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View Diary: Senate moves forward to close online sales tax loophole over Grover Norquist's objections (230 comments)

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  •  It's an Amazon Protection Act. (4+ / 0-)
    Recommended by:
    PatriciaVa, Patriot4peace, stevemb, We Won

    Now that Amazon is firmly entrenched as the world's leading online retailer, this law is just a barrier to entry for any possible competitor who might want to compete with any chunk of Amazon's business.
       The problem for the little guy is not the loss of sales due to state taxes, but the expense of collecting taxes at different rates for 50 separate states.

    •  How little? (5+ / 0-)

      Anyone under $1M in revenue is exempted.

      ...and the only way a new company can launch is to be excused from collecting tax?  No brick and mortar entrepreneur has that advantage.  

      If the argument is that Amazon is better able to do this because they are bigger, well that argument can be used against any industry, on or off-line, at any time in any part of the country.

      What can POSSIBLY be the argument for being excused from tax collection as a protection of small business?

      Красота спасет мир --F. Dostoevsky

      by Wisper on Tue Apr 23, 2013 at 09:06:39 AM PDT

      [ Parent ]

    •  Wrong - Amazon is against this law (0+ / 0-)

      In fact when California tried to make a similar law Amazon, the online monster, tried to fund an initiative to fight the law.

      Small local businesses, and brick and mortar businesses, are hurt by the break given to the online monsters through the lower prices created by this artificial tax break.

      Folks will go into a real store, look at the merchandise, then buy it online because they don't have to pay a sales tax.

      Online giants need to be trimmed. Amazon treats it's workers like crap. It pays in nothing to the states and localities where they sell product. That's bad for everybody but Amazon and the online giants.

      •  Why Amazon Supports An Online Sales-Tax Bill (1+ / 0-)
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        •  Read the article (0+ / 0-)

          Amazon supports the law because they have no choice.

          That's what happened in California - they gave up.

          Even before the law is passed it's having the desired effect on Amazon -

          The company agreed to start paying sales tax in more states — and it started building huge warehouses near major metropolitan areas in those states.
          That's exactly what the law is intended to do. Amazon now has to employ people in the locations it sells to. It now has to compete locally.

          Planet money, the right wing NPR program, tries to put a positive spin on the situation by claiming that Amazon will win in the future. Nice try.

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