I hear/read something about states imposing sales taxes on Internet businesses just about every week. Mostly, it’s about the Amazon case with California. There’s no surprise that this was going to happen. No surprise at all. Local retailers keep pointing to the fact that Amazon’s customers don’t have to pay sales tax as a major reason the giant Internet retailer is doing so well. It’s a legitimate claim. If you can save 8%+ on your purchase just by purchasing online, why not?
So, the solution is to start taxing Amazon, right? WRONG!
The solution is so much easier and better: get rid of the sales tax on your local stores!
You’re not going to hear something like this come out of Sacramento though. Of course, that would obliterate a massive revenue stream for cities, counties, and states, right? Of course it would. They count on that money for their services. So, they just need to make up for it with an increase in property taxes. WHAT?!?! Can’t we just get rid of taxes altogether? Well, one could argue that point, but it would take decades to completely get rid of all taxes and replace them with bond measures and an opt-in taxation policy. And that’s definitely beyond the scope of this blog article.