E COMMERCE – TAXING DILEMMA – part 3

The Internet tax issue gained national attention in the late 1990s.  State governors wanted the sales tax revenue, but Internet proponents said the Internet was still in its infancy and collecting taxes could have serious consequences for future growth.  Also concerns about taxing Internet access and usage.  By 11/1/2014 Congress has sent up the use of taxes for merchandise purchased on line, but so far no one has totally figured out how to do it.  Assuming the average sales tax is 5% ( 6.25% in TX), the states are loosing $11 billion in sales taxes not collected in 2013.  MORE TO COME.