The Internet Tax Man Cometh (Again!)

03.06.2011

"The bill seeks to hurt online retailers and consumers alike, and will suppress internet entrepreneurship and your wallet," Abraham Hamadeh said . "The internet has operated efficiently without taxation and government regulation since its inception, and that's what makes the internet an unrivaled marketplace for ideas and goods.

Durbin's efforts are nothing new, though. As early as 1997, we were covering attempts to , and efforts to start taxing Internet sales have circled the halls of Congress almost .

Playing Hardball to Prevent the Inevitable

Interest groups and companies like Amazon in fighting back attempts to collect sales taxes. When Texas attempted to collect sales taxes from online retailers with distribution centers in the state, Amazon threatened to pull out completely. The bill was later vetoed by the governor. In South Carolina, Amazon won an exemption from a new law using the same strategy, and in Tennessee, Amazon got a proposal tabled by also threatening to move facilities elsewhere.

Playing hardball with state governments may only be delaying the inevitable. Sooner or later brick-and-mortar companies are going to be able to pressure those against taxing these online retailers. It's only fair that these companies pay their fair share, and are on a level playing field as other merchants.