Tuesday, May 07, 2013

No mystery here

Megan McArdle notices something that shouldn't surprise anyone:
It looks like the Marketplace Fairness Act--the official name for a proposal to allow states to collect sales tax on internet sales made to their residents--will pass the Senate sometime today. It will have a tougher time in the House, where Republicans still aren't keen on supporting anything that smacks of higher taxes. Still, it's remarkable, at least because it shows that under the right circumstances, you can get at least some members of the GOP to support a tax increase. I wrote about this plan a couple of weeks ago, noting that the biggest issue with the bill is the disproportionate burden it will put on small businesses. Amazon can afford to pay a small army to hassle with states who claim that Amazon isn't paying enough tax. Mom's Cupcake Bakery and Cable Store cannot.
Yep. At this point, Amazon has achieved huge advantages in the economies of scale that collecting taxes for the gubmint can be fit easily into the ol' P&L. Eventually, we're all rent seekers.

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