To Tax or Not to Tax? Essay

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To Tax or Not to Tax?

Since the recent passage of the Internet Tax Freedom Act, on October 21, 1998, making the Internet tax free, there has been an intense debate on whether to tax or not to tax Internet purchases. The conservative side, also known as the Republicans, is opposed to Internet taxation saying that it is too costly to collect taxes on Internet purchases. They also believe that since Internet retailers do not have a physical presence in every state, why should the state receive sales tax on a nonexistent store in that state? This would be taxation without representation (par. 18 Lukas). On the other hand, the liberals, also known as democrats, believe that taxation of the Internet should be lawful because
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Taxation on the Internet may also make on-line commerce more complicated and cumbersome. This is a logos argument that is based on facts, statistics, and evidence. Taxation of the Internet would in turn drive up costs of doing business via the web. In today’s economy, any form of disturbance upon the Internet could push the United States into a recession. The conservatives fear that this is happening to the economy today. The stock market has headed into bear territory because of the recent decline in technology and Internet e-commerce companies profits. Believe it or not, the Internet has a drastic effect on our nation well being. As of 2001 the United States has a budget surplus and tax cuts on the verge of becoming a reality for Americans. Why would we want to limit the Internet with taxation of the Internet when there is plenty of money to give tax cuts?

On the other side of the issue, the liberals or pro side on Internet taxation mainly use logos arguments to get their point across. Many state leaders are frustrated that collection of taxes on mail-order transactions has been banned and do not want to lose another source of revenue such as the Internet. David Coursey, an Internet industry analyst argues that, “If e-commerce is to grow, it needs to pay its own way before we wake up one morning and realize that communities have lost big chunks or their precious local tax dollars” (Internet Taxation par. 33). This could all be a

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