Just a day after his plans were reported in the New York Sun (and here on AT), NY Governor Eliot Spitzer has reversed himself on his intention to attempt to force New Yorkers to pay as much as 8.375% sales tax on all purchases bought online from such merchants as Amazon.com.As reported on the Sun's front-page this morning: In a second major policy reversal in less than a day, Governor Spitzer is backing down from a plan to require Amazon.com and other online retailers to charge state and local sales taxes on all purchases from New York.
Yesterday, just hours after The New York Sun reported on the new revenue collection scheme, the Spitzer administration announced that it was burying it for the time being - at least until after the Christmas shopping season.
Just a day before, Spitzer announced his withdrawal of a plan to issue drivers' licenses to illegal aliens after a tidal wave of opposition to the scheme by lawmakers and the public. Marking the second political defeat in as many days, the decision was a reaction to accounts that,
"Albany Republicans, who turned the license issue into a potent rallying cry against the governor, were drawing up plans for a fresh wave of attacks. Lawmakers said they were planning to seize on the tax policy as evidence that the governor had reneged on his pledges not to raise taxes."
"Governor Spitzer believes that now is not the right time to be increasing sales taxes on New Yorkers," Mr. Spitzer's budget director, Paul Francis, said in a statement. "He has directed the Department of Tax and Finance to pull back its interpretation that would require some Internet retailers that do not collect sales tax to do so."
Nevertheless, Francis claimed,
"the governor was unaware of the new tax policy, which the tax department quietly issued with a memorandum on Friday. It was supposed to go into effect next month, in time for the holiday shopping rush."
Somebody may actually believe that excuse.
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