This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Will An Internet Sales Tax Change How You Shop?

After a rocky beginning to the relationship, I've grown to appreciate For the most part, the online retailer still boasts the best prices, shipping can be free, and if your purchases are delivered to New Jersey or one of several other states, Amazon doesn't add sales tax to the purchase.

Lobbyists that represent all retailers, almost all of which are  not Amazon and other smaller online businesses, see the avoidance of sales tax as unfair competition. Under current law, online retailers only charge sales tax when the company has a physical presence - a warehouse or an office - in the same state as the buyer (or recipient of the delivery). The issue of sales tax is one for the states and cities.

Brick-and-mortar stores are already at a disadvantage. They have to pay for retail infrastructure, like storefronts and employees to manage and sell products in those stores. With higher costs, stores with physical locations need to sell their products at a higher price to maintain profits. From a shopper's perspective, especially a frugal-minded shopper who shops around for the best price, brick-and-mortar stores need to price more competitively. These old-fashioned retailers need to adapt to a changing environment if they want to be profitable and survive. That's free-market capitalism.

The proposed law will change the rule. Any business with more than $1 million in annual sales will need to charge sales tax for every customer who lives in a state that has a sales tax - all but five. Each business will need to know how to calculate that correct sales tax for each customer. That's easy enough for a company like Amazon, but for a family business that has taken its shop online only to see viral success, this could be a burden. Trying to determine the correct sales tax for a delivery in New York makes business owners cringe thanks to the variety of tax rates on the local level, within the same ZIP code, and a small business will not be equipped to handle this.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.01 0.00%
FB $99.75 0.00%
GOOG $682.74 0.00%
TSLA $147.99 0.00%
YHOO $27.05 0.00%


Chart of I:DJI
DOW 16,027.05 -177.92 -1.10%
S&P 500 1,853.44 -26.61 -1.42%
NASDAQ 4,283.7530 -79.3910 -1.82%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs