Saturday, May 3, 2008

Amazon Sues Over New York Sales Tax

From The New York Times a piece about Amazon filing suit over the collection of sales tax.  The state of New York wants anyone with a presence within the state to pay a sales tax on sales from Amazon.  Which could add up to a lot of money for the state coffers.  Is there any doubt that if this law holds up many more states will follow suit, and Amazon to counter.  
As the historical avenues of brick and mortar retail shopping are further eroded by on-line shopping this will have to be addressed at a national level at some point.  There's no question that retail growth is in the on-line sector and will continue, thus cutting into the local sales and taxes, and the challenge will be to the states that have a sales tax to offset this growth.  the larger question is soon to appear; when will the federal government feel compelled to install a federal sales tax? When will be the tipping point? 

1 comment:

Anonymous said...

This is a link to a short article in the current NY Times paper to confirm the point in this blog.

http://www.pressdisplay.com/pressdisplay/showlink.aspx?bookmarkid=9CMM2KIQZQR4&preview=article&linkid=03c45d66-23cd-4f37-ba56-31c7c8d60897&pdaffid=ZVFwBG5jk4Kvl9OaBJc5%2bg%3d%3d

Best regards,
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