Will Internet Purchases be tax Free?

The tide may be turning towards a tax-free Internet purchase zone if Virginia Governor James S. Gilmore III has his way. As head of the Advisory Commission on Electronic Commerce, Gilmore has recommended, among other provisions, that levying taxes on virtual purchases would discourage the future of e-commerce.

His suggestions also include repealing a federal excise tax on local and long-distance telephone service, and for states to be free to spend welfare money on computers and Internet access for poor people. Savings for the the provision on telephone service would bring consumers more than $3 billion each year.

The Governor's recommendations come at the heels of what was an understanding on the panel that Internet purchases would indeed be taxed. Those on the tax-side of the fence favor the levies because it will otherwise promote competition among any retailer who does not have an online presence.

You may like these other stories...

If you're thinking that bitcoin and digital currency generally are merely some one-off flash in the pan, the new Digital Currency Council would argue otherwise. The council launched in September and already had 400...
Sponsored Content from Confirmation.com: AccountingWEB takes a look at confirmations in audit engagements, how they can serve as a doorway to fraud, and what you can do about it. Today, auditors have to fight fire with...
If your small-business clients are on the fence about cloud accounting, they've got plenty of company. A recent survey by market researcher and consultant Software Advice indicates a decidedly mixed view by respondents...

Already a member? log in here.

Upcoming CPE Webinars

Oct 22This webinar will include discussions of important issues in AU-C 800, Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks.
Oct 23Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.
Oct 30Many Excel users have a love-hate relationship with workbook links.
Nov 5Join CPA thought leader and peer reviewer Rob Cameron and learn ways to improve the outcome of your peer reviews while maximizing the value of your engagement workflow.