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THE OFFICIAL BLOG OF THE PETER HECK RADIO SHOW
a service of Attaboy Productions, Inc.

Saturday, 10 December 2011

The chairman of the Senate Finance Committee, Luke Kenley, is calling for the application of Indiana's 7% sales tax on all Internet purchases.

Such a call for taxation may not have come at the best of times for Hoosier consumers entering the Christmas season when purchases of gifts through online sellers like Amazon are on the rise.  In these difficult economic times finding the best price possible has made the Internet a valuable tool for thrifty shoppers.

From Senator Kenley's perspective, Internet sales, which are not taxed, place "brick and mortar" stores at a competitive disadvantage in the marketplace.  Consumers may counter this claim with the point that shipping costs on the Internet often bring the price point much closer to the local Target or Wal-mart than the Senator implies.   Merchant groups are already airing radio ads calling upon the 2012 legislature to fix this "inequity" through taxing the Internet with our state sales tax.

What do you think of this tax proposal?   We would like to know.  Our new online poll question is on this topic.    Please take a moment to go there, and click on your answer to our poll question. While you're there, feel free to take a look at our latest website articles, or listen to our recent daily radio news minutes.

Answer our poll question on Internet taxation here: http://www.afain.net/.

Posted by: Micah Clark AT 06:01 am   |  Permalink   |  1 Comment  |  Email
Comments:
Thanks for posting this Peter ! We have had a lot of people taking the poll and emailing about one item I did not mention. Indiana does have a "use tax" on our state tax form which asks about internet purchases. Apparently many people are not reporting their internet purchases, which is why supporters of this upfront tax say doing it their way would bring in another $77 million to the state. If this is true, I am waiting to hear a legislator propose a 77 million tax cut.
Posted by Micah Clark on 12/10/2011 09:46:41

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