Question

As part of the legal and ethical issues about e-commerce, should taxes be set based upon the state where the company selling the product is located, or the state where the person buying the product is located?

Please explain why you made your choice.

Answer 1

Approaching from an ethical point of view, employment and other similar concerns would only be resoslved if there are firms rising in that area. In such situation, it has to be noted that the economic policies of the area must befriendly to the investors and if the person is purchasing the goods from the other state, the sale of the firms set up in this state might get disturbed. So accordingly, the economic situation of the state must become a concern for the taxation policy maker and set the tax accordingly on the state where the person buying the product is located as this can be helpful in in improving the sales of the local area as a result of implication on the taxation.

Therefore taxation set according to the state where the person buying the product is located is my answer