Ecommerce Taxation

Ecommerce taxation is a very difficult issue to resolve in the United States, and is a hotly debated issue in many states, including, currently, California. Taxes are a necessity for the state governments and for the federal governments in order to fund highways, public schools, government jobs, programs and numerous other things, but, as we are venturing deeper and deeper into this electronic, Internet-based world, several big issues are arising, including the issue of taxation. Taxes are difficult to assign because many of the things bought online are bought in different states or even in different countries, yet they are bought from a computer in the United States. Governments lose money because they don't know how or what to tax of the items bought online. An opinion article in the Mercury News by Jessica Melugin titled "An alternative to California proposal to tax e-commerce" describes a possible solution to this issue:

An origin-based tax regime, based on the vendor's principal place of business instead of the buyer's location, will address the problems of the current system and avoid the drawbacks of California's plan. This keeps politicians accountable to those they tax. Low-tax states will likely enjoy job creation as businesses locate there. An origin-based regime will free all retailers from the accounting burden of reporting to multiple jurisdictions. Buyers will vote with their wallets, "choosing" the tax rate when making decisions about where to shop online and will benefit from downward pressure on sales taxes. Finally, brick-and-mortar retailers would have the "even playing field" they seek.

This seems like the best possible solution to this seemingly-unsolvable dilemma because states will no longer simply lose the tax revenues that they would normally receive through purchases in stores. In addition, I see little that is objectionable in this solution, so I predict that it has a chance of being implemented fairly easily.