Taxation

Student’s name
Professor
Course
Date
E-commerce Taxation
Where do you stand on taxation of e-Commerce?
I support the taxation of e-commerce. The state has a right to tax any sector to help raise revenue to fund important government activities. E-commerce generates huge revenue from online sales and other commercial operations. As such, it is appropriate that some form of taxation be levied on e-commerce. The tax should be uniform on all e-commerce activities, collected electronically and the proceeds remitted to the federal government.
What are the benefits of tax-free internet zones for online businesses?
Internet tax-free zones have numerous benefits for online businesses. Tax-free zones encourage business growth since it lowers the operational costs. Low operation costs are desirable mostly to small businesses as it increases revenues thus allowing them to expand (Nellen 6). Additionally, tax-free zones enable the prices of products sold online to be competitive with those sold in brick-and-mortar stores. They also attract foreign direct investment.
What are the detriments of tax-free internet zones for state and local taxing authorities?
Despite their numerous benefits, tax-free internet zones can deny the state and local taxing authorities vital revenues from tax collections. Since most businesses are transitioning to e-commerce with the sector registering swelling numbers every year, internet free zones lead to loss of tax revenues from such businesses. …