Some experts believe that the growth in e-commerce will cause states and local govermnets to lose tax revenue, unless Internet transactions are subject to sales tax. What is one argument that supports this view, and one that opposes it

The answer is below.

Explanation:

Increase in e-commerce sales or growth leads to higher quantity of sales that will generate sales-tax numbers that are easily noticeable and can be a good source of revenues for States and local government. Thus, as a result of potential income that e-commerce or internet is capable of generating, both state and local policy makers are working tirelessly, to ensure they maximize every means they can get to reap revenue from the Internet for their treasuries.

However, those not in favour, or opposition, believed that tax imposition of e-commerce or online sales, would negatively affect the growth or cause slow upward movement in the growth and opportunity of e- commerce, before the customers can generally embrace it fully, and see it as the new market hub.

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