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5. Re: Amazon Adds Microtransactions Jan 23, 2013, 11:24 Creston
Beamer wrote on Jan 23, 2013, 10:23:
Even better, Amazon actually fights for state taxes!


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.

I think you're being overly conspiracy theoristy here. Amazon has long said that it wouldn't mind collecting taxes for out-of-state sales, if doing so was made easier. The current fucking quagmire of sales tax regulations, which vary state by state (and sometimes even per city in said state) are an impossible nightmare for a company to try to deal with, and Amazon says that it's unfair to expect it to figure out all 248,000 different regulations on sales tax, and then try to figure out which customer needs to follow which regulations.

To which Congress has said "you're right."

So they're currently working on an easier way for online business to collect sales tax. One idea which has gained a lot of traction is to simply apply a flat online sales tax, no matter where the customer actually resides, an idea which Amazon has said they would agree to if it was put into law.

So if and when that is put into law, Amazon doesn't have any inherent advantage in collecting said taxes. It'll just be 8% (IIRC) on every transaction. No more difficult for Walmart or best buy to figure out than it is for Amazon.

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