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Texans: It’s time to take action against the Amazon / Internet Sales Tax

By: Neil Stevens (Diary)  |  June 13th, 2011 at 01:00 PM  | 

RESIZE: AAA

State governments are timid beasts. So often the country will refuse to move in a new policy direction unless one state jumps out ahead and acts first. In the past, California was often the dynamic frontrunner. Now, Texas is increasingly the example that other states ought to follow.

When it comes to the Amazon Tax, or the plan to change the tax laws in Texas to punish Amazon for out-competing its competitors, it looked like Texas was ready to lead in the the right direction. Governor Rick Perry vetoed HB 2403, the initial attempt at passing a special Amazon Tax in the state.

But the forces of tax-and-spend politics haven’t given up yet. Even as Texas celebrates its first all-funds spending reduction in decades, it seems like some people haven’t given up on raising taxes. So, the Amazon tax was re-inserted into SB 1 in the special session.

No matter what bill it’s in, a special Internet Sales Tax is a bad idea, and takes Texas in the wrong direction.

Conservative think tanks and activist groups are aligning against the proposal. However the sneaky bit about this second attempt at the new tax is that Governor Perry does not have a line item veto. So it’s time to put pressure on the legislature to fix SB 1 for smaller, Constitutional government.

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COMMENTS

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  • http://pocketchangeproductions.net/ anotherindyfilmguy

    Ok, maybe more than two…

    Here in PA someone is running attack adds on radio to hype an upcoming attempt to do the same thing specifically to Amazon…

    What get’s me are two things:
    Does anyone remember taxes being required of mail order catalogs other than for the residents of the same states that business is in (and sometimes a few others – varied by catalog).

    And why *just* Amazon? If they really wanted to rake in the revenue they should tax all online sales – including the sites like eBay, Target, Wal-Mart, Sears, L.L.Bean etc etc. That would be *fair*(er)…

    On the other side of the coin with the tech and code that is currently available perhaps Amazon (and others online who may not realize that after Amazon they are likely next for this treatment) could collect taxes for all 50 states and pay them to preempt some of the faux outrage over the whole deal?
    /2c

  • obxster

    I had several profitable websites as an affiliate of Amazon. When NC passed their Internet Tax, Amazon dropped everyone in NC that were affiliates. Don’t Texas do that to their internet businesses.

  • bgintn

    as I said the last time this came up. Thank you for the jobs and the paychecks for employed workers here in TN. Amazon is building two new distribution centers here.

  • rac3rx

    This has nothing to do with taxing internet businesses with no actual physical presence in the state, nor is this calling out Amazon specifically. The original justification for applying the sales tax rules to Amazon was for the “brick and mortar” distribution center located somewhere near Dallas.

    Those who wanted to tax Amazon argued that since there was a physical building located in Texas, the sales tax should apply just as it does for any other company with a structure physically located in the state. Those who argued against taxing Amazon stated that since we can’t go to the physical “Amazon store” to buy anything, the sales tax should not apply. This is the argument, pure and simple. It is not as nefarious and broad sweeping as currently implied by the post or the comments.

    If I remember correctly, Amazon responded by moving its distribution center out of Texas, so as applied to Amazon, I believe the law would be moot. Unfortunately, passing such a law, in my personal opinion, would deter other businesses, such as Amazon, from bringing warehousing and hence additional jobs to the state. But for states that are getting these distribution centers, brace yourselves to see similar debates in the future.

  • http://www.hakubi.us/ Neil Stevens

    The only reason this bill comes up is the distribution center Amazon has in Texas.

    The only reason that various big retail corporations are pushing this is that Amazon is eating their lunch.

    It’s the same reason governments go after Walmart. The old guard can ‘t stand a lick of competition.

  • leefox

    Is a very bad move by Texas.

  • opas

    There seems to be more action in favor of the tax than against it. I think that eventually Amazon will have to give in and start collecting sales tax in Texas and other states.

    Of course, consumers won’t be happy about paying sales tax, and many are already discovering ways to avoid doing so. For example, many consumers in California and New York use package forwarding services from Oregon (where there is no state sales tax) to shop tax-free online, even though their states collect sales tax on online purchases. (You just order with an Oregon address, then have your packages forwarded to your own state, tax-free). See http://bit.ly/mRILaE

  • http://www.hakubi.us/ Neil Stevens

    Who needs it anyway?

  • http://impudent.edublogs.org/ kyle8

    I am sure that way when I was a little kid looking att he Sears Roebuck wishbook, that there were local stores trying to get the legislature to pass a mail order tax.

  • http://www.usdebateboard.com usdebateboard

    And Amazan is a VERY big retail corporation, too.

    Retail corporations incur costs and take risks when they locate, hire, and grow in any state. They frequently move into areas the “old guard” has abandoned because of blight or other reasons.

    If tax breaks are good enough for Amazon phoning it it, they should be good enough for any retailer doing business in Texas.

  • http://www.hakubi.us/ Neil Stevens

    But the Amazon tax doesn’t cut taxes, it taxes activity previously untaxed. That is, it’s effectively a new tax.

    Read my lips: Defeat this provision.