The Use Tax

I know most of us visit and shop at places such as Amazon.com. Most of us have purchased products there because generally you do not have to pay sales tax and it is not added to your invoice.

Not so fast fellow Californians, we are supposed to pay something called the Use Tax where if you use, give away, store, or consume the item in this state you are obligated to pay the use tax.

I know it is sad that the sales tax has became a very regressive piece of taxation where in some towns it reaches almost as a ten percent tax such as in Pico Rivera or Southgate, which seems absurd when their population is not traditionally rich enough to absorb all these costs.

It is natural for people to evade taxation, when taxation is too high people do their best to avoid paying the tax such as small business owners fleeing California due to its regulation and high costs of doing business in the state.

 

However if we want our public services we have to pay the cost of running them such as helping the disabled and our public higher education system. I know we want to promote more jobs and opportunity in our state of California, but maybe if the sales tax was lower people would be marching to the brick and mortar stores of our state instead of clicking over to Amazon.com which would lead to more sales tax revenue and more sales to the businesses of our state.

Personally I do not make much money, where the amount withheld on my paycheck about equals the amount I spent from Amazon.com and tigerdirect.com, but we should all do our part to help fund our state in these rough times. Even if your use tax is $50 or $500 we should cough up the money. Better yet, put the use tax money in a savings account and pocket the interest until April 15th and send your check into the Franchise Tax Board.

I know the state legislators are wanting to compel online merchants to force them to add the sales tax to our purchases, but if they want more money they need to figure out why people evade the sales tax and at least just charge the minimum sales tax of 8.25 percent instead to make it simple for the merchants who are not based in California.

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