1. On taxation of online sales
Jan Babiuch-Hall
John Barret
Owen Barton
Caroline Dobyns

2. Reasons for an internet sales tax:
The lack of an internet sales tax creates an unfair competitive advantage for online businesses.
Local businesses become showrooms for online businesses.
Lower sales for local businesses means fewer jobs in the community.
Local businesses often provide other benefits to the community besides selling a product or service.
The state where the customer resides should tax the purchase as this is the fairest way to distribute tax revenue.

3. Reasons for an internet sales tax:
When you aren't able to collect sales tax from online sales shipped into your state, everyone who pays sales tax in your state will pay a little bit more than they otherwise would have.
State and local government will have to raise revenue in other ways, by increasing income or property taxes, or by cutting spending.
State governments are losing more than $7 billion a year because online purchases don't get taxed.
Each year about $10 billion in tax on Internet sales go uncollected.
Tax-free Internet shopping shifts more of the sales-tax burden to those who can least afford it.

4. Reasons against an internet sales tax:
Having online purchases be tax-free creates an incentive to purchase online, which is desirable because online stores are more efficient.
The issue of which state collects the tax is moot.
Instituting a tax on online sales creates a legal hurdle for entrepreneurs wishing to start an online business.
The benefits of tax-free online sales are available to all customers

5. Reasons against an internet sales tax:
Since online shopping is subject to shipping costs, adding a sales tax could make online sales unprofitable and hurt the online sales industry.
Enforcing online sales taxes is unduly burdensome.
Online shopping has a global market; situations would arise where it is unclear of how to apply the tax for international sales.
A sales tax dependent on what state the item is shipped to introduces a high risk of sales tax evasion.