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Laffer argued that avoiding taxes on Internet sales would not reduce state and local taxes. “If you look at the past 11 years, even with Internet sales not being taxable and remote sales not being taxable, we’ve had total state and local tax increases in 10 of those 11 years,” he pointed out. “That has not put a lid on state and local taxes. Even if you look at sales taxes, while retail sales as a share of state GDP have been declining dramatically, this has not stopped states from raising their sales taxes as well. Having been a longtime California resident, I can assure you that Proposition 13’s limit on property taxes did not stop California from raising taxes.”
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