Bloomberg reports that most online consumers will pay sales taxes in some shape or form in the next few months.
Currently, consumers pay taxes on goods purchased straight from Amazon, but they can avoid paying taxes on goods if they purchase them through Amazon's third-party merchants. By the start of December this could all change, as several merchants are expected to start collecting taxes in return for partial amnesty from alleged back taxes.
No stranger to inciting controversy, President Donald Trump has even jumped into the fray by stating in an earlier tweetthat Amazon has brought "great damage to tax paying retailers."
Those in favor of closing sales-tax loopholes contend that retailers such as Amazon are supposedly responsible for tax-base erosion and other fiscal imbalances in the states that they operate in. Although often well-intentioned, calls for closing tax loopholes miss the mark. The underlying problems that are overlooked in this discussion are the burdensome tax policies and profligate spending programs already present in many states.