e-Commerce Taxation

There is a lot of discussion about the taxation of e-commerce and most of that talk revolves around the sales tax imposed by various states or countries on products sold to their residents. For now, there is a halt on the imposition of new taxes while the government agencies argue about whether changes are needed in the way sales taxes are determined for goods or services sold on the Internet. It's clear the U.S. government isn't going to make it easy for U.S. persons to avoid paying income taxes by simply renting space on a computer in an offshore island. There are actually a number of issues that will make it difficult for a U.S. citizen to easily avoid US taxes on their global e-commerce business. The U.S. citizen  is still subject to US income taxes on his or her world wide income as well as some other U.S. tax code provisions that make any American internet business pay their taxes.