Proposals to force small businesses that sell goods online to become sales tax collectors for state governments seem to be based on the idea that everything you buy on the Internet comes from someplace else.
There's an assumption that the seller is not a home-state entity that could be hurt by this additional administrative and cost burden.
The truth is that Internet retailers operate from pretty much every corner of every state in America. That's the beauty of online commerce a small company anywhere can be a player everywhere if they have a good product and make it available to Internet shoppers- and in many cases, available when these products are not, locally.
The past decade has revolutionized the retail world, with the Internet expanding opportunities for small businesses and provide customers with infinitely more choices for products, prices and unparalleled value.
Moreover, there are distinct benefits that online shopping provides over brick and mortars--in Williamsport PA, as an example, I cannot buy the full line of Apple computers. If I want to buy books from our local bookstore, I am beholden to their supply. Not with Amazon.
Also, many online stores do not use Pennsylvania state services like sewers, firefighters or police, but they do keep the USPS and UPS extremely busy, especially at our house so taxing them would be an inequitable windfall for all states.
There are also many businesses in Pennsylvania that offer both online and brick and mortar services. As an example in Pennsylvania, other than wineries, these businesses enjoy a nice volume of sales that are not taxed, so it doesn't totally disenfranchise them competitively. Oh, and one more thing is it Constitutional for a state to collect state taxes across state lines?
Why would Congress mess up a good thing?
Submitted by Virtual Newsroom