(855) 4-ESSAYS

Type a new keyword(s) and press Enter to search

Effects of taxing Internet commerce

            This essay analyses the economic effects of the Internet Tax Nondiscrimination Act, recently passed by the 108th Congress and explains why the U.S. government makes a permanent ban on taxing Internet connections (including Internet commerce). Finally, it discusses the elasticity of the tax on Internet commerce.
             My essay will utilize the following economic principles: supply and demand, tax incidence, deadweight loss of taxation, tax distortions and elasticities. The essay will proceed in four sections. Section one will introduce the background of the Internet Tax Nondiscrimination Act. Section two will analyze the reason why a potential deadweight loss will emerge if the government enforces sales taxes on Internet commerce such as Internet sales. Section three will consider how the elasticity of demand affects the size of the deadweight loss. Section four includes closing remarks and summary.
             Section One: Introduction.
             Existing law governing sales tax treats goods sold over the Internet the same way it treats goods sold from catalog companies. Any enterprise without a physical presence in a state cannot be required to collect that state's sales tax even if the customer lives in the state. In this sense, the Internet is a virtually tax-free sales channel. Some opponents debated on this tax-free pattern that would cause a revenue loss of the government. In 1998, Congress passed the Internet Tax Freedom Act (ITFA) placing a three-year moratorium on new taxes on the Internet. Congress increased the moratorium on ITFA for another two years in 2001 to protect E-commerce from taxation. Two years later, on September 17 2003, the legislature made a permanent ban on taxing Internet connections (mostly concerning the Internet commerce).
             Section Two: Deadweight loss of a new tax.
             Sales taxes are, obviously, quite important to state and local government finance. Without Internet commerce sales taxes, they may suffer a big revenue loss.


Essays Related to Effects of taxing Internet commerce

1. Internet Trading

What is Internet trading? ... The Future With all the current focus on the Internet, it is sometimes easy to forget that e-Commerce is still in its infancy. ... As the Internet now is growing rapidly, e-commerce is no longer limited to big companies, but open to everyone around the world. Driven by this Internet revolution, electronic commerce is dramatically expanding and undergoing radical changes. ... Even so, the Digital Age is already producing profound effects in numerous businesses. ...

  • Word Count: 1515
  • Approx Pages: 6
  • Grade Level: Undergraduate

2. E-commerce

Having a computer and the Internet is almost a necessity for people, especially in the field of business. ... E-commerce has many effects on the suppliers of goods and services. ... Since the U.S. is the leader in defining the Internet, by trading internationally companies will design their Internet and e-commerce around the U.S. ... The government also deals with taxes related to e-commerce. When consumers purchase items from a store in a different state online, they do not have to worry about paying taxes on that item. ...

  • Word Count: 724
  • Approx Pages: 3
  • Grade Level: Undergraduate

3. Internet Taxation

Internet Taxation "2000 Problem Definition "Internet Non-Discrimination Act- was passed in 2000 in order to extend five years on "Internet Tax Freedom Act- (ITFA) which was due to expire in 2001. ITFA provides a three-year tax moratorium which has triggered a great deal of discussions and debates to the new business model of e-commerce and new types of transactions on the Internet. ... This "moratorium" on taxation of Internet and electronic commerce could have far-reaching effects on state and local revenues that "a new report by the General Accounting Office (GAO) claimed that s...

  • Word Count: 1188
  • Approx Pages: 5
  • Grade Level: Undergraduate

4. Kroger's Online Study

QRS has provided Kroger with e-commerce services to support online purchase orders, invoices and shipping notices. ... No sales tax. ... Therefore, there is a lack of confidence that exists in trusting Internet retailers. ... Lack of taxes reduces the tax revenues that states and cities might otherwise collect from traditional retailers. Traditional retail stores are at a disadvantage to Internet retailers due to the lack of Internet sales tax. ...

  • Word Count: 1145
  • Approx Pages: 5
  • Grade Level: High School

5. International Law & Cyberspace

Abstract Presently, the internet is considered the ultimate bastion of freedom throughout the world. The ability to participate in social media and write/say anything one feels is almost exclusive to the internet. ... History of the Internet The internet like many other dynamics of today's world is a mix of both positives and negatives. ... The history of the internet is much older and more involved than most of today's society can fathom. ... The marketing world also took notice and the internet business boom went into full swing. ...

  • Word Count: 6425
  • Approx Pages: 26
  • Has Bibliography
  • Grade Level: Undergraduate

6. Assessment of Technology

Such areas will include software design, e-commerce solutions, network solutions, email and web hosting. Possibly JK Consulting will look at also offering internet as a 2nd party which means buying connections from internet service providers and offering customized internet solutions to its clients. ... E-commerce will be offered which will be the implementation of 1024 bit secure online stores with Verisign digital certificates using JK's innovative shopping cart application developed in Sequential Query Language (SQL) and PERL, based in a Linux operating environment to cut down on lic...

  • Word Count: 3429
  • Approx Pages: 14
  • Grade Level: High School

7. Tenth Amendment

When invoked, the Tenth amendment has an interest in almost every aspect of our daily lives, including legalization of medical marijuana, abortion, gun free zones, driver's licenses, employment legislation, violence against women, and commerce. ... Maryland, the Court addressed the constitutionality of Maryland's taxing all notes not issued by her own state banks. Marshall, speaking for the entire Court, stated that the Bank of the United States, located in Maryland, was constitutional because Congress felt it necessary and proper for both levying and collecting taxes. ...

  • Word Count: 5600
  • Approx Pages: 22
  • Has Bibliography
  • Grade Level: Undergraduate

8. An Analysis of the Effects of the New Euro in Europe

A single currency is going to help Europe's commerce. Every country will have competent prices, wages and taxes. ... A single currency is going to help Europe's commerce in general. Every country will have competent prices, wages and taxes. ... US companies will also be benefited because they can compare prices within Europe, and the Euro will make buying through the Internet much easier. ...

  • Word Count: 2027
  • Approx Pages: 8
  • Grade Level: High School

9. ERP

Very broadly speaking, it refers to software that allows a company to share more information with its partners via the Internet. ... The shift toward B2B e-commerce puts an emphasis on accessing data that reside in the systems of suppliers, customers, and channel partners (Fulcher, 2000). ... "Today, we're moving towards collaborative commerce, or c-commerce. ... So the next frontier of ERP is incorporating internet in its applications. ... ERP II forms the basis of Internet-enabled e-business and collaborative commerce." 2 Specialization software The previous status that the product...

  • Word Count: 2315
  • Approx Pages: 9
  • Has Bibliography
  • Grade Level: Undergraduate

Got a writing question? Ask our professional writer!
Submit My Question