The debate over whether online retailers should be collecting sales tax is one of those “level playing field” issues that puts traditional brick and mortal retailers at a disadvantage. Or does it?
Russ Britt, the Los Angeles bureau chief for Marketwatch, points out this week that the movement to force such online retailers as Amazon.com to collect sales tax could have the unintended consequence of allowing Walmart to further consolidate its market power. Britt bases that observation on an informal price comparison that Walmart beats Amazon even though it collects tax. Click here for the story.