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State to offer sales tax amnesty for online shoppers [IL]
AP ^ | 12.13.10

Posted on 12/14/2010 12:53:09 AM PST by Thebaddog

Edited on 12/14/2010 4:50:49 AM PST by Admin Moderator. [history]

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To: spokeshave

I posted twice a her assistant can also be let go.


21 posted on 12/14/2010 2:22:27 AM PST by spokeshave (Islamics and Democrats unite to cut off Adam Smith's invisible hand)
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To: roadcat
So how does the IL Department of Revenue propose to find all these sales tax scofflaws? Do they threaten out of state individuals and companies with subpoenas for their sales records? There have been states who have tried this (CA was one, I think) and were sent packing.

Some states have passed laws that required sellers who were out of state to collect their sales tax on purchases made by residents of the state and pay these funds to a specific state's department of revenue. That also didn't work.

Currently the only on-line sellers collecting sales taxes are those that have a physical presence (an actual business) in a given state.

Exactly how does the IL Department of Revenue propose to collect these taxes? Make them up out of whole cloth? Where's their evidence? Oh, yeah, in the case of the IL DR, they don't need evidence because you are PRESUMED guilty and have to prove your innocence.

22 posted on 12/14/2010 2:59:22 AM PST by MasterGunner01 (To err is human; to forgive is not our policy. -- SEAL Team SIX)
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To: Thebaddog
This type of program is also known as a...STING OPERATION....usually conducted by a law enforcement agency when they really don't want to work too hard.
23 posted on 12/14/2010 3:18:03 AM PST by Tainan (Cogito, ergo conservatus - Domari Nolo)
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To: Thebaddog
The government owning banks has consequences - namely, access to just about every bank's databases. Mastercard, Visa, American Express and FirstData (payment processor granddaddy) all claim they routinely cooperate with the IRS for requests for customer activity, some specific, some ‘john doe’. I think Mastercard said they get 100 requests a day (or was it per week?). I'd imagine the State would be able to tap into the IRS or would use similar ‘john doe’ requests.

Not long ago, and just a very short time after Bloomberg raised taxes on cigarettes by a hefty sum, there were quite a few New Yorkers being sent nasty letters and heavy fines by their state for purchasing cigarettes online. Bloomberg used the Jenkins Act to obtain purchaser information from the vendor and went after those purchasers. Of course, noone paid much attention when smokers took a hit - after all, they were nasty terrible woeful smokers and deserved to be taxed to death, right? How dare they try to cheat New Yorkers of all that potential blood tax money by purchasing their cigarettes online! Well, the precedent was set and, just like bailouts and elections, precedents have consequences, too. The Jenkins Act applies to cigarette sales but I'm sure there's some other obscure law on the books (or one that will be created) that would allow a state access to its citizens’ out-of-state-purchase information - if the citizens of that state sit on their hands and allow it to happen, that is.

24 posted on 12/14/2010 3:19:00 AM PST by blueplum
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To: Thebaddog

Good thing I never buy anything online!

Heck, I don’t even know how to use a computer!

;-)


25 posted on 12/14/2010 3:37:43 AM PST by TSgt (Colonel Allen West & Michele Bachman - 2012 POTUS Dream Team Ticket!)
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To: blueplum

The states are allowed to ask for on-line sales information from vendors—but if the vendors rat out their customers they are out of business.


26 posted on 12/14/2010 3:42:31 AM PST by cgbg (No bailouts for New York and California. Let them eat debt.)
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To: roadcat
Yes! You're going to see regular folks adopting tactics of leftist punks. They'll trash government offices, overturn and burn government cars, and create enough mayhem to put real fear into these greedy bureaucrats until government backs off. Enough is enough! The Revolt is coming.

I'd like to see that happen, but it won't.

The state will "hand pick" a few individuals who they can trace online. They will then throw the book at them to make them an example for all others who don't pay. They will make the point that all offenders will face the same penalties.

Then they will sit back, maybe toss in a few additional "amnesty periods" and wait for the cash to flow.

Until people are truly threatened, in great numbers, with the loss of their prosperity, you won't see the kind of revolution you're thinking of.

27 posted on 12/14/2010 3:46:48 AM PST by Caipirabob ( Communists... Socialists... Democrats...Traitors... Who can tell the difference?)
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To: napscoordinator
what?! you mean you don't keep a complete inventory of every item you purchase, back to that all day sucker you bought when you were 5? shame /sarc

The Il govt are morons.
28 posted on 12/14/2010 3:52:04 AM PST by Cronos (Et Verbum caro factum est et habitavit in nobis (W Szczebrzeszynie chrzaszcz brzmi w trzcinie))
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To: gogogodzilla
Care to guess whether they have your records? (I think not.)

Would not surprise me at all if access to citizen credit card info was included in Fin Reg bill. Prolly under the guise of "consumer protection."

29 posted on 12/14/2010 3:53:00 AM PST by Roccus (OUR GOVERNMENT IS COMPRISED OF BUFFOONS, TRAITORS, CRIMINALS AND IDIOTS!!!!!!!)
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To: Thebaddog

I don’t think of them as “online” purchases but “undocumented” purchases.


