Abstract

http://ssrn.com/abstract=174097
 
 

Citations



 


 



Evaluating the Costs and Benefits of Taxing Internet Commerce


Austan Goolsbee


University of Chicago - Booth School of Business; National Bureau of Economic Research (NBER)

Jonathan Zittrain


Harvard Law School and Kennedy School; Harvard School of Engineering and Applied Sciences; Berkman Center for Internet & Society


National Tax Journal, Fall 1999

Abstract:     
Current tax law--and the current technical architecture of the Internet--make it difficult to enforce sales taxes on most Internet commerce. This has generated considerable policy debate. In this paper, we analyze the costs and benefits of enforcing such taxes including revenue losses, competition with retail, externalities, distribution, and compliance costs. The results suggest that the costs of not enforcing taxes are quite modest and will remain so for several years. At the same time, compliance costs are also likely to be low as Internet infrastructure evolves to make enforcement easier, and states coordinate to harmonize their statutes. There are benefits to nurturing/subsidizing the Internet but they tend to diminish over time. When tax costs and benefits take this form, a moratorium provides a natural compromise.

Note: This is a description of the paper and not the actual abstract.

JEL Classification: H2, K3

Accepted Paper Series





Not Available For Download

Date posted: September 13, 1999  

Suggested Citation

Goolsbee, Austan and Zittrain, Jonathan, Evaluating the Costs and Benefits of Taxing Internet Commerce. National Tax Journal, Fall 1999. Available at SSRN: http://ssrn.com/abstract=174097

Contact Information

Austan Goolsbee
University of Chicago - Booth School of Business ( email )
5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
773-702-5869 (Phone)
773-702-0458 (Fax)
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Jonathan Zittrain (Contact Author)
Harvard Law School and Kennedy School ( email )
Cambridge, MA 02138
United States
Harvard School of Engineering and Applied Sciences
1875 Cambridge Street
Cambridge, MA 02138
United States
Berkman Center for Internet & Society
Harvard Law School
23 Everett, 2nd Floor
Cambridge, MA 02138
United States
Feedback to SSRN


Paper statistics
Abstract Views: 1,135

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo2 in 0.359 seconds