Wednesday, March 21, 2012
Socialized Bookstores Next for France?
As it stands now in the U.S., Amazon only has to collect and pay sales tax to states within which the company operates a physical facility of some sort, usually a huge warehouse or two from which items are shipped. That does, in my opinion, give Amazon an unfair edge on their competitors - businesses that have to collect sales tax on every sale they make. Amazon is leeching customers from these other companies and, especially in this tough economic time, customers will continue to flock to any retailer that starts with an eight or ten percent immediate price advantage. That's only consumer common sense.
Now Frederic Mitterand, the previously mentioned minister, is proposing a special tax on Amazon and large bookstores there to "help out" the smaller stores. Why not just close the tax loophole that allows Amazon to pay so little tax in comparison to smaller companies?
Europe is not America; I get it. But socializing bookstores is bad business and will, I imagine, have numerous unforeseen consequences for everyone - including consumers and those very bookstores that would receive the cash infusions. Just watch book prices skyrocket in France - unless they are already regulated by the government of that country.