Internet Sales Tax

I still don’t understand why the “moratorium” on collecting sales taxes on things sold over the internet is still mostly in place.

I’m sure this was someone’s bright idea back when the internet was fledgling and somehow asking people to pay the normal 5 – 6 – 7 % sales tax on something they bought out-of-state would cripple this nascent industry.

If Microsoft can offer up $50 billion or whatever incomprehensible amount of money for Yahoo – the internet is doing just fine thank you.

And in the meantime states and cities have lost out on untold millions or even billions in sale tax revenues that could be helping with infrastructure and other things that cost money.

With my limited knowledge of economics I think all that would happen is that some states that don’t have a sales tax might see more internet shoppers and business come there way.

But while I enjoy not having to pay sales tax on some of my internet purchases, it wouldn’t keep me away. I don’t stop going to WalMart because of my local sales tax.

Politicians seem to think this is some sort of good thing but I think it is shortsighted.

We already have to pay tax on some internet purchases – for instance if I buy on-line from Target I have to pay because they have a physical location in Missouri even though my merch may come from who knows where.

I don’t think this would slow down our economy one bit and I don’t think the internet would even hiccup.