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 ...
LIARS, every DAMN one of them. Including the Republicans.
Intriguing.
Maybe we’re talking past each other here. How is wanting equal treatment for all “liberal”? I thought that liberals would tilt the playing field until the score was equal — tie the best players up if necessary.
Did you send the gift you purchased for someone get sent to a third state being the destination state? What a crock of crap. Business will tear their hair out on this.
The locals still have benefits: face to face interaction instead of fixing problems over the phone (this includes knowing each other by name, as opposed to being customer #007837678 or somesuch), getting something right now for the cost of gasoline and your time (instead of paying out the nose (or elsewhere) for next-day shipping), no “oops, we lost your package” nightmares. I usually buy local because I don’t like waiting on a delivery; I’m impatient, always have been (working on it). It’s funny, too. I’m 25 so you’d figure I’d be this tech-savvy little kid permanently attached to a computer to order goods. I hate ordering stuff online, I’d rather pay in cash locally. It’s like I was possessed by the soul of some crotchety 70-year old retiree that hates “all this blinkin’ flashin’ newfangled electronic crap.”
And Yard Sales. You need a permit in San Antonio for those.
...Government should shrink back down to its Constitutionally mandated size and leave the business of running your life to you.
But, I suppose that they would not want to put their government union constituency and the rest of the welfare system at risk - they do want to be reelected.
So they never considered the alternative - liberty.
WHen I’m saving 62% over the retail price, even with shipping included, I can deal with being customer #007837678.
Exactly. And I still add that if they can go to another state contractually and use my tax dollars to pay for the out of state contract then they can go screw themselves. I want the ability to receive the same lower cost by going out of state to spend my money.
What's not fair is unequal tax treatment. If you can't do away with taxes altogether; at least apply them fairly. Fair doesn't necessarily mean “the same” — as KarlInOhio pointed out, the services received should also be considered.
You are required to pay sales tax from garage sales. It’s been many years since I held one, but you are SUPPOSED to.
You miss the point. Tax competition is a theme of Federalism. It maintains liberty.
By recognizing that you need a physical presence in a state/locality to be taxed by it limits the power/authority to tax. Without that limitation, which has been exceeded in most areas of our lives, what cannot be taxed?
Brick and mortars are actually protected by no Internet taxes. It forms a sea-anchor against additional tax increases. American businesses move overseas not for the low labor (productivity is critical), but to escape taxation, excessive regulation, and onerous litigation.
It seems counterintuitive, but consider that the brick and mortars are fully at the mercy of local governments. They daren’t resist.
“Brick and mortars are actually protected by no Internet taxes.”
Good points. If tax competition keeps taxes down; then that’s the best solution. Meanwhile though, Amazon and the like are getting an unfair advantage from the taxman.
Why should internet retailers be punished by having to comply with every single state's tax laws, which is a much (MUCH!) more onerous burden? Online purchases, further, have shipping associated with them. Now, online retailers will have to know, keep up to date on, and apply at least 50 different standards?
Either way, the government subsidizes a business model.
How does one deal with offshore internet retailers?
Because unlike a brick-and-mortar store that has a physical presence in the taxing jurisdiction, Amazon doesn't require police protection, fire protection, water, sewer, sanitation, zoning, planning, or roadways or other infrastructure.
Absolutely, keep the Internet tax free.
No, the brick and mortars are getting the raw deal. It is the populace that is subsidized through business/investor owned Real Estate.
They vote, but businesses/investors cannot vote on property owned, only where they live. So you get them paying for your schools, police, fire, sanitation, water, etc.
All of which are better off in private hands for the most part. If taxes were fair you’d only pay them on property where you could vote.
No taxation without representation is fundamental to the idea of America.
translation, instead of other states we will be shopping OTHER COUNTRIES tax free.
bone heads and illiterates are writing these laws.
The Commerce Clause of the US Constitution (Article 1, Section 8, Clause 3) specifies that only the federal government can tax and regulate interstate and international commerce. Without it states would try to pass taxes on businesses in other locations without having to deal with the wrath of local taxpayers. How many states are getting around it is by calling it a use tax rather than a sales tax. This shouldn't pass legal muster since the effect is the same, but as long as the tax rate is the same for local businesses the courts are looking the other way.
Life isn't fair and can't be made so. Is it fair and equal to tax higher income people at special higher tax rates? The definition of fairness depends on whose ox is being gored.
shipping is paying FEDERAL taxes in fuel and transit fees.
so the states think the fed is just going to “give up” that revenue stream?
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