Internet Tax
Description:
The potential growth in the use of the Internet to advertise, sell, and deliver goods or services has caused tax administrators to consider new methods on income and sales tax bases and on compliance and the administration of tax law.
Internet, which originates at one computer and can interact with many computers across the world, significantly complicates the characterization of potentially taxable services. For example following questions might be raised. Does each tax administrator in which such electronic equipment is located have taxing jurisdiction over each transaction involving with that equipment? What rules govern if differing tax laws are applied? The protection from multiple taxation also can be quite difficult to identify for Internet transactions.
Since 1998, The U.S. Congress has imposed a moratorium on internet-related taxes. (1998: Internet Tax Freedom Act, 2003: Internet Tax Nondiscrimination Act )
Enablers:
Factors which strengthen this driving force. (these are actually other driving forces, and you can link to them in the wiki!) 1. Some states'(local governments') revenues have been declining substantially at a time when necessary and desirable state expenditures have continued to grow. 2. Non-US government tax policy. ( EU, Germany)
Inhibitors:
Factors which weaken this driving force. (these are actually other driving forces, and you can link to them in the wiki!) 1. The US government law. Bush believes that the Internet continue to grow and help the US economy. 2. The voice of consumers and companies. The internet tax would be harmful to consumers, destructive to technological innovations, and bad for the economy.
Paradigms:
Taxing authorities view Internet service providers as providing one or more of several taxable services: information services; data processing services; telecommunications services; advertising services; computer software; etc., which will have the significant impact on the growth of the Internet.
Experts:
NoInternetTax.org Christopher Cox
Timing:
1998: Internet Tax Freedom Act
2003: Internet Tax Nondiscrimination Act