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As a Delaware resident, internet taxation will hurt sales

by LenSp / May 24, 2007 10:04 AM PDT

No sales tax here -- so it would definitely reduce my online purchases. Though Amazon does have a big distribution center here, so they might be safe.

High sales tax states are foolish to pursue this. If taxes are applied at the point of sale, then online merchants will have a huge incentive to relocate online operations to states like Delaware. Nothing like encouraging more job losses. If taxes are applied on the purchaser's address, then sales to people from low or no sales tax states will be lost. Again, lower sales leading to less jobs.

Either way, it just adds another cost that hinders economies.

And don't fool yourself, any legislative decision won't lead to simplification. You'll simply have another tax on top of other taxes.

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