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Arizona
– Safe Haven for Amazon |
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While the California
legislature was passing legislation to require online retailers
to begin collecting sales taxes, a law that became effective
on July 1 and will generate hundreds of millions of dollars
to that financially bankrupt state, Arizona governor Jan Brewer,
along with several of our state legislators, were guests of
Amazon at its newest distribution center in the Phoenix area.
Arizona, one of many financially bankrupt states, will probably
be the last state, if ever, to pass online sales tax legislation.
As of this writing, six states, including California and New
York, have done so, with another 20+ in the process. More and
more states are seeing the unequal treatment between online
and brick-and-mortar retailers as a legitimate source of revenue
in these recessionary times.
Instead, the Arizona legislature allowed its version of an e-fairness
bill to die in committee during this past legislative session.
Given the recent wooing by Amazon of some of these same people,
including the governor, it appears unlikely that Arizona will
reconsider and/or pass any such legislation in the foreseeable
future.
Amazon now has over 4 million square feet of warehouse space
in the greater Phoenix area. It contributes nothing to the Arizona
economy or to our state’s treasury, other than a hundred
or so low paying jobs.
Meanwhile, our governor and legislators increased our sales
tax by 1% over a year ago, claiming that this was not only “temporary”
but necessary to avoid severe budgetary cuts to our schools
and colleges. Interesting, and somewhat disturbing, is that
they then proceeded to slash our state’s educational budget,
while at the same time lowering corporate income tax rates.
E-fairness legislation could generate a huge amount of revenue
for the state of Arizona. Independent estimates indicate that
a third of our current budget deficit could be eliminated immediately
by such a law, by simply requiring online retailers to collect
sales taxes.
Unfortunately, it is unlikely that politicians that are easily
influenced by a visit to an Amazon warehouse are going to do
anything responsible unless they hear from their constituents.
So once again, it’s up to you and me. Hope you decide
to do something. Let your elected officials know what you think
about this important fiscal issue.
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