Taxing Internet Transactions
New York state wants a bit of the revenue that is exchanged on internet purchases. The state is planning to place a tax on internet transactions:
“NEW YORK (CBS) - New York Internet shoppers, take note: in five weeks, sales tax-free shopping will end on many Web sites thanks to rewritten state rules that are trying to force Internet retailers to collect.”
link: N.Y. Orders Large Web Retailers To Charge Tax
If the tax plan is followed, it will generate a significant tax revenue for the state. However, if a buyer of some merchandise is in California, Australia or Greenland and purchases from a New York state company, why should that individual be force to pay the tax? The tax would benefit New York and it would act as a penalty for out-of-state buyers to do business online with New York state merchants.
Legislation such as this might generate state revenue temporarily. However, once businesses realize a decrease in revenue, those operations will move their corporate identity offshore and away from the tax burden. The internet business can relocate and have an identity in a tax free haven. The short term gain for New York state may result in long term pain.
Catherine Forsythe
Tags: Business, corporate identity, Internet, legislation, location, new york state, tax
Get SkypePro for free local calls
Here are some other related posted by this author...
You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.
Leave a Reply