MACKE SAYS SALES OVER THE INTERNET SHOULD BE TAXED

Counties and states should benefit from the Internet by way of an Internet sales tax, says Cape Girardeau County Auditor Weldon H. Macke.

Macke spoke to the Pachyderm Club of Southeast Missouri Thursday evening.

Cape Girardeau County has about $10 million in its revenue fund and another $2 million set aside for road and bridge projects.

The county is probably in the best financial shape it's ever been in, Macke said.

But that doesn't mean it couldn't benefit from a sales tax collected on products sold over the Internet, he said.

"The Internet is a big toy that we are playing with," Macke said.

Most people don't understand that sales taxes are essential to municipal government. Cape Girardeau County assesses no property tax, so it relies on sales tax income to generate its revenue.

Taxing products purchased over the Internet -- not the World Wide Web itself -- would be no different than paying a tax at the Main Street store, Macke said.

Most who oppose the idea of an Internet tax fear it would tax the airwaves and cables that carry the information, not the products bought or sold on the World Wide Web, he said.

Critics say the Internet is too young and should be allowed to grow before any taxes are assessed. But Macke and others in the National Association of Counties contend that a formula could be developed that would benefit the counties and states that depend on sales tax.

You could apply the formula to the states, cities and counties and divide the money collected, just as you do now, Macke said.

"About one-third of the operating budgets come from sales tax," Macke said, referring to how most municipal budgets are organized. If Internet sales continue to grow without any assessment of sales tax, "you'll see a loss," he said.

And that loss could mean fewer jobs and businesses closing, he added.