Customers often shop online simply to save money by avoiding state sales tax on their purchases. However, recently Amazon has made the headlines because they are looking to purchases be taxable, regardless of whether they have a physical presence in a state.
Many shoppers are upset by this rule simply because they have shopped online for so long without paying sales tax that now their average ticket price will increase.
Although, I don’t necessarily have an opinion on whether or not one should pay sales taxes on items purchased online, I do have a question for you. Is this a “fair” way to increase revenue?
Essentially, the state and federal governments are behind on the income side of the equation. Since the housing crisis started and the economy took a nose dive, government officials, the budget conscious and the economic policy makers have been trying to determine ways to increase income.
Although, I don’t see this as the way to change our future, I do feel this might be a valuable and simple option to help boost income. If I have to pay sales taxes on a shirt down the street, then you might as well have to pay some sort of tax on the shirt that you buy online as well.
How do you feel about the online sales tax?
Did you know that we can do tax planning all year? Go ahead and schedule some time to see one of our tax experts!!
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.