This 5 page paper reviews this topic in a specific manner. A proposal is made for a new Pennsylvania law to tax online purchases. Principles regarding the issue are also discussed more generally. Bibliography lists 3 sources.
Name of Research Paper File: RT13_SA333tax.rtf
Unformatted Sample Text from the Research Paper:
there is little regulation regarding the Internet, international transactions are simple. While that is the case, and people argue against more taxes, the truth is that the transactions that occur
are similar to those that occur in respect to interstate commerce. Generally speaking, for the most part, when individuals buy things out of state, they are supposed to report it
and pay state taxes to their own jurisdiction. The problem is that many people buy things in other states here and there, when they are on vacation and so forth.
They may buy a shirt or a pair of sunglasses and would never think of reporting that. Similarly, when someone buys a CD from Amazon.com and is not charged tax,
they think little of it, except for the money they save. Yet, they are engaging in a purchase. They technically should pay tax if their state taxes such merchandise. Much
revenue is lost when taxes are not paid on such purchases. In looking at this subject, it helps to have concrete examples. A proposal for one state can help to
rectify the situation. The Pennsylvania Internet Sales Tax Law of 2003 would be a tax specifically for Internet purchases that are made out of state, where sales taxes are
not collected. The law should mandate the submission of tax by purchasers of any item that costs $500 or more. The reasons for the limitation is that the problem is
just too vast to address and many minor purchases are made on a daily basis. These would be just too difficult to track. However, when anyone makes a purchase over
the Internet for any items that are taxable in Pennsylvania, the seller must furnish the Pennsylvania state department with the information. When taxes are filed for state income, the state