Who Pays the Bell fo Internet Shopping?

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Foing to the mall may soon go out of style. These days more and more people are shopping from home over the Internet. In 1 electronic commerce took in approximately 18 billion from dhoppers by 00 that amount is expected to be 76 billion or more. These numbers are good news for the online stores and for online shoppers, who can anticipate increasing variety in e-commerece offerings. But because taxes are not collected on Internet sales as they are on purchases in almost allstates, online stores comete unfairly with traditional stores, and shoppers with Internet access have an unfair advantage over shoppers with no such access. to improve equity between online and traditional stores and between consumers with and without access to the Internet, tax laws should be reformulated to allow sales taxes to be collected on Internet purchases.

Internet commerce is regulated by the same tax laws that govern other commerc. However, in 1 the Supreme Court ruled that vendors do not have to collect taxes on behalf of states where they do not have a physical presence, because such collection would place an unconstitutional burden on interstate commerce. Buyers are supposed to send the correct taxes to gheir state governments voluntarily, but they rarely do and states currently have no way to collect. In a decision addressing mail-order sales but considered applicable to Internet sales, the Court’s majority urged congress to reexamine the tax laws governing inerstate commerce



The underlying issue is not only one that Congress may be better qualified to resolve, but also one that Congress has ultimate power to resolve. Accordingly, Congress is now free to decide whether, when, and to what extent the States may burden interstate mail-order concerns with a duty to collect use taxes. (Quill Corp v. North Dakota 18-1)






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