I don't want to give our government any excuse to raise taxes or find new ways of taxing us.
At the same time, I see no reason why an item I purchase on-line should not be taxed while an item purchased in a local store should be taxed.
I know that in reality, both are supposed to be taxed, but in practicality a tax that can't be collected really isn't a tax.
While I feel strongly that we would be better off with less taxes rather than more, I also think the taxes we are forced to endure should be fair, and the current system is very unfair to local, brick and mortar stores.
What I would like to see is something like the fair tax, but it would seem that going to the fair tax would mean ending the moratorium on having Internet vendors collect taxes.
I don't want our government adding new taxes without removing or lessening others, but I also don't see why new technologies should be unburdened by taxes while other technologies are taxed heavily with distorts the market.
Why are conventional phone companies saddled with the burden of a variety of taxes when providing phone service, but companies providing phone service over the Internet are not?
The best solution would of course be to get rid of all the taxes on phone service since it is a reasonably essential service. Instead our government uses it as another wealth redistribution system by taxing the crap out of it and then subsidizing phone service for the poor.
Calling for a permanent ban on Internet taxes is putting a bandaid on a tax system that needs to be euthanized and replaced.
I too support the FairTax. Have for many years. Its implementation is the only thing that could move me off my position that there should be a moratorium on Internet taxes.
An online store has only a virtual presence. There is no real estate to tax, no roads leading to it to maintain, no police to direct traffic during blowout sales, no Fire Department calls, no dumpster full of trash out back, no crowds, no shoplifting, no armed robberies or any of the other Community expenses. The "Store" is maintained and supported with After-Tax income. We Already Gave.
Local stores, including mine will always have local support from me because of personal service and customer loyalty. But my Saturday Errands mornings do have value. There are plenty of taxes already collected in internet sales-it is just that they are hidden. UPS pays salaries and taxes and pays fuel taxes, etc, to deliver the purchases. Businesses with an in-state physical presence already do collect Sales Taxes (or say they do.). These businesses file quarterly and annually just like every other business and are just as generous at throwing away money to the Government.
The only people squealing and lobbying for internet taxes are merchants who are frightened of open-price shopping. Rather than drive from store to store shopping for price I can do it instantly. They HATE that.
Sales taxes are collected by retailers for almost ALL online sales, with the only exceptions being catalog stores that are located in a no sales tax state and do not have any store locations in states with sales tax. The scenario you describe has nothing to do with the internet tax moratorium.