More Tax Changes on the Way for 2013

Last updated on May 8, 2013

To collect more revenue and improve compliance, the government is focusing on introducing new tax laws and altering old ones.  The beginning of 2013 brought many of these tax changes, and the trend seems to be continuing with a proposed Internet sales tax bill.

Apart from the new tax on investment income and Medicare taxes, taxpayers will also need to pay taxes on their online purchases. To improve compliance with sales tax laws with online retailers, there will be drastic changes made to the existing sales tax laws, including all retailers, irrespective of their size or profits.

Online retailers will need to charge sales tax from their customers if they make a purchase, regardless where they are located in the United States. Currently, only customers who resided in states where the online retailer had a physical store needed were required to pay sales tax on purchases. The Senate passed the proposed bill on Internet sales tax on Monday, May 8^th.

With the economy slowly recovering, states and the federal government are looking for ways to increase revenue and cut down on spending. The current alterations in Internet sales tax are a step towards increase in revenue.

Tax changes have already been made for the wealthy. They are paying more in taxes to help build revenue. The new tax laws, such as new taxes on income from investment are also targeted towards the rich. Changes in tax laws are not over. With the number of changes in tax laws already made, and more coming, taxpayers will need to be prepared for 2013 tax filing next year.