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Systems Analysis and Design (Shell...

11th Edition
Scott Tilley + 1 other
ISBN: 9781305494602

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BuyFindarrow_forward

Systems Analysis and Design (Shell...

11th Edition
Scott Tilley + 1 other
ISBN: 9781305494602
Textbook Problem

Some experts believe that the growth ecommerce will cause states and local government to lose tax revenue, unless Internet transaction are subject to sales tax. What one argument that supports this view and one that opposes it?

Program Plan Intro

Pros and cons of Sales Tax on e- commerce sites.

Program Explanation

E-commerce is business or transaction done through internet. In e-commerce, business is not done in real shops made of buildings and infrastructure. One of the best examples of e-commerce is online shopping.

Although, online businesses pay taxes, but some online businesses are not subjected to pay sale tax because they are not operated physically. They do not have a physical office location with employees, and they do not have face to face contact with customers. When sales tax is not paid to government, it makes huge loss to tax revenue earned by government.

One point to support this view is that e-commerce is worldwide, items are purchased on the internet are more than that of purchased from the shops...

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