Saturday, April 28, 2012

Amazon's Taxes

From USA Today:
"Amazon strikes deal to collect Texas sales tax"

Come July, Texans will start paying state sales tax at Amazon.com. The agreement between the shopping gargantuan and Texas Comptroller Susan Combs was announced today, ending the state's two-year effort to collect $269 million for uncollected sales taxes from 2005 to 2009, the Austin Statesman says. Amazon has fought Texas, California and other cash-hungry states that want the online retailer to collect sales taxes that residents would otherwise pay at a physical store. As a result of the deal, which could add hundreds of millions of dollars to the state's coffers, Amazon will move forward with plans to create 2,500 jobs in Texas and make $200 million in capital investments over the next four years. More than a dozen states have enacted legislation or rules to force online retailers to collect sales taxes on purchases, and similar legislation is pending in 10 states.

^ I think Amazon and other companies like it are selling out the American people when they agree to these types of agreements with States. I don not think that any online transaction should have sales tax added to it or collected. I am ok with sales tax for things bought in a regular store, but anything bought/sold online should be exempt. I do think that instead of a sales tax every state should have a VAT so you know just how much you are paying for something rather than have to add a certain percentage to the total. I live in a state that only has sales tax on prepared food, gas and alcohol, but have lived in many states that did. I use Amazon and other companies to buy things online and will continue to do so despite this agreement. ^

http://content.usatoday.com/communities/ondeadline/post/2012/04/amazon-strikes-deal-to-begin-collecting-texas-sales-tax/1

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