California State Government March 7, 2000 Election
Smart Voter

Internet Sales Tax?

By Linh K. Dao

Candidate for United States Senator

This information is provided by the candidate
No. We should not impose sales tax on items sold over the Internet just now.
No. We should not impose sales tax on items sold over the Internet just now. E-commerce is still in its infancy, and it is not yet a stable and uniformly productive part of the economy. Relatively little bureaucracy and few regulations are what allow the Internet to grow as fast and as far-reaching as it has. It is the Internet that is driving much of the current upsurge in the economy and we need to keep that engine of growth humming for a while. Treating it as a governmental cash cow at this stage of development will damage it as a commercial venue.

Retailers who don't sell over the Internet are really not at a net price disadvantage. There are shipping and handling costs involved with items sold over the Internet, which can not be avoided, so it is really a wash. Out-of-state catalog sales which are not subject to sales taxes have not destroyed the retail industry, have they?

Besides, brick and mortar retailers can always start offering their wares over the Internet too. No one says they can't - it's just a high-risk business because no one has made a completely successful go of it yet.

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