- Joined
- Jul 14, 2012
- Messages
- 17,178
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- 9,302
- Location
- Montreal, QC
- Gender
- Male
- Political Leaning
- Liberal
I agree with that for the most part but the bottom line is it's ridiculous that a local mom and pop or Sears in my area has to charge and collect 9.25% sales tax on every purchase, but I can buy the same thing online and evade the tax. So online merchant starts with a 9.25% price advantage because the system encourages tax fraud. I still OWE the tax but no state enforced it except in big purchases like cars or furniture.
A friend owned a fly shop and he was killed by it. Guys would come in his store, try out 6 different top-end rods he had in stock, decide which one they wanted, then go home and buy it online and save $40-50 in sales tax, another $30 on the expensive reel and pay $10 in shipping. He knew it happened because guys would come in later with a brand new rod, and pay him a pittance to to install the backing and the fly line. So he makes $3 on the sale instead of $400 or whatever, and those occasional big sales is what he HAD to have to stay in business. The tax system shouldn't provide online retailers that kind of advantage over local businesses hiring local people and keeping the money in the local economy.
I've had discussions with others who say, "Well, that guy should have embraced the Internet!" Possibly true, but irrelevant. What he should be able to do is compete on a level playing field with online retailers and the best one win without the government providing one side with a nearly 10% pricing head start.
I have to pay 14.995% on all my purchases along with Amazon.ca's much smaller selection and yet it is still more popular here than any of these other stores. Same in Europe, it is not sales taxes that makes Amazon better. Amazon is both cheaper (even with sales taxes) and more convenient.