Economist: State Tax Losses to Internet Will Be High

Share this article:
U.S. states may lose $11 billion in sales tax revenues in 2003 because of the Internet, a tax economist told treasury officials last week.


Donald Bruce, a professor at the University of Tennessee, said the lost revenues will be a "monster" in the near future. Bruce gave his opinions to the State Debt Management Network of the National Association of State Treasurers.


When factoring in losses from catalogs and other sales that fail to register on states' tax screens, Bruce said losses could reach as high as $24 billion in 2003.


He predicted that the states could raise their current sales taxes to compensate for lost revenues. Rates would rise .5 percent by 2003 to make up for the losses, Bruce said.
Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Digital Marketing

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Digital Marketing

Ecstatic Over Programmatic

Ecstatic Over Programmatic

Ads purchased programmatically will double this year to $10 billion, and then again to $20 billion in 2016, a new study forecasts.

Atlas Hugged

Atlas Hugged

Facebook's reworking of Microsoft's old ad platform provides marketers with cross-device tracking capabilities and metrics. Will Atlas lift the social network to Googalian heights?

Online Display Spending to Grow $18 Billion in Next Five Years

Online Display Spending to Grow $18 Billion in ...

That's a compound annual growth rate of 13.7%. Offline advertising, meanwhile, will limp along at about 1% a year over the same period, according to Forrester.