Who gets to tax the internet?

Living in Europe,  we don't necessarily have the same issue with sales tax that Americans have because we have an enormous tax imposed on us called a VAT.  This tax can be more than 20 percent of the price  depending on which EU country you are in  (Germany's VAT is 19%) and Amazon has their distribution for mainland Europe in Luxembourg because of taxes (one of the lowest rates at 15%).

When I read this story about how the US states are going after Amazon in the US for taxes,  I was surprised that states would rather lose jobs and income in order to pursue sales tax rather than negotiate something/ anything with Amazon.

I wrote about this a few posts ago and I am saying it again.  Don't chase businesses away when you really need them to stay.    It doesn't help your citizens if you are spending money and asking them to pay more money and then scaring away employers.

As was recently shown by the City of Miami, taxes are not appreciated by citizens (they recently removed their mayor for raising their property taxes) and taxes are not appreciated by companies who are trying to keep their prices competitive.  Taxes are also a reason that companies will stay away from your state and will eventually leave the US.  Why do you think so many companies have their headquarters in Switzerland.  It isn't because they love Swiss cheese or cows, it is because of the very favorable tax structure of Switzerland.

So, at this point, Amazon is not buying barges to float off the US Coast to avoid sales tax, but they certainly are closing centers and affiliates without a second glance because paying taxes sucks and if they give in to one state, they will have all the rest chasing them for their share.

Stay strong Amazon.  We need you not only for books but to defend the legal rights of all online commerce.