Another battle over online tax? Sure, bring it on


Location:
Sacramento, CA, United States

[Commentary] It's rich to hear Amazon.com lecture California about civics and good governance. This is the company -- labeled the "new Scrooge" by one writer -- whose idea of corporate philanthropy is selling you a book on how to get involved. And don't expect Amazon to collect sales tax on the purchase.

As part of the budget passed last month, the California Legislature and Gov. Jerry Brown required online retailers like Amazon and its affiliates to collect sales tax on transactions in California, the same as stores and catalog companies. But Amazon, living up to its reputation, promptly announced it was pulling out of California and abandoning its small-business affiliates here. Now the company is talking about a referendum asking voters to repeal the requirement to collect the same sales tax as other businesses. Sigh. Another billion-dollar company financing a ballot measure to protect its profits. Could this be what progressives envisioned when they launched the initiative system in 1911? But maybe it's just as well. Let's get a real debate going on this. At a time when schools are deteriorating and roads are crumbling, California needs every dollar it's legally entitled to collect. Buyers always were required by law to pay sales tax on online purchases. But if retailers don't collect the tax, only about 1 percent of consumers pay up. Who keeps records of all online purchase and lists them on annual tax returns? Do you?

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