RE: OTP, OECD and tax collection

[Steve Schear <schear@lvcm.com>]

David Burdett <David.Burdett@mondex.com> wrote:
>Tax evasion is as old as the centuries. I doubt that OTP if its used for
>tax collection by the governments will change peoples inclination to pay
>(or not pay) one bit. The point is, if governments want to collect taxes
>then they will find a way to do it and most merchants who have a
>reputation to protect will follow it.

This is really a rear-view outlook.  If we were in the 16th century, its
like saying that because the Church has all this authority we're not going
to use the press to print anything secular.

While it may be true that in the short run merchants with reputation may go
along with this foolishness, as long as their risks are low consumers will
shop wherever the price is lowest. 10% or more tax is enough separate most
consumers from their guilt and place the loyal merchants at a considerable
disadvantage. The complaint merchants will pressure the governments to get
tough (regulation always favors the regulated). If governments are not able
to pressure the non-complaint merchants, as I believe they will not (as
they were unable to stem the Eurodollar trading), this is the beginning of
the end game for such taxes on the Net and perhaps in a broader sense as
more commerce moves to the Net and places local merchants at an increasing
disadvantage.

--Steve


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