US Government Debating Taxing The Internet
Posted in News by Dan at 6:35 pm
This post was published 2 years 5 months 29 days ago and its content may not be valid anymore.You know that tax free shopping from e-tailers like Amazon.com that you enjoy so much? Congress is debating if the tax moratorium on all online purchases as well as internet connections should finally be reenacted.
The law forbidding online taxes, poised to expire in November, has proven to be a sticky issue with local businesses claiming an unfair advantage in the online retailers favor but enacting the tax law could open a pandoras box of new complex charges tacked on to every internet related purchase.
The reason that there’s no tax online is that states have the majority of sales tax with localities picking up the balance. Only the federal government can tax interstate commerce, which is what online purchases are, unless they’re in your state; in which case they often do charge tax.