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What we need are fewer taxes. Not more. That is an incorrect conclusion from the premise. What we need is lower total tax. This is what motivated my question.

The absence of taxation on internet hurts small businessman with brick and mortar shops. That is both unfair and unproductive (creates allocative distortions). What one needs to do is to introduce an internet tax and reduce the current tax liability.

That is an incorrect conclusion from the premise. What we need is lower total tax. This is what motivated my question.
The absence of taxation on internet hurts small businessman with brick and mortar shops. That is both unfair and unproductive (creates allocative distortions). What one needs to do is to introduce an internet tax and reduce the current tax liability.

I think your conclusion is partially wrong. The solution to helping a brick and mortar business is not to impose more taxes on the users of internet commerce. Who is keeping the brick and mortar businessman from entering cyberspace? No one.

Although we do agree the current tax liability should be reduced. :)

The absence of taxation on internet hurts small businessman with brick and mortar shops.

Catalog sales (paper) don't charge sales tax for out-of-State sales. Are you suggesting that they be taxed also? Why is the internet any different?

" The absence of taxation on internet hurts small businessman with brick and mortar shops."

You are flying into the face of the premise of free enterprise. I own both. I set up two seperate companies, one brick and mortar and to exploit my volume discounts an internet resale company also. I now dedicate 80% of my resources to the internet business because my cost structure is lower AND I am not being over-regulated to death nor overtaxed to death. If you are trying to use taxation to structure social policy to preserve brick and mortar shops, then you are no better than the tax and spend Pelosis and Kennedys of this world.

"That is both unfair and unproductive (creates allocative distortions)."

Another false premise. Most of my older customers now prefer to deal with my internet company? Why? Because I can sell at a lower cost. Someone has to manufacture the goods I sell. So I cut back on my local employment (thank you Workman's comp and a multitude of other absurd taxes) and increased what I purchased from the manufacturer because I could afford to charge lower prices to my clients and make a higher profit. Overhead is reduced. Customers are happier and I get a higher market share. It's called capitalism. It also introduces efficiency into the market place which is a requirement for growth in any industry. If you want a "fair" economy, move to Cuba or France.

"What one needs to do is to introduce an internet tax and reduce the current tax liability."

I apologize in advance for this:

BWHWHAHAHAHAHAHAAHAHAH

Since when the hell has any government EVER reduced the tax level AFTER a new tax has been intorduced???? We are still paying a telephone excise tax that was introduced in 1898 to pay for the Spanish-American War!!!!!!

I'm sorry but your statements ring hollow. They sound like those of my competition which has been whalloped by my business because they were not nimble and I was. You want a liberal solution to a business problem. Government does not make things fair or equal. Government action distorts and slows down free enterprise and innovation.

The absence of taxation on internet hurts small businessman with brick and mortar shops.

Brick and mortar shops use local utilities, fire and police protection, etc. at the point of sale. An internet business isn't using any of these things at the point of the mouse click. Thus, the difference in tax treatment is perfectly fair.

A real-estate tax, charging both the brick and mortar shop and the internet business warehouse at their actual locations where they use local services, would be legitimate, however.

What one needs to do is to introduce an internet tax and reduce the current tax liability.

No, what one needs to do is to eliminate the current taxes on brick and mortar operations.