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Comments on: Tax-free Internet shopping days could be numbered

Pro-tax states and the National Conference of State Legislatures are hoping to persuade Congress to let states impose new fees on Internet and mail-order sales.

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Stupid states.
by OrionCA April 16, 2008 10:51 AM PDT
The US constitution clearly gives the Federal government, not the states, the right to regulate and tax interstate commerce. That's why the USSC has ruled consistently that a retailer MUST have a retail outlet in a state before it can order the retailer to collect sales taxes.

However, the Federal government CAN and probably SHOULD tax Internet sales. On any day of the week ending in a "y" they can order that retailers must pay a, say, 5% sales tax on goods delivered to another state. Congress could tnen turn around and divide the revenue equally between the two states involved in the transaction. They don't want to do this because then they'd take the hit for taxing the Internet. Any of the schemes proposed by the states for collecting interstate taxes on Internet sales, would almost certainly run afoul of the Interstate Commerce Clause.
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Another DumbA$$ sales tax idea....
by chash360 April 16, 2008 10:59 AM PDT
Will you people please do some math? learn some logic? hello cause and effect?

Sales taxes levied at the point of transaction destroys commerce, a fact of cause and effect, end of story. Just because the heat gets turned up slowly does not mean it won't cook you! Just because your state has not yet boiled over (it sounds like its about to).
Not too worried.
by Penguinisto April 16, 2008 11:11 AM PDT
The State of Oregon doesn't charge sales tax anyway, so no probs here (I suspect that charging sales tax online would work the same way it works via mail-order - if you live where the business is, you pay it; otherwise you don't).

As it is, some places already charge you sales tax if either your billing or shipping address is in the same state as the site owner's business.

/P
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Tax Income, not Sales!!!!
by chash360 April 16, 2008 11:15 AM PDT
If you have no taxable income you obviously did not benefit from the state/gov and its services, you therefore should not owe a tax burden.

If you did make taxable income then you benefited from the existence of the state and its services, and its a fair tax affecting equally everyone based upon how much they benefited, in the form of taxable income.

The poorest, lowest income should not have to pay as much as the rich, because they obviously did not benefit as much. But when you go and buy that DVD (online or otherwise) the low income person is paying the same amount of taxes on that as the as the highest income, how is that fair?
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Agreed - Tax Income not Sales
by bob_sch April 16, 2008 2:35 PM PDT
The money that's spent on Internet sales has already been taxed as income! When they stopped Sales Tax from being deductible from Income Tax, they made it a double tax. Let's not let them do it again by double taxing Internet spending.
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Oregon, that last frontier.....
by chash360 April 16, 2008 12:39 PM PDT
Just FYI for you online businesses....

Oregon has no Sales Tax.
Oregon has a balanced budget.
Oregon has lots of IT and Tech Companies.
Oregon has lots of IT infrastructure.
Oregon has great Universities with top notch programs.
Oregon has lots of skilled IT workers looking for work too, if you are honestly hiring for a decent wage (don't believe the shortage crap they spew to get the H1-B's, and L1's, I know lots of really smart techs, still looking for work).

I would love to see lots more IT and tech job opportunities here in Oregon, provided you won't mess up our beautiful state with pollution.
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Agreed.
by Penguinisto April 16, 2008 1:23 PM PDT
As a bonus, there's a ton of local datacenters (at least around Portland) with a hefty amount of bandwidth to go around. :)

/P
Am I A Bad American?
by markdoiron April 16, 2008 2:58 PM PDT
As retired military, I shop for groceries and some other retail items at the nearby base commissary and exchange. There's no sales tax there. Am I a bad American because I don't pay sales tax to the state of Oklahoma on my on-base purchases? I think calling people "cheats" is a bit harsh. People bend the rules, to the point of breaking them, all of the time. Whether it's taxes, taking a few paper clips from the office for personal use, driving faster than the speed limit so as to be on time for work--it's who we are. All of us.

--mark d.
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Cheat the Governement.
by drall.kj April 16, 2008 3:27 PM PDT
"Do you want to be a good American, or do you want to be an American who wants to cheat your government deliberately? It's a harsh way to look at it, but it's true."

