| Recent
Articles |
eBay, Not Going Down Without a Fight
eBay, Inc., known not only for revolutionizing the online auction industry but
also the way people shop, has purchased Skype - a VoIP service and software provider
- for about $ 4 billion.
Ecommerce
Sales Tax: What Next?
Sales tax for retail products sold on the Internet has been an issue for heated
debate for some time. Since most online retail is essentially a catalog order
from another state, in many cases, sales tax isn't charged. There is a movement
to get a federal law...
News
Corp Grabs IGN
News Corp announced today they plan to purchase the IGN Entertainment to add advertising
dollars. The IGN network covers a lot of ground with video games, movies, DVDs,
music, comics and tons of other goodies tied mostly to the oft coveted demographic,
18-34 males...
LinkShare
to be Rakuten's Biggest Acquisition Ever
Japanese Internet shopping portal Rakuten is buying Internet Capital Group partner
Linkshare Corporation for about $425 million in cash...
|
|
09.26.05
Ecommerce
Sales Tax: What Next?
 By
John Stith
Sales tax for retail products sold on the Internet has been an issue for heated
debate for some time. Since most online retail is essentially a catalog order
from another state, in many cases, sales tax isn't charged. There is a movement
to get a federal law passed that would force online retailers to charge sales
tax on products they ship out.
A great informative article at CNET gave some interesting insight from the matter.
The crux of the argument is this. The side for sales tax claims the revenues are
needed and that as it stands, it's difficult for traditional brick and mortar
businesses to compete since they do have to pay sales tax.
The other side, those against sales taxes, claim the measures are too expensive
and will break their model and until states can offer some type of good system
and the assistance to implement it, they shouldn't have to do it.
I'm sure I'm going to get some grief over this but I think the sales taxes should
be put in place. There's plenty of sales tax software out there for varying sizes
business. Also, many states offer a ton of programs to assist small businesses
but the businesses shouldn't receive help and incentives to integrate the programs.
Right now, a number of states are working to create a simplified and standardized
sales taxing system, one that would make it easier to implement but they're still
working on it, tweaking it. They are trying to get it through Congress but have
had minimal luck so far. Also, The Supreme Court weighed in prior case against
the taxation issue but a Congressional law may change that ruling.
"It
is way premature for the states to ask for or even deserve a federal mandate,"
said NetChoice Coalition executive director Steve DelBianco in the CNET story.
"No federal mandate should be given unless and until the states truly simplify,
compensate sellers for cost of integration and tax processing, and provide a robust
small-business exception that's adjusted over time."
The reality of the situation is retailers open and close every day and all the
brick and mortar establishments charge sales tax. While some businesses may take
a hit, they should still be subjected to the same rules as everyone else. Unfortunately,
many states do need that income they lose as more and more people move online
for their purchases. While a number of major companies like Wal-Mart do charge
sales tax, many others don't. Charging sales tax is the cost of doing business
and honestly, if states can get it through the federal government, then they probably
should.
As an online shopper, I like to occasionally have cheaper goods. I also like paved
roads, better schools and other things the state provides for with a sales tax.
In the end, the sales tax will come about. It should happen without incentives
to businesses or even financial recompense for said industries. It's the cost
of doing business.
About
the Author:
John Stith is a staff writer for WebProNews covering technology and business. |
|
