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Tax Break Nears End for Online Shoppers
The Wall Street Journal ^ | July 16, 2012 | Monica Langley

Posted on 07/16/2012 2:29:10 PM PDT by JeepersFreepers

Republican governors, eager for new revenue to ease budget strains, are dropping their longtime opposition to imposing sales taxes on online purchases, a significant political shift that could soon bring an end to tax-free sales on the Internet.

The newfound support among Republicans is a dramatic change from just a few months ago.

[N.J. Gov. Chris]Christie called taxation of online sales "an important issue to all the nation's governors" and endorsed federal legislation giving all states taxing authority.

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Extended News; Government; News/Current Events
KEYWORDS: 112th; chrischristie; ecommerce; internet; internettax; online; retail; salestax; stupidparty; tax; taxes
When Republicans join the Democrats in wanting to raise taxes, where do we turn?
1 posted on 07/16/2012 2:29:16 PM PDT by JeepersFreepers
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To: JeepersFreepers

The only difference between them lately is that Democrats call them penalties and the GOP calls them fees.


2 posted on 07/16/2012 2:31:48 PM PDT by Ingtar ("As the light begins to fade in the city on the hill")
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To: JeepersFreepers

The GOP is enabling progressive causes.

Future Obamas will be able to run out and say SEE! SEE!!! republicans started it first! This is a bipartisan issue.

Where we turn is the primaries. We’re gonna clean the GOP’s clocks. We’re gonna run them out of town. We’re gonna do them like we did in 2010.

Even now in 2012, outside of the presidential race we’re rolling up the GOP and smoking them. Lugar, gone. Cruz, looks like he might win. Deb Fischer. And countless house races have “fallen” to the might of the tea party.


3 posted on 07/16/2012 2:32:09 PM PDT by Halfmanhalfamazing ( Media doesn't report, It advertises. So that last advertisement you just read, what was it worth?)
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To: JeepersFreepers

More small business job killing from the left...er...the right.


4 posted on 07/16/2012 2:37:19 PM PDT by moovova (Ladies & Gentlemen...Pandora has left the box.)
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To: JeepersFreepers

Does this mean that small online companies are going to have to fill out 50 (or whatever) tax returns every quarter? BS!


5 posted on 07/16/2012 2:39:41 PM PDT by expat2
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To: JeepersFreepers

How do you impose a tax on a company that doesn’t have a physical presence in a state? Amazon,etc should put all their warehouses,offices,etc in..say...North Dakota.So then,at the most,only orders shipped to ND will pay sales tax.


6 posted on 07/16/2012 2:45:28 PM PDT by Gay State Conservative (Jimmy Carter Is No Longer The Worst President Of My Lifetime)
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To: Gay State Conservative

Yes - a presence in two states though so the order can be shipped from either one to avoid the tax.

Just wondrin’ - what about sales taxes from Canada, Mexico, PR, Bahamas, or hell the moon?


7 posted on 07/16/2012 2:49:12 PM PDT by Principled (It's not enthusiasm for Romney, it's grim determination to remove Hussein)
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To: JeepersFreepers
Republican Branch Of The "Big Government Party" Supports Tax Hike On Frugal Shoppers

"Republican governors, eager for new revenue to ease budget strains, are dropping their longtime opposition to imposing sales taxes on online purchases, a significant political shift that could soon bring an end to tax-free sales on the Internet."


8 posted on 07/16/2012 2:50:09 PM PDT by Iron Munro ("Jiggle the Handle for Barry!")
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To: JeepersFreepers

Cutting spending and anything not specifically enumerated in Constitution never occurs to these parasites. They just think they can continue to bleed the producers dry. I truly wonder just how many in this country are going to get a full taste of starvation when all this wealth runs out.


9 posted on 07/16/2012 2:52:05 PM PDT by Michael Barnes (Obamaa+ Downgrade)
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To: JeepersFreepers
where do we turn?

