The early days of internet shopping brought three huge benefits. First, it gave everyone access to goods that weren’t available at their local mom and pop shop. Second, it allowed people to find the guy who sold the same item for half the price. And third, internet sellers didn’t charge tax. That meant a significant savings, on top of the other benefits.
Of course, government hated the fact that it didn’t get its cut, and so imposed a duty on internet sellers to collect taxes on their sales. It presented a significant problem for sellers, as every local jurisdiction charged different percentages of sales tax, but that was the sellers’ problem.
A more problematic reason to collect sales tax was that it was killing local business. Why pay an additional 8.25% for a good? Brick and mortar stores not only had to pay rent, but had to collect tax. It wasn’t fair that they were put at such a disadvantage to internet sellers. Continue reading
