There is a new Democratic initiative in congress to tax Internet commerce. First of all, there is a trade off between shopping at the brick & mortar retailers and buying over the Internet. Whereas you don't pay taxes for most goods purchased over the Internet , you do pay for shipping.
Secondly, the most egregious tax avoidance's are the estate tax exclusion, currently at $2 million, and the low tax rate, currently at 15%, imposed on dividends from stocks. Changing these taxes have long been part of the Democratic agenda and they should definitely be addressed either before the Internet commerce issue or as a package legislation. Estate taxes are scheduled to disappear entirely in 2010 unless congress acts to impose a reasonable alternative. Putting a cap south of $10 million dollars that can be handed down from one generation to another tax free is eminently fair to anyone with just the faintest human pulse. By the time most wealthy couples have past on, their heirs are already wealthy through the use of trusts, asset transfers or through self generated revenues.
Many of the smartest and richest people in this country, including Warren Buffet and Bill Gates have spoken out against renewing the estate tax exclusion. The country needs revenue from many sources. Lets say a 40% tax is levied on estates above $6,000,000. A $1 Billion estate would then pass to its inheritors $602,4000,000 after tax. Probably enough to eek out a moderately healthy standard of living.
Approximately 90% of all the stock dividends that are paid go to the wealthiest individuals and corporations. This is not the same as the capital gains tax break which does benefit a broader group of investors. Tax stock dividends at earned income tax levels and allow the sun to set on the estate tax exclusion.{The Republicans love to call this the death tax}.