States are increasing the pressure for a tax on online sales

08/22/2010 | Small Business Trends

States are starved for tax revenue, and the solution could be taxing sales from the Internet, where cash is flush. That's the thinking in many states, Rieva Lesonsky reports, and some business groups support the move, arguing that big Internet retailers have an unfair advantage over Main Street businesses. To make the change more palatable, one bill in Congress would require states to streamline their sales-tax structure before taxing out-of-state businesses.

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