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3. Re: Amazon Adds Microtransactions Jan 23, 2013, 10:23 Beamer
 
Optional Nickname! wrote on Jan 23, 2013, 10:00:
Even better, many States and Municipalities in the USA are trying to get Amazon to begin paying local taxes, on the flimsiest of foundations.

One of the arguments against and by no means the least compelling, is the difficulty of accounting all of those different States and municipalities rules on what taxes and how much to pay.

Now imagine paying Tax on your +5 Sword of Imagination. Have fun explaining that deduction!

Even better, Amazon actually fights for state taxes!

In the past state taxes would be a burden for Amazon, and take away a big reason why you shop there over, say, Circuit City. But now most of those local alternatives are dead and can't really match Amazon's pre-tax price, anyway, so Amazon's biggest competitors are other online retailers. But while Amazon is huge and can absorb the cost of figuring out how to collect state taxes other retailers can't. It would cost them about as much to begin to do so, and since they're a fraction the size of Amazon that cost would be proportionately fatal.

So, if online retailers have to start collecting taxes, Amazon, who has already dealt a fatal blow to local retailers, would be able to kill any online usurpers before they gain traction.
 
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