Sunday, March 20, 2011

The Amazon Tax fiasco heating up

Who pays sales taxes when retailers deliver?

The local retailer still pays, whether the customer or a service trucks the object to the customer's home. If customers develop the habit of shopping at the retailer on-line, then legislatures should consider how the required government services have changed and change the retail tax accordingly. What Amazon is rightfully attacking is the inability of our legislatures to think clearly.

Legislatures work for a company that delivers services for a fee. Try to figure out the services needed then allocate the fee. When that clear thinking is done, they can collect from Amazon what is due.

Legislatures generally think in terms of what they can steal by mis-direction, they are the problem in this case.

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