Sunday, February 21, 2010
Equalizing the Board of Equalization Approach
Sales tax is avoided when a California resident purchases a book or a widget online, instead of at the neighborhood store. This is the third wave of competitive body slams against traditional brick and mortar retail - first came the malls, then big boxes, now — the Internet. But perhaps not for long. Here's the story on the California State Legislators review of the tax losses incurred by the cash strapped state - it's picking up steam and becoming known as the Amazon Tax. I was encouraged to read that our leaders are finally waking up to this issue. It's nice for consumers to save money, don't get me wrong. But for years Chamber Members have been advising me that they are turning into "showrooms" while the Internet gets the sale. Downtown lovers, beware! We need to equalize the rules imposed by the Board of Equalization - the tax man. Your neighborhood store no longer has "convenience" as a unique benefit, don't handicap it with an unfair price hike of 9.75% when compared to online shopping carts loaded with identical items.
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All governments need tax dollars but enough is enough. Get spending under control, lower sales tax and collect sales tax from all items shipped into the state as well. Stop hurting the gracious retailer with a 9.75% price hike.
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