Congress considers Web sales tax

Published: 30 April 2001 y., Monday
There is little doubt lawmakers will extend a moratorium expiring this October that bars taxes on Internet access and prohibits taxes that single out the Internet. The bigger question: What to do about sales taxes? While laws in 45 states say those taxes are owed, they rarely are collected. At stake are billions of dollars in revenue for state and local governments as well as tax fairness between traditional brick-and-mortar retailers and their Internet and catalog competitors. Congress' General Accounting Office has estimated that uncollected sales taxes on Internet purchases could cost the states $12.5 billion in 2003. Remote sellers, meanwhile, say complying with thousands of different taxing jurisdictions would create a costly new burden - and could lead to imposition of more taxes in the future. The taxes are not collected now mainly because of the Supreme Court, which has ruled that a business must have a physical presence - such as a warehouse, a retail store or an executive office - before a state can require sales tax collections on out-of-state purchases. Few states have tried to force their citizens to pay the tax from remote sales on their own. In the Senate, negotiators have tentatively agreed on an extension of the moratorium through 2006. The measure would also expand states' sales tax collection authority, but only if at least 25 states simplify their own multiple tax rates. Congress would still have to give final approval to the new system.
Šaltinis: nandotimes.com
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.

Facebook Comments

New comment


Captcha

Associated articles

Hewlett Packard to launch dual-screen desktop computer

Hewlett Packard is due to launch a new desktop computer in the UK, with pre-release users currently including interior designer Sophie Conran and her son Felix Conran. more »

Unisys names new CEO

Unisys Corp. the Blue Bell computer services and systems company, said it named Peter A. Altabef as president and chief executive officer, effective Jan. 1. more »

Tim Richards appointed as IBC chairman

IBC has named Tim Richards as the next chairman of its Partnership Board. He will take over from Mike Martin, who retires at the end of 2014. more »

Unisys to provide data centre support services to DISA

Unisys has won a contract to provide the US Defense Information Systems Agency (DISA) with a range of data centre support services. more »

Microsoft partners with Cisco to modernise data centres

Networking solutions giant Cisco today said it has signed a multi-year agreement with software major Microsoft to modernise data centres. more »

Cisco Positioned as a Leader in the Gartner Magic Quadrant for Wired and Wireless LAN Access Infrastructure

Cisco, a leading provider of wired and wireless network solutions, today announced it has been positioned by Gartner, Inc. in the Leader's quadrant of The 2014 Gartner Magic Quadrant for the Wired and Wireless LAN Access Infrastructure. more »

Cisco to build global InterCloud for 'Internet of Everything'

US giant Cisco Systems has announced plans to build a global InterCloud - the world's largest network of clouds - in collaboration with a set of partners. more »

Microsoft seeks Office for Android testers as it readies tablet version

Microsoft may have released a basic Office app for Android phones almost a year ago, but the company is now building a suite designed specifically for Android tablets. more »

Google Docs now allows editing of Microsoft Office files

Google Docs now offers its users with the option of editing all types of Microsoft Office. more »

Cisco buys cloud collaboration startup Assemblage

Cisco announced today that it has acquired cloud platform startup Assemblage, as the company continues its focus on enterprise collaboration. more »