True Impact of the Internet Sales Tax Ban
The ban on Internet sales tax has been renewed. Click here for opinions from politicians, gathered by American City and County magazine.
As a small business person, I am against any new taxes. Federated spends about $5 million a year on complying with local sales tax - money that small businesses like mine just don't have. However, the issue is not creating a new tax, but addressing how we manage an uncollected one.
Bill Gates is often quoted as saying that people tend to overestimate the impact of things in the short term, and underestimate their long term implications. Local sales taxes help pay for schools, police, fire fighters, and other critical infrastructure. I think reasonable people would agree that an Internet sales tax would not slow the Internet's growth. However, as more people go online and become comfortable with purchasing online, especially from faraway places, we may want to consider the long-term impact of failing to manage the collection of sales tax.
Link: International Council of Shopping Centers Issue Brief (Requires Adobe Acrobat)