Sell Globally, Tax Locally
Sales Tax Reform for the New Economy

  • Title:

    Sell Globally, Tax Locally
  • Format:

    Paperback
  • Paperback Price:

    15.00
  • Paperback ISBN:

    0844771708
  • Paperback Dimensions:

    5.5'' x 8.5''
  • 57 Paperback pages
  • Buy the Book

Click here to view the full book as an Adobe PDF.

"A number of states would fare better under the Greve system, which would would allow low tax states to institutionalise their advantage. Those with no sales tax would also benefit. The nation would be one big, blaring, competitive market place - which ought to be music to all our ears."

Amity Shlaes, Financial Times

Should online purchases be taxed based on the buyer's location or the seller's? In Sell Globally, Tax Locally, Michael S. Greve offers a provocative new approach to Internet sales taxation. Drawing upon his extensive background in federalism issues, Greve argues that an origin-based tax system would break the "tax cartel" and replace it with competition--giving states a motive to lower their sales taxes as a means of enticing companies to choose their state as a base of operations.

Cross-border sales, through the Internet or other channels, are commonly taxed on the basis of their destination, not the country or state of origin. That regime is uniformly decried as terribly complex, burdensome, and inefficient. It allows many Internet sales to escape taxation, depriving governments of revenues and giving Internet retailers an unwarranted advantage over traditional industries. Most reform proposals focus on intergovernmental tax harmonization and simplification. Instead of extending a broken destination-based sales tax system to e-commerce, Greve argues that we should tax cross-border sales on the basis of their location of origin, not their destination. Destination-based sales tax systems invariably conflict with elementary principles of sensible taxation--simplicity, fairness, neutrality, and ease of administration. An origin-based system, in contrast, satisfies those demands: Each cross-border sale would be taxed equally, once, and by a single authority.

Greve discusses the flaws of destination-based taxation, demonstrates the futility of international and national tax harmonization, and makes the theoretical case for origin-based taxation. He concludes with practical proposals to forestall international tax harmonization and to advance an origin-based sales tax system in the United States.

Michael S. Greve is the John G. Searle Scholar and director of the Federalism Project at AEI.

Also Visit
AEIdeas Blog The American Magazine
About the Author

 

Michael S.
Greve

What's new on AEI

Obama should channel Reagan on Russia
image Tackling our nation’s budget problems, head on
image Missing the point on inversions and corporate taxes
image Venezuela betrayed — missed chance to expose regime
AEI on Facebook
Events Calendar
  • 28
    MON
  • 29
    TUE
  • 30
    WED
  • 31
    THU
  • 01
    FRI
Tuesday, July 29, 2014 | 10:00 a.m. – 12:00 p.m.
Is Medicare's future secure? The 2014 Trustees Report

Please join AEI as the chief actuary for Medicare summarizes the report’s results, followed by a panel discussion of what those spending trends are likely to mean for seniors, taxpayers, the health industry, and federal policy.

Friday, August 01, 2014 | 10:30 a.m. – 12:00 p.m.
Watergate revisited: The reforms and the reality, 40 years later

Please join us as four of Washington’s most distinguished political observers will revisit the Watergate hearings and discuss reforms that followed.

No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.