tax loss by the government???


S

sunny

Could anybody tell me how much money is lost by the federal
government by allowing most of the online shopping free of
tax. If this is a huge amount, then we know that there is
large amounts of orders coming online from international
buyers who are getting their commodities tax free. All this
amount is going waste. I think if the government wants to
cover that amount lost through online shopping, they have to
tax the citizens. Does anybody have any idea how much each
state is losing in this way? Thank You.
 
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A

A.G. Kalman

sunny said:
Could anybody tell me how much money is lost by the federal
government by allowing most of the online shopping free of
tax. If this is a huge amount, then we know that there is
large amounts of orders coming online from international
buyers who are getting their commodities tax free. All this
amount is going waste. I think if the government wants to
cover that amount lost through online shopping, they have to
tax the citizens. Does anybody have any idea how much each
state is losing in this way? Thank You.
http://cber.bus.utk.edu/ecomm/ecom1001.pdf
http://cber.bus.utk.edu/ecomm/ecom0901.pdf
 
P

Paul A Thomas

sunny said:
Could anybody tell me how much money is lost
by the federal government by allowing most of
the online shopping free of tax.
By the Federal government, none. The gains or profits are
taxed as any other business or individual.

Now, there may not be any "new" state taxes imposed on
internet transactions. But, the same sales tax laws apply
to an internet sale as to any other type of sale. As does
state income taxes.
Does anybody have any idea how much each
state is losing in this way?
I'm sure each state has some idea of their losses due to
on-line purchases from buyers in their state that do not pay
any state sales tax (or use tax) on those purchases. And
they (the states) have been trying to close that loophole
and collect the tax under existing sales/use tax laws. Many
states have included a line item on their state income tax
returns that deal specifically with internet purchases and
the computation of the sales/use tax.

And I'm sure that would be an audit item for those state's
auditors.
 
F

Frederick Jorden

sunny said:
Could anybody tell me how much money is lost by the federal
government by allowing most of the online shopping free of
tax. If this is a huge amount, then we know that there is
large amounts of orders coming online from international
buyers who are getting their commodities tax free. All this
amount is going waste. I think if the government wants to
cover that amount lost through online shopping, they have to
tax the citizens. Does anybody have any idea how much each
state is losing in this way? Thank You.
That sales are being generated to non US residents by US
companies on the web sounds mighty good to me. Generally
sales delivered to non residents is not taxable anyway.
 
R

Rich Carreiro

sunny said:
Could anybody tell me how much money is lost by the federal
government by allowing most of the online shopping free of
tax.
Probably close to zero, since there is no federal sales tax.
Even if you shop in physical stores you don't pay any tax to
the federal government.
If this is a huge amount, then we know that there is
large amounts of orders coming online from international
buyers who are getting their commodities tax free.
How on earth do you figure that? Just what exactly is the
tax you think is being avoided by online orders from
"international buyers"?
 
S

Seth Breidbart

sunny said:
Could anybody tell me how much money is lost by the federal
government by allowing most of the online shopping free of
tax.
$0; federal taxes apply to the extent they always do.
If this is a huge amount,
Not to me.

Seth
 
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P

Phoebe Roberts, EA

sunny said:
Could anybody tell me how much money is lost by the federal
government by allowing most of the online shopping free of
tax.
1) The federal government doesn't lose anything.
2) Online shopping isn't free of tax. If the merchant
doesn't charge you sales tax, you're legally obligated to
pay use tax. Your state tax department will be happy to get
your check.
large amounts of orders coming online from international
buyers who are getting their commodities tax free.
Orders to be shipped overseas wouldn't normally be subject
to sales or use tax.

The problem with sales tax is that jurisdiction and
taxability can't easily be determined by anyone, including
the customer. You have no idea how many merchants think
sales tax rates can be determined by ZIP code, because their
software says it can.

Phoebe *who lives outside the city limits and isn't subject
to city sales tax* :)
 
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D

D. Stussy

sunny said:
Could anybody tell me how much money is lost by the federal
government by allowing most of the online shopping free of
tax. If this is a huge amount, then we know that there is
large amounts of orders coming online from international
buyers who are getting their commodities tax free. All this
amount is going waste. I think if the government wants to
cover that amount lost through online shopping, they have to
tax the citizens. Does anybody have any idea how much each
state is losing in this way? Thank You.
By the Federal government: Zero. Sales taxes are imposed
at the state government level and below.

The question regarding States' revenue is the "real"
question. The states can't monitor interstate shipping
because that supposedly violates the Commerce Clause of the
U.S. Constitution.
 

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