Clear Thinking on Internet Sales Taxes

Should retail sales made over the Internet be taxed? In Washington, the legal answer historically has been "only if you feel like paying," and the result is a nearly $800 million annual revenue loss for the state. A terrific editorial from the Seattle Times explains why closing this loophole makes sense.

Washington's unwillingness to consider structural tax reform focusing on the income tax has long doomed it to having the most chronically unfair tax system in the nation. But if you're going to have a sales-tax-based system, the Times argues, you should at least do it right. Allowing Internet-based transactions to go untaxed actually compounds the unfairness in the Washington system.

Check out this ITEP policy brief for more information on this topic.