Net Tax

[VPrez]

I am not sure if this is the right forum for this question, but what are y'alls take on the net tax being discussed?

Any indications or thoughts on how the Feds will handle taxing e-commerce?[nbsp][nbsp]Any opinions on what a net tax will do to the growth of ecommerce?

As someone just beginning an online retail store, I was interested in others opinions.

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[Rich]

Fortunately, no action the commission may take can have any immediate impact as current legislation prevents any net taxes for the next two years.

Most observers agree that any move toward taxation at this time would seriously impeed the growth of e-commerce. However, local and state goverments are concerned about the loss of revenues (currently an unrealized concern) that the growth of e-commerce may bring. If governments do begin losing revenue to fund local infrastructures, you can bet that taxation will be a guaranteed certainty.

The US currently enjoys the lion's share of the benefits, economically, of the growth of e-commerce. If taxation becomes a reality, if it ever does, the US will need to take care that they don't just shut down growth in the US and transfer it to other countries who don't care if we get our taxes or not. The impact could extend beyond just the companies that are conducting e-commerce to the entire infrastructure of Internet service providers.

Rich
www.rsmarketing.com (http://www.rsmarketing.com)

[WayneK]

If they can figure out how to tax sales via the internet.............they will. If that proves to diffucult they could just start taxing domains via fees, permits etc.

Remember in the eyes of many politicians taxes are good.

As far as the impact..it would be like any tax.

Stifle growth
remove incentives to produce
accomplish little

my 10 cents worth minus sales, income, excise, inhertience, zoning fees, sewer, water and o yea the lil add on tax to the phone bill to fund internet access.

<---end of rant--->

[Jacob Stetser]

I personally think the whole Internet tax thing is a crock. Mail order isn't taxed except when the company is mailing from the state you live in, if I'm correct.

It's an example of a) scared businesspeople who don't know how to operate on the Net trying to usurp it so they don't have to change their out-of-date business practices and b) governments trying to make a quick buck out of taxing the next new thing, even when they've already set a precedent with mail order.

Count me in for civil disobedience if they start taxing the net.
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[Justin]

I'm down with the disobedience part, but I don't know about being civil :)

[Beckles]

Mail order is supposed to be taxed, the problem is states and localities have no way of enforcing their taxes on outside companies.[nbsp][nbsp]You'll notice that mail order companies in fact are taxed in states where they have a physical presence, just not in states where they do not have a physical presence.

In fact, whatever is decided for taxation of e-commerce may in fact be applied to mail order.

Also, don't confuse internet taxes with sales taxes.[nbsp][nbsp]The two year ban on &quot;internet taxes&quot; is a ban on taxes of internet usage and access, not of commerce over the internet.

[Justin]

For my shareware sales, I use a company based in Washington state, and any sales from there are charged a sales tax - this I believe has always been the case (just like mail order). The &quot;internet tax&quot; must be a completely separate tax, which IMO is unnecessary - you are still forced to pay sales taxes and any other taxes involved in running a business, so why add another tax just because you utilize another channel? (I wonder - are there extra taxes for running TV or radio commercials?)

Not a lawyer or even someone who knows what he is talking about, just my opinions here...

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Justin Nelson
FutureQuest Support

[VPrez]

Actually, there is a three year ban on e-commerce taxes.[nbsp][nbsp]From ZDNet:


&quot;WILLIAMSBURG, Va. -- The commission appointed by Congress to hash out the pros and cons of e-commerce taxes, meeting for the first time here Monday, nearly eight months after such taxes were banned for three years, knows what it needs to accomplish.&quot;

They are discussing sales taxes, not internet usage taxes.

Just thought I would clear up what my post was about.