Analysis : Addressing The Tax Challenge Of The Digital Economy

Digital Media has influenced or changed the field of e-commerce. The changes for the consumer are a larger selection of items as well as the ability to purchase items anytime anywhere. Also, they now have the ability to price compare and find the best buy. For the seller, they have access to more customers. Websites allow anyone from around the world to shop at a store. No longer is a business owner limited to their local clientele. Anyone from anywhere is a potential client.

This definition conveys an idea of the extraordinary impact of digital divide on world society and economy. Indeed, it is the close interrelation between economy and technology that attaches such a worldwide significance to a single socio-economic occurrence, such as digital divide. Nowadays, communication technologies, strongly stimulating economic growth, are the grease, which helps the wheel of global economy go round. Internet, for instance, has revolutionized the way we trade,

“Modern economies are highly dependent on information systems and networks connected to “cyberspace” a virtual world with a population of several billion and growing.”

Electronic business, or e-business or "electronic commerce"(55) has increased exponentially because so many businesses are on digital networks. Major business transactions are completed on the enterprise. Digital networking is transforming businesses relationships with the companies customer, their employees and relationships with suppliers and partners in business. E business technology is also improving the way business is done in the government. The government uses the Internet to enable and increase business

An increase in Internet maturity, correlates with an increase in real per capita GDP on average of $500. Looking back to the Industrial Revolution, it’s growth took 50 years to achieve these same results. This demonstrates both the magnitude and impact the internet delivers to all levels of society. In the French Economy, the internet had reported to have destroyed 500,000 jobs over the past 15 years, but has also over those same amounts of years has created 1.2 million new ones. For every job the internet has taken away, it’s created twice the amount. It’s safe to the internet has been able to increase the worlds GDP bringing great growth to the

The internet, a new form of communication between computers developed by the military in the 1980s, would have an unprecedented effect on business. During the 90s, business old and new began to make their appearance on the internet. Although, at first, it was a new and dangerous medium, causing many businesses to fail in the Dotcom bubble, the internet caused business and economy to flourish for years to come. US investment in the internet and computers helped it gain much economic power in the 90s and 2000s, leaving other nations who neglected their potential in the

The recent introduction of the hybrid entities has shielded the foreign firms from paying their appropriate taxes through the shielding of the taxable income and through using the foreign tax amounts on the other incomes (Messina, 2015). In this regard, only minimal taxes are remitted from the revenue generated by the local firms. Besides, people tend to evade tax charged on dividends and interests by not giving honest reports pertaining to the revenue generated abroad. Furthermore, individuals evade the taxes through transferring their funds to foreign accounts. Fortunately, the IRS can address the issue of tax evasion by changing the existing tax laws to remove the deductions and other restrictions, for instance, the foreign tax credits. Besides, it is vital to impose restrictions to curb tax evasion at a personal level through the desired policies of better information reporting and tougher penalties for the

It cannot be denied that the internet has changed the way the world operates. Products that we never thought possible have become the norm; connecting across the globe is nearly seamless; and, as Bill Gates stated in his speech at COMDEX in 1990, information is truly at our fingertips.These things are good. They help businesses and people operate at higher speeds and efficiencies, but we often stop here, not considering the impacts of these changes beyond their immediate good. The purpose of this paper is to point out some ways that the internet has failed us, or rather how we, as a society, are failingas a result of community digitization.

In a world where technology is being constantly innovated, there are some people who are bound to fall behind. Particularly because information and communication technologies have brought significant changes to improve countries across the globe politically, economically and socially and over the past few decades, there has been r in people’s reliance and use of the Internet. The gap between those who do and those who do not have access to the Internet is known as the digital divide. This is a major issue internationally because information and communication technology can empower and benefit society socially and economically to share facts and express their values, virtues and other opinions. Some countries that are greatly impacted by the

Importance of investment in digital technology. The private business investment spend on IT Technology consisting of hardware, software and communications equipment grew from 14% in 1999 to 33% in 2013 (2) This upward trend has been driven by customer’s and their use of digital technology via smartphones, tablets and computers.

Reading the cases about E-Biz in Baltzan (2013), the examples of the “Million Dollar Homepage” and the “One Red Paperclip” (pp. 198-200), really sends the entrepreneurial mind spinning. The thoughts of “How else can one use the internet to raise money?”, “Which businesses might benefit from e-trade on the internet that are not already there?”, and “What other disruptive, nontraditional ways might the internet be used?”, all immediately flood the brain after reading the two examples presented in this exercise. Well, presented here is this author's response to the exercise.

The logical conclusion of technological innovations is the digital age we are experiencing today. The rapid developments in the field of information systems and telecommunications have led to the prevalence of the Internet. The development and upgrading of commercial activity is influenced by the internet, which is now an integral part of the communication activity of businesses and individual users.

Edward Bellamy’s futuristic conception of commerce in the 21st century unintentionally created a surprisingly accurate representation of the emerging electronic economy. The use of computer technology and the internet is allowing the creation of greater

The U.S. has the highest marginal tax rate on business. It follows that if U.S. businesses are leaving profits overseas because of high business taxes, then the solution to this problem is to lower the business tax, and make it more competitive with countries

My venture on writing a book on economics was not something that was pre-planned. It was neither an attempt to extemporize on the current economic events that were taking place globally since the 2008 financial crisis. If it totally depended on my determination I would rather not have ventured into it, albeit the impregnable impulse to dive into it. There were unassailable challenges that delayed the project. Such experiences were a learning curve and added more quality to the work. This book is after a hiatus of twelve years since my last book. This time, I was looking at economics from a whole different perspective from the mainstream which I call True Economics. I was involved in one way or the other in human systems and how economic conditions affect them and vice versa. Remember the transition of companies in the 1990s as they were getting ready for the new millennium ahead? Of all the challenges and opportunities were the information technology revolution and the emerging internet boom. The economic factors adjusting with a new kind of economy with ample use of information some called knowledge economy. It was at the core for larger business enterprises during the pre-dot-com surge. Past the year 2000 many internet based companies also called dot-com, were transitioning from a period of the bubble and burst in the stock market. Many technologists, economists, and investors were struggling to find a framework of an economic model for the new information paradigm. The