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Amazon and eBay brawl over Web sales tax

Discussion:  In congress this week the issue of charging a sales tax for purchases made on the internet was debated and  Amazon and eBay each championed opposing points of view.  EBay argued that imposing a sales tax would hurt the small businesses that sell  goods on their site, while Amazon argued that a low percentage sales tax that applies to all internet transactions would be beneficial for everyone.  Currently, internet sellers have a slight advantage because they do not have to charge a sales tax, thus making their goods cheaper.

Source:  CNN Money

Date:  December 2, 2011

Link:  http://money.cnn.com/2011/11/30/technology/onlines_sales_tax/index.htm

Discussion Questions:

  • Should there be a sales tax on purchases made over the internet?
  • How would a sales tax on internet purchases affect local businesses?

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