What Are Internet Taxes?

The Internet Business Tax is a tax on online retailers planned by the United States. Once implemented, many Internet retailers such as Amazon will pay $ 23 billion in taxes each year.

Internet Business Tax

The Internet Business Tax is a tax on online retailers planned by the United States. Once implemented, many Internet retailers such as Amazon will pay $ 23 billion in annual

Faced with the martyrdom of state lawmakers, Internet retailers cited the 1992 U.S. Supreme Court's opinion on the case of Quill Corp and North Dakota, a catalog sales company: Companies can only respond to a situation when they own an entity in the state tax. To circumvent this ruling, some states have expanded the concept of "entity". For example, online retailers hire marketing companies or start subsidiaries. Previously, Texas lawmakers passed one such measure, but were rejected by the state's governor, Rick Perry. In addition to citing a 1992 U.S. Supreme Court ruling, online retailers have also stated that such interstate tax collection is complex and expensive to operate and that they do not use services from states that do not have offices. ^[1]

In addition, offline retailers are also very dissatisfied with this. Traditional retail giants such as Wal-Mart and Best Buy formed the Alliance for Main Street Fairness to promote the collection of business taxes on Internet retailers. They claim that online sales have created an unfair market environment. Many consumers turn to online purchases after consulting offline, but online retailers do not have to pay sales tax. ^[1]