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End of Tax Free Internet shopping may be near
ZDNet ^ | Apr 16, 2009 5:23:59 AM | By Declan McCullagh CNET News

Posted on 04/16/2009 9:09:31 AM PDT by Snoopers-868th

If a little-known but influential alliance of state politicians, large retailers, and tax collectors have their way, the days of tax-free Internet shopping may be nearly over.

A bill expected to be introduced in the U.S. Congress as early as Monday would rewrite the ground rules for mail order and Internet sales by eliminating what its supporters view as a "loophole" that, in many cases, allows Americans to shop over the Internet without paying sales taxes.

Currently, Americans who shop over the Internet from out-of-state vendors aren't always required to pay sales taxes at the time of purchase. Californians buying books from Amazon.com or cameras from Manhattan's B&H Photo, for example, won't pay sales taxes at checkout time that they would if shopping at a local mall.

"We will have the bill ready for introduction by next Monday," said Neal Osten of the National Conference of State Legislatures. "We finalized the language and now we're working out the remaining issues and adding some new provisions at the request of various stakeholders."

This is hardly a new debate: pro-tax officials and state governments have been pressing Congress to enact such a law for at least seven years. They argue that reduced sales tax revenue threatens budgets for schools and police, and say that, as a matter of fairness, online retailers should be forced to collect the same taxes that brick-and-mortar retailers do.

(Excerpt) Read more at news.zdnet.com ...


TOPICS: Business/Economy; Extended News; Front Page News; Miscellaneous; News/Current Events
KEYWORDS: 111th; congress; economy; internet; taxes; taxfree
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To: KevinDavis; All
It's not a matter of propping up local businesses — it's just leveling the playing field. If on-line purchases aren't taxed; but purchases from your local retailers are; that amounts to propping up Amazon, etc.

The ideal solution would be no taxes — the second-best solution is fair taxation.

21 posted on 04/16/2009 9:20:11 AM PDT by USFRIENDINVICTORIA
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To: jacquej

Removing your sarc because what you said is true.


22 posted on 04/16/2009 9:21:16 AM PDT by Snoopers-868th
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To: TaraP

I think theyr’e already taxed here in NYS....You’re only allowed so many (I think two) per year.


23 posted on 04/16/2009 9:22:49 AM PDT by Sacajaweau
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To: USFRIENDINVICTORIA

Funny the level the playing field always seems to fall to businesses benefit. Business is able to hire illegals, go across the border of a state and hire yet a private citizen is not able to purchase across state lines without this crap. I am not anti-business but I have no compunction to level their playing field that is part of competition.


24 posted on 04/16/2009 9:24:19 AM PDT by Snoopers-868th
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To: USFRIENDINVICTORIA; All

When you speak of leveling the playing field, you speak like a lib..


25 posted on 04/16/2009 9:24:43 AM PDT by KevinDavis (No one should question our "Dear Leader"!)
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To: USFRIENDINVICTORIA
Why should the likes of Amazon be (in effect) subsidized, at the expense of local businesses?

Amazon uses no local services other than maybe the road for UPS to deliver your purchase on while the local retailer uses many. A more sensible rule for purchasing items through the mail would be to charge tax based on the sales location rather than the purchase location. That way Amazon only has to worry about one tax rate rather than tens of thousands of little towns' rates. Also, states will be fighting (with tax incentives) to get business to move in. Imagine a state saying we will waive the sales tax on Amazon if they move here.

26 posted on 04/16/2009 9:26:32 AM PDT by KarlInOhio (No free man bows to a foreign king.)
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To: KarlInOhio
A more sensible rule for purchasing items through the mail would be to charge tax based on the sales location rather than the purchase location.

That would be one way to get every call center in the country set up in New Hampshire!
27 posted on 04/16/2009 9:29:18 AM PDT by Dr. Sivana (There is no salvation in politics.)
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To: KarlInOhio

I have a real problem as to why I cannot purchase something from any other state without being charged sales taxes. Sales taxes of a state are intended as revenue for that particular state. When that particular state hires their workers out of state via contractual workers those same workers spend their money out of state and that seems o.k. but I cannot purchase out of state. This is just plain not right.


28 posted on 04/16/2009 9:29:54 AM PDT by Snoopers-868th
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To: Snoopers-868th

Many states have laws on the books that actually mandate you report such transactions and pay the tax due with your income taxes. I don’t know anyone who does here in Arkansas - though this is mandated. This would be difficult to enforce.

