Question

Should E-Commerce Be Taxed? 1. What is the main argument in support of an e-commerce sales tax? 2. Why does the DMA think it is not possible for online merchants to implement a sales tax? 3. Which opinion do you agree with and why?

please do all the questions！Thx

Answer 1

Q1) The main argument argument in support of an e-commerce sales tax is that, the e-commerce has become a leading and improving way to trading. Depriving it with tax is causing a significant amount of tax revenue of the government to loose,

Q2) DMA states that there are currently 7600 tax jurisdictions in the country, which includes states, counties and municipalities and even block by block areas that collect additional sales taxes, such sa sewer districts etc. Currently, only businesses with a physical presence within a state are required to collect taxes.within the jurisdictions within that states. Such tax liabilities can also becoma a barrier for new small enterprises to enter, and the medium sized business to grow into the e-commerce market.

Q3) In my opinion, a new separate tax bill should be introduce by the government, only for e-commerce business bodies, which should be imposed as one and only tax liability for the e-commerce enterprises and the tax amount should vary from the business scale of the enterprises. In this way, there will be a significant revenue generation of the tax by the govt., as well as, there will be no or less problems for the new small scale enterprise to enter into the market and medium sized business can also grow.