Internet commerce does not seem to be fueled primarily by diversion from traditional retail sales, they found, the benefits of buying online without being taxed accrue mostly to more affluent and well-educated citizens, and the costs of complying with taxes on Internet commerce are not likely to be very large for most online transactions. The authors say that because the costs are small and the benefits of allowing e-commerce to grow are large, governments should refrain from taxing Internet commerce for the next few years so that the Internet economy will continue to grow. The John Locke Foundation welcomes comments and ideas for improvement. Please contact our webmaster with questions or suggestions. Material published here may be reprinted provided the Locke Foundation receives prior notice and appropriate credit is given.
Submissions are welcome.