New York Post: Web tax on tap

FOX News: Internet Sales Tax to be Introduced in US Senate

FOX News: Internet Sales Tax to be Introduced in US Senate

New York Post: Web tax on tap

New York Post: Web tax on tap

There is a brief article today in the New York Post which is worth reading – and has been syndicated now into a slightly varied version on FOX news.

The most interesting tidbit was a stunning admission by economics professor William Fox of the University of Tennessee. You see, he co-authored an important study several years ago which many states have been relying upon to gauge the amount of missing revenue from uncollected sales tax on online purchases. The figures in his report suggest that New York State alone missed out on $865 million in 2010, but apparently his 2009 report was based upon a conservative 9.9% annual growth rate from 2006 to the present. Now he admits the actual annual growth rate appears to be about 14% – which should have a significant amplification effect if one were to recalculate the conclusions from his previous studies. Up until this admission, the annual missing revenue due to uncollected sales tax (from all remote commerce including, online, mail-order, and telesales) was calculated at $23 billion– now we should expect that number to be even larger.

Wow.

One Response to New York Post: Web tax on tap

  1. […] and as for internet sales being fair game, yesterday’s New York Post article (blogged about here) stated that “some reports indicate that online sales hit a whopping $165 billion in […]

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