Internet commerce is a huge, important, and fast-growing segment of the U.S. economy.
As the result of court decisions and Congressional inaction, most Internet vendors and other remote sellers currently are not obligated to collect sales taxes from consumers. The gap between those who use the Internet and those who don't is widening. According to a recent report of the U.S. Department of Commerce, the Internet revolution is bypassing the poor, minorities, and those who live in inner cities or rural areas. The poor, who most often buy goods and services in cash from local merchants, are unable to take advantage of the increased choices, competitive prices, and convenience that online shopping provides. Because they pay sales taxes ontheir purchases to local retailers, the poor also pay more for some goods and services than high-income individuals who can avoid the sales tax by shopping online.