Do You Support Tax on Online Earnings?
Posted on April 7, 2008 by
Adie 
eCommerce 
3 Comments
Taxation is a highly debatable issue as far as e-commerce is concerned. Those who favor taxes will say that online businessmen definitely need to pay their due because they are putting brick-and-mortar businesses at a disadvantage. On the other hand, those who are against e-commerce taxation will argue that it is up to traditional businesses to take advantage of the opportunities presented by the World Wide Web; and in fact, many brick-and-mortar businesses have an online presence as well.
Also, people who are against tax on online earnings argue that taxes can put some online businesses at a disadvantage particularly because if one country regulates their tax laws, their competitors in another country will still enjoy the benefit of not paying the proper amount in taxes.
But the fact is, most people have no idea how they can pay the exact amount of tax from their online earnings even if they want to. If you are starting an e-commerce business, the Internet Tax Freedom Act which was authored by U.S. Senator Ron Wyden and House Policy Chairman Christopher Cox is a great resource that will help you determine how much tax you really need to pay.
There is always a misconception that an online business is tax-free. This is not so because similar to a brick-and-mortar business, you are also engaged in a legitimate business which needs to carry its share of the tax burden.
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I have an online business, and fully expect to pay my share of taxes. With all the other advantages an online business has over a brick & mortar type… why would evading taxes be needed? Already I don’t need to buy / build / lease a building, carry any inventory, hire any receptionists, cashiers, etc etc.
Taxes are a way of life. They aren’t going away, so it’s best to just be OK with them. I am.
Hired a bookkeeper for this. Pay your taxes, people.
An online business is a business in a virtual world, not a virtual business. Of course it should pay taxes. The only type of tax credit I would allow it would be a green one for those who work from home therefore reducing congestion and emissions.