The end of tax-free Internet sales
It was inevitable that sooner or later the politicians would be unable to resist taxing sales on the Internet. The volume of Internet sales is too large now for this source of tax income to go untapped. In fact, I have been surprised that the Internet was left alone for as long as it has been. But the shelter from spendthrift politicians is likely to be coming to an end. ZDNet reports:
A powerful alliance of politicians, including key U.S. senators and the National Governors Association, is arguing that out-of-state retailers must be required to charge sales taxes on purchases. At the moment, for instance, companies like Seattle-based Amazon.com are not required to collect sales taxes on shipments to millions of its customers in California.
This is hardly a new debate: officials from the governors’ association have been pressing Congress to enact such a law for at least six years. They invoke arguments, which have been unsuccessful so far, like saying that reduced sales tax revenue threatens budgets for schools and police.
What has changed, however, is the political dynamic. While its precise contours are difficult to map, a Democrat-controlled Congress is seen as more likely to agree to the idea than one controlled by Republicans.
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