What is Amazon.com's biggest advantage over its competition? One-click ordering? The ability to go shopping in your pajamas? Its enormous selection? Those all play a role, but Christopher Caldwell thinks the real answer is the fact that Amazon's customers mostly don't have to pay state sales tax:I've got to tell you that this news grieves me. I am a big believer in supporting local economies. While the corporate headquarters of Amazon.com is not located in my county, they do call the State of Washington home. Consequently, each time I make a purchase with Amazon.com, I am supporting my state's economy.It is the tax exemption, not the technology, that most distinguishes Amazon from its rivals. Its price advantage is the most important thing about it. The ruthlessness with which Amazon is resisting tax reform might be a measure of the centrality of tax-privilege to its business model. One can look at the collapse of Borders, not to mention independent booksellers, and ask whether government policy has undermined the bricks-and-mortar retail economy to protect a will-o'-the-wisp.At first glance this seems silly. Can a 5-to-10-percent price difference really be such a deal breaker for Amazon? But Caldwell has a point: Amazon's ferocious response to recent attempts to get it to collect sales taxes suggests a company that thinks its life depends on not paying them.
~ Amazon's Scorched-Earth War Against the Rest of Us by Kevin Drum ~
But it looks like I will be saying goodbye to this giant online retailer! While Amazon does collect sales from me with each purchase -- solely because their headquarters is located here -- I am not about to support a company that doesn't collect sales tax for other jurisdictions.
I have a gift card that I will use next month and then I will look for other options. Since I live in the sticks, that's easier said than done!
The item I have purchased most frequently from Amazon has been books. There is not one bookstore within 50 miles of here and, since I rarely travel beyond this 50 mile radius, purchasing books online has been the way for me to go. Fortunately, I still have some online options like BetterWorldBooks and Powell's. I was going to include these two booksellers as well --
If you knew what Hawaii would actually do with the tax collected, you might have second thoughts. And do you think your neighbor Oregon should collect a sales tax? This is a STATE tax issue. (Unfortunately you live in the state of Amazon's actual presence. Sounds like you have a grudge against those of us that get a tax break.)
ReplyDeleteI mean, this isn't a tax AMAZON would be paying, it is a tax that state residents pay. I already pay tax on food and clothing and income and everything else in Hawaii; give me a break. (It's not at YOUR expense.)
Should e-Bay sellers collect tax for other states?
And from Amazon's perspective, I would imagine it would be quite humbug to administer the revenue distribution for the 45 states that have widely different tax codes for different types of goods.
I hope these 2 short articles reverse your ideas on the "buy local" fallacy.
ReplyDeletehttp://mises.org/daily/5283/The-BuyLocal-Canard
http://blog.mises.org/15494/buy-local-save-your-government/
Baroness,
ReplyDeleteLet's say you plan to buy the book, "100 Ways to Avoid Paying Taxes." If you go to a local bookstore in your community, you must pay the tax. If you buy online from Amazon, you don't. How is that fair to the local mom-and-pop store?
Secondly, though I agree that sales taxes tend to be regressive, how do you expect state and local governments to provide adequate services without needed revenue? The feds are cutting back on what they give to states, so the states are in crisis. Do you want to add to it?
As to the widely different tax codes, companies like Wal-Mart, Sears, McDonald's and thousands of other national chains seem to manage the labyrinth without much trouble. Why should Amazon receive special treatment?
Braden,
ReplyDeleteI find both article unconvincing. Both focus strictly on economic theory and don't place much, if any, emphasis on environmental factors.
I don't buy from Amazon to avoid a tax; I buy for convenience and because there are things I can't get locally. I do shop mom and pop (especially a certain Chinatown DVD vendor).
ReplyDeleteMy point is, what's it to you? I already pay shitloads of tax to this state. If I thought that the additional revenue would be wisely used, like for education, but it goes into a general fund for god knows what.
" If you go to a local bookstore in your community, you must pay the tax. If you buy online from Amazon, you don't. How is that fair to the local mom-and-pop store?"
ReplyDeleteHow is this not fair to the mom and pop? Sounds like you just don't want me to buy from Amazon. This is an issue between me and the state, not the retailers.
No, I want a level playing field. I have no problem with you buying from Amazon, but an online retailer shouldn't receive a special perk just because they are online.
ReplyDeleteAnother thing. I certainly do not agree with the manner in which states allocate their revenues. That said, taxes (in whatever form) are paid to fund the public space. We each have a responsibility to do our part.
I think it's a mistake to mix up the Tao with a particular political viewpoint. Any of us can twist it to fit in with socialism, libertarianism, democracy, etc., just like the Christians can twist Bible verses to fit in with socialism (the social gospel), constitutional literalism, libertarianism, either of the two main parties, etc. To me, the Tao seems to lead me in to a smaller, simpler, voluntary path. I often skip reading your political posts because they do not lead in this direction.
ReplyDeleteAlso, Trey, do not think that libertarianism can be pigeon-holed into one category, the right-wing. Google for the Nolan chart (and other variations) to see how limiting a left-right horizontal line isn't descriptive enough for the many political view points. Also, you might find Kevin Carson's Mutualist blog an interesting view from the libertarian left. http://mutualist.blogspot.com/
Joy,
ReplyDeleteI am a socialist and a Taoist. I write about issues that speak to me. Consequently, it should not be surprising that I use either philosophy as part of my personal analyses.
I find much congruency between these two separate schools of thought. That said, this doesn't mean that I believe every socialist must be a Taoist or every Taoist must be a socialist.
There are many aspects of Taoism that are congruent as well with libertarianism and anarchism. I don't dispute this. That said, I find little in Taoist thought that aligns itself with capitalism.
As to my belief that Libertarianism falls on the right side of the aisle, I suppose we will have to disagree on this point.