To pitchforks and torches.

10 posted on 07/16/2012 2:53:05 PM PDT by dfwgator (FUJR (not you, Jim))
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To: Gay State Conservative

> Amazon,etc should put all their warehouses,offices,etc
> in..say...North Dakota...

Amazon is building warehouses in major cities as we speak. They ended their opposition to online purchase tax a while ago:

How Amazon’s Same-Day Delivery Plan Will Kill Your Local Stores

http://gizmodo.com/5925387/how-amazons-same+day-delivery-plan-will-kill-your-local-stores


11 posted on 07/16/2012 2:53:42 PM PDT by Jyotishi (Seeking the truth, a fact at a time.)
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To: expat2

Does this mean that small online companies are going to have to fill out 50 (or whatever) tax returns every quarter?

More like thousands - every city,county and municipality will be involved. A huge burden on business. It will probably all end up going to the feds on a “unified tax” to be doled out. Look out America!


12 posted on 07/16/2012 2:55:39 PM PDT by AndrewB (FUBO)
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To: JeepersFreepers

(Expletive) them all.


13 posted on 07/16/2012 2:57:46 PM PDT by fatnotlazy
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To: Principled

I have a friend in Calgary. I once ordered her a book online. She got a bill from the government for the tax. They require the shipping companies to provide the information.


14 posted on 07/16/2012 3:08:34 PM PDT by Fledermaus (Democrats are dangerous and evil. Republicans are useless and useful idiots.)
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To: JeepersFreepers

So now voters who were already “iffy” about voting for Romney will have a reason to vote for Obama since this news will affect a LOT of people in the pocketbook in this time of terrible economy when retail and other sales need to be INCREASED and not penalized. What idiot timed this news for pre-election?


15 posted on 07/16/2012 3:10:41 PM PDT by MamaDearest
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To: Fledermaus

Long live the underground economy!


16 posted on 07/16/2012 3:11:18 PM PDT by dfwgator (FUJR (not you, Jim))
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To: JeepersFreepers

It’s all about the money.


17 posted on 07/16/2012 3:12:06 PM PDT by bgill
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To: expat2

“Does this mean that small online companies are going to have to fill out 50 (or whatever) tax returns every quarter? BS!”

1. Its more like 5,000 different taxing entities...states, counties, townships, cities, transportation authorities, school districts, watershed districts...there’s alot of sales taxes out there.

2. Software is available (since it changes every year, is a subscription thing) to get the sales taxes right.

3. Said software costs $8-$12k a year.

As a side note in liberal hypocrisy, we have a sales tax on internet sales, here in Kansas...whether you are buying or selling out of Kansas. This went into effect during Kathleen Sebelius’ term. And, shortly after that, it was discovered that her son was selling an online board game (with a prison rape theme), from his dorm room in Kansas.

Was he paying sales tax? Nope.

Did the media care? Nope...with the exception of one radio station.

Would the (democrat) secretary of revenue (Joan Wagnon) give said radio station a clarification, so the public would know what was legal and what wasn’t? nope.


18 posted on 07/16/2012 3:18:27 PM PDT by lacrew (Mr. Soetoro, we regret to inform you that your race card is over the credit limit.)
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To: Gay State Conservative

“How do you impose a tax on a company that doesn’t have a physical presence in a state?”

Its called a destination based sales tax. Its absolutely immoral; but, its been around for a long time.

Its generally hard to enforce...except for big ticket items.

For example, I used to live in Riley County, Kansas...but the ford dealer where I bought a car was in Pottawotomie County, Kansas. When I tagged the car, Riley county said ‘pay up’ for the differential in their (higher) sales tax and Pottawotomie sales tax.

I likened it to a government sanctioned shake down racket.


19 posted on 07/16/2012 3:22:59 PM PDT by lacrew (Mr. Soetoro, we regret to inform you that your race card is over the credit limit.)
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To: MamaDearest
So now voters who were already “iffy” about voting for Romney will have a reason to vote for Obama

So voting for Obama means he's AGAINST the tax?

