Sales Tax Needs to Be Imposed on Internet Transactions Essay

gross revenue Tax Needs to Be Imposed on Internet Transactions - Essay ExampleThe untaxed mesh goods and services tend to be cheaper than the sell goods. This distorts the consumer behavior by promoting the purchase of internet goods all over the retail products hence reducing the efficiency of the sales tax system. Taxing the internet goods will check to insignifi basist distortion of consumer behavior as the total expense of buying a commodity from a retail store and buying online will be indifferent.Tax needs to be equitable among the citizens. leverage of tax-free commodities from the internet favors only the people who can afford an internet connection. This group of people who can access the internet will be able to evade the sales tax while the poor people who can not access the internet will not be able to enjoy such(prenominal) advantage. This will lead to inequality in the tax system since only the poor will be burdened to pay the sales tax.A good tax system should hav e a great enough tax base to enhance fiscal stability (Maguire). With the increasing trend in internet transaction over the traditional retail transaction as a way to increase dependability and efficiency, there is a equivalentlihood of task base erosion if the internet transactions are go away untaxed. Taxing the internet transactions will aid in preventing the potential revenue losses.Arizona like other states relies on sales tax. According to the U.S. Bureau of Census, the percentage sales tax base as a share of income is 47.3%. Encouraging the tax-free internet commodities will affect the state proportionately the comparable way the state depends on the sales tax. Eliminating the sales tax entirely so that the traditional retail transaction equals the internet transaction for equity purpose will force the state to increase the personalised income tax in order to meet her budget.Tax rate tends to alter the consumers behavior. Tax rates that are too high will tend to favor the purchase of tax-free internet commodities.