PUBLIC FORUM: Q&A

A sensible solution

While the use tax has been in effect for decades, it isinherently unworkable, difficult to comply with for the averageperson and relies on the honor system. Small wonder that less than 1percent of consumers remit this tax. The only sensible solution isrequiring Internet sellers to collect sales tax from buyers inCalifornia.

California is simply too large and important a state for Internetretailers to ignore or shy away from. They will grumble about it.But once the policy is effectuated, watch as many other statesfollow our lead and levy the same taxes - and reap the benefits ofincreased revenue. This might also level the playing field for brick-and-mortar retailers, generating local sales and preserving localjobs.

Such a tax is long overdue. Let's get it instituted as soon aspossible. It won't be long before the collateral benefits areevident. The collateral damage that the lack of such a policy hascaused is already obvious.

- MICHAEL KRUMME

Los Angeles

Hurts small online retailers

In discussing Internet taxation, we are focusing on the wrongvictims. Small businesses and the middle class will take the bruntof this tax. Amazon losing $23million is a drop in the bucket forthe company, which brought in roughly $34 billion last year. Thereal victims are small online retailers who use the Internet to selltheir goods and services without the brick-and-mortar overhead. I amtalking about the mom-and-pop type online businesses. They may havelow six-figure earnings if they are lucky, but take 8 percent ofthat off the top and it is clear who will feel the pain.

Californians need to stop buying into the phony pitch thatCalifornia has a revenue problem. We have a spending problem. Publicemployee pensions and salaries are out of control. The cost ofhousing a prisoner is twice the cost of a prisoner being held inFlorida or Texas. The list goes on and on.

- MICHAEL MILLER

Thousand Oaks

Businesses leaving state

California is already deeply branded as a hostile businesslocation and rightly so. Any business that can leave the statealready has or is planning on doing so. You ask whether an onlinesales tax is a fair way of collecting from online retailers. Theonline retailers are only agents for collecting the tax that thepeople of California would be forced to pay. We are already taxed todeath. Pass this online tax and you will only push more people fromthis state.

- JUDY VALDESUSO

Woodland Hills

This business would leave state

The premise of your question is faulty. The tax is not expectedto bring in any revenue. California's own analysis agrees and everystate that has tried a similar measure has suffered tax losses. Thecorrect venue for this question to be settled is at the federallevel, where the Constitution reserves the right to regulateinterstate commerce. State-by-state regulations merely cause venueshopping, job flight and reduced investment.

I am the CEO of VigLink, a startup backed by Google Venturesamong others and an employer of 18 people and counting. WhenIllinois passed a similar measure I was forced to move six jobs toIndiana and thousands of other businesses did the same. IfCalifornia passes the measure, I will face similar choices for the12 employees I have here and the additional numbers I wouldotherwise hire.

- OLIVER ROUP

San Francisco