Traditional retailers, lead by Wal-Mart, contend that they are put at a competitive disadvantage with online sellers because they have to charge taxes on sales. Many political leaders, including the Republican governor of Utah, Mike Levitt, fear the loss of government revenue to tax-free Internet business. Others like Virginia Gov. Jim Gilmore and Oregon Democratic Sen. Ron Wyden contend that sales or other taxes would hamper e-commerce transactions. Because of the infancy of the industry, The Advisory Commission should recommend an additional 3-year tax ban on Internet sales. The survey also found that these rising costs are the primary concern of online buyers.
Traditional retailers have to charge taxes but incur no shipping costs.
Online retailers do the exact opposite. No, but one that must be considered when discussing comparative advantage. The marriage between e-commerce and shippers offers many financial benefits to the growing U.S economy. When UPS went public recently, its stock price zoomed primarily because investors expect the company to grow dramatically because of online deliveries. FedEx and Roberts Express are experiencing the same type of growth.