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Taxing Online Retailers

The new excuses for seeking to impose an online retail tax is to provide a level playing field to the fixed position retailers that are already paying the tax.

This is a necessary switch of justifications by The State. Their excuse for retail (and most other) taxes in the past has been that the retailer enjoys all the infrastructure provided by the government and must therefore pay a contribution toward it. Now they want it just because they need it and it is there. The reality is that The State is desperate to increase its income. Anywhere they feel that they can confiscate wealth will do just fine; the justification for doing so can be thought up later.

What is largely overlooked by The State in its myopic grandiosity is that online stores would struggle to exist were it not for taxation. It is the disincentive provided by taxation that has forced retailers and consumers to flee to the internet. Internet retailing only came into existence because of taxation; the taxations advantages for the consumer of internet shopping far outweigh the inconveniences. If The State now tries to apply taxation to online operations then one of two possibilities will eventuate.

1/ They will be successful and online operations will be severely hamstrung or, more likely, forced to close down. These businesses will not return to fixed position having already been forced out of that modus operandi through taxation. They will simply cease to be profitable and thus cease to exist… along with the jobs that they provide.

2/ They will not be successful and more and more fixed position retailers will get the message and make the switch to online.

Either way The State is caught up in a dwindling spiral of falling revenue. The State is busy killing its golden goose and in so doing is speeding up the process of its own demise. Good riddance.

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