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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (49783)	3/4/1999 2:55:00 PM
From: Eggolas Moria	Read Replies (1) \| Respond to of 132070

The sales tax issue is an important one longer term. Web sales are receiving an added boost from the lack of sales tax collection. However, the mayors are beginning to organize their "bonus army" march on Washington, D.C. to have the exemption repealed. They are concerned that local retailers will demand repeal of local sales taxes to compete and that would seriously damage local revenues. I anticipate that within 2 to 3 years, web sales organizations will be expressly required by statute to collect sales taxes. That will put some pressure on both revenues and margins as the web sellers compete against local merchants.

To: Knighty Tin who wrote (49783)	3/4/1999 3:35:00 PM
From: RealMuLan	Read Replies (1) \| Respond to of 132070

Mike: about the tradeoff bet. tax and S&H cost: when PC cost less than $1300, there will be no tradeoff for the states where sale tax is 6% or below, because the lowest shipping charged by computer manufactures is around $80 for a monitor and hard disk. And a lot of them charge more than that. For sub-1000 pc, it is definitely cheaper and more convenient to buy in stores. I think that may be another reason for dell's reluctance to go into this market. Even if they match the price in store, the cost is still higher because of s&h.