Internet Giants Mull Calif. Pullout to Avoid Taxes

Newsmax ^ | June 1, 2011 | Martin Gould

[Qbert]

Internet companies such as Amazon and Overstock are threatening to pull out of California rather than collect state sales tax on tens of millions of dollars worth of business, the Los Angeles Times reports.

The move comes after the Golden State’s Assembly passed a law expanding the tax to Internet sales for companies that have a physical presence or sister companies with offices there.

The move passed the Democrat-controlled lower house on Tuesday on a 47-16 vote. It now goes to the Senate.

[Snip]

One Republican voted with the majority. The rest rejected the move saying it would drive business out of California and invite lawsuits. GOP Assemblyman Shannon Grove called the move “just another tax grab.”

[Snip]

The state sales tax rate is currently 8.25 percent with local taxes adding as much as a further 2.5 percent.

[fifedom]

The Rats must know that Amazon will get rid of the individual sellers. I think this is part of a nationwide effort to get Congress to allow them to tax and then get Anthony Kennedy of the Supremes to agree with them. Won’t happen in with the current House but Rats think long term in their drive to convert the US into a socialist utopia.

[houeto]

You can add Tanning Booth Tax.

[kara37]

Illinois just pass the same thing, and Amazon pulled out of the state immediately. These companies are not bluffing, but the Dems don’t care.

[Tonytitan]

77. Jock Tax (income earned by athletes in some states)

Up next... a Penis Tax. Comming soon to a state near you!

[Lou L]

I'm not familiar with the deal, but just a couple of observations from your comment.

I think collecting sales tax is a slightly different argument than the one the unions are using at Boeing. I could see Tennessee making a rational argument for having Amazon do this.

Having said that, I don't agree with Tennessee's tactics of using a last-minute approach. In this economy, Tennessee should just be happy they could have 1600 new jobs, plus any other auxiliary businesses that might be created as a result of this deal.

[Lou L]

15. Annual Custodial Fees (Ira Accounts)

I'm pretty sure that's NOT a tax...it's a fee the financial company charges to provide administration of your IRA account. That fee would go toward the salaries of its employees, and overhead associated with sending out IRA statements, and other adminstration.

[GSWarrior]

The government should make it illegal for companies to just decide to pull up stakes and move.

end sarcasm.

[Tonytitan]

I think collecting sales tax is a slightly different argument than the one the unions are using at Boeing

I would agree. Final assembly of a major big ticket item such as an aircraft is more of an undertaking than filling and shipping boxes around the country/world.And yes, Tennessee did withdraw its last minute precondition and the deal is being done.