The Internet’s economic role has increased dramatically over the past decade. Along with many benefits, e-commerce has brought with it some important policy questions. One question relates to tax policy, and whether Internet transactions should be subject to sales or use taxes. This paper examines that question, considering factors such as feasibility, efficiency, fairness (virtual v. “brick-and-mortar” retailers), and legality. The relationship between e-commerce tax policy and state and local government revenues will also be addressed. Based on these factors, the evidence suggests that taxing Internet sales would be feasible, efficient, and provide revenue for important public services.
Major Themes in Economics
©2003 by Major Themes in Economics
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Scudder, Jeffrey A.
"E-Commerce: Choosing the Appropriate Tax Model,"
Major Themes in Economics, 5, 3-19.
Available at: https://scholarworks.uni.edu/mtie/vol5/iss1/3