The Amazon tax

The interior of Mitre10 MEGA's Pakenham storeImage via Wikipedia
Houston Chronicle:

Small-business owners and big-box retailers are banding together in a political campaign to push the state to require Amazon.com and other e-retailers to collect sales tax.

The efforts come as the Internet giant announced it is shutting down a distribution center in Texas, prompting lawmakers to draft opposing legislation over the sales tax issue.

Because the retail giant doesn't collect taxes here, it in effect has lower prices — and ultimately has an unfair competitive edge over brick-and-mortar vendors, those retailers say.

...
When you add in the delivery charges many times the tax advantage is a wash. Another relevant question is what government service is provided out of state retailers that would justify the tax. Local retailers receive state and local services that the taxes help to pay for. Delivery services already pay those taxes and incorporate the charges into their bill.

The Legislature needs to look at this as more than just a revenue stream or a protection racket for local retailers.
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