Web retailers in the U.S. are largely exempt from collecting state and local sales taxes. In allowing this exemption, Congress agrees to give out-of-state businesses a 5 to 7 percent price advantage over local stores. Proponents of the exemption argue internet-based suppliers would stagger under the administrative burden of collecting thousands of different state and local sales taxes; opponents of the exemption argue that the electronic commerce companies don’t need help siphoning business away from already-struggling downtowns. Continue reading