The Online Taxman Cometh

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Yes, Virginia, there is a sales tax. With Republicans no longer in control of the House, Forbes says this may be the last Christmas you’ll be able to dodge sales tax by buying that $350 iPod or $1,200 laptop online.

The Internet was just coming into its infancy in 1994 when Republicans took control of the House and Senate. Republicans have been steadfast in their resistance to taxing the Internet, but they may no longer be able to prevent it.

From the article:

“With Democrats in charge… ‘The stars are lined up better,’ says Harley Duncan, executive director of the Federation of Tax Administrators, which represents state tax officials… [But] this is hardly a done deal. The 4,700-member Direct Marketing Association is fighting any new authority for the states.”

It remains to be seen if the Internet will become the next tax revenue source. One thing’s for sure, Al Gore won’t come out and say he invented Internet taxation.

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