Texas Governor Rick Perry Vetos Internet Sales Tax Bill

Texas generally is known for being in favor of small government. This has been proved again as Texas Governor Rick Perry has vetoed a proposed internet sales tax bill.

As you know by now, the majority of states in this country are deep in the red ink. I live in California and it is, frankly, a complete disaster. Texas has not always been known for looking forward, but this is one crisis that has touched it to much less extent than other locations. In fact, other states have been coming to see what Texas is doing in an effort to deal with their own problems.

The trend in states now is to make a run for the money. From the east coast to the west and everywhere in between, states are copying New York and trying to tax online retailers. In most cases, this is a complete disaster as the projected tax revenues are not significant and they are more than lost when Amazon, Overstock and others terminate all their instate affiliates. 

Why would Perry veto the bill in question? Simple. He understands the issue and the best solution. Specifically, he noted the issue must be dealt with in an unanimous way and even suggested a federal solution may be required, a major statement for a Texas Governor. Of course, he is right. The only way this flies is to have a nationwide solution. A state-by-state approach simply creates a huge burden on small businesses.

The different approaches are no more clear than when we consider the actions of California and Texas. On the day it is announced Governor Perry has vetoed a bill to tak internet retailers, California has passed its own bill and the governor looks primed to sign off on it. Texas becomes a bit more business friendly, while California becomes a bit more business unfriendly. 

Does this kill an internet sales tax bill in Texas for the foreseeable future? Yes, so long as a federal solution isn’t reached.