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Internet Taxation And Postage For E Mail

1073 words - 4 pages

Internet Taxation and Postage for E-mail For the past few years the Internet has grown tremendously. People that once swore they would never own a computer are buying top of the line machines in order to surf the web. For once the average American can have their own web site, where they can voice their opinion about a topic, inform people how to cheat in video games, publish information on a topic affecting everyone, and sell some products that only a select few would ever want to buy. For many years now, the Americans buying those products have not had to worry about taxes. Unfortunately, there are many people who want the buyers of those products to pay taxes on them. The customers disagree. They like the idea of not paying taxes on goods they buy on the Internet. This disagreement in opinions has led to the controversy over whether the local and state governments should collect taxes on items bought over the Internet. The Internet needs a chance to grow and in order for it to do that it should not be taxed. As most people know, the Internet has become a very hot place to buy just about anything. Big businesses, such as IBM and Compaq, and people hoping to strike it rich with their new product have started selling a variety of items on the Internet. These sales people have not had to worry about charging any type of tax, state or local, and therefore, consumers have not had to pay any tax on their purchases. However, if people like Utah Governor Mike Leavitt get their way, products sold on the Internet will be taxed. His worry is that once people learn that it is less expensive to buy products on the Internet, states will lose revenue. His belief is that people will begin to buy everything online and stop shopping at local stores (Fays). Ordering things over the Internet is much easier than going to the store, but the obvious must be stated. People can?t try clothes on over the Internet, try products out, or use coupons to get things at lower prices. Most people are still going to want to shop at local stores for those reasons. Not all stores sell products over the Internet. People can?t go to Best Buy?s web page and buy a new computer. Grocery stores and local stores, that are not chains, are not going to be online either. Most people, for some reason or another, are still going to need to go to stores to buy many items, even if they do begin to buy more online. Due to this, state and local taxing districts are not going to loose money. In October of 1998, Congress approved a three-year suspension on Internet taxes. The suspension was called the Internet Tax Freedom Act or ITFA. (Internet p80). The ITFA also created a committee called the Advisory Commission on Electronic Commerce. The purpose of this group was to decide what, if anything, should become of Internet taxes after the three-year suspension is over. They were to decide whether the taxes should be collected from products sold on the...

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