Of the following,which is harmed MOST by current regulations governing the collection of sales taxes on Internet purchases?
A) online companies such as 1-800-FLOWERS
B) people who purchase items over the Internet
C) state governments that charge sales taxes
D) the federal government
E) the IRS

Question

Quizplus · Accepted Answer

State governments that charge sales taxes are harmed the most by current regulations governing the collection of sales taxes on internet purchases, as they are losing out on sales tax revenue that they would have received from brick-and-mortar stores. Online companies such as 1-800-FLOWERS may also be affected, but they have the option to not charge sales tax in states where they don't have a physical presence. People who purchase items over the internet may be inconvenienced by having to pay sales tax, but they are not directly harmed by the regulations. The federal government and the IRS are not significantly impacted by the collection of sales taxes on internet purchases.

Of the Following,which Is Harmed MOST by Current Regulations Governing