Internet Sales Tax Is
Fair
Now when this columnist says that a new sales tax is fair
.....it's gotta be fair.
There has been a long-standing loophole in the tax code
which protects online retailers from having to collect sales tax in states where
they don't have a physical presence.
Now I don't believe there are too many internet shoppers
that have shopped online just so that they could avoid a sales tax.
Some folks agree that those who shop online do so because
prices are much better than for the same item offered at a brick and mortar and
that the tax is a secondary consideration.
The coverage of this topic seems to always avoid mentioning
the truth about paying sales tax on internet sales. These sales are not exempt
from local sales tax, the online merchant just is not held responsible for
collecting the required sales tax if they do not have a presence in the state to
which the merchandise is shipped.
The debate swirling around this issue is heated. Proponents
for the new internet sales tax legislation argue that is would level the playing
firled for those brick-and-mortar businesses that can't compete with e-tailers
that don't have to change their customers sales tax. Proponents also say that
requiring online sellers to collect sales tax will bolster state treasury
coffers which are desperately in need of replenishing.
The most vocal opponents say that having to comply with state
tax collectors from scores of different states is an administrative burden that
will break the back of small-business owners who do business
online.
And once again this issue has become political, the Senate
is likely to approve the new legislation but the House of Representatives might
not approve it.
This issue can easily come down to the internet economy vs.
the local merchant who has to collect the sale tax.
We think local merchants deserve a break here.
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