12/23/2003

Sales taxes in the age of instant information are a joke. I have received three sales pieces in the past week advertising products that are super taxed in almost every state: tobacco and alcoholic beverages. The prices for brand name products here in CA are half because they are being sold over the web (mail order) with no tax. The country of origin appears to be many. I have no idea if the products are as advertised since I don't know much about expensive wines and liquor, but I do know the tobacco products are name brand. This is happening "ahead of the curve" of the tax man trying to tax internet purchases. While liquor may be too heavy and fragile to make much of an impact, tobacco products are light and easy to disguise. What will our government do? Search every package that comes from overseas in order to collect taxes? Of course. The tobacco police, the CD police, the drug cops, the anything you can tax cops will try. They will search your credit card charges, ATM charges, and any transaction other than a money order. Let us see how this plays out.

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