I was a bit disappointed to read the following:
[T]he perk has also cost states as much as $23 billion in lost revenue by some estimates, and they want it back. Rep. Bill Delahunt (D-Mass.) this morning enlisted Republican South Dakota Gov. Mike Rounds (R) and other state lawmakers to rally support for his proposed Main Street Fairness Act, which would make it easier for states to go after the money [from internet sales].
“We can’t get a hold of it,” Rounds said in an interview this morning. He said that Internet retailers “have a competitive advantage” over in-state businesses, which are required to collect the tax.
Rounds said in South Dakota, the proposal could net an additional $35 million per year in tax revenue, about 3 percent of the state’s $1.2 billion budget. South Dakota has also worked with about 1,200 out-of-state retailers to voluntarily collect sales tax, Rounds said.
One is hoping that Daugaard would not follow Round’s lead in this regard, were he to become governor of South Dakota.
While one can see any number of arguments for and against the this scheme of taxation, there is no question that the net-based retailers would not be where they are today in terms of sales if they had to follow the same complex and expensive tax-reporting rules as have been implemented for the brick and mortar retailers. Implementing this tax at this time would do little to help the overall economy and much to discourage it.