Who will it affect the most? Small-business people. The local merchants who have a storefront and sell things online. The person who runs a business out of his or her home and uses the Internet as a cheap sales channel to develop the business so it can grow. They will face much higher costs to collect, accrue and redistribute the tax from their customers. Those costs will be borne by you every time you purchase something.
Also affected: consumers, meaning you. You will pay a lot more for goods and services, and not just because of the tax. Retailers will also be able to increase core prices on items because the tax will give them room to do it...
Who won't it affect? Big-box retailers and national brands. The big guys will get more powerful and it will be much more difficult to compete with them if you are a small-businessperson. They already have the mechanisms in place to collect the tax. They can spread the cost out over their entire operation.
What's the economic fallout? Some small businesses may go out of business. Poor people will pay more for goods and services because local retailers will be able to raise prices since there are higher prices on the Internet. The rich will be unaffected because they are less price-sensitive than others.
More HERE.
