Globally Rational

I’ve come across a lot of people who oppose the recent suggestion of implementing a sales tax on Internet purchases.  My favorite line of reasoning is the argument (which I heard on a radio interview with a random online retailer) that some of these businesses are already just barely scratching a profit and that a sales tax would severely hurt the company.

This sales tax is nonexistent solely because it has never been implemented.  Eventually, it became a part of online culture and retailers are afraid that its implementation will hurt their profits.  I don’t see why these people should be exempt from a tax that brick-and-mortar retailers, who also have to pay for their facility and their employees, are required to pay.  As much as I love shopping online (partially because of the lack of sales tax), it is ridiculous to say that any business should be exempt from a tax because it would hurt their profits.

Some people make the argument that online retailers also have to deal with the unique hurdle of shipping… but don’t brick-and-mortar businesses deal also have to ship items from their warehouse to their storefronts?  State governments are losing a great deal of income because of these tax-free transactions, and online sales are driving increasing numbers of storefront-based companies out of business.  Since when have profits ever been a decent concern for lawmakers?

Even with the taxes, it will be much cheaper to shop online.  Right now, people often go to a retail store to check out the product (and ask questions) before buying it from a website that has no customer service.  How is it fair to allow the online businesses to take these customers without paying the taxes that the other company would have had to pay?

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