The old saw is that nobody can avoid death or taxes, but there are some exceptions, at least to the taxes part of it. Amazon sells its books sales-tax-free in most states, primarily because they don't have any bricks-and-mortar presence in those states. The idea is that state taxes go to the support structures of the state (roads, police, etc.) and if a company doesn't use those services, why should they pay for them? The states, of course, take a different position entirely. You can draw your own conclusions: Forbes provides the background.
Forbes: Amazon's moves are the latest in a fight involving states trying to get out-of-state companies that perform commerce largely online with their residents but have little or no physical presence in the state to collect taxes. Governments could generate $3 billion in new revenues if Web retailers had to collect taxes on all sales to consumers, according to Forrester Research. More...
Thursday, July 2, 2009
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