Sunday, July 17, 2011

State Sales Taxes On Internet Companies

My neighbor came to me today with the following thoughts, spurred by the Amazon exodus from California after the state enacted a sales tax on internet companies.  He owns a successful local furniture store in NJ that is suffering from the lack of equal protection under the law.  He dutifully collects sales taxes, his online competitors do not.  This is what he has to say:

The most fair tax is the consumer tax.

States across the nation are being cheated by the enormous consumer trade of online companies.  They have a serious unfair advantage over local businesses.  The real bottom line is, states lose billions in revenue in lost taxes.  The same states then need Federal assistance, which comes from all taxpayers, even those who are not big spenders on non-essential goods.

Let each state collect its fair share of taxes.  They in turn can, hopefully, take care of themselves. This can relieve the Federal government from state aid.  Also local businesses would benefit, which creates jobs.

This is being discussed in several areas, and it should take top priority.

For those internet companies that find this a problem, they should be reminded that all local businesses already have the responsibility to be tax collectors.  It takes time, effort and manpower by all local retail enterprises; why should online companies be exempt?

Tom Kopilak

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