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Impending CA Sales Tax Sparks Amazon Buying Frenzy
New submitter payola writes "On September 15, Amazon will begin adding in sales tax for purchases made in California. This is sparking a buying frenzy among California residents who are rushing to buy consumer electronics and other expensive items on the site before the deadline. Of course, consumers are supposed to pay sales taxes on their online purchases anyway, but few actually do. 'Amazon is not the only Internet merchant affected by the new law. But as the nation's largest online retailer, it has been the main target. More than 200 other out-of-state companies with major business in California may also be on the hook to collect sales taxes on items shipped to the state. The tax revenue from these online sales is being lauded as a win for the debt-ridden state, which estimates it will see an additional $317 million annually as a result; more than $83 million of that is expected to come from Amazon alone.'"
Why shouldn't you or Amazon pay for the infrastructure to get you your goods, the police to protect them, the courts to uphold your rights?
It frustrates me seeing legislators attempting to further sales tax even though it does more harm than good, as far as I can tell. It hurts those with little money by giving them less buying power, especially in those states where food is subject to sales tax, though even past that it makes things harder.
Sure it rewards you for saving (though, I thought we were trying to encourage consumerism to keep the economy healthy, but that's something else...), but those that can afford to save can afford to pay a little more taxes, so it's a bit of a non sequitur as far as I can tell.
It's not that I don't want to pay taxes.. I'm perfectly fine with paying income tax, and having to pay based on my ability, it's that sales tax messes that up, such that the poor, who have no option to spend most or all of their income (assuming they want to eat and stay healthy, anyway), end up being taxed more than is helpful or fair.
Can anyone provide a legitimate reasoning for the existence of general sales tax?