Amazon Is Ditching "Pro-Business" Texas Because Of A Fight Over Taxes

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Photo: AP

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?

Click here to see more about the Texas state budget crisis >

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