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Should Internet sales transactions be taxed?

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  • Daniel G. Swaine

Abstract

Over the past three years, electronic commerce has grown explosively at rates of 200 to 300 percent per year. After spending just $2.4 billion over the Internet in 1997, consumers transacted about $25 billion in Internet sales in 1999, according to an estimate by Ernst & Young. The firm predicts that the value of on-line transactions will double to $50 billion in the current year. By 2004, says Forrester Research, Internet sales to consumers will reach $184 billion, an annualized growth rate of 49 percent over the five-year period from 2000 to 2004.

Suggested Citation

  • Daniel G. Swaine, 2000. "Should Internet sales transactions be taxed?," Fiscal Facts, Federal Reserve Bank of Boston, issue Win, pages 1-4.
  • Handle: RePEc:fip:fedbff:y:2000:i:win:p:1-4:n:25
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    Keywords

    Taxation;

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