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Should State and Local Government Sales Taxes Apply to E-Commerce?

Under the existing system of laws related to the sales tax, identical products may be taxed differently, depending on whether they are purchased over the Internet, through a catalogue, or in a traditional, "mortar-and-bricks" store. Traditional retailers charge that this situation confers a price advantage on catalogue and Internet retailers. In addition, an important equity concern arises from the fact that lower income people face certain barriers to Internet shopping and may therefore pay sales taxes more often than higher-income individuals.

— from the Introduction to the AARP Public Policy Institute Issue Paper by Alison Shelton (34 pages)

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