Tax-free Internet shopping may be at an end

CNET News ^ | April 15, 2009 | Declan McCullagh

[Comparative Advantage]

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.

[UCANSEE2]

I can see thousands offs layoffs at UPS and FedEx in the making.

Too late. It has already happened.

[giotto]

Warehouses are not the same as retail outlets. Whether you keep your inventory in your bedroom closet or in a rented warehouse, it’s just stock. It becomes a store when you have walk-in traffic and a cash register.

[sickoflibs]

The Peter Schiff/Redistribution Watch Ping. (Washington Bankrupting our Nation by Spending your past, present and future money!)

Remember no one 250K would see their taxes raised? This tax would allow YOUR high tax state to rip you off for a product from another state, they contributed NOTHING too.

[Proud2BeRight]

You got it. Obama signs it and it is another lie.

[webschooner]

>> No Problem I will just relocate my Domain to TJ and then the sales will be international and not subject to any state sales tax.

What’s TJ?

[webschooner]

Try Half.com for used books.

[ladyvet]

I also buy plenty of used books through Amazon. Just check shipping and handling charges to make sure your getting a good deal. I was only burned once and Amazon took care of it.

[webschooner]

We are so screwed.

[Fred]

creates an underground economy were cash is used for purchases.

[Mikey]



"The politicians don't just want your money. They want your soul. They want you to be worn down by taxes until you are dependent and helpless. When you subsidize poverty and failure, you get more of both."

James Dale Davidson

"Anyone may so arrange his affairs so that his taxes shall be as low as possible. He is not bound to choose that pattern which best pays the treasury. There is not even a patriotic duty to increase one's taxes."

Judge Learned Hand

“...every tax or rate, forcibly taken from an unwilling person, is immoral and oppressive.”

Auberon Herbert

"Once Confucius was walking on the mountains and he came across a woman weeping by a grave. He asked the woman what here sorrow was, and she replied, "We are a family of hunters. My father was eaten by a tiger. My husband was bitten by a tiger and died. And now my only son!" "Why don't you move down and live in the valley? Why do you continue to live up here?" asked Confucius. And the woman replied, "But sir, there are no tax collectors here!" Confucius added to his disciples, "You see, a bad government is more to be feared than tigers."

Lin Yutang

"The taxpayer -- that's someone who works for the federal government but doesn't have to take the civil service examination."

Ronald Reagan

"The collection of any taxes which are not absolutely required, which do not beyond reasonable doubt contribute to the public welfare, is only a species of legalized larceny. Under this republic the rewards of industry belong to those who earn them. The only constitutional tax is the tax which ministers to public necessity. The property of the country belongs to the people of the country. Their title is absolute. They do not support any privileged class; they do not need to maintain great military forces; they ought not to be burdened with a great array of public employees. They are not required to make any contribution to Government expenditures except that which they voluntarily assess upon themselves through the action of their own representatives. Whenever taxes become burdensome a remedy can be applied by the people; but if they do not act for themselves, no one can be very successful in acting for them."

Calvin Coolidge, Inaugural address, March 4, 1925

"The power to tax is the power to destroy."

Daniel Webster (1782–1852)

[KoRn]

.

[PhiKapMom]

The used books are a good deal as are the rare ones that are hard to find. Used books we have bought are like new — most look like no one read them at all.

[Fiji Hill]

TJ = Tijuana, BC

[Mikey]

Politicians don't give a tinkers damn about the constitution. Never did, never will.

Statesmen on the other hand do.

Today there are very few statesmen around.

If one really wants a party that will actually adhere to the constitution for the United States, then the Constitution Party

[Fiji Hill]

I've never bought used books on Amazon, but I have from the American Book Exchange and have been quite satisfied. Using that service, I've purchased books from as far away as England.

[metmom]

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.

Overspending threatens budgets for schools and police.

[this_ol_patriot]

Then I won't be buying anything.

If I can't avoid buying off the Internet then I'll be spending the same including the tax. It was always nice to get an upgrade or buy a step higher when buying electronics over the net instead of paying sales tax. Now that money will go to the hog farm and the retailer and so on will get less.

[sten]

nice... that won’t impact the little guy. oh wait...

meanwhile, looks like its time to move that web based business to the bahamas.

[3catsanadog]

The Democrat Congress and President are like rabid dogs salivating over any and every thing they can get their tax grabbing canine teeth into.

[dennisw]

This will kill NewEgg
Half the reason to buy there is no sales tax

Next the 0bamatrons will be pawing through EBAY and making sure all sales taxes are collected