4 ms·

If we tax by the seller's location then the sellers will move, at least on paper, to those states whose laws are most convenient. Much like various island natio

• hayksaakian 14y ago
  If that logic held, then the buyer would move to the state with the lowest taxes in order to pay less on everything they buy. This is not reality.
  • AlexMennen 14y ago
    Moving is generally much easier for sellers, who are more likely to be large corporations, than for buyers, who are more likely to be individuals.
  • logn 14y ago
    People factor this in all the time. It's reality when considering a new job or retirement. You often see articles on the tax implications of living somewhere and it's factored in to many of the "most livable city" lists. And even though it's usually illegal not to report it on a tax return, people cross state lines a lot for purchases (cigarettes, alcohol, electronics). Portland for instance has no sales tax while its very close neighbor Washington has no income tax. This could all play out with Internet taxes too.
• rbritton 14y ago
  I fear it would end up like the mess we have here in Washington state if they did something like that. We have to collect and report sales tax based on the Zip Code, and the records are updated quarterly. Their data set is something like 140,000 rows per quarter since it's fairly randomly distributed across the Zip+4 range.