Jul 31, 2012

The Rights and Wrongs of Taxing Internet Retailers

Posted by Wendy Weber

…from last week’s Wall Street Journal:

Patrick M. Byrne and Jonathan E. Johnson III, the Chairman/CEO and President of Overstock.com, wrote a compelling piece about the debate over whether states must require retailers to collect sales taxes from online retailers.

They make some compelling points about the issues, outlining some solutions which appear to be fair and equitable.  As they point out, “Brick-and-mortar retailers calculate sales where the cash register is located, not where the product is shipped or the purchaser resides.  The checkout clerk at a Wal-Mart never asks the customer where she lives or where she will be wearing the dress she is purchasing.”

Messrs Byrne and Johnson point out, “Historically, when the government has conscripted individuals to perform arduous tasks or services (e.g., the military draft), it has provided those individuals training, tools, protection, compensation and a special jurisdiction for dispute resolution so that those individuals could adequately do what the government asks of them.  These key components are currently missing in the bills before Congress.”

To read the piece in its entirety, click here.

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