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A friend and I were discussing the state budget and he advocated a
sales tax on internet sales. Sales taxes are supposed to be to fund infrastructure related to the company but if the company is not in the state where the purchaser is located, then it is simply another tax for no purpose. It is often said that internet sales compete unfairly with local brick and mortar stores. I do not think this is true very often. Most of the time, if you are going to purchase something, you want to see it first so you would prefer to go to a local vendor. If the local vendor either does not have the item or is so inconvenient as to discourage a sale, then you buy online. If you know exactly what you want and the local vendor charges too much you buy online and you save the gas it would take to go to the local vendor. So, this idea of unfair competition is simply a myth. How would a company deal with an internet sales tax, badly I am sure. Can you imagine having to report sales to 50 different states and even then some cities charge their own tax. The paperwork alone would drive some companies out of business. So much for job creation. |
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