Friday, September 9, 2011

Amazon: right or wrong?

Amazon is undeniably an innovative company, with great potential for growth. That, however, should not be excuse to redefine the rule book. Amazon has been on the wrong side of a straight-forward commonsense issue of fairness. There is no reasonable justification for online retailers to avoid collecting the same sales tax their brick and mortar competitors must collect. Most state laws require the consumers to pay these sales taxes regardless of whether they have been collected, so any price comparisons that exclude taxes in one case but include them in another provide the consumer with a false view of pricing advantages. Why should there be an added burden for the consumer and state revenue enforcement agents to save online retailers from collecting sales tax?

As politics is the art of the possible, perhaps the deal recently brokered in California is right and proper. Compromise is good. Fairness is essential.

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