As most of us are aware, the federal government is finally considering making Internet retailers charge sales tax. As of this writing, the bill waits in the House for formal debate. Regardless of what happens there, we passed a major milestone when the Senate went on record that Internet businesses need to start charging sales tax like everybody else.
Thereās been a lot of talk about this in the industry ā some 18 comments are lodged on this site ā and of course in the wider business community, where large vested interests are lined up on both sides of the debate.
It always makes me smile to see the arguments of people who are fighting against a particular issue because they stand to lose money. Thatās the one thing they never say, even though itās obvious to everyone. It would freshen the world a bit if Internet retailers would just say, āIām against this bill because it will hurt my profits.ā
Instead itās silly diversions like, āI donāt know what sales tax to charge different localities,ā when software can handle that problem in an instant. Or, āI donāt want to be burdened with new tax accounting responsibilities,ā to which the traditional retailers reply, āWelcome to our world.ā
Make no mistake, if passed, this law would have a real impact on our industry. The Internet retailerās advantage would be cut significantly by adding that 6 to 9 percent hike in the consumersā effective price.
Suddenly the āWow!ā price becomes a very good price, but as we know, in sales, that difference can mean a lot, and cause customers to begin to consider other factors in the sale. That can only work to the benefit of the brick-and-mortar folks.
But letās dispense with this chatter. Itās just a matter of simple fairness. And eventually ā although it may take time, even a long time ā simple fairness wins the day.