Friday, 05 September 2008

(Column) - Now, I’m not 100 percent in favor of taxed net sales. After all, one of the great benefits of shopping through online retailers is to find great deals and avoid taxes simultaneously. That’s an absolutely ingenious concept that has allowed online shopping to grow at an amazingly fast rate. But things are looking gloomy, and we might as well brace ourselves for the inevitable: taxed net sales.

While we brace ourselves and slowly let the reality sink in, it would also be helpful if the government thought of all the online shoppers instead of going crazy with taxes. Here are some of the suggestions that the government could look to implement:

1. Limit the taxes. Alright, we get the need for taxes, but the least you, the government, can do is make it less painful for us. Why not start out by tacking on a 3 percent, or a similarly lower number, per sale so as not to alienate us right from the start? It’ll be difficult to swallow taxes, but if it’s a low number, we’ll have an easier time.

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2. Tax equality. Keep the taxes for all 50 states the same. We don’t need you to break us into regions (or states) and charge 7.25 percent in one state, 5 percent in another and 3 percent in another. Let’s just stay organized, make things easier for us and retailers by encouraging equality between all 50 states.

3. Be partners with retailers. You don’t have to bully your way into getting taxes out of us. I say you work with retailers and develop a case-by-case basis for taxes, a tier system of sort. If I’m an occasional shopper, I probably won’t mind paying 3 (or maybe even 6) percent on my purchase if I have gotten a decent deal. However, if I’m regularly shopping online, give me a discount to encourage my spending. Hey, it’s all circulating through the system. Reward me for that. Either take me off the you-have-to-pay-taxes list or lower that percentage number. I’m not saying this is going to be an easy system to implement. Far from it, but it’s definitely going to be useful.

Of course, these are just a few suggestions for the government to consider. We are not going to be pleased either way, but the least the government can do is not make us despise online shopping. E-commerce is a great platform that’s only going to grow in the future, and I can sort of understand the government’s idea of monetizing from it, but it needs to do its part to be sensible and rational with net sales taxes. I know I’m asking a lot, but hope is all we have here.

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