Yep, why not simply lower property taxes on brick and mortars? Why not lower sales taxes on in-state purchases?
Brick and mortars are making a deal with the devil. As long as there are “tax free” Internet sales, there will be a cap on local taxes. As soon as that ends the lid can come off.
This is terrible policy. I mean, if Obama wants it, it cannot be good.
“As long as there are tax free Internet sales, there will be a cap on local taxes. As soon as that ends the lid can come off.”
I hadn’t considered this aspect of it. This is a great point. They are trying to sell this as tax fairness and somehow local governments will do the right thing and lower taxes on everyone after the tax base is broadened. But the exact opposite is likely to occur, especially in states with complete Dem control, like here in MN where I live.
why? Besides the fact they want more money and not less ... they know online shopping is not just about saving taxes as compared to brick and mortar shopping. People like the convenience of buying from their home, avoiding crowds etc. So the feds KNOW that an internet tax will not significantly reduce demand. Sure some people will protest etc but the world will go on. It is generally elastic. They know this and know it is a magic cash cow.