00:01
So the explanation for this answer is composed basically of two different steps.
00:05
The first is that a big company, in this case, amazon, supports this act, which doesn't really seem to make sense on the face of it.
00:15
Why? because this act is going to increase costs.
00:20
Now, amazon itself is not actually paying the sales taxes, right? what are they doing? they're collecting the sales taxes from you, the consumer, and then just passing it along to the state, but it increases amazon's cost insofar as this is going to cause them to lose business.
00:37
Okay? so it will increase costs, or in other words, it will make them lose business.
00:43
Now, this is not only them.
00:48
This is everyone else who sells online.
00:50
So smaller retailers with whom amazon has to compete also are going to have to increase their prices in order to charge the sales tax, which they then pass along to the government...