#4. E-Commerce Taxation

Every day people buy clothes, furniture, makeup, etc... When these items reside on one state, but then have to be sent to another there is no taxes on it. E- commerce is always in debate with the government on how there should be some sort of taxes on these items, but due to the different state regulations the government has found a roadblock in the system. People who go on E-Bay exchange items with people all over the country, not just the people in their own state. The money that is exchanged between the two people is exchanged over several states, as well as,  the item that was purchased. One tax that is ruled over every state for e-commerce is the discriminatory tax.

"For example if a state does not charge sales tax on clothes when purchased in a store but imposes sales tax on the same item when purchased via the Internet, that would be a discriminatory tax"

Another main issue in taxing e-commerce is in-state vendors ability to compete with out-of-state vendors. If an out of state vendor has a cheaper tax then the in-state vendor then the in state vendor will start losing money because people will chose the cheaper vendor. This will cause massive conflict between states.