Advantages of Taxation of Goods and Services Sold Online

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Advantages of Taxation of Goods and Services Sold Online As the number of goods and services sold online continues to grow, the debate on whether goods and services sold online should be taxed continues to get more important and relevant. The definition of taxes is a compulsory to state revenue, levied by the government on workers’ income and business profits or added to the cost of some goods, services, and transactions. Downloaded digitized goods that are near-perfect substitutes for goods sold on physical media that all states with sales taxes already tax are computer software, computer games, e-books, music, and movies. According to the Center on Budget and Policy Priorities, fourth-five states and D.C. levy sales taxes, twenty-one states tax all of five major categories of digital goods, eleven states tax only software and games, and twelve states tax none. A new bill passed by the U.S. Senate titled, The Marketplace Fairness Act, a proposed legislation pending in the United States Congress that would enable state governments to collect sales taxes and use taxes from remote retailers with no physical presence in their state. This bill will require all online retailers to collect sales taxes for the states where they ship goods. A good thing about this new bill is that it will level out the playing field for online and physical stores. The larger stores are already required to collect sales taxes involved with online sales. However, stores that do not have a physical store but only an online store have an unfair advantage. If there was tax on all internet sales it would protect the revenue base and Main Street businesses. Other services that are important to the growth of the economy are taxed, so e-commerce and internet shopping should not have special treatment as for it too is important to the growth of the economy. “In the U.S. Supreme Court decision

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