INTERNET: Tax could cripple industry

The Cd’A Press editorial called “No it’s not a new tax” presents an unbalanced view of the proposed Internet sales tax law.

The editorial claims that an Internet tax would “level the playing field” for “brick and mortar” stores. Actually it would slant it unfairly in their direction. Here’s why.

The proposed law would require Internet sellers to collect sales tax, not just for their own state, but for every state that has a sales tax. They would also be liable for auditing by any of these states. At present, 45 states have sales tax. This would put a horrible burden on Internet sales companies, causing much more book keeping, wages for clerks, and necessitate higher product prices.

At present, an Internet business must collect sales tax in any state where they have a physical presence, if that state has sales tax.

Also, customers have to pay for shipping, which provides a major part of the income of the USPS, and several courier companies. Local businesses need to be more competitive, and many do so by having Internet sales themselves.

If passed, this law will drive a lot of small Internet companies out of business.

The ones who would benefit mostly are the governmental agencies, which are always looking for new ways to collect more taxes (which they like to spend on abstract art and other non-essentials).

Many Internet sales companies are local business, which contribute to the local economy. So, I think some sympathy is deserved.

ED TORRENCE

Coeur d’Alene