30 posted on 12/14/2010 3:54:32 AM PST by 6SJ7 (atlasShruggedInd = TRUE)
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To: Thebaddog

Why does the Government need to get a cut of everything we buy... and a cut of everything we spend... AND a cut of everything we earn.. and THEN charge us tax on the gasoline we buy to go wherever we go to buy things (to give them a cut of), and THEN charge us for the permission to drive the car that eats the gas that takes us wherever we go to buy things (to give them a cut of).

And all we can do is complain here on the internet (which they tax), or die (after which they tax us).


31 posted on 12/14/2010 4:17:59 AM PST by Pravious
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To: 6SJ7

I don’t think of them as “online” purchases but “undocumented” purchases.
************************************
heh heh :)


32 posted on 12/14/2010 4:18:59 AM PST by Irenic
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To: Thebaddog

I am an Ilinois resident. And I’m tempted to comply in part ...

Let me think. I bought some used Nero Wolfe books from a lady in Alaska on ebay for $7.00. I should cut the state of IL a check for $0.5775.

Those soap nuts my wife bought for the laundry? $13 retail should come to a nice big fat check and accompanying paperwork for $1.0725.

Unfortunately, they already got to my $.99 iTunes apps.


33 posted on 12/14/2010 4:26:47 AM PST by Dr. Sivana (There is no salvation in politics)
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To: The Cajun

“Pitch forks, torches, tar and a decent supply of feathers would seem to be in order.”

Great answer.

Totally agree, but don’t forget the guillotine...that’s for Pelosi et al - one musn’t stop just with Illinois felons.

And...I’ll pull the lever for free......


34 posted on 12/14/2010 4:35:08 AM PST by Da Coyote
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To: Thebaddog

Hows about the state stop throwing away so much money on welfare and over compensated state
workers? Then maybe go after the kickback cash thrown around like candy.

Finally, hang a rope, urinate up it and #SiO2.


35 posted on 12/14/2010 4:40:43 AM PST by soycd
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To: Dr. Sivana

I’m trying to find the statute referred to in the article and who is behind it. There is a lot missing here. Why is it the purchaser who is liable? Why back to 04? What about purchases moving forward?

This whole thing is very troubling. As usual, in Illinois, we are ATM’s to these loons who think that we are working for them.


36 posted on 12/14/2010 4:42:16 AM PST by Thebaddog (Shakey Jake said, " The hippies will never survive!")
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To: montag813

Good point. You’d think that the big banks would be exerting some political pressure, as they certainly don’t want thousands or millions of people cancelling their credit cards (in favor of prepaid).


37 posted on 12/14/2010 4:43:52 AM PST by NewJerseyJoe (Rat mantra: "Facts are meaningless! You can use facts to prove anything that's even remotely true!")
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To: blueplum
Some years ago -- back in the Dinkins administration -- New York City used to send tax agents to sit in the parking lots of New Jersey shopping malls and record license plates of New York shoppers who made purchases there (New Jersey's sales tax was lower than New York's, and many items that were taxed in New York were exempt in New Jersey).

Eventually the retailers in New Jersey got wind of this and consulted their lawyers. Once they learned that New York City's law enforcement officials had no jurisdiction to do this kind of "investigative work" in New Jersey, they threatened to have the NYC tax agents arrested and charged with trespassing and stalking. That put an end to that whole charade.

38 posted on 12/14/2010 4:44:04 AM PST by Alberta's Child ("If you touch my junk, I'm gonna have you arrested.")
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To: Thebaddog
I heard someone make an argument that Article 1 of the Constitution makes collecting such cross-state taxes unconstitutional.

I believe that the relevant sections to the argument are 9 and 10:

Section 9 - Limits on Congress

  ...

No Tax or Duty shall be laid on Articles exported from any State.

No Preference shall be given by any Regulation of Commerce or Revenue to the Ports of one State over those of another: nor shall Vessels bound to, or from, one State, be obliged to enter, clear, or pay Duties in another.

  ...

Section 10 - Powers prohibited of States

  ...

No State shall, without the Consent of the Congress, lay any Imposts or Duties on Imports or Exports, except what may be absolutely necessary for executing it's inspection Laws: and the net Produce of all Duties and Imposts, laid by any State on Imports or Exports, shall be for the Use of the Treasury of the United States; and all such Laws shall be subject to the Revision and Controul of the Congress.

No State shall, without the Consent of Congress, lay any duty of Tonnage, keep Troops, or Ships of War in time of Peace, enter into any Agreement or Compact with another State, or with a foreign Power, or engage in War, unless actually invaded, or in such imminent Danger as will not admit of delay.

 ...

I don't know how these provisions have been treated in fact or in theory, so I am not sure if the argument that "use" taxes contravene some of these provisions is a strong one or not.

I also know that at least some government officials are aware of this argument and are treating it seriously enough that they are trying the voluntary approach. There is already some sort of compact among some of the states on this matter of voluntary collection of cross-border "use" taxes, but I don't have time presently to run those details down.

39 posted on 12/14/2010 4:51:44 AM PST by snowsislander (Chicago-style politics at a national level is a national disgrace.)
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To: Toddsterpatriot; Mase; expat_panama
What's the problem? Shouldn't this be a boost to the Illinois economy?
/protectionist blowhard
40 posted on 12/14/2010 4:53:55 AM PST by 1rudeboy
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