I'd be against this if the U.S. had a progressive tax code to begin with, but we don't. Sure, if you look at federal income taxes only there appears to be a progressive tax system but taxes on capital gains is pretty much "flat tax" loop hole for the ultra rich.
In Tennessee, where I have to endure this regressive insanity, asking for a progressive income tax has become a third-rail issue for any local politician. So we have zero income tax and an effective sales tax of 9.25%
Why then am I favorable to internet sales tax when I've derided sales taxes as regressive just above? In this case I believe, mainly through intuition, untaxed internet sales are just one more vehicle for the affluent to avoid paying taxes. This makes regular retail sales tax that much more burdensome for the poor who receive fewer services because overall State tax revenue suffers.
Until the regressive tax leanings of the states is abated, which I doubt will happen in the next decade, I see this as a necessary evil.
Then you look at States who almost all implement regressive taxes, many through sales taxes, and see how States' fiscal woes are self-inflicted. Here's one such examination: http://www.chicagomag.com/Chicago-Magazine/The-312/January-2...
In Tennessee, where I have to endure this regressive insanity, asking for a progressive income tax has become a third-rail issue for any local politician. So we have zero income tax and an effective sales tax of 9.25%
Why then am I favorable to internet sales tax when I've derided sales taxes as regressive just above? In this case I believe, mainly through intuition, untaxed internet sales are just one more vehicle for the affluent to avoid paying taxes. This makes regular retail sales tax that much more burdensome for the poor who receive fewer services because overall State tax revenue suffers.
Until the regressive tax leanings of the states is abated, which I doubt will happen in the next decade, I see this as a necessary evil.