Comments on: Days numbered for tax-free Net sales

Governors and state legislatures push for online sales taxes, and Democratic control of Congress could help them.

[JadedGamer]

Costs greater than income

Funny observation: In many ways, sales tax is akin to the casino's "rake" at a Poker table... :)

That said, the biggest flaw in the whole idea is the idea that the sum total will be positive. Having X thousand online retailers implement Y hundred thousand tax rules in their systems and transfer Z thousand transactions to Z thousand tax authorities around the world... the costs are staggering, and in the end that cost will be added to the retail price, leading to the customers not only paying the tax, but paying extra for the tax collection. How can the politicans think that (guesstimates) a $3 cost to collect a $1 tax is not wasting money?

As another poster wrote: If this goes through, American online retailing is dead.

At least your government isn't as evil (yet) as the Chinese ultra-state-capitalists who bill the criminal's family for the bullet used to execute him.

[trustedtoolkit]

Good! The Government Needs More

I am so happy to hear that the government wants to dig deeper and take more. We do not pay anywhere near enough in taxes already. This will give us an opportunity to pay higher prices to offset more money going to a government that is completely out of touch with Americans. This is a huge benefit to consumers and the average American.


Obviously, I am being fecicous. I am yet tourqued again by the shear greediness.

[cubicleslave1]

it's just pure greed

Why are they coming up with this new form of taxation? This is a paradigm shift. Before the internet came along, mail order sales were taxed a different way: if the customer lived in the same state where the business was located, and that state had a sales tax, then the customer would have to pay the sales tax. This is a practical way of doing things, and should be extended to internet sales if they really insist on a tax. It shouldn't matter whether you ordered by mail, phone, or internet to determine whether you pay a sales tax, because the internet is just a means by which the customer is able to interact with the seller. For example, in real life, you don't pay a sales tax in a retail store depending on whether you drove to the store or rode your bicycle. Another reason to avoid this new sales tax based on the customer's location: it opens a really nasty can of worms. If the customer's physical location can be used to determine tax owed, then what about customers from other countries? If you are an internet based mom-and-pop business, do you need to brush up on the sales tax policies of the UK, Sri Lanka, or whatever obscure countries your customer might place an order from. In short, any internet based sales tax should be based on the location of the business, and whether the customer lives in the same state as the business, just the way mail order has been handled for decades.

[Pokerfish]

It's not such a shift

Finish your thought: "Before the internet came along, mail order sales were taxed a different way: if the customer lived in the same state where the business was located, and that state had a sales tax, then the customer would have to pay the sales tax." ... But if the customer did not live in the same state as the business, he was STILL supposed to pay a "use tax" for the out of state purchase at tax time. The use tax exists to this day and is the basis for taxing online purchases. You're right that it shouldn't matter how the purchase is made. That's why the government has a good case that the use tax, which was originally created for mail-order purchases, applies just as well to online purchases. Indeed there are many practical problems with enforcement of the use tax, which is why few people are even aware of it, but the pending legislation will attempt some workable scheme. Afterall, there is only one thing the government goes out of its way to do--make it easy to collect your money.

"For example, in real life, you don't pay a sales tax in a retail store depending on whether you drove to the store or rode your bicycle." --> Where's this?

[Not-a-Blogger]

Since there will be more money whe will get a Tax Cut somewhere else right?

I have no problem with paying interstate sales tax as long as I get a tax break some where else. I mean after all the .gov has a balanced budget right?

[harmonii75]

Old dog, older tricks

Good grief! I hope this will be a wake-up call for liberals. FYI, Democrats troll the "working class" (aka poor people) for votes. One way they do this is by taxing businesses under the guise that it will prevent increases in or lower taxes for individuals. Unfortunately, these businesses in turn pass along the tax increases to the consumer. Anytime something increases a businesses operating costs, rest assured that you, the individual, will be paying the price. However, it's even worse than an increase in personal taxes because a sales tax isn't based on a person's income. Rich and poor alike will pay the same amount. While it won't be that big of a issue for the wealthier, it can be a huge deal for those who are not. And Dem's want to do this on a regular basis. Think about it next time you cast your vote.

[batavier]

ABOLISH ALL SALES TAX!!!!

(1) Sales tax is the most regressive of all taxes.
(2) The elimination of sales tax would be a boon for business, since it would add immensely to the public buying power - much more than any silly tax rebate.

[shoffmueller]

No

Abolish all others, except sales tax

That's the only tax that's fair - if you spend less, you pay less
taxes - you spend more ...

What's wrong with that?

[rd55127]

Too Many Pigs At TheThrough

Sales taxes are merely a form of consumption tax. As internet retailing takes a larger slice of the consumer retail dollar local retailers will increasingly feel the squeeze of lost sales due to an inability to compete with tax free internet sales. Likewise, states with sales tax will also suffer decreased revenues. So who wins besides the consumer? Those states which cater to internet businesses and can reap income, property and payroll taxes from the expanding businesses. Shippers such as FEDEX, UPS, DHL and the USPS also benefit from increased volumes and the business and payroll taxes they pay will help stuff the local coffers as well. The issue is not a matter of increasing taxes for the states but, rather, adjusting their spending to match the revenues they have - takes cajones on the part of politicians to deny a constituent group a handout so likely we will see this legislation pass.

