Home   |    Local News   |    Marketplace   |    Sports   |    CentralValley   |    JobQuest   |    Archive   |    accessBee
 » NEWS
 Local
 State
 Nation
 World
 War on Terrorism
 Sports
 Business
 Real Estate
 Lifestyle
 Out There
» Opinion
 Columnists
 Special Reports
 En Espaņol
 Galleries
 Obituaries
 Speak Out
 Mobile Edition
 Text Only
 Weather
 Contact Us
 Feedback
 » RESOURCES
 Marketplace
 Newspaper Ads
 Yellow Pages
 Schools
 Shops
 National Parks
 Comics
 Crossword
 Games
 Newspapers in
 Education
 Subscribe
 » COMMUNITIES
Central Valley
Vida en el Valle
Visalia Cityview
Neighbors
Cityview
Clovis
Independent
Community Calendar
Find events happening in
the Valley
News Right Now!
Get the latest, breaking news delivered to your in-box.

email this article

print this article get the daily bulletin subscribe to the print edition

Internet sales bleeding the life out of California economy

By William W. Baker
Fresno

(Published Saturday, January 18, 2003, 5:17 AM)


The recent article discussing the sales tax loss to California due to major item purchases over the Internet was interesting, but missed most of the loss the state and its citizens suffer in such transactions.

Internet merchants have no investment in California. They have no stores, no equipment, no employees -- in fact they have no interest in our state. Many do not even carry an inventory, instead drop shipping to their customers from suppliers' or manufacturers' warehouses.

Not only do we lose sales tax revenue, our local governments lose revenue from business taxes and licenses. Payrolls and payroll taxes are lost to state and local entities.

Internet merchants do not buy their supplies and equipment from other California firms. They do not purchase advertising space or time from newspapers and radio-TV. They pay no rent. Their income is taxed by other states. California does not participate in their profits.

Of course, these Internet merchants have a tremendous advantage over traditional merchandisers, and their prices reflect this advantage. One must wonder if the increasing use of Internet purchases will lead to the demise of thousands of local businesses, with their tens, even hundreds of thousands of employees.

Are "big ticket" stores going the way of buggy whip manufacturers? Is there anything we can do to stem the tide, or is this the wave of the future?


Speak Out! on Opinion
We invite your comments about this article. Registration is required for participation in our Speak Out! forums.
Please be aware you are entering a public forum and your messages can be viewed by others. If you are trying to contact the reporter, please visit our
About Us section.
You only need to register once. If you have already registered please click on Post to participate or View to read messages.

© 2003, The Fresno Bee
Your Privacy | User Agreement | Child Protection | Fresno Bee jobs
Advertise Online


ADVERTISEMENT
BEE SEARCH:
Search by keyword:
Or, search by day:


   Local News:
» Burning pile contaminated

» Peterson family doubts husband

» Meeting on environment stirs debate

   State News:
» Emy Coligado knits; her scarves debuted on 'Crossing Jordan'

» Lesley Ann Warren reminisces on her start in acting

» LAPD chief plays tough politician in Sundance Film Festival entry

   National News:
» U.S. reportedly considered attacking North Korea

» Washington governor may have been target of plot, FBI says

» Missing woman's family presses husband to cooperate

   Sports:
» Alcorn adds by division

» Shaq gets numbers, Yao has scoreboard

» Talented QBs fill South's roster