The Issue of E-Commerce Taxation

How are we supposed to tax something we buy off of a computer? It is a difficult issue that has everyone trying to compose ideas that will figure out the issue of e-commerce taxation. Taxes are a necessity to make society work. Without taxes, there would be no roads, public schools, police or firefighters, or government officials. But how with a more and more Internet based society and more online shopping does that get back to the states. All of that money doesn't go to the state or the federal government which is not helping our financial issue at moment.

Each state has their own rules regarding what is considered a taxable product or service and what is not. Your products or services may be taxable in one state, but not in anther. In some states if you separately state items on your invoice they are not taxable, if you lump them together, they become subject to sales tax.

It's hard to get a grip on such a difficult subject such as e-commerce taxation. The states and federal government really need to figure out a good proposal to this idea because in the mean time, many states are losing money from things being bought off of the Internet. I hope this controversial issue ends up with a positive result for the states and federal government because major companies don't need to make more money and many small businesses will be out of luck.