Thus the reason the tax pigs want to force retailers to collect tax at time of sale. Can you imagine a fairly small internet retailer trying to keep up with and properly file/submit tax receipts, not just for 50 states, but for the thousands of counties, and the insane number of local taxes? Would drive many out of business.

More taxes, shut down small businesses - what a way to stimulate the economy!


29 posted on 04/16/2009 9:29:59 AM PDT by TheBattman (Pray for our country...)
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To: divine_moment_of_facts
Have the Tea Party's not sunk into their thick heads yet?

In a word no. But beyond that they (rightly) do not consider the tea parties to be a threat to their power to plunder and squander (tax and spend). The number of people who took part in yesterday's demonstrations represent such a small part of the electorate that the politicians have no fear of getting kicked out of office at all. They are already aware that there is a minority of people who wouldn't whizz down their throats if their guts were on fire. Seeing them gather in person doesn't add to their numbers.

If they saw that many at a gun rights rally then there might be some fear in their larcenous hearts, but only because they know as did chairman Mao that "power grows like a flower out of the barrel of a gun."

30 posted on 04/16/2009 9:30:54 AM PDT by from occupied ga (Your most dangerous enemy is your own government,)
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To: Sig Sauer P220
In addition to business having any office/store in you state causing them to have to collect tax from any purchase in the state, California (and maybe others) started playing hardball with computer purchases a decade or so ago. They told the major mail order computer vendors at the time (Dell, Gateway, a few others that have passed into history) "You don't have to collect taxes. But if you don't, you will not get any business from the state... don't even bother sending in bids." Most of the big ones fell in line and started collecting California sales tax.
31 posted on 04/16/2009 9:31:03 AM PDT by KarlInOhio (No free man bows to a foreign king.)
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To: Snoopers-868th

In most states, a purchaser is still responsible for paying those taxes. This would force merchants to set up tax collection for hundreds, if not thousands of different tax rates and tax authorities.

Think of all the different sales tax rates. Some states have state, city and county sales taxes that vary within zip codes. Some even have special regional tax authorities on top of these.

It will be a bonanza for IT companies that sell tax collection software.


32 posted on 04/16/2009 9:31:16 AM PDT by MediaMole
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To: Snoopers-868th
The more they spend, the more they need to find a way to tax the people.

The more they spread the wealth, the more they need to tax us to death.

The more corrupt they get, the more they tax us.

33 posted on 04/16/2009 9:32:46 AM PDT by ncpatriot
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To: from occupied ga

Then we need to have NRA tea parties. Somehow we have to get the point across.


34 posted on 04/16/2009 9:33:18 AM PDT by Snoopers-868th
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To: Osage Orange

I don’t know of any permit requirements here in California..

But I am sure that might be fourth coming....


35 posted on 04/16/2009 9:34:44 AM PDT by TaraP (The RAPTURE: Separation of Church and State)
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To: cripplecreek

I bought online from B&H photo and saved a pretty good chunk of change.

Me too. Computers,cameras ipods. Oh well they only have themselves to blame as “they” as a voting block sided with Dear Leader.


36 posted on 04/16/2009 9:35:21 AM PDT by stevecmd
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To: MediaMole

You know what, all of this is just gone beyond the reasoning as you write it. I am sick of every single fee and tax that they add. I don’t much care who it helps or hurts anymore. I care about MY wallet just like business, the feds and the states care about theirs. Call me selfish.


37 posted on 04/16/2009 9:36:00 AM PDT by Snoopers-868th
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To: TaraP
Small town near me here.......requires "Garage Sale" permits.

Don't know how much they are.....

38 posted on 04/16/2009 9:38:25 AM PDT by Osage Orange (Our constitution protects aliens, drunks and U.S. Senators. -Will Rogers)
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To: tumblindice
Shipping charges make up for sales taxes.

You're shopping on the wrong websites. If you can wait a few days longer or spend over $25, you can get it for free.

39 posted on 04/16/2009 9:39:11 AM PDT by DeFault User
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To: KevinDavis; All

Are you saying that conservatives prefer sloping playing fields?


40 posted on 04/16/2009 9:40:32 AM PDT by USFRIENDINVICTORIA
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