One who intends to leave others better off for his having existed.

11/30/09

Who benefits from a tax free internet, and how much does who pay whom to keep it that way?

Do internet tax breaks transfer some political contributions from state and local to national?


 


Do tax free internet purchases lead to increased taxes elsewhere?


 


Governments last as long as the under-taxed


can defend themselves against the over-taxed.


 


Bernard Berenson


 


If buying tax free online reduces state and local tax revenues without decreasing demand for municipal services, are tax free internet purchases federally subsidized at the expense of state tax revenues?

2 comments:

diane davis said...

Sales taxes should be paid on internet purchases at the rate charged for local purchases made at the shipping site and paid to the authority in that area.

An alternate would be for a National tax rate to be established with all mail order and internet purchases being taxed at the same rate and the funds used to keep the internet free to all users. Sellers would simply keep a record of non-local sales and file the information along with all the other stupid forms they have to send to the US Government.

If tax-free purchases are made to avoid local sales taxes, local businesses are hurt. As a former small-business owner, I have known people who browse local stores and then order from internet sites. Others order items on the internet and then contact local stores for free advice on use of some items.

North Carolina has an "honor system" that "requires" internet purchases to be declared and local taxes paid. The NC Income Tax Form is used to declare these purchases.

george said...

Good points,

I wonder what the potential impact of a tax structure could be on the Aerotropolis enterprize if retail sales swing back to local from hub based.

We would still have the infrastructure for highway and rail shipping, but not so much air. If the Fed keeps printing money to rescue the economy, the railways will be nice to have if prices at the pump inflate. And maybe all the empty warehouses on the other side of town could get some use.

g