TAXING SALES ON THE INTERNET

January 2000
		Should sales over the Internet be taxed like purchases in retail stores? Two experts take your questions.

Dec. 17, 1999 Taxing Internet sales Online Special The New Internet Economy Dec. 25, 1998 Cybershopping. Sept. 7, 1998 Online entrepreneurs Sept. 7, 1998 Net profits Dec. 29, 1997 Virtual showroom July 1, 1997 Digital dollars June 11, 1997 Online privacy Browse the NewsHour's coverage of cyberspace and business.     Advisory Commission on Electronic Commerce Internet Tax Fairness Coalition National Tax Association The E-Freedom Coalition South Dakota Gov. William Janklow Outpost.com	According to a 1992 Supreme Court decision, retailers do not have to collect sales taxes when they ship goods into states were they don't have a substantial physical presence, such as a retail store. So most online retailers don't collect sales taxes on their sales via the Internet. And a 1998 congressional act put a three-year moratorium on new Internet taxes. With the explosive growth of e-commerce sites, however, has come an increasingly heated debate about the future of Internet taxes. Most governors and state officials favor an Internet sales tax, fearing that without it, they could lose up to $10 billion a year in revenue. Others -- including some state and federal officials -- argue that taxing Internet sales will stifle economic growth fueled by online purchases. What do you think? Should Internet sales be taxed? Should e-commerce be allowed to grow in a tax-free environment? Two experts take your questions about taxing sales over the Internet.