As legislators consider standardizing the collection of Internet sales tax at the national level, the debate on what's fair for online retailers and small businesses is in full swing.
The Senate on Friday voted for a non-binding amendment to test support for the proposed Marketplace Fairness Act. Already 48 states require online sales tax, but enforcement varies. Online behemoth Amazon supports the act, while eBay opposes it.
The drawn-out Internet sales tax issue "has been unfair to other retailers," said Daniel Rosensweig, president and chief executive of Chegg.com, where students can rent or buy textbooks. Rosensweig was also Yahoo's former chief operating officer.
"Either everybody collects the tax or nobody collects the tax," said Rosensweig on CNBC Monday. "I'm not for taxes at all on these kinds of goods, but I think it's got to be fair for everybody because it hurts local businesses if Internet companies can do it without tax," he said.
As head of Chegg.com, Rosensweig believes students shouldn't be paying taxes on any education material.
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