So it is looking like there is a very good chance that the Congress might pass a bill here soon that will require all online businesses to collect/pay state taxes for our online purchases.

Saw one tidbit where they are going to try to exclude the small retailers(less than $1mm). Looking like the WalMarts and the Amazons are all for it, while EBay is against.

What do you guys think?
Is it just another tax or is it leveling the playing field on taxes that should have been paid in the first place?

Me, I'm all for it for refilling the emptying accounts at the state/local levels where it is needed more than anywhere else.

Views: 99

Replies to This Discussion

I don't think it's bad in theory, but practice gets sticky. 

Who gets the revenue, the state where the purchaser is? the state where the seller is? The state where the facilitation website is? What about international sales? Whose tax rate to use - will this cause a mass flood of online business relocations to New Hampshire? (in the case of ebay, where private sales - e.g. garage sales would have done - who is taxed?) What is the method for wholesale/resale exemption (or is there).

What is the implementation method? The enforcement method? 

Lots of questions and complications that make this a very messy piece to just throw out there, and lots of unintended consequences, I think. 

That doesn't make it wrong to do, but it's going to be a long time before this really gets sussed out. 

Just another tax.  Just more government greed.  Liberals are always "all for refilling" government coffers at any opportunity.  Never met a tax they didn't like ... nickel-and-diming everybody to death to squeeze every last penny out of every business or consumer they possibly can.

 

And, if they get this tax passed ... they'll move on to the next brilliant idea for new taxes.  Rain tax.  Carbon tax.  Blah, blah.  One answer to every problem.

 

JB

A slippery slope type argument I want to lay out(that will probably derail) but where exactly do online "things" happen? How do we prosecute an infraction that happens online? Whose laws do we use? Is it considered federal? State? Global?

I am sure that there are probably some brilliant papers written on the subject, but this is honestly the first I've really let myself think on it.

If I am in Texas and I harass someone in Maine, do we use Texas laws, Maine laws or Federal laws?

So with taxes, if I am in Texas and I purchase a good here in Texas I pay taxes. But when I purchase online, where exactly am I purchasing it from?

The current tax laws have you pay tax, in the state in which you bought it, if the retailer has a physical presence there.

 

The classic example is Sears.  If you bought something from a Sears catalog, and mailed them the check, you paid sales tax if you lived in a state containing a Sears.  And *only* if Sears was present in your state.

 

By the same logic, Texans will now have to pay sales tax for Amazon purchases, since they put a physical location (shipping warehouse) in the DFW area.

 

The point is this.  Despite the change in the technology, the basic structure of "mail order" has not changed.  This bill should be dead on arrival, but unfortunately most of our legislators are seeing dollar signs, and are too stupid to realize that what they're doing is both unwanted and wrong.

US congress passing a law requiring State taxes?  Who's lobbying for that one?

The last article I read, it was the big retailers

And also State governors are lobbying, it appears... well, that does make sense.

http://www.foxnews.com/politics/2013/04/25/internet-sales-tax-bill-...

Write up on it if anyone is interested, got it from Fox News for anyone who complains about my posting HP

Now you'll get fussed at for citing Fox.  cest la vie.

California's online sales tax works this way.  It's all on the consumer.  If the seller doesn't have a "physical presence" in California, you're supposed to declare a "use tax" for your out of state purchases on your state income tax return.  The use tax at the same rate as the state sales tax.  This works, at least for now, on the honor system...which leads to a number of cars in Northern California initially having Oregon tags.

It passed the Senate, now time to see what the House does

RSS

Latest Activity

george morgan replied to Chris O's discussion Advice for the "single guy" in a group of friends
"First, I think your concern is valid....being single in a world filled with couples is tough...I experienced that myself. Look around in your community and find groups that cater to guys; even groups like the Masonic Lodge brothers can be a…"
20 minutes ago
Native Son replied to Pale Horse's discussion Brexit in the group The Great Debate
"Now the real question.  Are they going to de-decimalize the Pound?  Go back to Pounds, Shillings, and Pence perchance. It seems more a case of  "Oh! how I love humanity, with a love so pure and pringish, And how I hate the…"
1 hour ago
Native Son replied to Pale Horse's discussion Castrated American Claims Firing an AR 15 Gave Him a Debilitating Condition in the group The Great Debate
"Is it just me, but it sure looks like the person is not wearing any hearing protection...and seems to have had no idea that a gunshot tends to be LOUD."
1 hour ago
Native Son replied to Pale Horse's discussion The Wiles of the Devil in the group Christian Men
""A sadist is someone who is nice to a masochist.""
1 hour ago
Peter J Harings III replied to Braeden P.D.'s discussion Unpopular Opinions Thread
"touche, well said sir. You got me, fair and square. And yes, from an anthropological perspective, I agree completely with your position that a man who is spreading his seed around does indeed increase the possibility for survival."
2 hours ago
Persona non Grata replied to Braeden P.D.'s discussion Unpopular Opinions Thread
"Your statement is about as far from what a gentleman would say What gave you the idea that I was a gentleman?that perhaps you should stop talking so much and read some of the material on this website, if in fact you have ever read any of it...and…"
2 hours ago
Peter J Harings III replied to Braeden P.D.'s discussion Unpopular Opinions Thread
"Your statement is about as far from what a gentleman would say that perhaps you should stop talking so much and read some of the material on this website, if in fact you have ever read any of it"
2 hours ago
Persona non Grata replied to Pale Horse's discussion Castrated American Claims Firing an AR 15 Gave Him a Debilitating Condition in the group The Great Debate
"Just for perspective, we have an adult, most likely liberal male claiming firing an AR-15 gave him PTSD and felt like a "bazooka".Then here someone made a video of a 7-year old girl firing an AR-15 and feeling just fine.So this guy's…"
3 hours ago

© 2016   Created by Brett McKay.   Powered by

Badges  |  Report an Issue  |  Terms of Service