To: M Kehoe
Mail-order catalog sales never had to pay sales tax,
because of the added cost of shipping and handling.
How are internet sales any different?
(Government needs to spend less, not kill a new industry.)
Agreed and true, but when it comes to spending and thus the necessity of new and more revenue politicians can see their way around reality.
posted on 07/16/2012 3:42:37 PM PDT
(First, Do No Harm)
Mail-order catalog sales never had to pay sales tax, because of the added cost of shipping and handling.
Nope. It has nothing to do with shipping and handling. It has everything to do with taxing purchases between state lines.
An outlet like Sears or J.C. Penney, which certainly has significant operations in all continental states, would be charging sales tax, and always has in their mail order catalogues.
If you order a product from a company that does NOT have significant operations in the state of the purchaser (e.g. having a pizza shipped from Modern Apizza in New Haven, CT to Illinois), the seller cannot be obliged to charge sales tax. In most states the buyer is supposed to pay a "use" tax, but nobody does. It is simply a matter of jurisdiction. A company operating onl;y in Kentucky or Rhode Island cannot be forced to pay taxes in Virginia or Colorado just because someone in those states orders something from them.
Brick and mortar stores pay shipping as well. I do not support an Internet sales tax, but the brick and mortar stores ARE getting the short end of the stick.
posted on 07/16/2012 4:39:30 PM PDT
by Dr. Sivana
(May Mitt Romney have the mother of all Macaca moments)
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