With the Internet growing in popularity every day, traffic on the Internet has doubled every 100 days (NCPA); the thought of taxing the Internet has become a heated discussion. Proponents of the tax say it will generate large profits for local and state governments through sales tax. While opponents state that the public has become accustomed to not paying taxes online, and that taxing would slow the rapid growth of Internet commerce.
The Clinton administration has decided not to tax transactions made over the Internet -- for the time being. Clinton adviser Ira Magaziner says the Net should be tax-free for at least five years. Presidential candidates seem to have also aligned together to pledge how they would stop the taxman plunging his grubby hands into cyber
Mings, Turley. The Study of Economics, Sixth Edition. Dushkin Publishing Group, United States, 1999.
National Center for Policy Analysis. "Regulation Policy: Taxing the Internet." [Online] http://www.ncpa.org/pd/regulat/regapr98g.html.
National Center for Policy Analysis. "Is the Sales Tax Obsolete?" [Online] http://www.ncpa.org/ pi/taxes/pd032400e.html.
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