When it comes to shopping most consumers turn to the Internet to find what they are looking for. There are many different benefits to going on the web to shop. One of the benefits is how easy it is to find the best deals by a click of a button vs going store to store. Some the convince are being able to be at home not worrying about traffic, parking and long lines. I work in retail and one of the most common comments I get about online shopping is how customers are able to avoid taxes. Customers always want to get the best deals possible if they could save by shopping online they will. It is hard being a sales man and trying to match online “in cart” prices. Many times a discount has to be added on top of the sales price to get the sale of the product to accommodate taxes cutting into profit. Congress is currently trying to get a bill passed to make online businesses required to collect sales taxes.
The current law states ” companies could not be forced to collect sales tax unless they had a physical nexus in the state: a warehouse, a production facility, or a sales representative”. One of the more well known cases is the how Amazon was targeted to collect sales taxes. One of the benefits is that the State who in turn rely less on Income tax. Which would be beneficial to the tax payers. I personal think that congress should search somewhere else to collect revenue. I believe this would have a major effect on what shopping online is all about. Completion between Online and Store Fronts will increase. Online stores would have very completive pricing due to the fact of less overhead to worry about vs a strore front.
Buyers and seller always find a way around things but we won’t know those strategies till or if the bill is passed. How do you feel as a consumer who buys many products online about the bill? Will this cause you to go out to shop?