Another Great Reason to Shop at Amazon.com

by wisdomhunt

And that reason is: taxes!

Personally, I have tried to avoid shopping on Amazon.com because they do not pay sales tax in any states where they can avoid it. Frankly, it is unethical. Sales tax, because it is state legislation, simply was not written with internet commerce in mind and to-date Amazon has been exploiting this loophole.

Amazon built its business by being the low-cost option, a large part of which was due to the fact that they did not collect sales taxes. This made their offerings as much as 10% cheaper than the competition. The obvious result was rapid growth for Amazon to the point that they are now on par with the largest retailers in the world.

Well things are starting to change. Amazon is now supporting the Marketplace Fairness Act. Presumably, this is because it is more fair (it says so in the title of the bill) and Amazon is probably feeling more than a little bit guilty about putting the competition out of business. Once this bill passes, Amazon will be collecting sales taxes just like any other business.

I have to admit that, like most of the legislators in Congress that will vote on this bill, I haven’t read it. There just isn’t time (10 pages!), but I’m sure somewhere in there it explicitly states that Amazon will have to pay sales taxes on the billions of dollars of revenue it has collected to date. Fairness.

Otherwise this would just be another ploy to stifle competition through crony capitalism legislation now that Amazon.com is a massive corporation and can benefit more by paying taxes that smaller online shops can’t afford to handle. That’s not likely though. Most likely they just finally decided to have some morals.

So shop guilt free readers! Improved infrastructure, parks and schools, coming soon to a locality near you. Just another exciting delivery from Amazon.com.

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