I bought something from the internet the other day—a photograph from a company that sells archived news photos from decades ago.  No sales tax was charged by the company, which is in a nearby state.

The purchase is a reminder.

If the state needs money—and it surely does—

There is no better time to finally approve collecting a sales tax on purchases made through the internet.

The Missouri General Assembly has gone to great lengths to avoid enacting such a requirement for a decade or more. It has refused to create a collection policy of our own and it has rejected suggestions Missouri join a multi-state compact that collects sales taxes.

Past efforts have been attacked by those who use a faulty argument to avoid the responsibility needed to enact the bill.  “It’s a tax increase,” opponents claim.

Dishwater!

The state sales tax is not—let me emphasize that, NOT—being increased. If the law requiring the state sales tax be paid on purchases on the internet were to pass, the state tax you and I pay when we buy from an internet vendor would be the same as the tax charged when we buy from a hometown business. I should be able to duck a citizen responsibility to contribute to the well-being of others by buying something through the internet.

The argument in favor of an internet sales tax is even more compelling in today’s plague-mangled economy.  Hundreds of local businesses have closed because of stay-at-home orders. Many have not reopened and some never will reopen.  But one of our neighbors (yours and mine) who owns a brick-and-mortar business knows that customers who used to buy things at that store have been buying them on the internet while the store has been closed.

The problem of local folks visiting stores, checking the prices, and then buying the same thing from an internet vendor already was a problem before virus-caused closings forced consumers to increasingly rely in the internet.  Now the question becomes whether they will go back into the hometown stores when they open?

Passing a law requiring Missourians to pay the same sales tax on internet items that they have to pay for local in-store purchases is more symbolic than profitable for the merchant.  But at the same time, promoting the reopening of brick-and-mortar businesses without taking a step that offers a slight whiff of equality with internet vendors seems pretty inconsistent (although you might have a stronger word).

The need to do this has been increased by an executive order signed by our president that he says will resume the expired supplemental unemployment payments.  The executive order will pay $400 but the states will have to contribute $100.

The legality of the executive order aside, Missouri’s general revenue fund needs every penny it can generate whether for supplemental unemployment payments, virus-fighting efforts or maintaining services even at their reduced levels.

Our state leaders have insisted time after time that testing is the key to controlling the Coronavirus in Missouri.  At this point, it’s anyone’s guess whether Congress and our president can agree on a stimulus package that will include billions of dollars for state testing. Lacking that, it’s hard for someone well detached from the ins and outs of the statehouse these days to imagine where the state will find money for that testing without further wrecking the state budget, let alone where it will find money for its share of unemployment payments without the same result.

Where the state of Missouri would find $100 multiplied by several thousand each week is a troubling question.  The governor already has withheld or vetoed hundreds of MILLIONS dollars to balance the state budget.  Schools are opening and education at all levels has been badly bruised by the necessary budget actions. Inflicting deeper cuts to the biggest places to cut, education and social services, could be tragic at a time when schools, in addition their normal expenses, have to face the costs of keeping students, faculty, and staff safe from the virus.

By making Joe or Josephine Missouri pay the same sales tax on a coat from a Internet Inc., as Sarah and Samuel Showme have to pay for the same coat from a Main Street store, Inc., Missouri’s leaders and lawmakers can send a little positive message to the businesses they want to reopen despite health uncertainties at home by collecting needed funds from consumers who want to avoid a few pennies in sales tax by buying online.

The virus has produced all the justification needed to finally impose an internet sales tax. It won’t entirely solve the state’s financial problems. But it could at least partly equalize the competition for the local dollar, provide at least some of the funding for the state’s contribution to the supplemental jobless benefit, and/or ease the depth of any additional budget cuts or withholdings.

Unfortunately, this is a campaign year and candidates will stampede away from advocating anything that can be called, however erroneously, a tax increase no matter how desperate the virus causes the state to be for additional funds. Perhaps we’ll have to wait until January to see if those whose political futures have been determined by then will screw up the courage to take this step.