The only people being cheated are the tax pays.
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Tax Crazed Politicians - Carbon Footprint & More Gas!
by jbelkin April 16, 2008 3:51 PM PDT
So, to make a dollars per person, you'd rather have us drive all over town wasting more gas looking for stuff?
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Come on down to tax FREE Delaware
by lunkhead April 16, 2008 5:44 PM PDT
Luckily Amazon has a warehouse in Delaware and there is no sales tax there. No sales tax in NH, OR,and I think SD.
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There should not be any fed sales tax!
by kharris0203 April 16, 2008 6:58 PM PDT
Let's see... we have national income tax, many states have their own additional income tax. We have local and state sales tax, excise tax, payroll tax, corporate tax, telecommunications tax, gasoline tax, hotel bed tax in many places. We have estate tax, taxes on investment income, property taxes in many states. It's amazing we have any of our money left at all. Now, we have politicians willing to amend the Constitution in order to collect even MORE taxes from us!

I don't mind paying "use taxes," or even a flat national sales tax on non-crucial items we buy, but ONLY in the absence of the countless other taxes we pay on everything.

What do we do at the polling place? That's a tough one. The Dems want to tax the crap out of us, but the Repubs want us to stay in Iraq and remain policing the world, which we'll be paying for for generations. The only hope I saw for real change was Ron Paul, but he's out of it, so we're screwed.
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War is for...?
by QASIMARA April 16, 2008 8:00 PM PDT
I wonder if, while Napolean was conquering, all the shoeless peasents in Paris were complaining about costs or worrying about whether to eat that rotting mud-covered apple?
Through your rights portly
by QASIMARA April 16, 2008 7:56 PM PDT
How is requiring the public to pay for public services infringement on your rights? Or do you mean "infringement on your Republicanism"?
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What's Next?
by jbaviera April 16, 2008 8:04 PM PDT
What are they going to tax next, My yard sale?

Know Democrat Politicians = Know New Taxes!
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Again it was dems who fought Internet Taxes
by chash360 April 18, 2008 12:06 PM PDT
Internet Tax Freedom Act of 1998, was proposed and sponsered by who? Democrats.

Republicans would have you believe they are against taxes and big government, thats because they want it all privatized, so the can make profits off of social services, basically profits off the poor, and then you have no say in what they do with that money once they get it.

At least with taxes and government services and programs, you can have your say in how it is handled, at the voting booth, through demonstrations, writing politicians (not that they'll listen) etc. You can read the policies and accounting up front, its public record, not so with a corperate entity, or private business.

When the republicans privatize everything, you have to be able to afford a lawyer first, fight for a day in court, against a rich business or corperation to get heard, to get justice, that sound good to you?

Democrats see government programs as non-profit, which is better for the people, than private for profit equivalent businesses, when dealing with social services, and basic needs and infrastructure that everyone benefits from. It does not compete with free enterprise, because much of work can be contracted to private business, through the bid process that keeps costs down, but still ensures fair wages, and healthy businesses.
by marjtoo May 3, 2009 4:14 PM PDT
This was funny, because it reminded me of when a city I lived in passed a law to do just that ... tax our yard sales! Fortunately, they hadn't thought about how to enforce such a law, so it was mainly up to the 'honest citizen' to report his/her sales and fork over the sales tax. Hilarious!
WE"RE the Cheaters?? LOL!
by kharris0203 April 16, 2008 8:43 PM PDT
Millions of dollars "missing" from the Dept. of Education. Billions of dollars "missing" from the Dept. of Defense. Millions of tax dollars looted from health and educational programs. Tax dollars used for gambling junkets and fancy vacations.

It's just incredible to me that we would be called cheaters for not wanting to pay sales tax on a few internet purchases, which is in line with our nations laws anyway. It is ILLEGAL for the govt to charge sales tax for interstate commerce! WE are the cheaters, yet our tax dollars are lost and stolen everyday by our govt.

I don't know about the rest of you guys, but I'm ready for a REAL tax revolt or revolution.
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Instead of complaining, do something.
by spm82 April 17, 2008 6:58 AM PDT
Write or call your congressman.
https://forms.house.gov/wyr/welcome.shtml
We all know this is a ridiculous tax, and the government simply wants more of your money to fund programs that are not working. Why should Amazon be taxed by the state of California when the state of California is providing nothing for Amazon? Taxation without representation, anyone?
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by marjtoo May 3, 2009 4:12 PM PDT
Ah, but ... it IS taxation with representation ... the representation being the politicians we elect to 'represent' us. It's kind of a no-win situation, isn't it? Our own employees are the ones running the whole show, and the only time they pay much attention to what we want or need is when they're campaigning for office.
What about New Hampshire?
by scullytech April 17, 2008 7:47 AM PDT
We don't pay sales tax on anything purchased within the state, and others visiting our state don't pay sales tax. I am wondering how this new tax on internet purchases proposal will affect us. Will NH based internet companies not have to collect tax? If true, I'd like to be the first to welcome all of the internet companies who would like to base their companies here in NH.
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Amazon isn't being taxed, there customers are
by Art Dir April 17, 2008 12:46 PM PDT
But thanks for the link.
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Every time.
by Imalittleteapot April 17, 2008 12:49 PM PDT
Every time the government raises taxes they have basically called themselves failures. They should try to find ways to cut costs, not raise them. They keep doing it backwards. If it was a corporation it would have went broke a long time ago.

