Monday, June 13, 2011
Sales Tax - Who Cares what Amazon Thinks?
Raise your hands if you think there will eventually be an Internet Sales Tax? Of course there will be and Amazon.com and Jeff Bezos can't stop it. It is time the US Government earns some of the tax dollars we are paying them and enacts a sensible plan for managing Internet sales tax.
States need the revenue, consumers are conditioned to pay sales tax and it is fair to charge sales tax for purchases shipped to a state. Right now the States need to shut up and listen. You are better off with a reasonable Internet sales tax for all sales in your state then you are protecting your own sales tax percentage. A reasonable sales tax of 5% with .5% going to the Federal government for managing the program.
California will moan, but we get 8.75% and we can't make it at 4.5% and I say, quit bitching and take the 4.5% because your are fighting for the 8.75% and losing the battle and years of trying to get an additional 4.25% won't get you anywhere.
I say give every State 4.5% of the sales shipped to that state and be happy with it. Even states like Oregon and New Hampshire with no sales tax should charge 4.5%. Ecommerce needs a plan now so we don't play games for 2-3 more years and get stuck with a worse law.
Look, I don't have the lobbying budget that Amazon has but I do have a blog and I do have a voice. Congress wants to say this is an issue for the states so they need to figure something out but getting the States to agree on anything is like herding cats -- its impossible. Congress needs to enact a reasonable solution that is fair for every consumer and still give ecommerce the room to grow.
I say a 5% Internet Sales Tax managed by the US government is the quickest and smartest approach available and regardless how much money Amazon throws at this issue, a national sales tax must be enacted.
Just my 15%