Taxation for Online Purchases
Table of Contents
Abstract………………………………………………………………………………………………………… 2
Introduction…………………………………………………………………………………………………. 3
History of Sales Tax…………………………………………………………………………………….. 4
History of Online Retail……………………………………………………………………………….. 6
Sales Tax and Online Purchases…………………………………………………………………. 8
Amazon……………………………………………………………………………………………………….. 11
Conclusion…………………………………………………………………………………………………… 13
References………………………………………………………………………………………………….. 14
Abstract Online shopping has grown increasingly popular through the rapid advances of the internet. Technology has grown so fast that some laws haven’t been created, such as a sales tax for online purchases. The Senate is actually working on a bill to allow states to collect taxes for online purchases. Some states, like California, already require organizations to charge a sales tax for purchases made online. Online retailers don’t like these because not charging a sales tax gave them a competitive advantage against physical retailers. The main question is, should online purchases be taxed?
Introduction Through the rapid advances in technology the internet has become increasingly popular. It has revolutionized the way we exchange information. Over the internet you can make purchases and have them shipped to your residence verses physically going to the store. Online retailers have been getting away from having to charge a sales tax like physical retailers have to do, which essentially gives them a competitive advantage. A sales tax dates back to the 1800’s and is implemented so the state can earn revenue. Online purchasing has grown so fast that the government hasn’t had enough time to react and implement laws. One organization that has been under scrutiny is Amazon. They are probably the main reason online taxation is coming into the light. They have made a large amount of revenue and the states noticed that they lost out in earning sales tax revenue because there are not
Abstract………………………………………………………………………………………………………… 2
Introduction…………………………………………………………………………………………………. 3
History of Sales Tax…………………………………………………………………………………….. 4
History of Online Retail……………………………………………………………………………….. 6
Sales Tax and Online Purchases…………………………………………………………………. 8
Amazon……………………………………………………………………………………………………….. 11
Conclusion…………………………………………………………………………………………………… 13
References………………………………………………………………………………………………….. 14
Abstract Online shopping has grown increasingly popular through the rapid advances of the internet. Technology has grown so fast that some laws haven’t been created, such as a sales tax for online purchases. The Senate is actually working on a bill to allow states to collect taxes for online purchases. Some states, like California, already require organizations to charge a sales tax for purchases made online. Online retailers don’t like these because not charging a sales tax gave them a competitive advantage against physical retailers. The main question is, should online purchases be taxed?
Introduction Through the rapid advances in technology the internet has become increasingly popular. It has revolutionized the way we exchange information. Over the internet you can make purchases and have them shipped to your residence verses physically going to the store. Online retailers have been getting away from having to charge a sales tax like physical retailers have to do, which essentially gives them a competitive advantage. A sales tax dates back to the 1800’s and is implemented so the state can earn revenue. Online purchasing has grown so fast that the government hasn’t had enough time to react and implement laws. One organization that has been under scrutiny is Amazon. They are probably the main reason online taxation is coming into the light. They have made a large amount of revenue and the states noticed that they lost out in earning sales tax revenue because there are not
References: Chadwick, Dr. Fiona. "History of Online Retail." Open.edu. Open Univerity, 14 Oct. 2013. Web. 02 Aug. 2014. Fitzpatrik, Diana. "California Internet Sales Tax." Nolo.com. Nolo Law for All, 2014. Web. 01 Aug. 2014 Fox, William. "History and Economics Impact." Social Science History 15.2 (2002): 239-64. 13 Mar. 2002. Web. 02 Aug. 2014. "Internet Sales Tax Fairness." Www.ilsr.org. Institute of Local Self-Reliance, 5 Nov. 2013. Web. 10 Aug. 2014. LaHart, Justin. "E-Commerce Surge May Hit Tax Revenue." Www.wsj.com. Wall Stree Journl, 17 Feb. 2011. Web. 10 Aug. 2014. "Overview." Www.phx.corporate-ir.net. Amazon, 2014. Web. 11 Aug. 2014. Tummarello, Kate. "Senators Renew Internet Sales Tax Push." Www.thehill.com. The Hil, 16 July 2014. Web. 01 Aug. 2014. Vitez, Osmond. "Reasons for Sales Tax." Small Business. Chron, 2014. Web. 03 Aug. 2014.