Should Sales Taxes Be Imposed on E-Commerce?
Article first published online: 29 JUL 2013
© 2013 Wiley Periodicals, Inc.
Journal of Public Economic Theory
Volume 15, Issue 6, pages 803–828, December 2013
How to Cite
DAKHLIA, S. and STRAUSS, R. P. (2013), Should Sales Taxes Be Imposed on E-Commerce?. Journal of Public Economic Theory, 15: 803–828. doi: 10.1111/jpet.12055
We are grateful to Marcus Berliant, Marco Castaneda, Miguel Gouveia, and Charlie Sawyer for very helpful comments on previous drafts.
- Issue published online: 8 OCT 2013
- Article first published online: 29 JUL 2013
- Accepted manuscript online: 21 MAY 2013 10:42AM EST
- Manuscript Accepted: 13 FEB 2012
- Manuscript Received: 28 AUG 2008
We study the impact of E-commerce across state lines in the United States on tax revenue, public good provision, and real income. In particular, in light of the unenforceable nature of interstate taxation, we evaluate the potential gains from coordinating sales and income state taxes among sovereign jurisdictions. We find that the revenue at risk is small and that the welfare gains or losses of any countervailing policy measures, in particular those associated with the Streamlined Sales Tax Project, are even smaller.