Please Don't Turn Your Back to Online Sales Tax

Who Has the Worst Burden?

Cheryl Myers
Many of us enjoy the tax-free transactions from online shopping. Some online retailers do not charge sales tax if the retailer does not reside in the customer's state. Now, free sales tax for online purchases could be a thing of the past, but this may not be such a bad thing.

Congress will soon debate a bill that allows at least 22 states to require online retailers to collect sales tax. This may seem like the end of the world of online shopping as we know it, but the benefits may outweigh the shopping cart totals.

Everywhere we turn, every move we make, we are taxed. In a state of the R word, a small tax will seem to burden us even more, but let's take a look at how the online sales tax will unburden the shoppers as well as to those who are most in need.

Online retailers are already gearing up to lowering their costs to provide us with lower prices to offset the potential sales tax. Since we already pay less for most items online, a few dimes or a few dollars will not hurt much. Here's why.

Online sales tax will generate an estimated $15 billion dollars for states in desperate need. Take for instance; Illinois is in a state of crisis. Almost two billion dollars is owed to doctors and medical clinics through the Medicaid program. Many people on Medicaid cannot get health care or see a doctor because the state already owes doctors and clinic money. Because of this, many clinics have closed and doctors refuse to take Medicaid patients or refuse the Medicaid patients they already have. People are ill and people are dying, but the new online sales tax could save many people's lives.

The money has to come from somewhere. It is better than taking more money out of a worker's paycheck. The Medicaid program is only one example of how the extra money funded through online sales tax could help our own. If we can afford to shop for anything online, then we are already better off than those that are sick or dying in Illinois.

I admit that I am a loyal online shopper. This imposed sales tax for online goods is not good news for me, but my few dollars tax dollars added to my shopping cart will help save innocent lives and other important needs for society. It is a hassle and a burden, but we have to find ways to make up for the money that states deeply need.

Retailers like ebay and the Amazon Marketplace are especially concerned. An ebay spokesperson Kim Rubey says, "Given the economy right now we believe it's not the time to impose a major new tax and burden on small businesses that use the internet for sales."

I agree with eBay's statement, but try to imagine the burden of the sick and dying not being able to get medical care. That sales tax will give Medicaid the money to those in dire need.

Published by Cheryl Myers

**ON HIATUS**  View profile

  • $15 billion dollars a year could help states from collecting online sales tax
  • Illinois alone owes almost two billion dollars to doctors and clinics
  • Doctors refuse Medicaid patients because the state can't pay
Doctors refuse patients on Medicaid, and some Medicaid patients are in need of medical help.

9 Comments

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  • Mshake8212/14/2010

    Appears to be an old article, but is now getting serious play in IL. Apparently people seem to have short memories about what happened in this most recent election.

  • 3lilangels3/17/2008

    Very interesting and very well written!!! I subscribed to you great stuff!!!

  • Laurel1nd3/15/2008

    Or we could follow Ron Paul's suggestion, and get rid of inccome tax, and put a 27% "use tax" on EVERYTHING we buy, no matter what, no matter where. Now, that's fair across the board, right? (Note: that was heavy sarcasm) Especially for poor people who can't pay for prescriptions, much less a 27% tax on top of the cost.... We live in an unfair world. I'm not sure that record-keeping for 50 states, with different sales tax rates, by every on-line or catalog retailer is the answer. Not that I have a better one, mind you.

  • Stephen Joltin3/6/2008

    I totally agree with you. Great article.

  • Tina Molly Lang3/6/2008

    more taxes, blech!

  • Secretsides3/6/2008

    Great article, I like your photo on here too.

  • J P Whickson3/3/2008

    Interesting take on the sales tax.

  • Stella Rae3/3/2008

    wow, paying tax online. i see the benefits, of course, but i like my money! at least i live in a taxed state right now, so if it happens it wont be a shock.

  • Greg3/3/2008

    Connecticut has what they call a 'use tax.' This covers things that are purchased out-of-state or online. Connecticut residents are supposed to report such things and pay the use tax.

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