If You Like Local Government...

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http://www.nationofchange.org/if-you-local-government-1342881461

A rebounding economy will not be enough to pull state governments out of their fiscal mess, says a new report from the State Budget Crisis Task Force. While health and other costs continue to grow, important sources of revenues are shrinking, the group led by former Fed Chairman Paul Volcker and former New York Lt. Gov. Richard Ravitch noted. One of those sources is sales taxes. Some states rely on them heavily for revenues. (Only four don't have sales taxes — Delaware, Montana, New Hampshire and Oregon.)

Sales tax revenues have been falling, thanks in part to a Congress that has meddled in states' ability to collect them. With a few noble exceptions, "conservatives" in Washington have worked hard to ban states from requiring online merchants to fork over the sales taxes that brick-and-mortar stores must charge. Online commerce is the fastest-growing sector in retailing. I put "conservatives" in quotes because real conservatives believe that local government, being closer to the people, is the best government. Deny it money, and you deny it power.

So what business did Washington politicos have denying local governments the tools to properly fund themselves? None, outside of irresponsible politicking. Telling states they could not tax the sale of a printer or tomato cage if it was bought online lets the lawmakers boast of their tax-cutting prowess while dumping the consequences on state and local governments. The notion that anything sold on the Internet should be tax-free was engraved in Republican ideology, making it hard for GOP governors to object to it.