Wanting More, Taxation Gets Less

The Tax Foundation has looked at Amazon taxes and found the following:

Contrary to the claims of supporters, Amazon taxes do not provide easy revenue. In fact, the nation’s first few Amazon taxes have not produced any revenue at all, and there is some evidence of lost revenue. For instance, Rhode Island has seen no additional sales tax revenue from its Amazon tax, and because Amazon reacted by discontinuing its affiliate program, Rhode Islanders are earning less income and paying less income tax.
Amazon taxes also do not “level the playing field” between brick-and-mortar and online businesses; the laws actually mandate disparate burdens on online businesses. Litigation over the constitutionality of Amazon taxes is ongoing, with scholars on the left and right disputing their wisdom and legality.

The report cites General Treasurer Frank Caprio’s statement that the tax should be repealed “immediately” and provides a map showing Rhode Island as one of only four states with such a law. Once again, whatever the fairness of the policy, Rhode Island must stop being on the cutting edge of economic experiments that bleed our local economy.

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Ragin' Rhode Islander
Ragin' Rhode Islander
11 years ago

Paging John Galt …

Dan
Dan
11 years ago

The “iron curtain” method: when you find yourself at a disadvantage in trade, destroy trade.
When your state views the internet as a threat to its prosperity, you know you are in serious trouble.

OldTimeLefty
11 years ago

F.Y.I.
A conservative is a man who believes that nothing should be done for the first time.
OldTimeLefty

Monique
Editor
11 years ago

“For instance, Rhode Island has seen no additional sales tax revenue from its Amazon tax, and because Amazon reacted by discontinuing its affiliate program, Rhode Islanders are earning less income and paying less income tax.”
Okay, experiment over. We’ve proven it doesn’t work. Can we dump this tax now?

OldTimeLefty
11 years ago

The conservative treats a new idea the same way the body treats a strange protein; it rejects it.
OldTimeLefty

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