Massachusetts needs a modern, functional infrastructure and transportation system to attract the innovation economy jobs of the future. So it is only logical that the innovation economy should be a funding source for rebuilding and improving our infrastructure.
Each year, according to the Massachusetts Retailers Association, the Commonwealth loses approximately $335 million in sales tax revenues to online or other remote sales, such as telephone orders and catalog shopping. Massachusetts should act now to collect this revenue and earmark it for infrastructure spending.

Comments
tax and spend, tax and spend, tax and spend, do you people know anything else, how about the T reforming the pension system. check out the salaries over there.
this article is about further robbery of consumers by the State mafia. there is no need for revenues - try living within your means. there is so much revenues lost thru mismanagement, fraud and waste that new taxes will never be needed.
Mr Grossman, I appreciate the thoughtful analysis here but I think a better idea is a gas tax on miles driven in the state and measured by a hidden GPS chip in every car. The state has a mandate to protect the health and welfare of every citizen. We should encourage activities that take cars and trucks off the road (making purchases on-line does just that) and discourage activities that increase the need for more public transportation (like driving cars). Don't send mixed messages.
Tax internet sales and use the money to help the T, yea, right. Just like the gas tax is used to maintain our velvety smooth roads. Ever heard of the word fungible? It's an almost secret word that politicians understand but hope that taxpayers don't. What it means is that so-called dedicated tax revenue is pure hokum. All tax revenue gets dumped into the same pot and is there to meet the needs of the moment.
Would you also suggest that electric cars also pay a higher tax - they use the same roads but avoid paying any taxes on the gas they do not use?
According to online records, the MBTA alone has over 600 employees who were paid over $100,000 per year - excluding benefits. The Department of Transportation has some 200 more. That seems like a pretty good place to start looking for some additional revenue...
I agree with SAT: The "T" doesn't need more money. A little house cleaning of wages and Union rules would suffice and is long overdue.
On the face of it this is a good idea; however, let's be honest: the money earmarked for infrastructure would end up either in the general fund or be used for a special program. The state tax on gasoline is supposed to be used for all those jarring potholes, under-maintained bridges, etc. I do not believe those taxes are being used for that purpose. I know it is cynical of me but I just can't trust our reps and senators on Beacon Hill
Level the playing field for local businesses! I don't care what they do with the (desperately needed) money, whether it goes to roads or the T or the general fund. Maybe you could also lower the overall sales tax rate if you asked out-of-state businesses who take advantage of Mass. infrastructure to abide by the same rules as local businesses.
Absolutely Not! We are paying too much taxes while political leaders get richer and continue to search for more tax $$$$$. There is TOO MUCH WASTE in state and federal administration and suggesting an "Internet sales tax to help solve the state's transportation mess" is sheer nonsense. The public is paying taxes, co-pays, dues, etc. on every transaction we make only to see the money funneled into fatter salaries for the politicians and bail-outs & bonuses to their rich Wall Street campaign supporters.
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Hey Stevie, after you address the bloated payroll, benefits, work rules and pensions why don't you get back to me. I've never seen a private sector budget that couldn't be reduced at least 5% when you have a gun to your head.... Great think piece, "Reader you pay more money....You can trust me, I'm not like the others."...Thanks for the laugh. Now sharpen your electronic pencil and get to work.
We agree on the need for infrastructure maintenance etc. but when we have a Governor who fails to protect the public coffers from the thieves and robbers now, why should we trust you? I am sure that if a Large Task force of State Police, Investigators etc. was formed up to go after all the thieves they could actually save us a Billion Dollar$ yearly.
It's an idea that is worth looking into if we are going to continue growing the local economy. The money to attract new businesses by maintaining a modern and reliable transportation network has to come from somewhere. It was smart of Steve Grossman to see this potential revenue source and try to earmark it for something constructive and neccessary. Otherwise it would have dissapeared into the general budget. The tax is coming either way, lets use it wisely.
Every time someone proposes a tax to pay for something in particular the money winds up in the general treasury used for whatever the legislature deems popular. I still feel the sting of the gas tax increase to pay for bridges and roads. And that was about 15 years ago. The gas tax is still there as are the rickety bridges and potholes.
This article is a joke, right? Is this April 1st? What a jokester that Stevie is! Really, you just have to laugh folks. Otherwise, we'd be gathering signatures for a recall.
The issue is the state has a credibility problem. In my opinion this is actually at tax proposal that makes sense. However, as reflected in some of the comments below, our state and local governments have a history of bad behavior with taxpayer money. There isn't enough room in this post to run through all the recent costly abuses our of money. Why should we feed the beast with more.
I'm generally opposed to higher taxes, but in the interest of fairness - espe cially to retailers - I wouldn't oppose an internet tax. The question is whether or not the pols would pay any attention to this: "Massachusetts should act now to collect this revenue and earmark it for infrastructure spending." We've heard this song before (tobacco tax) and to expect the sleazy bunch that inhabits Beacon Hill to pay any attention to an earmark is wishful thinking.
Cynica, BB? I don't think so. Our pols have earned every bit of distrust and contempt we can level at them.