(Hyman, 2011). Retail taxes emerge during transactions. In essence, in the cause of transaction, the buyer acts as a government intermediary.
(Hyman, 2011). Some states depend more on revenues generated from retail sales than
others such as
which accounted for 63% of total tax collections in the year 2009. Sales and
retail taxes are regressive in nature and they are higher for low-income
tax-payers. E-commerce, a modern way of conducting business over the internet
is gaining ground as consumers become more adept at using this innovative
technology. In e-commerce, transactions are usually done between businesses to
business where taxation is nonexistent. One problem with the state sales tax is
that government and nonprofit organizations are exempted from taxation during
transactions. The aging of society may also impact sales tax revenue in the
near future. Washington
26 (1), 47-65. DOI: 10.1111/j.1540-5850.2006.00838.x.