E-Commerce Taxation

Electronic commerce is trade taken place on the internet. This form of trade is hard to regulate because people can buy and sell items across states, which makes taxation difficult. There is nothing telling people where tax money should go and to how much items should be taxed. Websites such as Ebay also foster person to person trades, which produces no money for the states. 
There were $525 Million in lost tax revenues in 1999 as reported by Forrester Research. 11 years later, this number is bound to be doubled. Much more shopping is done online and much more tax money is being lost. The issue of electronic taxation is extremely difficult to regulate because of personal trades and interstate commerce.