20 posted on 07/16/2012 3:23:29 PM PDT by mupcat
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To: lacrew

I know there are states that have a sales tax that’s not uniform throughout the state...”local option” I think it’s called.I guess that’s a special case...I was thinking more along the lines of state-to-state transactions.


21 posted on 07/16/2012 3:31:05 PM PDT by Gay State Conservative (Jimmy Carter Is No Longer The Worst President Of My Lifetime)
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To: JeepersFreepers

Gov. Perry and his people have already taken on Amazon to collect tax money for Texas and it was to start this month so I guess it did.

A pox on governors for doing this and I live in Texas. Perry wanted more of my money and your money if you live in Texas.


22 posted on 07/16/2012 3:34:01 PM PDT by Marcella (The power to tax is the power to destroy.)
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To: JeepersFreepers

Gov. Perry and his people have already taken on Amazon to collect tax money for Texas and it was to start this month so I guess it did.

A pox on governors for doing this and I live in Texas. Perry wanted more of my money and your money if you live in Texas.


23 posted on 07/16/2012 3:34:01 PM PDT by Marcella (The power to tax is the power to destroy.)
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To: Gay State Conservative

What’s supposed to happen is if they have a presence in the state of the buyer they charge sales tax. If they don’t the buyer is supposed to self report and pay the sales tax on their own. All this got solved ages ago with mail order catalogs, somehow the internet just chose to ignore it.


24 posted on 07/16/2012 3:39:28 PM PDT by discostu (Welcome back my friends to the show that never ends.)
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To: JeepersFreepers

When Republicans join the Democrats in wanting to raise taxes, where do we turn?

Tea party just like 1765


25 posted on 07/16/2012 3:42:42 PM PDT by mountainlion (I am voting for Sarah after getting screwed again by the DC Thugs.)
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To: Gay State Conservative

“I was thinking more along the lines of state-to-state transactions”

Oh, the same holds true state to state. Here’s the Kansas shakedown (note the last sentence):

The vehicle will need to be returned to Kansas in order to obtain a motor vehicle examination*, form MVE-1, from the Kansas Highway Patrol or their designee. Kansas residents out of Kansas but wanting to make application for a Kansas title and registration need to refer to the inspection question in these FAQ’s. The assigned out of state title and the MVE-1 or the completed TR-65 inspection will need to be submitted to your county treasurer’s motor vehicle office along with proof of insurance to make application for title and registration. Sales tax will be collected at the time of application.


26 posted on 07/16/2012 3:44:23 PM PDT by lacrew (Mr. Soetoro, we regret to inform you that your race card is over the credit limit.)
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To: MamaDearest
So now voters who were already “iffy” about voting for Romney will have a reason to vote for Obama since this news will affect a LOT of people in the pocketbook in this time of terrible economy when retail and other sales need to be INCREASED and not penalized. What idiot timed this news for pre-election?

I don't understand why you think this is helpful to Obama? It seems to me that a tax increase under Obama would be harmful to him.

27 posted on 07/16/2012 3:45:00 PM PDT by BfloGuy (The final outcome of the credit expansion is general impoverishment.)
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To: JeepersFreepers

A *state* has a right to tax, dammit. Such a tax is local and subject to LOCAL authorities.

I am glad to live in a STATE that doesn’t tax income. We attract lots of business because of that...

What part of the Tenth Amendment are we not understanding here on FR?

If a TAX on online purchases is a bad idea OR a good idea, that should be up to Californians to decide for Californians, for Floridians to decide for Floridians, and for Hoosiers to decide for Indiana.


28 posted on 07/16/2012 3:45:13 PM PDT by SoFloFreeper
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To: discostu
What’s supposed to happen is if they have a presence in the state of the buyer they charge sales tax. If they don’t the buyer is supposed to self report and pay the sales tax on their own.

