Taxing online retailers

After fighting to keep North Carolina from becoming a broadband backwater, this particularly galls me. The North Carolina General Assembly is pushing a finance bill that would tax online retailers. Rather than pay a tax in a state where it has no presence, Amazon simply pulled the plug on its affiliate program for North Carolina residents. So rather than doing something positive for the state, the attempt to tax companies like Amazon has actually hurt North Carolina small businesses that depend on those referrals by cutting off access to that income.

This outcome is not surprising. Tax a company with no presence or investment in the state and that company has little to keep it from pulling the plug on serving that state. That hurts our citizens more than it does the companies targeted, and that’s just plain dumb.

I sure would like to see a smarter approach by the legislature towards technology and the Internet. Those who regulate technology should at least make an attempt to understand it.