ad info

 
CNN.com  technology > computing
    Editions | myCNN | Video | Audio | Headline News Brief | Feedback  

 

  Search
 
 

 
TECHNOLOGY
TOP STORIES

Consumer group: Online privacy protections fall short

Guide to a wired Super Bowl

Debate opens on making e-commerce law consistent

(MORE)

TOP STORIES

More than 11,000 killed in India quake

Mideast negotiators want to continue talks after Israeli elections

(MORE)

MARKETS
4:30pm ET, 4/16
144.70
8257.60
3.71
1394.72
10.90
879.91
 


WORLD

U.S.

POLITICS

LAW

ENTERTAINMENT

HEALTH

TRAVEL

FOOD

ARTS & STYLE



(MORE HEADLINES)
*
 
CNN Websites
Networks image


Internet tax losses anyone's guess

Civic.com

(IDG) -- Figuring the total for lost taxes from Internet sales is a murky science, according to a government report released Monday.

The report from the U.S. General Accounting Office concluded that states and localities may be losing anywhere from $300 million to $3.8 billion in 2000. The new study is part of an ongoing effort to assess the merits and drawbacks of taxing Internet transactions as lawmakers debate the issue on Capitol Hill.

MORE COMPUTING INTELLIGENCE
IDG.net   IDG.net home page
  Civic.com home page
  Get a free subscription to Civic.com's print edition
  Tax-free Internet? Don't count on it
  House extends Internet tax ban
  Reviews & in-depth info at IDG.net
  E-BusinessWorld
  TechInformer
  Questions about computers? Let IDG.net's editors help you
  Subscribe to IDG.net's free daily newsletters
  Search IDG.net in 12 languages
  News Radio
  * Fusion audio primers
  * Computerworld Minute

"There is a whole bunch of parameters that you have to have to come up with a precise number," said James R. White, the GAO's director of tax policy and administration.

For that reason, GAO officials developed a lower and a higher scenario for what is being lost in Internet sales tax, White said. He added that officials took into account estimates of Net sales, tax-exempt products and users, and different taxing rates.

According to the higher estimate, about 2 percent of overall state and local sales taxes would not be captured, or roughly $3.8 billion in 2000. The lower scenario came in at $300 million.

White said the GAO also forecast the potential losses in 2003. Because the Internet is so dynamic right now, such projections get even more clouded.

The high scenario for 2003 is that state and local governments could fail to capture $12.4 billion in taxes, while the low scenario is $1 billion, White said.

The Internet poses new challenges for taxation, such as determining the place of purchase for a product bought online, White said. That situation makes it difficult to decide how much a product should be taxed.

Sen. George Voinovich (R-Ohio) requested the Internet taxation study. Voinovich is a proponent of taxing Net commerce.




RELATED STORIES:
U.S. government moves to electronic transactions
July 25, 2000
Legislators debate proposals for e-commerce taxes
July 12, 2000
Booming Internet economy crushing local communities
July 10, 2000
Campaign 2000 and e-commerce
June 15, 2000
Numbers show reality of e-sales
March 6, 2000

RELATED IDG.net STORIES:
IRS satisfies online taxpayers
(FCW)
Tax-free Internet? Don't count on it
(PC World)
House OKs new Net-tax moratorium
(Computerworld)
GAO begs Hill for money
(FCW)
EU likely to impose taxes on digital deliveries
(IDG.net)
GAO report: Tax dollars lost on Net unclear
(IDG.net)
GAO wants greater oversight of online brokerages
(The Industry Standard)
Tax panel agrees they can't agree
(The Industry Standard)

RELATED SITES:
U.S. General Accounting Office

Note: Pages will open in a new browser window
External sites are not endorsed by CNN Interactive.

 Search   

Back to the top   © 2001 Cable News Network. All Rights Reserved.
Terms under which this service is provided to you.
Read our privacy guidelines.