Why Tax Online Sales? Why Not?
“Subsidizing E-Tailers: What Will They Do Without State Tax Dodge?” [Computer Curmudgeon, Jan. 17] by Michael A. Hiltzik immediately brought several things to mind:
First, I have always had a bit of resentment when buying something by mail and I am asked to include the appropriate amount of sales tax for my state. I am suspicious that some far-off merchants may not even bother to remit such taxes back to the states. After all, how would the California authorities know what was sold by mail from, say, Florida? I get the impression that only the largest of the mail-order merchants, such as L.L. Bean, are in full compliance on this.
Second, if I am really taxed on everything I buy from within or outside of California, it should be called a purchase tax, not a sales tax. Just when was the concept of a tax on sales dreamed up, anyway?
Third, let’s just suppose the legislators vote to allow taxation of online sales. Who could enforce the collection of taxes? And how? Seems as if it might be as difficult to regulate as online gambling.
I don’t suppose any of the anti-taxation folks you mention have suggestions for making up the lost revenue. Nobody likes taxes, but in reality we always need to pay for services.
All in all, I don’t mind paying my fair share of taxes--just as long as the next guy is paying his.
GREG GOLDEN
Van Nuys
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Hiltzik makes the usual assumption that taxes are the state’s God-given right, ignoring the raison d’etre and justification of such levies.
Nothing in this world survives without the intake of sustenance, which these days means money. Governments need inflow to provide the outflow of necessary services such as highway construction and maintenance, police security, care of the environment and the like.
Standard brick-and-mortar businesses require such services to conduct sales, since customers have to physically travel to their locations. Therefore, it can be reasoned that they should pay levies on those sales--sales taxes.
Not so with Internet businesses, which do not tax the physical system in the conducting of e-commerce. To be sure, such Internet enterprises already pay the appropriate taxes to conduct business, given the fact that they must have some physical location that is undoubtedly more than amply taxed.
RICK KELLIS
Woodland Hills
