How would you feel if the electronic commerece was taxed?
Electronic commerce consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks.
There are two fairly good arguments for each side, whether the electronic commerce should be taxed or not.
Since the e-commerce is not taxed there is not much discouragement to trade things over the internet if there was a taxed commerce. Thus some may say that because of the Internet tax freedom act information expanded exponentially.
Bush said, the US economy is in an economical downturn aka recession. By taxing e-commerce, the government will receive more funding in which the government may spend more money for the internet. It is said that for each dollar the government puts in, the amount gets multiplied by a few folds. Thus taxing internet commerce would bring the US out of a recession.
I feel that the e-commerce is better left untaxed but I am wondering if there are more arguments for taxing e-commerce?
As far as I know, e-commerce is taxed just as any trade business, consumers pay VAT and the companies pay a business tax.
You might refer to the fact that some companies doing e-commerce are off-shore, but this is counter-balanced by the fact that they have to build a reputation, as buyers aren't protected by laws when they deal with them.
As for the rhetorical question, I'm not in favour of taxes on trade because they're heavily unfair (I'm in favour of as much progressivity as possible in all tax systems).
Video glosario de eCommerce - E-Government
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