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Tax Wars Set to Break Out on Internet

E-tailers at odds with brick-and-mortar shops.

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By: TOM BRANNA

Editor

US states that are struggling to balance their budgets are pushing legislation to require online sellers to collect sales taxes where they have a physical presence or where an affiliate has one. Industry observers predict that Congress may enter the fray as soon as this month with a bill to do the same. By some estimates, uncollected taxes from all online sales could total more than $10 billion a year nationwide. Traditional retailers say that with no tax to pay, online sites can offe...

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