The title of this article in Governing magazine just about says it all–“States Still Trying for a Piece of the Net.”
With the economy stalled and tax receipts shrinking, state governments are making another run at federal legislation that would allow them to impose levies on out-of-state Internet and catalog sales, which they say could bring in about $13 billion a year.
Yeah, because when the economy is bad, that is when you want to raise taxes right. But wait, aren’t we trying to get people to spend more to help the economic recovery? Wouldn’t and internet sales tax reduce consumer spending? But there I go again, expecting consistency from policy.
Steve Titch pointed out the problems with such taxes when he dissected NY’s new internet sales tax implemented last year.