Well, it’s finally happened, New York state has passed a bill that is the first step toward taxing Internet sales. I understand the state thinks it’s loosing out on revenue some how. I suppose it never occurs to legislators that many of their constituents are making a living on the Internet so this precedent is a slippery slope.
If this progresses to the point that I have to collect sales tax for every state that writes one of these laws you can bet that will put an unfair and unreasonable burden on my business. This is exactly why in a 1992 ruling by the U.S. Supreme Court, Quill v. North Dakota, the Court determined that out-of-state retailers cannot be required to collect sales tax on purchases sent to states where they did not have a physical presence. Would I continue to do business on the Internet if this expands? Not if it becomes a paper-work nightmare. Neither will THOUSANDS UPON THOUSANDS of other Internet sellers.
The loss in revenue to individual states will at least ballance out the gain they percieve by taxing this business channel. As usual the Liberals think that everything is a zero sum game. They do not realize that thier actions will affect the economy and people at large. If you would like to read a more complete explanation of New York’s new law check out the link below.