Sales Tax and Stamp Investment

It seems likely that sometime in the next few years that the Federal government is going to step into the state sales tax morass and impose some kind of national sales tax on interstate sales. As it is now, the vast majority of philatelic items are sold sales tax free as they are purchased by collectors from out of state dealers who are able to deliver their purchases without charging sales tax. This a great boon for collectors but with state governments starved for revenue and brick and mortar retailers yelling foul, it is just a matter of time before stamps, and all other interstate sales, are subject to some sort of national sales tax that is then rebated back to the states. When this happens, stamps and stamp investment will get a bit more expensive. Right now, a collector needs to get a fair amount of appreciation in his philatelic purchases just to get back to the price he paid. There are dealer profits and overheads, which for even expensive items run 30% or more and are far higher on less expensive items. When a national sales tax goes into effect there will be another five or ten percent to overcome. Don’t mortgage the house as stamps are not much of an investment anyway. But if there is a set of Graf Zeppelins anywhere in your future this year would better than next to buy one.