Is the Amazon tax the best income source?

The most tax newsworthy topic this week has been about what has been termed the "Amazon Tax."

Online retailer, Amazon.com, has pulled operations out of states that force its sellers to collect retail tax.

The Mercury News quoted Mark Griffin of Overstock.com, "We're not collecting any tax for sales in California because we think the law's unconstitutional."

There are clearly two sides to this story as the states, in this case California, are trying to make up for lost tax revenue and major budget falls.  While Amazon and Overstock don't feel that they need to collect the taxes.

We warned about online sellers needing to get organized back in 2010 with our article regarding eBay and Craigslist sellers.

However, I think a comment on the online article actually states the debate even better.

Matt Costa quoted Sir Winston Churchill in saying, "We contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle."

Clearly our economy and nation are so obese that we can't do a pull-up, let alone a pull up on a bucket handle.

Unfortunately, our nation needs new income sources.  We need to generate more income sea to sea to help pay for our debt, war, and other "entitlements."

What suggestions do you have for the State of California?  What suggestions to do you have for Congress?

Remember, we can follow the tax code at Liberty Tax, but we can re-write it.  Until then, stop on by and visit with your your local Liberty Income Tax professional

-david rocci

Disclaimer: Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.

Posted To: Tax Rants by David Rocci By: David Rocci On: Saturday, June 25, 2011
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