15 November 2010

How e-tailers hurt local stores

This column by Chicago Tribune writer Eric Zorn, "Internet sales-tax dodge darkens the future of bricks-and-mortar businesses," looks at the damage caused to local brick-and-mortar retailers when shoppers take their purchases online to avoid paying sales tax.

A reader named "Blahedo" left this comment: "We're effectively charging the local retailers a penalty for contributing directly to the local economy, and rewarding Amazon and other Internet retailers for having no local presence," Blahedo wrote. "Aside from being unfair, it's unwise; as any economist will tell you, people (and companies) respond to incentives, and here the incentive rewards closing up (physical) shop and stopping paying rent or property tax and stopping being around to donate to local charities and events and stopping contributing to a vibrant local economy."

Click the link above to read the entire column.

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