Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: AGreatPer

If the company collected sales tax from you, it means they have a business presense in the state of PA. They will report your sale to PA and will pay the tax to your state.

The companies that don’t collect sales tax are companies that don’t do business in your state. Your state most likely has a law that requires you to report the sale and pay the tax directly on your income tax. You probably don’t know about the law, and skip that part in your income tax book.

So far, the fight on the internet has been to keep states from being allowed to force companies that “do business” in the state ONLY because they offer online sales from having to collect sales tax for every state and locality in the country.

That is what I think they are talking about here — setting up a system to require every online company to collect sales tax for each state.

Hopefully, they will at least require the states to set up the systems to make it easy for the companies to do so, rather than make the companies upgrade their own software.

At one point there was a discussion of just requiring state sales tax, but not local taxes, because that would only require 50 different charges.

But note that any online company that also has brick-and-mortar around the country already has to handle most of the state sales taxes. So the current system discriminates against companies that have a physical presence in the state, against those who don’t.

That doesn’t seem to be reasonable. Why should Barnes and Noble.com have to collect sales tax for a book I buy, but Amazon.com doesn’t? It gives Amazon an unfair business advantage — and the state if anything should be prefering the company that actually pays property taxes in our state.


69 posted on 01/13/2009 10:23:14 AM PST by CharlesWayneCT
[ Post Reply | Private Reply | To 14 | View Replies ]


To: CharlesWayneCT
Why should Barnes and Noble.com have to collect sales tax for a book I buy, but Amazon.com doesn’t? It gives Amazon an unfair business advantage — and the state if anything should be prefering the company that actually pays property taxes in our state.

The correct solution isn't to raise the misery on people that shop at Amazon - rather, it is to decrease the misery for people shopping at Barnes and Nobles. In other words, don't increase the misery by raising taxes on some shoppers - increase the pleasure instead by lowering taxes on some shoppers.

The less money the government can steal from the people, the better off we all are.

75 posted on 01/13/2009 10:31:22 AM PST by meyer (We are all John Galt)
[ Post Reply | Private Reply | To 69 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson