Competition Is The Essence Of Commerce

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Competition is the essence of commerce. The only way businesses get stronger is if there is competition to do things better, faster or at lower cost. All that businesses can ask for is the rules of competition to be fair to all parties. According to Richard Stim, in an article entitled "Sales Tax on the Internet.", if an online retailer has a physical presence in a particular state, such as a store, business office, or warehouse, it must collect sales tax from customers in that state. If a business does not have a physical presence in a state, it is not required to collect sales tax for sales in that state. This rule is derived from a 1992 Supreme Court decision which held that mail-order merchants did not need to collect sales taxes for…show more content…
"There 's a good indication that the Republican-controlled House will see it as tax increase. It 's a new tax burden," said Steve Delanco, executive director of Net Choice, which represents Overstock.com, eBay, and other Internet firms. And House Majority Leader Eric Cantor, R-Va., does not appear to favor rushing the bill through the lame-duck session. In my recent experience as a part time sales associate at Macys, it feels like the stores are showrooms for the customer. Through the day significant percentage of customer walk to the fancy piece of merchandise and their smart phone, scan the product they like and start comparing with online price readily available via internet capable device. With an average of 10 percentage tax advantage, customer are likely to attract in online price that price at store, and eventually the traditional store are losing customers significantly. America’s sales tax system unfairly favors online retailer who are not required to collect sales tax on most merchandise. Secondly, the states are losing revenue in daily basis. Most states are seeing scant revenue from their varied attempts to collect tax from online retailers on sales to their residents, but they will continue to push for state laws until Congress or the U.S. Supreme Court settle legal questions about their collection authority on remote sales,

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