The Internet Taxes that Could Be Coming

This is a follow up post to our It's time to strike down the 'Amazon exemption' piece that focused on the tax advantage that Amazon receives by not charging sales tax vs. its brick and mortar counterparts.

With literally thousands of state and local taxes codes it would be a daunting task to require internet companies to collect all of these taxes.  It is much easier to collect those taxes when you purchase an item in the store rather than online.

However with state and local entities feeling the heat from the great recession, budget cuts, and a decrease in funding, they are needing to find ways to stop the bleeding.  In addition you have a company like Best Buy who is turning into Amazon's showroom where people will go, look for a product to try out, and then go home and order it on Amazon.

Here is some additional insight into this topic via The Heritage Foundation