New Internet Tax Scheme Presents Another Method | AccountingWEB

New Internet Tax Scheme Presents Another Method

A group that provides guidance on how to expand the Internet has come up with a proposed solution to the taxing of goods and services over the Internet, and will present the solution on Friday, Oct. 13. This time, the solution is very simple.

A committee of the National Academy of Science's National Research Council is recommending that everyone pay the same tax rate regardless of where they reside or the state in which the vendor is based. Called a 'flat tax,' the tax would be collected by the vendor.

Sounds good in theory, but a flat tax-based system probably won't work, according to Karl Frieden, a partner with Arthur Andersen, author of Cyber Taxation: The Taxation of E-commerce.

Frieden says the flatter a tax is, the more uniform the program, and as a result, the more objection there is to it by states because it speaks against the ability for each state to run its own government as it pleases.

Wait, there's more!
There's always more at AccountingWEB. We're an active community of financial professionals and journalists who strive to bring you valuable content every day. If you'd like, let us know your interests and we'll send you a few articles every week either in taxation, practice excellence, or just our most popular stories from that week. It's free to sign up and to be a part of our community.
Premium content is currently locked

Editor's Choice

WHAT KIND OF FIRM ARE YOU?
As part of our continued effort to provide valuable resources and insight to our subscribers, we're conducting this brief survey to learn more about your personal experiences in the accounting profession. We will be giving away five $50 Amazon gift cards, and a $250 Amazon gift card to one lucky participant.
This is strictly for internal use and data will not be sold
or shared with any third parties.