Internet Sales Tax

by jason on July 3, 2010

This morning I was reading that the US Congress is thinking about instituting state sales tax on Internet purchases. In 2009 it was estimated that there we Americans spent $134 billion dollars on online purchases. Obviously that number is going to grow.

Now, let’s pretend that the US Congress wants to actually PAY for all of their spending. A state sales tax is nice, but why not (God forbid that I’m actually saying this) institute a NATIONAL sales tax on Internet purchases or a combination of the two.

I propose something simple. A flat 3% state tax and a 3% national sales tax on purchases. That’s $4 billion dollars (to the states) and $4 billion to the national tax line, with 2009 figures. That number will only go up (or maintain or decline if we get tax crazy).

I completely agree that we don’t need more taxes, but at the same time, we’re building a deficit at an astronomical rate. A state sales tax can help states improve and strengthen their local economies and government could use that money to offset national mandates. Perhaps a moratorium that the money can only go to Internet-related endeavors or research grants?

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