/the_big_idea/2013/04/amazon_and_sales_taxes_how_the_internet_giant_and_congressional_republicans.html

Answer 1

Yes, I agree that online sales tax would help current fiscal and would provide a new source of revenue for state and local governments. This will also help the small businesses that are losing business because of the internet retailers due to sales tax issues because through the introduction of market of buying and selling online curbed the market of offline transactions taking place. So levying the sales tax for such online transactions lowers the market of online customers which allow for the creation of market for small businesses.

On the whole which is a limitation that states have to accumulate sales taxes was a step on the road to a natinal value added tax.