I wish I could choose which state my tax money went to. I wish I could also choose to send my federal tax to whatever state I wanted instead of the federal government. They'd all have to compete with each other because everyone would send it to the lowest charging states or federal if they were the cheaper.

Without some sort of competition or something to lower taxes this country might break. I say this because I'm hearing of new taxes almost everyday now. It used to be only every now and then. Now even though the economy is struggling to stay prosperous the politicians seem set on killing it. I never heard so much talk about taxes before. That's all they ever talk about anymore.

Low income people aren't going to continue to go to work if they don't make enough to pay the rent anyway. When their credit line runs out who's going to buy the products if taxes go too high?

I think we may have already started to see it, but I don't know. High taxes aren't good. They can't keep raising them forever, and now is the wrong time to have new taxes even if they wanted to.

We need simpler tax plans. I shouldn't have to pay a separate tax on everything. My income has already been taxed when I cash my check. Then every time I spend some I get taxed again. Then depending on what I buy I have to pay yet again even a separate tax.

The government doesn't need to raise tax. How much of the money I spend does the government get? If sales tax is 5%, and I spend five dollars then do they get a quarter?

No, in the end they'll get almost all of it anyway. Because the next time someone spends the remaining 4.75 it'll get taxed again, and again, and again on the same five dollars. Raising tax doesn't bring in more revenue it only speeds the process up. Bringing more money into the economy, and making the dollar worth more are the only real way to bring in more revenue.

An Internet tax is just another way to speed up their incompetence. They were going to get that money anyway through income tax, or some other means. The real reason they want to tax Internet sales is because some people lock their money in the banks where nobody ever sees it again. So, the government never makes any money off it after the initial taxes. Like Bill Gate's billions of dollars that just sat there for how long? As long as it sat there it didn't do anything to help anyone. Even though that's a generalization I suppose.

The attitude they can just raise taxes whenever they want because they can't find other solutions to problems has got to stop before it goes too far.

Taxes are to provide services collectively for groups where no one person from that group could accomplish the task alone. That's not what they're being used for. They're being used to cover the politicians mistakes on policies that aren't working. If they couldn't raise taxes then everyone would see their incompetence, and then they would get voted out of office.

We need a set a tax cap that can never be raised. I would even suggest putting it in the constitution. If you end up paying more than the cap the government should have to send the difference back. It would be a percentage. If the state wasn't bringing in enough, instead of raising it, their only option would be to provide services or pass laws that would allow people and business to bring in more money. If they brought in more income the government would bring in more revenue.

The people and the government would then be working together instead of against each other. It would be a more sane system then what we have now. This would mean business might come back to the US because the government is helping the business make extra money so the government can bring in extra revenue. With more business that means more jobs. Which means workers might get paid more because with more business means more demand for labor. This means more people work, and people make more money. It means shareholders make more too. That means even more revenue for the government and the cycle starts again.

That's why they built roads and highways. It was a service that created ways for everyone to make more money. That increased the revenue. Somewhere the government has lost that logic, and what they spend the money on doesn't work.

Just like they keep ramming dollar after dollar into school systems that are supposedly failing. The point is to produce smart kids that can improve the economy when they grow up, but that's not what is happening. The few smart kids they produce set up shop in China or somewheres else. The school systems has become a bad investment.