[the1kingarthur]

"Treason doth never prosper," wrote an English poet, "What's the reason? Fo

Simple solution to a complex problem. Let it be known that we will not not vote for those taxing us without representation. Stop the greedy communist pigs in their tracks. They want us to pay for their life of luxury, and their mistakes.

And if they do get reelected. Launch histories largest re-call!

[the1kingarthur]

"Treason doth never prosper,"

"Treason doth never prosper," wrote an English poet, "What's the reason? For if it prosper, none dare call it treason."

Simple solution to a complex problem. Let it be known that we will not not vote for those taxing us without representation. Stop the greedy communist pigs in their tracks. They want us to pay for their life of luxury, and their mistakes.

And if they do get reelected. Launch histories largest re-call!

[Larry Launstein Jr]

We need a more equitible tax system

We need complete tax reform, not just sales tax, and an equitible, easier to understand, tax code.

With online sales generating more and more of the total sales, it appears like there will be an online sales tax. Already, in Michigan, I have to charge people 6% sales tax, regardless of whether they buy online or if they meet with me.

What the politicians are trying to do is extend the sales tax so people outside of Michigan have to pay MI 6% sales tax. I don't know where I stand on this one. However, I am so sick of our governor and legislature not having the spine to fix the budget mess Michigan has found itself in. And the worst thing is a lot of manufacturing jobs have left, and nothing has come along to replace them (read: high-tech in areas other than the auto industry).

[robbtuck]

"new burdens on business"?

The real burden is on the consumer. Whatever regulations you impose, it just gets passed right along to the consumer (all of us) through higher prices.

[elitsey]

Basically a National Sales Tax

The whole ideal of paying taxes is to boost the local funds available for the city and state it is collected in. An Internet tax scheme could do some good if the tax laws where revamped to reflect a national market place. An Internet tax would basically be a Federal Sales Tax. These funds could be used to promote Internet based businesses, and applied to Insterstate commerce. For example, instead a retailer based in NY collecting taxes for sales in all 50 states could in essense help build Internet infrastructures across the US that would promote ecommerce by making ventures grow, just the same as it could be used to improve health care or any other legitimate use that would help improve the economy and state of the union. But they should not reap the rewards soley for their state.

The problem lies in how the taxes are currently collected and utilized. Local taxes inject cash flow into local commerce, on a national level it should do the same for all communities regardless of where the product originated and was shipped.

The current system is just to overwhelming. The rich get by Income tax loopholes, but tax on commerce would apply to all. I can promise that many business already bypass local tax collection by the way they store products in wharehouses across the US, cross shipping to avoid collecting sales taxes that should be collected. So in essence they are screwing states out of taxes that legally would have been collected otherwise.

Local Taxes, County Taxes, State Taxes, and then a National Sales tax too (not to mention Federal Income Tax). An Internet tax could generate a lot of revenue, and it should be proportionally distributed back to all states for improved health care, commerce, affordable internet access to low tech areas, etc.

Regardless, the system should be made to reward states by giving the taxes back to programs that are critical and benefical. Regardless, it will happen, it is only a matter of time, regardless of your POV.

Funny... this country was based on freedom of religion and overtaxation. You couldn't tell it these days.

[atlchristopher]

Stop Whining

Do I want the internet taxed...no! But it never ceases to amazes me how many people 1) want something for nothing and 2) deny the fact that they benefit everyday from things funded by taxes!

For example, I wonder how many commentors here are of age and yet let others fight the wars, or have served in the military?

It's as if no one on this thread acknowledges that they have benefited from living in the most prosperous country ever known. We take our stable society for granted and in the last 30 years or so have been duped into believing that it can be maintained on cheap all the while continuing to give massive tax cuts to people and entities that don't need them.

I don't like giving my hard earned money away. But I think what we should be focusing in on is making sure we 1)pay for we want and need to maintain a prosperous society; 2)get what we pay for.

[aznyron37]

tax on internet sales

all you tax loving Governors get a life prior to 1960 what states had sales tax the only one I could name is California reason is to support all those illegals coming in to pick fruit and vegetables I have compassion but let not be a feeder to some one who is a gluten like Governors of sales tax states were does this all end payroll tax income tax state income tax prop tax school tax sales tax fed excise tax and now internet tax I am happy to say I no longer live in the USA I now reside in Thailand yes we have a vat (value added tax) that it. No prop tax or any other tax imposed on the people

[reguspatoff]

U.S. Constitution

From section 9, paragraph 5 of the U.S. Constitution:

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

We need to make sure all Congressmen and Senators know this.