JeanCarl's Adventures

Taxes on the internet

April 24, 2008 |

The Internet brought us shopping in a new method. Instead of going to the store, calling a toll-free number, or sending a mail-order form by mail, you can view and buy almost anything that can be shipped (legally and illegally) to you.

Amazon has an extensive amount of inventory that you can browse and order from. They offer free shipping on numerous items and no tax. Government officials have been looking at ways to tax Internet purchases to make a few more cents. It’s been bothering them for many years.

Free shipping and no taxes has motivated many people to buy something online. You don’t have to leave the house and spend money on gas. You don’t have to figure out if a store has the item in stock, where it is in the store, and then wait in line to buy it.

Not considering the fact the system becomes more complex with some states being taxed and others not, is the additional income that much to counter the inconvenience factor? Or is there a point being made that no person or company can avoid paying taxes on a purchase they make.

If the only motive to buy something online is because you save money and time compared to buying it at a brick and mortar store, there is no advantage if the price breaks even or is more. If you spend the same amount, do you want to wait a week before you get the item at your doorstep? Amazon and others will have to compensate for the additional cost in taxes added to their products if they are to remain competitive.