Wednesday, July 13, 2011

Volkening: Why Texas Legislators Should Reject a Special Tax Exemption for Amazon

In this article from the Austin American Statesman commentary section, Ronnie Volkening argues that Amazon should have to pay taxes like every other Texas business. Volkening aims the article at the business owners in Texas. He wishes to evoke a mutual feeling, among Texas businesses, of rage and favoritism toward Amazon. Being a business owner himself, Volkening has a right to get upset with Amazon's special treatment. He pays his taxes and obviously feels cheated that another company is getting out of the large sums they "owe".  Seeing as Volkening is head of the Texas Retailers Association he surely knows his way around the back end of business dealings. He claims that with the Amazon headquarters in Irving, Texas, Amazon should have to pay the state for the sales tax it refuses to charge its customers. Volkening goes on to say that Amazon had already received property tax breaks when coming in Texas so the least they should be held accountable for is the sales tax. He further emphasizes that every Internet based company out of Texas has to charge sales tax on all their items. Because Amazon refuses to collect these taxes Volkening discusses how the Texas government has a right to locate and charge each individual a sales tax for each purchase they have made from Amazon. Of course, this is an empty threat because it would be very impractical and time consuming for the government to do so. The easier solution here would just be to charge Amazon like every other business in the state and require them to charge a sales tax as every other retailer in the state.
Of course, being in favor of capitalism, I see the reasons as to why Amazon does not charge the sales tax. If they can offer the same products as other retailers at a lower price and in a lot of cases free shipping, why would their customers go anywhere else? It’s a sound business decision. Offer the best prices and get the most gain. Then again I also understand the frustration of Volkening and other business owners. It is not fair for them to have to pay while another corporation is untouched by the state laws. So only to support fairness and offer a solution to the outrage of the situation I would advise the Texas Legislators to make Amazon pay up like everyone else. Yes, their idea was original. Yes, their company offers the best prices. And yes, they have headquarters all over the country. So they can certainly afford to pay the full property taxes and if they still refuse to charge sales tax to customers, they should be required to put up the money themselves. Again, being in favor of capitalism, admitting siding against them for the unfairness of a brilliant idea hurts my soul slightly. But I also side with fairness in equality of requirements. 

No comments:

Post a Comment