THE SALES TAX AND ELECTRONIC COMMERCE - SO WHATS NEW

Authors
Citation
Wf. Fox et Mn. Murray, THE SALES TAX AND ELECTRONIC COMMERCE - SO WHATS NEW, National tax journal, 50(3), 1997, pp. 573-592
Citations number
23
Categorie Soggetti
Economics,"Business Finance
Journal title
ISSN journal
00280283
Volume
50
Issue
3
Year of publication
1997
Pages
573 - 592
Database
ISI
SICI code
0028-0283(1997)50:3<573:TSTAEC>2.0.ZU;2-G
Abstract
This paper takes a pragmatic look at the appropriate sales tax policy for the Information Highway, composed of Internet/on-line service prov iders, content, hardware/software, and telecommunications transmission . Our general conclusion is that the sales tax should be designed to b e largely consistent with the current structure. At the same time, we argue for a more inclusive approach to taxing final sales and a more l iberal treatment of business input purchases. Specifically, we argue f or destination-based taxes; an economic concept of nexus preferably en abled through Congressional action; a direct use rule for exemption of business purchases; and the enumeration of nontaxable as opposed to t axable transactions. Neutrality should be enhanced by taxing similarly all functionally equivalent activities.