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State sales tax is just one revenue stream a state can employ. There are several criteria for a good tax. One being it is not regressive. Another being it colle
by ansy 15y ago
State sales tax is just one revenue stream a state can employ. There are several criteria for a good tax. One being it is not regressive. Another being it collects more than the burden it places on society to collect it.
Sales tax is arguably regressive, so it already has one hit against it. And in the internet age, when it is not enough to do business in your home state, sales tax is becoming a bigger burden to collect.
That said, Amazon is large enough it could collect sales tax no problem. I am just thinking in general, it may be time to look at another form of tax to fill the void for sinking sales tax revenue.
- mseebach 15y agoSales tax is only regressive with regards to wealth and/or income. It's perfectly linear with the activity it's taxing. Also, non-regressiveness is a far cry from an established benchmark for a "good tax".
- protomyth 15y agoAlso, depending on what the sales tax applies to, it can be a fairly good thing. Some states exclude clothes, unprepared food, and medicine. People also understand sales taxes, unlike income taxes. Given that, progressive taxes are just as foolish. A rate is a rate.