The Internet Sales Tax

It won’t be long until you’ll have to pay sales tax on items you purchase online.

Image via CrunchBase

The new law… all about “fairness” will be based on the sales-tax laws in your state.

For example – being in New Hampshire, I will not have to worry about sales tax.

Guess who opposes this sales tax thing and who doesn’t?

Local “brick and mortar” retailers are are for it.

Why? Because when you walk into a store – the sales tax gets charged. But pick up the same item online and no tax.

You’re actually supposed to send in the sales tax to your state – but no one ever does.

About a year ago I was reminded of this – when we had to put a new refrigerator in our rental house in Philly.

Because I was taking delivery in Philly and buying in Philly – no escaping.

Last week our company picked up a new Mac-book Pro for Elsa.

She lives in Vermont and needed the Mac ASAP.

I called and did the deal with a local Best Buy.

When they totaled it up they added the sales tax and I said “hold on!”

“I am spoiled because I live in a state with no sales tax. If order this online – I will not have to pay tax.”

I had no idea how I would have gotten the Mac to VT.

But guess what?

She lowered the price of the Mac for me and made it closer to what I would have paid had I gone to a Best Buy here in NH.

Sweet!

Ebay is actually opposed to the idea of the Internet Tax.

Amazon is for it.

That’s right, Amazon, a company that was built avoiding sales tax (except in states where they have a physical location) is for this tax.

Why?

For one – they already run on a razor-thin margins. They know how to run on thin margins.

The added accounting work to collect is no big deal for them.

But – there’s a bigger mission for Amazon…

The grand-plan at Amazon is to have fulfillment centers in every state.

Amazon wants to be the place you shop and then have the stuff delivered right to your door on the same day.

For the last 20 years, books have been written, documentaries created, news reports and more all talking about “The Walmart Effect.”

I am sure you’ve heard the stories of Walmart killing off Main Street merchants.

The question is will Amazon fill the news headlines as time goes on?

What do you think?

I know this article doesn’t have that much to do with YOUR Business at this very moment – but isn’t it instructive to see what political motivation and support are really based on?

Follow the money and predict future trends in your own business.

All the best!