Tuesday, April 22, 2014

Amazon Sales Take a Hit in States With Online Tax

File under: Taxes distort the economy.

In one of the first efforts to quantify the impact of states accruing more tax revenue from Web purchases, researchers at Ohio State University published a paper this month that found sales dropped for Amazon when the online charge was introduced, Bloomberg reports. In states that have the tax, households reduced their spending on Amazon by about 10 percent compared to those in states that don’t have the levy. For online purchases of more than $300, sales fell by 24 percent, according to the report titled “The Amazon Tax.”


  1. My purchases have been reduced by 100%

  2. And Bezos' response has been to encourage all states to implement such a tax. Sad...

  3. Agreed seanot. I find it incredibly stupid that he's willing to take a hit (on his low margin business) in order to gain an unfair advantage over smaller competitors. Stupid fool.

    1. Would it shock you if Bezos' decided to embrace crony capitalism?

  4. Power to the People !

    This is wonderful news.

    Things that used to be a deal on Amazon are no longer a deal once one adds in the tax.

    WaPo Jeff did welcome satan in and now he gets what he deserves.

    Abolish the sales tax and replace it with nothing !

  5. If Amazon offers me a total price (goods+shipping+tax) less than their competition (e.g., eBay) I'll buy from Amazon. Otherwise, no. Simple economics. Nothing more. My initial analyses indicate that Amazon will not be able to do so for my current set of repeated large (>$100) purchases.