California Internet Tax On Table Again
California politicians have once again offered up an internet sales tax in an effort to raise revenues for the state. With an upcoming election, it is not clear if the measure will pass this time.
The story is an old one. Politicians need money to spend on their pet programs. They tax their citizens to the hilt in an effort to get it. Then something comes along that they can’t handle. In this case, it is the internet. When sales are done on the web, the states do not receive sales tax payments from the online retailer unless that retailer is located in the state in question.
As you can imagine, this sends politicians into a tizzy. They have tried to solve this problem by coming up with all means of crazy schemes to get web retailers like Overstock and Amazon to pay. California has tried to pass legislation in this vein for years. Fortunately, the “Governator” has vetoed each bill as anti-business because he realizes how many California small businesses that work with Amazon and Overstock would be hurt.
Well, the Governator is about to end his reign as Governor of the state. With this in mind, politicians have introduced another bill to try to go after internet sales tax. This time, California Assembly Member Charles Calderon revealed his dimwittedness by simply copying a similar bill that recently passed in Colorado. Thank god he managed to switch out “Colorado” for “California.”
The new bill puts a twist on an old approach. It forces retailers with sales in the state to report and pay taxes on them. It alternatively forces them to report the sales to the state and customer with direction the customer must pay the taxes in the form of a “use” tax. Essentially, Calderon tries to shift the burden to you and me. Gee, I hope voters remember that when he is up for re-election.
The truth of the matter is California is broke as can be. Internet sales are not the reason. The reason is our politicians are so in bed with special interest that they’ve spent money we don’t have. For a state with the eighth biggest economy in the world to be dead broke is a disgrace. Remember that when you go to the voter booth this year.