Almost Classical

As I wrote in a few days ago, the Internet sales tax mandate is coming. It's stupid, and it will only benefit the larger retailers — especially Amazon because Amazon offers "retail services" to other businesses. Amazon Web Services, Amazon Merchant Services, and so forth, mean that Amazon will not only survive a tax mandate, but Amazon will thrive with Internet sales tax mandates . Either politicians and business groups are stupid and/or naive, or they know perfectly well that Amazon and other larger retailers will do fine. Consider the following New York Times and CNBC special report: Internet Sales Tax Coming Too Late for Some Stores http://www.cnbc.com/id/100681021 Published: Saturday, 27 Apr 2013 | 12:00 AM ET By: David Streitfeld Anita Demetropoulos, a Maine shopkeeper, figured she would never see the day when her most relentless competitor, Amazon, would be forced to collect sales tax. Now that Congress seems ready to do that, she is no longer sure it mat...

The blunt truth: Collecting any and all "applicable" sales taxes online is not going to help retailers. It is not going to make things "fair" in some way. In the end, it's just another layer of complexity that might create jobs for tax specialists, but not many other people. Congress Is Considering a Bill to Make Internet Firms Collect Sales Tax. Here's Why They Shouldn't Pass It. by Megan McArdle Apr 24, 2013 11:00 AM EDT It's too burdensome on businesses we want to expand. Businesses in states without a sales tax will have to install a collection system that they currently don't need—and to pay taxes for services that they don't receive from faraway states. Yes, their goods travel on the roads, but the shippers are already paying tolls and gas taxes to cover the wear and tear. If we think those tolls and taxes are too low, the right response is to raise them, not impose a completely different (and much higher) tax. My colleague argues t...