State governments should be able to tax E-Commerce

 The shrinking of the tax base will have a disproportionate effect and further
jeopardize the already fragile economy of the developing world.
 There is a rapid growth of E-commerce, the sales of good and services over
the internet which stir about the proper tax regime of the government. Since
there is a shift from a physically oriented commercial government to a
knowledge based electronic environment.
 this could result to negative impact on not only retailers but also on local
communities because it risk states ability to collect the revenue needed for
education and other essential services. Dito dumadami na yung e-commerce
and since ang government di nakakapagcollect ng tax sa business without
physical presence kaya nga parang in a way treath siya kasi in a way na
madami yung ecommerce tapos di nala nasisingilan ng tax yung dapat na
makokolekta nila dun Malaki sana yung tulong sa community at the same time
sa pagdami ng ecommerce at madami din silang buyer nagleless yung tax na
nakukuha ng government ibig sabihin liliit din yung mga allotted budget para sa
iba pang bagay for the communities.
The internet tax freedom act harms state economies
 since may ITFA nga expected nan a walang tax sa interent access which is
wrong kasi in a way pag nagpurchase ka yung business may tax na nasisingil
sa online purchases. Yung IFTA prevents state from adapting new internet
specific taxes.
 Remote sellers are not required to collect the state and local sales/use taxes
except where they have a physical presence.
 The IFTA applies only to state and local not federal taxes on the internet. It
marks an extraordinary intrusion by congress into one of the most fundamental
aspects of federalism.
Problems with the current law
 IFTA provided the grandfather protection for the states that were already applying
these taxes on internet access at the same time of enactment.
Problem in perspective state
 It preempted the states in determining whether internet access should be subject
to taxation baka kasi magulo yung revenue sorce, state should be making the
decision about taxing internet access
 it has contributed to the myth that internet transactions are tax-free which is not
true.
 The troubling aspect of the vagueness of the definition of internet accesss
 Exacerbating an inceasing tendency of congress to ignore its own house and
intrude upon the responsibilities of the state.
 Establishing a level playing field
 Governors ate legislators and other sate organizations have worked hard to break
the stalemate on taxing retail electronic commerce
 Dito identify na kung ano yung mgadapat may tax at kung anong rate with the help
of federal government to restore the sales tac by requiring remote sellers to collect
sales taxes for state that simplify their taxes. Bastanagtutulong tulong sila
regarding this issue para maging maayos yung tax compliance and regime sa
Ecommerce