Home Advertise Contact Blog Advertiser Login RSS
Newsletter Signup

Your Free Business Opportunity Resource Is Easy To Use
Home-Based Businesses
Choosing a Business Opportunity Growth and Profit Marketing and Sales
Plans and Goals Running Your Own Business Start-Up
Working From Home Entrepreneur Exchange Feature Articles
Opportunity Community Opportunity Focus In The News

Free Lead Generation is a hot topic these days since many pay a pretty penny per portal to generate leads to increase ROI.

Free Lead Generation is part of any markets platform.  It is important to note that this November was 'nutty' for lack of a better word.  The purpose of this blog post...

Small Business Media and tapping into that vein can be a tricky and somewhat slippery slope unless you know some tricks of the trade.  Getting your message in front of the right audience is often the key to success.  So, where are the keys to the kingdom you ask and how can you get your hands on...

Entrepreneurs' Day 2016 on the 15th was outshined by politics, climate change discussions and so much more.  That is a real shame since small business is the backbone of this Country.

Entrepreneurs' Day - In my world it is Entrepreneurs' Day every day! I think, sleep and breath Entreprenuership...

Sponsors

Paid2Save Click or Call Bill Toth (716) 345-1888
If you could Travel more, Have Fun, and get Paid doing it, would you want to know more about it?
How Many Leads Does It Take To Close A Sale?
This Article is now live on our blog and I know could be very insightful for many. Read On
The Ideal Length of Everything Online, Including Social Media Posts
When one of your busiest marketing channels limits you to 140 characters, you know that the internet sets its own rules.
I Want To Buy a Business Opportunity or Franchise
Who are the types of people who buy a business opportunity or small franchise? According to people in... Read on
 
Resource Center > Article
The Amazon Tax Debate: Where Do You Stand?
24 Jan 11 Posted by: Kathleen C Lanza
in Featured Articles
Share this Article:

As a small business owner, you should know about the debate that is raging right now regarding whether or not a growing number of states have the right to demand that online retailers, such as Amazon.com, collect sales tax on products sold to customers in those states.  Perhaps surprisingly to some, online retailers currently are NOT required to do so in more states than not.  Although Amazon is just one of many online retailers potentially affected by these proposed changes, it is most certainly the largest.  It is this fact that has led the pundits to refer collectively to the current and growing number of similar state-based proposals as The Amazon Tax.

It’s no surprise that Amazon and companies like it aren’t in favor of gathering sales tax on products they sell in states where they have not ever had to before.  After all, it’s no secret that online retailers’ current tax-free status gives them the competitive edge over what is referred to as “brick and mortar” business owners―many of whom must charge as much as 10% or more than their online competitors due to taxes for the same products.

You may be asking yourself, “How come online retailers aren’t paying sales tax on the products they sell?”  The answer can be traced back to a 1992 U.S. Supreme Court decision that “allows Internet and catalog sellers to avoid charging the tax to a customer if they do not have a ‘physical presence’ in the customer’s state.” * And even though the law states that customers are responsible for paying the sales tax to their own states on such purchases, that rarely if ever happens.  As a result, it’s estimated that states and localities are losing as much as $7 billion per year in revenue.*  Given today’s serious economic challenges, especially at the state level, those are funds that could be going toward education, health care and any other number of critical services.  Of course, that’s the crux of the states’ argument anyway.

The key to Amazon’s rebuttal lies in its assertion that collecting sales tax on products it sells in states where it has no presence and therefore enjoys few benefits would be an administrative burden that would greatly affect company profitability.  However, a number of pundits have gone to great lengths to poke holes in Amazon’s rationale.  Ironically, they don’t have to go very far, as perhaps the strongest argument against Amazon and other retailers’ wanting to maintain the status quo resides in the largest online retailer’s own current practices.

The fact is that Amazon already collects taxes on many of the products that it sells on its website in conjunction with its nationwide affiliate partners.  Truthfully, those in favor of the new tax policy assert, it would not be too much for Amazon to take what it is already doing in navigating the state-specific, sales tax complexities as they relate to their affiliate partners and apply them to their own products.  Additionally, Amazon’s higher ups have, from the very beginning, made no secret of the fact that the company’s competitive edge lies in its ability to sell products free of the sales tax burden in many states.

So, is there a potential lesson here?  One may be this:  Think carefully before you state your case as to why others would do well to do business with you.  In time, it seems your own pitch can actually come back to haunt you.

*Note:  For a complete review of all the intricacies associated with this debate, please click here on the Center on Budget and Policy Priorities, where you’ll find the outstanding summary and background report by Michael Mazerov dated November 29, 2010 that served as the source for much of this article.

Related Blog Posts
22 Nov 16 Posted by: Kevin James Culp
in Featured Articles

Free Lead Generation is a hot topic these days since many pay a pretty penny per portal to generate leads to increase ROI.

Free Lead Generation is part of any markets platform.  It is important to note that this November was 'nutty' for lack of a better word.  The purpose of this blog post...
21 Nov 16 Posted by: Kevin James Culp
in Featured Articles

Small Business Media and tapping into that vein can be a tricky and somewhat slippery slope unless you know some tricks of the trade.  Getting your message in front of the right audience is often the key to success.  So, where are the keys to the kingdom you ask and how can you get your hands on...

21 Nov 16 Posted by: Kevin James Culp
in Featured Articles

Entrepreneurs' Day 2016 on the 15th was outshined by politics, climate change discussions and so much more.  That is a real shame since small business is the backbone of this Country.

Entrepreneurs' Day - In my world it is Entrepreneurs' Day every day! I think, sleep and breath Entreprenuership...
17 Nov 16 Posted by: Kevin James Culp
in Featured Articles

Business Opportunity Blog- Chicago, IL—BusinessOpportunity.com, one of the most visited biz opp marketplaces on the web, announced today their new Sponsored Article Marketing service.

Business Opportunity Blog - Reach More People through the Biz Opp Blog! Business Opportunity Blog...
16 Nov 16 Posted by: admin
in Featured Articles

How to Pinpoint the Weaknesses in Your Company - Nobody likes to think about what is going wrong in their company or what their weak points may be. This is why when employees are asked to perform a SWOT analysis, they go to great lengths to mention the company strengths and minimize the flaws.

 
   

SocialXpand Business Opportunity Interview w/ Brian Weiss was for me a new way to learn from a customer and whom I consider a friend in the industry.

I've had the opportunity to work for a while now with Brian Weiss who is the Director of Sales for the
Video Spotlight

If you could Travel more, Have Fun, and get Paid doing it, would you want to know more about it?

Premium Sponsor