I intend no political opinion with this story. I’m just sayin’.
If retail sales are down, sales tax revenue is down. If incomes are down, income tax revenue is down. So two recent stories inspired me to wonder whether governments might soon be turning-over the cushions on the sofa, looking for any spare revenue they can find.
A while back, the New York Times ran a story wondering whether companies like Amazon—and other online retailers—will soon be seen by more states as a potential source of sales tax revenue.
Another story—this one from Marketing Daily—indicates that France is looking for ways to gaggle some money from Google. (Again, politics aside, I suppose it’s hard to see a company making so much money without wondering how to get your hands on some of it.)
Implications: Governments world-wide have been hit hard by the Great Recession, due to increased costs for social programs and stimulus packages, as well as falling tax revenues.
As the recovery gains momentum—and as bills for these programs come due—it is only a matter of time before they seek to reclaim—or find alternatives to—the cash required to keep the wheels of government turning.
It will be interesting to watch how consumers respond… in terms of acceptance (or not), household spending, and political ramifications.
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