Question

States do not currently collect sales taxes on consumer pruchases on the Internet. Who, consumers or suppliers, benefits from the absence of such taxes? Explain please.

Answer 1

Both benefit. The consumer benefits by not paying the sales tax. Suppliers benefit by attracting more customers.

Answer 2

Thanks, I thought that was it, but it seemed too simple.

Answer 3

In my economics class, we determined that both would benefit since there is no inefficiency caused by the tax