3 ms·
Agree with you on this. AMZN was having a free ride on "no-tax" internet purchases for a long time. Now, many states are charging tax for online purchases. Sup
by snambi 14y ago
Agree with you on this. AMZN was having a free ride on "no-tax" internet purchases for a long time. Now, many states are charging tax for online purchases.
Suppose you buy $1000 TV on AMZN, we used to save ~ $85 on tax alone. This was main reason AMZN was doing better in the past. Now, why would someone buy a TV on AMZN, rather buy it locally on a store.
This reduced their volume. AMZN has become a low-margin low-volume business.
- scarmig 14y agoAMZN is a low-volume business?
- chii 14y agobut being on the internet, what tax rate would it be if i purchased from another country that has no sales tax? I think taxing sales is the wrong thing to do - you must tax the entity recieving the money. So if amazon decides that the US is too high a tax rate, they can move their HQ to the caymen islands, and pay effectively no sales tax. This should lead to optimal tax rates across the board hopefully, whilest lowering prices.
- snambi 14y agoit is the customer who the sales tax. Lets say I buy a $1000 tv on amazon. I used to get the TV for $1000 with free-shipping. Now the same TV will cost $1080 with free shipping. For buying expensive things amazon was a great place, because the buyer was not paying the sales tax. Now, they have to pay the sales tax, so there is no advantage of buying from amazon.