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Retailers, Officials Urge Congress to Reject Internet Tax Exemption
Here's an article on the pretzel logic applied by traditional retailers to
the Internet taxation debate. We covered this issue during my class
discussion. If these retailers are so concerned with the tax revenues that
localities are being denied by tax-free ecommerce, I suggest Wal-Mart et al.
slash their executive compensations, refuse all tax breaks they're offered,
and donate a percentage of their revenue for schools, roads, police and fire
protection. Clearly they're unwilling to adopt this stance.
This is simply a case of using the power of the state to cripple a
competitor. Instead of working to improve their own tax situation,
traditional retailers are lobbying to have their competition taxed and in
the process they're expanding regulation of the entire retail industry. Not
good.
This appeal to the local, collective good is nonsense. Businesses exist to
earn profits and maximize shareholder value, not to create jobs or fund
local governments.
James
______________________________
Executives from Target, Wal-Mart, Radio Shack, J.C. Penney and Circuit City
appeared on Capitol Hill with government officials to criticize the Advisory
Commission on Electronic Commerce majority report as unfair to traditional
retailers. They described it as a potential threat to billions of dollars in
state and local sales tax collections that pay for schools, roads, police
and fire protection.
"There should be a level playing field where all retail sales are treated
equally," said James Hale, executive vice president at Target. "No tax
policy should encourage retailers to avoid contributing to their local
community."
http://ap.tbo.com/ap/breaking/MGI5YG8HS6C.html