Go online and find out what the state and local sales tax rates are. For example, in Texas, the state sales tax rate is 6.25 percent, and the local sales tax in Burkburnett, TX, is 2 percent for a combined sales and use tax of 8.25 percent, which is the maximum allowed in Texas. Once you have established what the sales tax is in the local area, price four (4) different products online and in local retail stores, comparing what you would pay online without paying local sales tax and paying locally for the same products. Then, share what they have found with the class on the Discussion Board.
What product had the greatest discrepancy between the cost of an online purchase and a local purchase? Which product(s) had very little difference in the price if purchased online versus purchasing locally? Why do you think this is the case. Does knowing that purchasing items online, thereby avoiding local taxes and ultimately decreasing the amount of money state and local governments bring in to provide services to citizens, influence their purchasing decisions in any way? Does knowing that purchasing items online to avoid local taxes hurts local businesses affect their decisions in any way?
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