By Teresa Welsh |
If your state sales tax covers a certain item when bought in a store, you're legally required to pay the same tax directly to your state when you buy it over the Internet. But few consumers do that, and most Internet retailers don't charge the tax in most states because the Supreme Court has said they don't have to if they don't have a store or other "physical presence" in a state.
States' inability to require out-of-state Internet retailers to live by the same rules that apply to local, family-run businesses is patently unfair. It also imposes costs that many people might not recognize:
Leveling the playing field between Main Street and Internet businesses is the right thing to do—for all of us.
About Michael Mazerov Senior Fellow at the Center on Budget and Policy Priorities.
Jim DeMint Republican Senator from South Carolina
Adam Thierer Senior Research Fellow for the Mercatus Center at George Mason University
Andrew Moylan Vice President of Government Affairs for the National Taxpayers Union
Neil Niman Associate Professor of Economics at the University of New Hampshire
Sandy Kennedy President of the Retail Industry Leaders Association