News Do you support an internet tax?

jim hardy

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Do you support an internet tax?

For me, there's a basic principle at work here:
I oppose anything that gives government more power or money.

You cannot base an economy on half the people regulating the other half. Russia already tried that.
I am old enough to remember when 3% sales tax was plenty to support Florida's state government.
The only remedy for a morbidly obese bureaucracy is to stop feeding it.
 

BobG

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"Cross border" issues don't complicate anything. The tax rate is based on the location of the seller, not the location of te buyer.

That does lead to a few loopholes that are being closed - for example companies basing their internet operations in the Channel Islands because of the low (or zero) sales tax rate.
Thats not how I interpret the quote in the original post. Its based on the location of the buyer.
He was explaining how the EU does things; not the US. Internet purchases does muddy up the idea of where the transaction is actually taking place - the buyer's home or the seller's store (especially if seller is relying on a third party to manage online sales and the servers are located in yet a third state).

Basing the tax rates on the seller's location would make things a lot simpler for the seller. With today's technology, I don't see determining tax rates for 50 different states as insurmountable, but it is more difficult than just having one tax rate for all of your sales.

But, the difference in tax rates would have impact on internet sales. Companies selling primarily over the internet would relocate to states with no sales tax, thereby recreating the status quo as far as local merchants are concerned. (Or they'd at least have their headquarters in a tax friendly state - perhaps even a state friendlier than Delaware, which is currently the most popular state for corporate headquarters.)
 

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