States bent on collecting tax on Internet purchases

boston.com ^ | 6 March 2004 | Michael Gormley

[CSM]

I understand the concept of the "use tax". However, how would they enforce this? Are they now allowed access to all of our personal financial information?

[IYAS9YAS]

That's just it, they can't. That's why they want to force the issue about the internet. Yes, they are allowed information about your personal finances with regard to income tax. What they cannot do is force you to keep receipts for everything you purchased (unless you are claiming it as a business expense).

Did you know that some states, California comes to mind, tax fuel with a fuel tax and then tax it again when you buy it with a sales tax on the cost that includes the fuel tax? They are taxing a tax.

[CSM]

Yep, I knew that. It is the case with just about any product. In fact, each dollar in our economy is probably taxed three times before it gets to any individual.

[IYAS9YAS]

I wouldn't doubt it. Aside from all the taxes and fees of manufacturing, then transportation costs and fees, then retail costs. No wonder companies are shipping work elsewhere. Happy Friday!

[BJungNan]

The National Governors Association estimates state and local governments will lose at least $35 billion this year from Internet sales.

When will a reporter ever get this right. The state and local governments are not "losing" anything. They just are not getting something new they otherwise would not have gotten.

It is only the taxpayer that saves and only the taxpayer that will lose if these new taxes are taken.