Are they really failing, or do they just create tests to make it look like that so they can justify raising taxes? I don't know anymore. They've gotten so far off track.
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Paying for fraud and waste is infringing on our rights.
by Art Dir April 17, 2008 1:00 PM PDT
Most people don't mind paying for public services. It's the criminal waste and misuse that we object to. If fed and state would stop flushing so much of the taxes they collect down the toilet in the form of waste and fraud, they wouldn't have to keep digging deeper into our pockets. Eventually a well will run dry. One idiot thinks he's going to fix the economy by giving a few hundred bucks or our money back to us, another group of idiots just takes it right back plus some more.
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Well, what do you expect them to do?
by Leria April 19, 2008 3:51 PM PDT
How would you avoid the 'waste' and 'misuse' of tax dollars? The few times that the government has TRIED to cut down on waste and misuse of tax dollars, we have found out later that people who should have gotten help from the government haven't because of that 'red tape' that is supposed to stop waste and misuse of tax dollars.

There just is NO WAY to stop waste and misuse of tax dollars without causing harm to our government and the people of our country.
Let's rearrange a sentence in your article.
by AlecWest April 18, 2008 3:56 AM PDT
The following sentence appears in the article, quote, "For years, politicians in state legislatures and the U.S. Congress have been arguing that the rise of e-commerce is causing them to miss out on potentially millions of taxpayer dollars."

Well ... for years, citizens have been arguing that the rise of taxes is causing the rise of e-commerce. Could it be that citizens are trying to deliver a message to state and Federal legislators - and that the politicians aren't getting that message?
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Sales Tax = Poor Tax
by chash360 April 18, 2008 1:38 PM PDT
Only rich pepople with 'disposable income' can afford not to spend all of their money, thereby not paying taxes comensorate of their benefit from the state, when paid through sales taxes.

It is against private AND business interests to have a sales tax, it artificially inflates the cost of products, and the state should have no say how I spend my money once I earn it, nor should it rely on me spending my money, to cover its costs. What if I want to save it?

When the economy goes south (as it is right now), rich people who can afford extra stuff don't spend their money, they save it, preparing for harder times, which then reduces the tax revenue, making those times even harder. Its a self-perpetuating downward spiral.

Example:
I make $50K a year, and Joe Blow makes $100K a year. I spend nearly all I get just providing a basic home and living for my family, say $40K. Joe Blow, seeing harsh times ahead in the economy, keeps his spending down too and spends about the same $40K for him and his family, and saves the other $60K. We buy the same items, and pay the same amount in sales tax.

Now is it fair that I paid the same amount of taxes as Joe Blow, but he made twice as much as me? Joe Blow benefited from the existence of the state twice as much as I did, by evidence of his income, is that fair?

Joe Blow also has $60K, not working in the economy, I only have $10K (not a very big cushon these days). I am not saying people should not save but when you look at the obscenely rich, and how much they have sucked out of the economy, and don't give back, and don't spend it, they drag the economy down.

Think about Bill Gates, how much has he benefited from the state, compared to how much he spends personally (Bill Gates, not Microsoft), its not even close, as obscenely rich as he is, he has not spent enough to pay his fair share of taxes (if only sales taxes).

Last I counted he could spend a $1000 dollars a day and not run out of money until he was 180 years old!
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The non-spending of the rich is a big problem
by Leria April 19, 2008 3:48 PM PDT
The non-spending of the people like the Vanderbilts are the reason why the economy is in the tank.... it's the main reason why I say that anyone making over 10 million a year should pay 80-90% in taxes, because they usually are NOT going to spend all the money that they made, thereby only letting it ROT in banks.

Oh, and to those people who say "The banks lend out money so it gets into the community sooner or later!"..... WRONG! It NEVER gets into the community, it just goes into the hands of big business.
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a joke?
by ironsmithfe May 3, 2008 3:19 PM PDT
Is this a joke?

I noticed you said that a person "benefited from the state by evidence of his income" How the heck does that work? So somehow "Joe Blow" is not benefiting from his collage education, his ingenuity, or his motivation. Somehow the 80hours/week that Joe Blow puts in at the office to increase production and revenue was the "states" idea.

Your right, I see the light, we should stick our filthy thieving hands into his pocket and rip his money and time away from him cause he doesn't deserve disposable income no matter how hard and smart he works.

What is it with people and the idea of forced communism?

I make less than 30k per year and I could certainly benefit from your 50k income. I think we should charge you 50% of your income so I can have some of it.

BTW, I'm always in hard times, it's called life.
Then check cars at the state border and charge tax on out-of-state purchase
by sgornick April 19, 2008 9:43 AM PDT
Sales taxes are self-imposed by each state. I like the fact that my state feels threatened that I can go somewhere else to get a cheaper sales tax rate. That is called competition, and that is what helps keep my state (California) from charging even more than they already do.
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