The Wall Street Journal has published a debate on online sales tax collection. Taking the pro side is Michael Mazerov, Senior Fellow at the Center on Budget and Policy Priorities in Washington, DC. Taking the con side is Steve DelBianco, Executive Director of NetChoice, a “coalition of e-commerce and online businesses.”
Both sides are clearly and cogently presented, and we highly recommend the article. Of course, as our regular readers know, we’ve long been advocates of the “pro” side. Mazerov does a terrific job of explaining why online sales tax collection is necessary and countering the most common objections to online sales tax collection, while DelBianco’s argument boils down to “it’s too difficult for small businesses.”
But we’ve worked hard to make sure that that’s not true. TaxCloud is designed specifically to remove the cost and complexity of online sales tax collection: It not only provides real-time sales tax calculation, it also handle exemptions and audits—plus, it’s easy to use and completely free.
A quick correction: At the head of the article, the description of the current sales tax situation says that state and local governments are pushing Congress to “require all online retailers to charge sales taxes in all states.” (emphasis added) “Charge” here should be “collect”—as we’ve said many, many times, sales tax is already due on online purchases. The question isn’t whether online retailers should charge (let alone, as some have suggested, pay) sales tax; no matter what, consumers owe sales tax on their online purchases. The question is whether online retailers should be required to collect sales tax. And the answer . . . is “yes.”