TMCnet News
EDITORIAL: Sales tax fairness overdue [St. Joseph News-Press, Mo.](St. Joseph News-Press (MO) Via Acquire Media NewsEdge) June 20--Sales tax fairness is hardly the same thing as "a new tax on the Internet." Advocates for Main Street merchants in the Midland Empire need to make sure lawmakers and the public know the difference. And asking a huge online merchant like Amazon.com or Overstock.com to participate in collecting legally obligated sales taxes is not the burden it's made out to be, nor is it out of line considering the purpose of tax laws. Across the country, including Missouri and Kansas, laws specify sales taxes are to be paid on retail purchases. These levies approved by local voters provide revenues for all manner of vital services -- public safety, schools, roads and bridges. When the taxes go unpaid, these services suffer. This point has been put in sharp focus during the recession. The Associated Press estimates $23 billion in taxes on online sales goes uncollected each year in the United States. The AP calculates this money could be put to good use in every state and local budget -- including helping hold down future tax increases on people who do pay their fair share. It is patently unfair that local merchants must collect sales taxes and a national online retailer can dodge doing so, thus lowering its posted prices without actually cutting into its profit. This practice undermines local businesses, the employees who work for them and the communities who benefit from their presence. Also, there is no viable alternative to online tax collections. When taxes are not collected, individuals are supposed to declare their purchases and remit the appropriate taxes on their annual tax returns. But in reality this rarely happens. All of these are real issues, but don't expect any help on these matters from the likes of Amazon. The big retailer has decided it wants to maximize its short-term financial gains by fighting as long as it can to avoid collecting sales taxes. It is going so far as to limit the number of states it has operations in so as not to be legally compelled to collect sales taxes. And as for voluntarily collecting the taxes? While 1,500 companies nationwide do just that, Amazon has refused -- saying only that it wants a national solution to this problem, knowing full well that Congress wants to avoid getting drawn into anything that might result in higher prices paid by some constituents. It's time for our lawmakers at the state and national level to deal with this tax issue head-on, not allow a fringe element to portray it as "a new tax" and approve enabling laws that clarify online merchants must collect sales taxes -- just like everyone else. ___ To see more of the St. Joseph News-Press or to subscribe to the newspaper, go to http://www.stjoenews-press.com/. Copyright (c) 2011, St. Joseph News-Press, Mo. Distributed by McClatchy-Tribune Information Services. For more information about the content services offered by McClatchy-Tribune Information Services (MCT), visit www.mctinfoservices.com, e-mail [email protected], or call 866-280-5210 (outside the United States, call +1 312-222-4544) |