My involvement in the discussions over taxing Internet sales has been picking up steam and garnering more and more of my attention. I have been interacting online with Lowell Peabody, Peter Morris and Bob Cantor on some of the LinkedIn Groups and they have been giving me conflicting, but valuable insight, helping me formulate my ideas. It's a wonderful thing interacting with intelligent people with differing viewpoints.
I have taken the position that an Internet sales tax should have an overall positive affect on the economy and local employment. I make that statement with the full understanding that Internet companies like Amazon do provide employment opportunities that should not be overlooked or understated. I have also stated that taxing Internet sales will not be the final solution for Brick & Mortar retailers and they need to consider ways to embrace and take advantage of the Internet to further their Brick & Mortar Business and otherwise refine their business model. Peter Morris suggests that Internet Retailers should consider Brick & Mortar as a way of promoting their Internet sales.
My focus now is on proposing solutions that will effectively benefit society, by increasing employment in the United States and as I have previously stated, I do not think that taxing internet sales, alone,is the solution to the conundrum faced by Brick & Mortar retailers.
First, I am working upon the assumption that a healthy Brick & Mortar, with full employment, is a good thing for everyone. I don't know what a "healthy Brick & Mortar" is but I believe that should be our general direction. Perhaps some expert will help me define "healthy Brick & Mortar".
Second, increasing employment is also a good thing and that I assume that employment, even at the lowest income levels helps everyone.
Now that I have, perhaps, inartfully established my first two assumptions, let me throw out this idea for intellectual fermentation and perhaps action:
1. Tax internet sales, coupled with:
2. A brick & mortar sales tax moratorium of some sort, conditioned upon
3. Some measurable increase in employment by the Brick & Mortar retailers.
As a consumer, I know that if I have a choice of paying no sales tax at my local store vs. paying sales tax on Internet sales, I certainly am going to be more motivated to buy local. Assuming that I am not too different from other consumers, that alone should increase Brick & Mortar employment. However, if you condition a Brick & Mortar's ability to take advantage of some measurable increase in employment, I suspect that you will see a definite benefit to the economy.
Now, the only real question remaining, (OK, I am sure that there will be more than just one question), is the above combination of taxes and tax moratorium going to benefit the public more than it will cost? I will need help with that answer.
Finally, CRE Radio has committed to airing a show on this topic on March 20th or thereabouts, one week in advance of the ICSC Strategic Leadership Summit in Washington D.C. where ICSC members have an opportunity to have face-to-face meetings with Members of Congress or their staff where you can articulate your views on matters of importance to your company and the shopping center industry. I also encourage everyone to participate in this conversation by leaving comments here or at 21st Century Retail blog or go to the ICSC Sales Tax Fairness page, online.
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