You’ll hear a lot of squawking about how the businesses want to leave Illinois because of the state’s budget woes, but here’s a story you won’t hear much in the press: According to the AP, Amazon is shutting down a Dallas distribution centre because Texas is demanding the company pay sales tax collected in the state.(Bear in mind this is a hugely controversial question: whether states will successfully be able to collect sales taxes from online retailers. So far they haven’t been, but they’re getting closer.)
Amazon is also nixing a plan to expand its operations in Texas.
Anyway, you won’t hear about this story much because it doesn’t jibe with Texas’ reputation for being pro-business and anti-tax. Here they are losing a big company specifically because it’s trying to extract more taxes than other states do.
Granted, we sympathize with Texas’ position on this question. Internet commerce is a drain on sales tax, and the state is going through a painful budget crisis. But the fact remains, they’re losing jobs over taxes, which is the exact same thing that many in the media slam other states for.
Double standard much?
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