6/14/2005


INTERNET PRICES TO BE HIGHER THAN LOCAL RETAIL? MAYBE

You just knew this would eventually happen. The states have been screaming about internet sales taxes for eons and now they will move Heaven and earth to nail all of us. Look for a ton of the internet retailers to move off shore because they will be out of business should their prices become the same as local retail. In fact, this could be the end of Internet Marketing. I'd sure be watching my stops on companies like Amazon. Nobody is as rapacious as the government, be it local, county, state, or Federal. What can we do about it? Nothing. The business has to pay the tax directly, meaning that they will have to computerize every state, county, and local government tax and then add that amount onto the price. I think it means Internet prices will actually be higher than local retail. Late Add: emailer, Mr. X, opines that this is just for internet business that has actual stores in the state affected. True, but I think this is the proverbial "nose under the rest room door" and that somebody will go to the Ninth Circuit and they will rule that any web portal seen in a state is actually a retail outlet within that state. Let's hope not. Bush has no appointments to the nut case Ninth Circuit pending.