Internet retailers outgrow their sales tax exemption

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[Commentary] Christmas is only a week away, but for many people the shopping has just begun. These procrastinators have a choice: Hit the mall, with its jammed parking lots and long lines at the registers, or opt for online shopping, where the goods are just a few mouse clicks and an overnight shipment away. For the price-conscious consumer, shopping on the Internet offers one other major advantage: no sales tax (unless the website has a store, warehouse or other "physical presence" in the shopper's state). The tax break averages about 6%, which is very nice, of course, but with the recession threatening Main Street retailers and dangerously depleting state treasuries, maybe it's time to summon the Grinch. Online sales should be taxed. Time and technology have eroded the two main reasons for exempting Internet sales from taxation.


Internet retailers outgrow their sales tax exemption