Govs. meet in Chi-town; vote for new Internet tax.

World Tech Tribune.com ^ | Copyright 2002 - November 13, 2002

[Scott McCollum]

“A study commissioned by the University of Tennessee’s Institute of States Studies and trumpeted by the Internet taxation mafia projected a $45 billion per year loss of tax revenue by 2006. Maureen Riehl, a lawyer for the National Retail Federation, applauded the effort to tax all Internet purchases because of its detrimental effect on the competition of her group’s members. 'Our ultimate goal,' said Ms. Riehl 'is that everybody will have to play by the same rules.'

There is one glaringly obvious problem with this scheme to tax Internet sales 'fairly' and in the interest of making sure states don’t lose money on tax revenues: The states have lost a grand total of zero dollars to date by not collecting state sales taxes on Internet purchases.”

[Scott McCollum]

Sick of not paying “your fair share” in taxes at the department store, gas station, book seller and local electronics emporium? Well, why not support your state's push to nickel-and-dime the American taxpayer with taxes on out of state Internet purchases too?

[goldstategop]

The new iron rule of politicians is to tax everything moving through the phone line. Notice its never about eliminating taxes or spending. When it comes to feeding the ever hungry maws of government, our leaders are downright creative. I think they missed the message of fed up and overtaxed Americans in the past election.

[dennisw]

The states are in money hungry mode. Tax revenues are not good so they loook to skin internet commerce.

[x-navy seal]

Hey! Aren't you the governer of Wisconsin? I voted for you because you support ccw permits. Too bad you lost to a demonicrat!

[IronJack]

How does anyone propose to collect taxes on internet purchases? The accounts can be from foreign banks, cleared through servers outside our borders, and connected to us only by a electronic order and a package delivery. How is the state going to know any of this business transpired?

Unless every transaction is forced through some government server. How's that for privacy?

[basil]

Besides everything else, I want to know how the Governors of the states can PASS A LAW that all states have to abide by. I don't remember hearing this in civics class.

[Scott McCollum]

The Governors are hoping to pass Internet taxation laws in states that represent 10% of the US population and force this measure to be voted on in Congress.

Scary stuff for those who buy goods over the Internet (or through the Sears and Land's End catalog for that matter).

[basil]

I wonder if these people stay awake at night trying to come up with new ways to screw the public!

[The Raven]

I found this as well...

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States Vote to Streamline Collection of Internet Sales Taxes

A coalition of lawmakers and tax collectors from more than 30 states gathered together in Chicago on November 12 to approve the final draft of an interstate agreement to “simplify” their tax laws and make it easier for budget-strapped legislators to collect sales and use taxes on Internet purchases.

The agreement, known as the Streamlined Sales Tax Project, incorporates uniform definitions of taxable online goods and services and will establish a single tax rate for each type of item. It also lays the foundation for the states’ long sought after plan to adopt an interstate compact that would allow them to reach across state lines and collect sales taxes on out-of-state purchases.

The agreement will take effect when at least 10 participating states, representing at least 20 percent of the population, have amended their tax laws. However, according to a 1992 U.S. Supreme Court decision, the states must then receive congressional approval before implementing their online sales tax regime that would require out-of-state retailers to collect and remit sales taxes unless the retailer has a substantial physical presence, or “Nexus,” in the state.

“We think that once these states have simplified their systems it will be appropriate for the federal government to reward that effort,” said R. Bruce Johnson, commissioner of the Utah state tax commission, to the Washington Post. However, with many outspoken opponents in the Republican-controlled Congress, the message to the states may be: “Don’t hold your breath.”