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Fast Talk

June 9, 2008

Q: Will people change their shopping habits if they have to pay sales tax on everything bought on the Internet? | posted by Fast Company staff

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June 9, 2008 at 11:10am by emmy sidabutar

i think so

June 9, 2008 at 11:17am by Saabira Chaudhuri

I doubt habits will change significantly, if at all. People don't shop on the Internet primarily because they can avoid paying tax. Yes the prices are better – but that's due to a host of different factors, many of which will remain even if tax is leveraged. Plus, other factors like convenience, range and being able to shop from anywhere regardless of your own location will outweigh the downside of having to a pay a small extra fee.

June 9, 2008 at 11:20am by Rachel King

It would definitely affect mine. I loved Amazon's prices, not only because of the store's already low prices, but there was no sales tax and, often I didn't pay for shipping if I had enough in the basket. However, I don't know now if the savings will really be worth it.

June 9, 2008 at 11:32am by Rip Empson

I think the effect will be negligible.

June 9, 2008 at 1:58pm by Megan DaGata

No. I am sure someone out there would like to think it would, but unless it is going to have some extreme rate no. People buy online due to convenience. They are not shopping at the store for the simple fact that it takes too much time, effort, and gas. We are more concerned right now with the larger chunks being removed right now by the increase in fuel cost, not a 8.25% tax on things we are already going to buy.

June 9, 2008 at 2:02pm by Erika Schneider

No, the biggest reasons people buy on the Internet is for convenience, and lower price in general. I don't think the lack of sales tax on items is a big reason people shop online instead of in stores.

June 9, 2008 at 2:37pm by LaSonya Belcher

No.What I think is people shop on the internet for convience.It is a lot more easier for those people that do not like to stand in lines and have to hassel with large crowds, besides the sales tax is not all that bad for something that you really want,and another major factor is gas prices and people would rather pay sales tax than extra for gas milage.

June 9, 2008 at 5:21pm by Paul Maiorana

I don't think it will have a dramatic effect. Shopping online is still more convenient (generally) than shopping at brick-and-mortar stores, where you'd be paying sales tax anyway. And it's certainly more convenient than driving to sales-tax-free states like Delaware or New Hampshire!

June 9, 2008 at 6:16pm by Haewon Kye

It would definitely affect mine.
People shop online not only for convenience, but for better deals. I'm definitely going to miss Amazon.com's no sales tax prices.

June 9, 2008 at 6:21pm by Laura Betterly

No, but prices would rise becuase of the extra record keeping and reporting each company would have to do.

June 9, 2008 at 7:08pm by David Dufour

Yes. The advantage of having a lower price point will disappear and consumers will have less disposable income.

June 9, 2008 at 9:50pm by Carel Two-Eagle

Not likely, unless buying on the Internet results in more tax than buying at home - IF they can buy 'whatever' at home. But - it is a shafting of free commerce and the people who buy on the Internet. It is just one more example of majority culture greed filtered through the m.c.'s government form. There ain't no 'us' and 'them', takoszja - there's only 'us'. It's a mythconception that there's any division in this.. The government form here being '...government by the people'....

June 10, 2008 at 12:53am by Michael Olson

Since businesses pay taxes based on income to the federal government that revenue could be passed back to the areas where the business was generated. No, new tax.

Two, I really never though about the tax advantage of the internet and I have never heard my friends talking about it much. So, my question to you is do people have it as a forethought or is it an afterthought. So, it may not make a difference.

June 10, 2008 at 5:20am by Ian Hilliard

The introduction of a sales tax on Internet purchases would make online purchases less competitive. The result of this could see retailers claw back sales from the e-tailers.
Statistics will show the gap narrow between the two. Some e-tailers will close shop while others will be forced to merge.

June 10, 2008 at 5:52pm by Ernest Vasilion

Yes.

June 11, 2008 at 2:31am by Ian Leong

Not really - from a purely pricing perspective, it is the internet price of item + sales tax (if any) + shipping (if any), versus in-store price. Other factors are convenience, overall shopping experience etc

June 11, 2008 at 7:11pm by Kevin Byrne

No.

June 16, 2008 at 7:58am by Melanie Brooks

Shopping online is convenient but I always weighed the shipping costs against the savings I got by not paying sales tax. Now I'm going to have to pay both? If it's something I can't possibly find in a local-enough store I will buy it online, but my buying habits for Amazon.com and clothing stores like JCrew.com will be affected.

June 20, 2008 at 7:50pm by rick wemmers

I don't believe so...too easy to shop....Rick Wemmers

June 26, 2008 at 3:23pm by VJ Misra

I think it is purely a personal preference, but do believe it will make a lot of people pitiful. Albeit, online sales will not weaken from what it already is in this sunken economy.