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report print email Source: Editorial: There’s a new tax in town – online sales
Mostly fair...
October 25, 2012 | 11:10 AM

I think this was driven more by the bricks & mortar business interests than the politicians. I see other factors too.

In some cases, portions of sales tax don't represent funding of the infrastructure used to promote business. I would be in favor of a lower sales tax for online transactions.

Also, products that are commoditized are easier to deliver cheaply by an online vendor that operates from cheap space. In those factors, the retails will continue to be at a disadvantage. Look at what is happening to retail electronics.

Why should I go to a retailer for my MP3 player if they will not give me better support after the purchase than the online vendor?

Bricks & mortar business will have to work harder to understand the most profitable "mix" of goods to keep people coming in.

They will also need to add value by maintaining a useful relationship with their clients, beyond the moment when they hand them a register receipt.

Jolly
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