Amazon Cuts a Deal with the Texas Taxman

A year ago, Amazon shut down operations in Texas in protest of being forced to collect sales tax like other merchants who operate inside their borders. Given the high sales tax in the state, Amazon wanted nothing to do with having to jack their prices up to 8.5%. Texas has an especially high sales tax because there is no state income tax, the reasons behind which we won’t get into here. In any case, Amazon has promised to open up new distribution centers, and work with Texas to get a more centralized federal law passed to reduce the burden of collecting taxes from all 50 states.

“We appreciate Comptroller Combs working with us to advance federal legislation,” Misener said. “We strongly support the creation of a simplified and equitable federal framework, because Congressional action will protect states’ rights, level the playing field for all sellers, and give states like Texas the ability to obtain all the sales tax revenue that is already due.”

While there are certainly other aspects of the deal that are less public, and very much to Amazon’s benefit, people need jobs, and Amazon is in a great position to provide them, and in this economy, that’s a good thing all around.

Via: [The Associated Press]