Wednesday, May 2, 2012

Here, yes' there, no; over there...later.

     While congressional Republicans say no way no how to a national Internet sales tax, states are highlighting how the Articles of Confederation-style approach favored by Teabaggers and other forms of loon don't work:

         But taxing Internet sales hasn’t proved popular with members of Congress, particularly in an election year.
          So Amazon has applied its own calculus to cutting deals with states, observers say. It has looked at its own plans for growth and the need to have distribution centers in many states to continue that trajectory. It also has to look at the growth of potential tax liability and legal costs.
         “I think they are being strategic,” said Betsy Laird, a top lobbyist with the International Council of Shopping Centers. “They have to make accommodations if they are going to be good corporate citizens in those states.”
         Whatever Amazon’s motives, its agreements with states to collect sales tax on purchases “really changes the game,” said one Internet company lobbyist. “Whether you need to change the law begins to look like one segment of the retail business putting burdens on another segment.”
          On Friday, Amazon announced a deal with Texas to begin collecting sales tax on online purchases as of July 1. Also last week, the retail giant announced a deal with Nevada to begin collecting sales tax in 2014.
         As part of deals with South Carolina and Tennessee, Amazon has sent letters to customers with the totals they spent on the site and information on how to pay the tax.

Graphic by Kristen Long/POLITICO

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