Yes,that's true in at least some states and it's probably true in all that have a sales tax.But politicians know that few,if any,people who are required to report do so.I could tell you an interesting story regarding a dispute that Massachusetts (high sales tax) recently had with neighboring New Hampshire (no sales tax).Maybe I'll look for a link to a story about it...unbelievable chutzpah shown by the tax pigs that run Massachusetts.

29 posted on 07/16/2012 3:48:51 PM PDT by Gay State Conservative (Jimmy Carter Is No Longer The Worst President Of My Lifetime)
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To: JeepersFreepers
"When Republicans join the Democrats in wanting to raise taxes, where do we turn?"

1. Avoid buying anything that you don't really need.

2. Become more self-sufficient each month--especially in housing, energy (e.g., heating) and food.

3. Learn to produce something of necessity as a hobby for now.

4. Have fun. Enjoy the slide.


30 posted on 07/16/2012 3:55:08 PM PDT by familyop ("Wanna cigarette? You're never too young to start." --Deacon, "Waterworld")
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To: Gay State Conservative

Yeah most folks don’t self report, which in the old days was probably OK by the state because the amount of paperwork generated would have been more than the revenue. The target has really always been the businesses, higher revenue per form ratio. Things got strange for the internet because companies “forgot” they’re basically mail order and didn’t bother to apply local sales tax on local customers and the states just let it happen. Now of course government officials being government officials they’re approaching it like it’s something new that needs a news tax structure, it doesn’t they’re mail order companies mail order related tax laws apply.


31 posted on 07/16/2012 3:55:31 PM PDT by discostu (Welcome back my friends to the show that never ends.)
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To: discostu
Found a link that gives a general summary of the case I referred to.IIRC the Massachusetts courts gave a final ruling demanding that the NH stores turn over their records and,soon after,NH passed a law forbidding any such disclosure and that settled the matter....no disclosures from NH.

Massachusetts Tax Pigs

32 posted on 07/16/2012 3:58:21 PM PDT by Gay State Conservative (Jimmy Carter Is No Longer The Worst President Of My Lifetime)
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To: discostu

Damn...can’t find a good link that works.Summary:Massachusetts demands that a tire company in NH (no sales tax) that installs tires on cars with Mass plates collect 5% (at the time it was 5%) sales tax and remit the money to the Mass Treasury.The tire store refused and the NH legislature quickly passed a law making it illegal for any company to do so.So the joke was on the Rat Party tax pigs of Massachusetts.


33 posted on 07/16/2012 4:10:35 PM PDT by Gay State Conservative (Jimmy Carter Is No Longer The Worst President Of My Lifetime)
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To: MamaDearest
So now voters who were already “iffy” about voting for Romney will have a reason to vote for Obama since this news will affect a LOT of people in the pocketbook in this time of terrible economy when retail and other sales need to be INCREASED and not penalized. What idiot timed this news for pre-election?

So, voting for Obama helps all of us affected people? Your statement makes absolutely no sense.

34 posted on 07/16/2012 4:22:13 PM PDT by RobertClark (Be prepared, be polite, be professional and have a plan to kill everyone you meet.)
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To: SoFloFreeper
A *state* has a right to tax, dammit. Such a tax is local and subject to LOCAL authorities. I am glad to live in a STATE that doesn’t tax income. We attract lots of business because of that...

What part of the Tenth Amendment are we not understanding here on FR?

If a TAX on online purchases is a bad idea OR a good idea, that should be up to Californians to decide for Californians, for Floridians to decide for Floridians, and for Hoosiers to decide for Indiana.

This is absolutely worth repeating and screaming from the rooftops!

35 posted on 07/16/2012 4:25:06 PM PDT by RobertClark (Be prepared, be polite, be professional and have a plan to kill everyone you meet.)
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To: JeepersFreepers

no, this just means shippers and overseas sellers are about to have a glory days.

