.COMmentary: Taxing the Internet

.COMmentary: Taxing the Internet

By Mike Lotz

Taxing the Internet

By Mike Lotz

The temporary tax ban on web sales that started in 1998 expires this October. The talk on Capitol Hill is now Internet sales tax. And this is where the trouble begins.

The members of the official committee appointed to study the eb taxation couldn’t reach a formal agreement to submit to Congress last year, showing how controversial this issue can be.

Lobbyists say they don’t think the issue will be resolved quickly this time. Many say they believe some sort of Internet taxation bill will pass eventually, partly because of the deadline this October and also because no lawmaker wants to run for re-election next year as the candidate who taxed the Internet.

If there isn’t a resolution by October, states, cities and other local entities will be free to add their own tariffs on web transactions. How they would do that is another problem, due to the fact that there are more than 7,500 different state tax laws that need to be reviewed and revised.

Many states are worried their revenues could shrink as more Americans shop the Internet, while online retailers says they could not possibly comply with thousands of varying local tax codes.

An effort currently underway in at least 29 states, aims to streamline and simplify local tax codes so they could eventually collect taxes on e-commerce.

With all this going on, our government must want to drive the most successful businesses out of the country (just look at how many are spending their development dollars “outside” the United States).

Is the U.S. government ever going to wake up to the fact that the Internet is not a wholly-owned U.S. subsidiary!

Aren’t the American people being over taxed right now? That’s why taxpayers are soon to receive those $300 – $600 tax rebates. Why, then, would there be a necessity for another tax?

If you have any questions or comments, please contact me at questions@iwebwerks.com.

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