E-Taxes And Federalism: The Internet E-conomy Is Virtually Redefining The U.S. Tax System
The question is whether or not (and how) Congress should employ a new sales tax policy to interact with electronic commerce. This matter has put Congress at odds with the states on the subject of federalism and has recently become one of the most talked-about issues in partisan politics.
Those that support continuing the exemption from taxing e-commerce and mail order shipments usually tend to be conservative. These individuals claim that trying to implement traditional tax rules would negatively benefit this new division of the economy and that e-commerce poses only a minimal threat to traditional businesses, since internet companies tend to go out bankrupt.
Those in favor of developing a taxation plan for e-commerce argue that transactions should be taxed to benefit the state and local governments, citing the millions of dollars that are
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