Internet Taxation
The advent and expansion of the Internet have brought the issue of the application of state and local sales taxation to Internet, telephone, catalog, and other "remote sales" to the forefront of the policy debate. Under current law, states cannot require corporations without a substantial presence within their borders to collect and remit sales taxes. While all states do require residents to remit the taxes owed in the form of use tax payments, few people send in use tax forms, rendering remote sales essentially tax-free. The revenue loss due to the lack of taxation on Internet sales has been minimal thus far; however, states are concerned that the growth of the Internet will lead to a substantial drain on revenue. After extensive research and consideration, the committee recommends against implementing a tax on Internet sales transactions. Reasons are discussed below.
Background
In 1999, the National Conference of State Legislatures (NCSL) and the National Governors Association tasked state revenue departments with the responsibility of evaluating the sales-tax system, as it existed at that time and to radically simplify the system (Field, 2005). Online retailers have long fought against such moves. They have done so both because of the aforementioned complexity of the various states tax codes and because whichever company would first require its customers to pay sales taxes would face a competitive disadvantage (eWeek, 2003).
According to ( )"Both sides in this debate point to a pivotal U.S. Supreme Court decision in 1992, which essentially said that states cannot force businesses to collect sales tax...
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...e of forcing an online retailer to determine the applicable sales tax rates and tax classifications for every local jurisdiction of every state. (Baudier, 2006, para 2).
Non-Economic Reasons
Finally, there are good non-economic reasons not to grant the state new tax authority. Most obviously, out-of-state retailers don't benefit from government spending in the same way that local businesses do, and worse, they have no way to influence the political process in distant jurisdictions. Forcible tax collection for distant governments is "taxation without representation," and is manifestly unfair.
According to the data obtain from the United States Census Bureau; the state of Texas received the amount of $ 24,500,909 in sales tax revenue in the year 2012, Tennessee $6,512,352, and Utah $1,857,055. The sale tax in Texas percentage is “6.25 % to 8.25% depending on the local cities; Tennessee charges “7%, but the number can vary from 1% to 2.75 %”; Utah is “4.70% to 7.95%. Texas population is approximately 26,06 million; Utah 2,855 million, and Tennessee is 6,456 million by 2012; These numbers show that the state of Texas is bigger in size and population than Tennessee and Utah; however the sales taxes revenue is lower han Tennessee, but higher than Utah’s.
A Louisiana attorney is constantly asked by non-Louisiana peers if the state ever adopted the Uniform Commercial Code or if they are still using the old, outdated, Napoleonic Code. Though Louisiana has stark interpretations of the relevance of the UCC, the state has adopted the code in piecemeal. This article is a partial synopsis of introducing readers to a few of the concepts of UCC as adopted by Louisiana compared to the existing principles of the law of sales.
The FairTax Act will replace these costly, oppressively complex and economically inefficient taxes with a progressive national retail sales tax, which would be levied on the final sale ...
the example of taxation which is the first of its kind on this particular product. The author is
as other states such as Tennessee and Ohio are prime examples on how states are able to
Not having a state income tax has many political implications. Many people claim not having a state income tax means their is no state government in the people's business this appeals to people with conservative values. People with these types of values lean toward Republicans, they like small government control over their money. While others end up keeping more of their money, they still are not able to afford the increasing average cost of living. Making lean towards the Democratic Party, because they like programs that help out low income level
The collection of taxes is an important concurrent power delegate to both state and national powers. Taxes are collected in various ways such as the tax on certain food items, and other items. Both state and national powers have to enforce and pass laws. If one body of the system does not enforce the law then the other will. Just like the legalization of marijuana, this is a controversial topic but is a very important example in today’s events. Since there are certain states in the United States of America that have already legalized marijuana the national powers can overlook the state laws and take federal action against those breaking the national law. The establishment of courts is an essential concurrent power that is needed in both state and national powers. As well as highways are needed for the people and national powers. Highways are also made to be convenient for both parties and to accommodate the wellbeing of the people. For example, the drinking age was once 18 and the states then suddenly rose the drinking age to 21 years of age. This accommodation was made to protect the younger kids that were drinking and driving and put the rate of deaths on the highways down. Of course the national powers had a sort of agreement with the state powers so that the funds would still be available. This specific mandate is called a unfunded mandate, one of the congressional strategies to influence state policies (Barbour and Wright, 87-88.) Although the powers are said to be concurrent there are always loopholes to what the national government wants from the state
.... While the Governor’s veto of the bill prevented it from becoming law, its adoption by a majority of both houses of state government reflect a growing trend towards the legitimacy of the federal government.
