Supports A National Sales Tax
To The Editor:
Everyone agrees that taxing Internet sales is needed to prevent the eventual demise of every store in America, and there’s only one practical way to accomplish it – a national sales tax.
Consider. While Pennsylvania has only three sales tax entities – 6 percent statewide and an additional tax in Philadelphia and Allegheny counties, in many states smaller municipal units – counties, cities, etc. – each have their own sales taxes, adding up to more than 9,000 separate sales tax jurisdictions nationwide.
Congress is currently considering bills that would require every business doing over $1 million annually to collect sales tax on Internet sales, but clearly the record keeping and paperwork required to keep up with and submit such taxes would put every small and even medium-size business out of the Internet business!
But a national sales tax would reduce the sorting and recordkeeping from 9,000 to 1, and could also be a relatively painless route to a more need-based tax distribution, since the Feds would then return the sales taxes back to the states, or even directly to counties, based on population. Thus poorer areas, where presumably less money is spent by the citizens, would get back a proportionately larger share while wealthier areas would get back somewhat less than they paid in.
The two states that don’t currently have a sales tax – Delaware and New Hampshire – and areas where the current sales tax is lower than whatever national percentage is chosen, would adjust their other taxes downward to allow for their new “windfall!”
As Internet sales increase, everyone knows this eventually has to happen, and this seems the only practical way to accomplish it. Whadya think?