Posted on 08/03/2011 9:19:11 AM PDT by jazusamo
Congressional Democrats scheme to prop up state spending with online levies
The class warriors in Congress won’t rest until everything is taxed multiple times. The idea that online retailers aren’t collecting tribute for states in which they have no physical presence galls Sen. Richard J. Durbin, Illinois Democrat, and Rep. John Conyers, Michigan Democrat. So they dreamed up the Main Street Fairness Act to force Internet shoppers to prop up the big spenders in state government.
Crony capitalists are lining up in support. Big players in the online space such as Amazon and others with nationwide physical footprints such as Sears are pushing the legislation. EBay, the Electronic Retailing Association and the National Taxpayers Union oppose it.
States have long drooled over the possibility of diverting a cut of online sales into their coffers. Fortunately, they’ve been thwarted by the Constitution. In 1992, the Supreme Court held that there has to be a “substantial nexus” between a state and a retailer before a state may require the retailer to collect sales tax. For a brick-and-mortar business, that means a retail location.
For a “pure play” business like Amazon, several states - California is the latest - have tried to establish the nexus by going after affiliates. These small entrepreneurs create third-party websites to generate sales in return for a modest commission. These taxation efforts largely have been fruitless because Amazon has simply severed its relationship with affiliates in places such as California and Rhode Island to avoid being subjected to state sales taxes.
(Excerpt) Read more at washingtontimes.com ...
Its just a matter of time before government installs an internet sales tax.
Watch all the sales/packaging jobs to move across the border when this happens.
Lawmakers need to make up their minds. Consumption tax or income tax. One or the other, but not both. The confiscation is just looney.
Yep, money grubbing politicians like Durbin and Conyers see the Internet as a potential cash cow and they’re not getting their share.
It’s clear they want both, especially the leftists.
You can bet this is going to pass. It will have overwhelming support from merchants and chambers of commerce in every city in every state. We consumers will of course be the losers in this. Also watch for the Feds to try and tack on a percentage of every sale for themselves. They haven’t said anything about a Fed tax yet but these greedy sh*ts just can’t help themselves. It will come up. That is my prediction. I don’t know if the Fed tax will pass muster but the state tax on internet sales is gonna happen. If you have your eye on a big ticket item I’d get it before this POS bill passes.
I don’t see it passing the House at this time, if it does the election for incumbent GOP next year will be bloody.
I do agree that if or when it is passed it will only be a matter of time that a fed tax will be imposed also when leftists are in control.
“Its just a matter of time before government installs an internet sales tax.”
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Unquestionably. The Collectivist appetite for thievery is insatiable.
That said, I hope no one is upset when all their LOCAL, convenient, heavily-taxed brick and mortars pack it in.
Well I certainly hope you are right on this. But think about the influence all the hometown merchants and business men have on the Republican Party. The Chambers of Commerce, Rotary Clubs, and local businessmen are all big donors and supporters of the Republican Party. Many of these folks know their local, State, and Federal politicians personally.
As much as it pains me to admit it these business folks have a valid point. Point being, why should their competition, internet sales sites, not be subject to the same onerous regulations that they are forced to endure. Why let the internet businesses sell their products cheaper through no sales tax when here in the politicians' own backyard money is being lost through the loss of sales tax and businesses failing due to customers buying online.
As one who buys most everything online now a days I hope your right but sadly I just can't see it. Even the most ardent of Republican tax reformers (if such a creature actually exists) will not be able to abandon the business leaders in all the local communities.
There are a number of technical issues on the way of this as well. There are too many taxing jurisdictions. Here in PA the sales tax is 6%. But Allegheny County puts a piggyback 1% tax on making the total 7%. In some states the extra fractions of a percent are levied at an even more local, sub-atomic level. No online ordering system out there is capable of dealing with 10,000 localized sales tax rates.
Because online sites do NOT use any of the state’s resources, so why should they pay?
That’s a good point. We have the same thing here in WA state, we don’t know what the sales tax will be from city to city and county to county without looking it up.
You're not going to get an argument out of me. I am 100% against this bill. I simply put out some of the points made by local business people all over the country and made the statement I believe the bill is going to pass. Just because I believe this bill will pass doesn't mean I am for it in any way shape or form. If you truly want an answer to your question you'll have to ask someone else.
Sorry, I didn’t mean to imply you were for the tax. I should have been more clear.
Oh I took no offense bfree. No apology required. I also understood your question to be rhetorical in order to make a point. A very good point I might add. Which I should have acknowledged in my last post. So you keep fighting the good fight and I’ll be seeing ya around these threads.
Why not another tax? Not one of these taxes existed 100 years ago:
Accounts Receivable Tax
Building Permit Tax
CDL license Tax
Cigarette Tax
Corporate Income Tax
Dog License Tax
Excise Taxes
Federal Income Tax
Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax
Fuel Permit Tax
Gasoline Tax (currently 44.75 cents per gallon)
Gross Receipts Tax
Hunting License Tax
Inheritance Tax
Inventory Tax
IRS Interest Charges IRS Penalties (tax on top of tax)
Liquor Tax
Luxury Taxes
Marriage License Tax
Medicare Tax
Personal Property Tax
Property Tax
Real Estate Tax
Service Charge Tax
Social Security Tax
Road Usage Tax
Recreational Vehicle Tax
Sales Tax
School Tax
State Income Tax
State Unemployment Tax (SUTA)
Telephone Federal Excise Tax
Telephone Federal Universal Service Fee Tax
Telephone Federal, State and Local Surcharge Taxes
Telephone Minimum Usage Surcharge Tax
Telephone Recurring and Nonrecurring Charges Tax
Telephone State and Local Tax
Telephone Usage Charge Tax
Utility Taxes
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft Registration Tax
Well Permit Tax
Workers Compensation Tax
If you tax something, you reduce it. I recommend that we tax unemployment or tax food stamp usage.
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