Federal laws and regulations requiring specific action from state and local governments without providing federal funding to pay for it are called “ unfounded mandates.”
Taxes in the United States include payroll taxes, property taxes, sales taxes, and a multitude of others. These taxes may be imposed on individuals, business entities, estates, trusts, or other forms of organizations. In general, there is a lot of inquiry on the current tax system. With endless loopholes, a regressed economy, and corruption there has been widespread anger on the current structure of taxation. Consequently, the wealthy have managed to become even richer despite the economic crisis. Furthermore, many taxpayers in the upper class have found loopholes to avoid substantial taxation or otherwise known as tax evasion. (Stewart 2013) Tax evasion has only grown over the years and with the national debt has become a major issue. What is more, is the intense complexity of the entire taxation process. Addressing all the issues and problems regarding the taxation structure is a meticulous and arduous process. With this in mind, politicians from both parties have tried to address individual issues within the taxation paradigm. Being that the United States has the highest corporate tax in the globe, politicians have tried to change policy regarding taxation on businesses. (Sullivan 2013) How...
The current state of federalism in the United States is of one of peril, plagued with recent Supreme Court rulings, current debates over the devolution of Federal powers, and variance in State governing. The United States has always been troubled with the role of the Federal government V. State government on numerous issues. Since around the time of the Great Depression, the federal government was charged with the taking care of the American public in many social and economic matters. Congress was then granted by the Supreme Court almost complete power in passing any sort by legislation by relating it somehow to the Commerce Clause. The Commerce Clause found in Section 8, Article I, United States Constitution, states that Congress may regulate any and all commerce between foreign nations and the states. Congress simply related almost all legislature in some way to intrastate commerce, therefore making the passing of their legislation constitutional. This system was greatly used by Congress for almost sixty years, when, in the late nineteen-eighties and early nineteen-nineties many individuals and special interests groups challenged the constitutionally of these laws passed by Congress using the Commerce Clause. In several cases, such as United States v. Lopez, Congress was dealt a powerful blow and the states seemed to gain an upper hand. In a 5-4 decision, the Court ruled that Congress had exceeded its authority under the Commerce Clause by enacting the Gun-Free School Zones Act of 1990. This, along with many other laws repealed by the Supreme Court, weakened Federal control and gave power back to the states, a grievous mistake in my opinion. This increased the strains on the role of federalism in the United States and once again brought up the question, who has the power to govern what? In addition to this, federalism has taken a frightful turn with the current debates of devolution, or returning power to the states. Many current Congressmen and citizens alike believe that states should have a greater level of sovereignty and that federal power should be weakened so as to strengthen state governments. In contrast, many others believe that the Federal government should be allowed more power. This and other conflicting ideas have lead to a constant strain on the abilities of the government to best carry out its duties.
The use of taxes is one of the government's favorite ways to make its presence known in the economy. While this method seems blatantly obvious, many of the ways the government uses the money collected by taxation is not. Some of the money it takes is used to fund other programs designed to "protect" consumers and to "create" jobs. Be...
The legalization of marijuana will have a huge impact on the economics of the United States to the point that I feel that government will assist in the continuation of these companies. If it is passed in the government the selling of marijuana could generate millions of dollars in tax revenue. Colorado is the latest state that has approved the selling of marijuana for recreational use. This topic has been tossed around by the officials for years now. Legislators in Colorado have “consider excise and sales taxes on marijuana of up to 30 percent combined” (Frosch, 2013). With the rapidly growing market and marijuana industry rules and regulations had to be put into place. Even this tax charge needs to be implemented and enforced. “These taxes are set high enough to finance the administration of new laws, but not so high that customers are driven back to the black market” (Frosch, 2013). There are many financial benefits as a state can help pay for the enforcement and other fundamental issues. One bad thing about taxing so high is that you can simply crowd out the regulated market. It is important to find the right balan...
The internet has been one of the most influential technological advancements of the twenty-first century. It is in millions of homes, schools, and workplaces. The internet offers not only a way of communicating with people around the world, but also a link to information, shopping, chatting, searching, and maps. This freedom to be anyone and to "go" anywhere right from the comfort of home has become a cherished item. However, there is always a down side to every up. Because of the freedom to post anything and access anything on the internet, the issue of regulation has arisen; for example, what should and should not be allowed on the internet? Who has the right to regulate this space that we cherish for its freedom?
F J Chaloupka, K. M. (2002). Tax, price and cigarette smoking: evidence from the tobacco documents and implications for tobacco company marketing strategies. Tobacco Control, 62-72.