Amazon has just made a push with $300 million and 5,000 jobs in Texas in exchange for a postponing of a new Internet sales tax law. Top Government officials in Texas are weighing the offer, as it does seem to be very helpful to the current economy position, even when South Carolina accepted an offer like that earlier this month. This could be big news for anyone ordering tablet rentals off of Amazon in the next few months.
The law would increase sales taxes on Internet purchases, directly affecting Amazon’s business and could provide major change to the way the business is handled. Thusly, Amazon is trying hard to push this bill far away into the future, so that they can have cheaper products for people who want cheap online deals.
"Most states have enterprise zones where companies can locate there and receive tax exemptions," says Diane Yetter, President of sales tax consulting business, Yetter Consulting Services in Chicago. "The states are hoping to capture lucrative property tax or state income tax from those employees." However, she notes, "with Amazon's offer, it's flow-through money. Texas does not require individuals pay income tax, so all these people Amazon plans to hire won't contribute in that way. Texas, in part, may be looking to do this for the [public relations] benefit, or part of political jockeying."
So an Internet giant like Amazon is going to help the public limit the sales tax on Internet goods? It’s almost a “reverse-Robin Hood” with the rich and successful company Amazon pleading to limit prices on their goods to keep them cheap, while also creating jobs at their facilities for workers.
So it’s a tense moment for all those who purchase goods from Amazon, because their prices and taxes could rise very soon. Any who order devices and tablet rentals over the Internet should be rooting for Amazon to shove their foot into the rapidly closing door of this tax legislation.
Who knows, maybe the politicians will take the deal. It’s not the first time they’ve settled.