Why buy here when you can buy tax free elsewhere.


36 posted on 07/16/2012 4:33:59 PM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: JeepersFreepers

You would think that all the Christie supporters here would have learned their lessons about this GOP fraud. He’s NOT a conservative!


37 posted on 07/16/2012 4:50:07 PM PDT by Ron C.
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To: JeepersFreepers

Right out of THE PLAYBOOK

And this household is preparing for like dark leverage of Phony-Care, under Hillary Romney.


38 posted on 07/16/2012 5:17:20 PM PDT by Varsity Flight (Phony-Care is the Government Work-Camp: Arbeitsziehungslager)
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To: RobertClark
I was raised by democrat parents and have democrat siblings in the Midwest (and was brought up to believe republicans are for the rich). Of course that is not true, but there are many in America who will go to their graves believing that democrats champion the poor, when it fact, they do nothing of the kind.

I merely suggest taxation of internet sales shouldn't be a pre-election topic. Voters have long memories and many (both political persuasions) have already tightened up their spending habits. The other half (Obama voters) are likely to retain their entitlements of disability income, welfare and food stamps with no obligations to recipients.

This election is going to be tough, even given what we know about Obama and what he's done in the past 3-1/2 years.

39 posted on 07/16/2012 5:26:53 PM PDT by MamaDearest
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To: JeepersFreepers
significant political shift that could soon bring an end to tax-free sales on the Internet.

No. There were never "tax-free sales" on the internet -- just tax cheats who don't report their purchases.

Every state which has a sales tax requires their residents to report all purchases, online or otherwise, when the tax is not collected at the point of sale. The push now is to get the federal government to enable the collection of the sales tax on internet purchases, so that people can't cheat on their taxes (increasing the burden on the law-abiding citizens, which USED to include most conservatives).

40 posted on 07/16/2012 5:51:27 PM PDT by CharlesWayneCT
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To: dfwgator
This was my sign on 9/12/2009 in Washington:

And it is a lot worse now.

41 posted on 07/16/2012 6:19:48 PM PDT by rlmorel ("The safest road to Hell is the gradual one." Screwtape (C.S. Lewis))
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To: JeepersFreepers
When Republicans join the Democrats in wanting to raise taxes, where do we turn?

I turn OFF

I pay COMCAST an ungodly amount every month for my "bundle". Tax the internet and I will drop home-phone and internet entirely and keep just cable TV.

42 posted on 07/16/2012 6:23:36 PM PDT by Rapscallion (Beware. Romney is also a liberal.)
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To: JeepersFreepers
Each state should have a single Internet rate, expressed as a percentage that would apply to Internet sales. The sales collected on the transaction would be decided thus.

The states of the shipper and the receiver would average their two rates. That average would then be applied to the sale, the buyer pays for the sales tax and the seller would be required to remit 50% of the sale to the state of the shipper and 50% to the state of the receiver.

So for example, lets say there is one state (Kalifornia) that has a 10% Internet tax rate and another state, lets say Texas that has a 4% Internet tax rate. The average rate would then be 7% applied to the sale. On $100, the tax collected would $7 with $3.50 going to each state.

In the event that the buyer and shipper are BOTH located in Texas, the rate would then be $4 with the total amount going to the state of Texas.

Now the long term net effect of this is that businesses, in an attempt to lower their costs to their customers, will move their shipping operations out of high tax states into more business friendly low tax states. And there will be jobs that go with that move. And quite possibly, the ENTIRE business will go as well.

43 posted on 07/16/2012 7:39:08 PM PDT by taxcontrol
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To: lacrew
3. Said software costs $8-$12k a year.

Welp there goes my business.

I don't even make that in gross yet. They do this and I never will.

44 posted on 07/16/2012 7:44:01 PM PDT by Harmless Teddy Bear (Dragons don't have friends. The nearest they can get to the idea is an enemy who is still alive.)
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