Internet Sales Tax?

Internet Sales Tax?  Here's my take, and it might surprise you...

When I started my Internet company, it was the Wild, Wild, West.  Capitalism at it's finest.  Those that saw the "vision" of what the Internet would become, got in cheap, made a TON of money, and in most cases, the customer WON.

Like all good things...

Since 2003, there have been those that have fought to destroy this new Capitalist opportunity.  Let me explain...

First, it was the large "brick and mortar" Dealerships.  In the early 2000's they were new to the Internet, and like MOST larger corporations, they were slow to catch up to the "smaller" guys.  Customers were walking into their stores, checking out products, and leaving.  Once home, they ordered online at a HUGE discount.

Here's a list of solutions.  Which one(s) do you think the industry would adopt?

1. Become competitive.  Sell for narrower profits, make the sale while the customer is in their establishment?
2. Spend money on their own Online Store and compete without an advantage?
3. Put pressure on the Manufacturers to "Regulate" how their products were sold Online (Minimum Advertised Price - MAP), forcing higher prices?
4. Pressure Distributors to make it more difficult for smaller companies to open "Online" companies?

By 2006 the Internet was nothing like it was in 2000.  Six years...  Six years to take something truly "fair", into something perverted and unrecognizable.

Now, other changes took place.  Google launched "Adwords" in the mid 2000's.  Almost overnight, smaller companies were forced to shell out $10,000.00's to get "found" on the Internet.  Prior to that, print ads ruled.  Small companies placed an ad in Cycleworld for $400 an issue, and 300,000 riders saw your ad.  After Adwords, print advertising become obsolete.  COMPLETELY FINE, but it's another example of how LARGE companies transformed the Internet making life more challenging for smaller companies.

Now to the Internet Sales Tax.

I'm 100% FOR IT..!

For the reasons I point out above (and many I didn't point out) the days of the Internet being an even playing field is OVER.  It's become a stomping ground, where HUGE companies, and HUGE budgets dominate.

It's time for these companies to feel the pain that every local business feels.

What will the end result be?  While I'm not a fortune teller, I can tell you my opinion based on 14 years of running an Internet company.

1. There will always be advantages to purchasing Online, however, local businesses will see a HUGE increase in floor traffic.  If you're looking to buy a $500 helmet, and the online discount (no sales tax) disappears, why not buy from the business down the street?  There you can talk to a human, face to face, and actually touch and feel what you're buying.    The $44  savings is gone.
2. HUGE online companies will be desperate to keep you coming back.  To stay "Relavant" the use of Skype and other video chat programs will become more commonplace.
3. Smaller companies will actually return to the Internet.  Why not?  But with one HUGE difference.  It will be to entice more LOCAL customers into their stores.  National online advertising campaigns will be replaced with a local approach.
4. HUGE online companies will start to open more local retail centers.

While I support the push for a Online Sales Tax, I morn the days when the Internet was truly the greatest representation of Capitalism.  I feel those times have pasted, and it's time for the online advantage to disappear.  No longer is it helping smaller companies break into the market.

I like the image of the World where those looking for a item actually step into a local small business.