Most local government agencies are in a real pickle and they have not been able to collect the tax revenues that they once did when the economy was really humming along under President George Bush with unemployment under 5%.
During this time there was a windfall of monies for local governments.
Additionally, when the oil prices were high the state governments were also making a significant amount of dollars off of the taxes we all pay on fuel.
And of course they budgeted and expanded the government thanks to this new revenue.
But then all of a sudden late it all dried up and the economy crashed.
To make matters worse the auto industry in the United States took a huge hit and many of the local governments collect a large percentage of their sales tax revenue from the local car dealerships many of which are now a business.
With these government agencies looking to cut costs and trying to find revenue were ever they can; they have their eye on the Internet.
They want to tax all Internet sales, they say they have no choice and they must tax the Internet sales even if it kills eCommerce.
They feel they must charge sales tax on businesses selling online.
If taxing the Internet does put many companies out of business, the local governments are okay with that because that means the brick-and-mortar businesses will make more sales and they will collect that instead.
Many brick-and-mortar companies say it is unfair that they have to charge sales tax, when people can go online without paying the sales-tax, leaving them an unfair competitive disadvantage.
While this may be true, taxing Internet sales is a lot like taxation without representation.
Still the government insists that it regulates the Internet lines that carry the data and it is represented and therefore it can tax the Internet.
Maybe, but if we only tax local companies, what about those who sell from other countries online to web surfers in the US? Then they have the advantage instead.
It's a no win situation.
Please consider this.