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Internet Tax Ban Extended
GiorgioG sent in news that the ban on internet taxes will be extended for two years. Not that that will make the recession go away, but it's a start. Remember: every time you buy over the internet, an angel gets his wings.
>every time you buy over the internet, an angel gets his wings
:)
As long as you don't buy from a united states dealer and live in canada, and ship thru UPS.
Shipping cost
15% duty tax,
7% federal tax
7% Provencial tax
profit on the exchange rate on CC or paypal,
God... when you think about it, it's depressing from a production point of view, you're doing hardware, you must do everything to keep cost super low to get to that 300% mark to recuperate the r&d cost, normally you end up doing maybe what, 20% overall profit!?... in the end, the gov makes almost more profit with your stuff than you... no wonder we got so many people on wealthfare, maybe I've underestimated them and they are the genious
--- Metamoderating abusive downgraders since my 300th post.
I know that in PA we're expected (on the honor system) to calculate the appropriate state sales tax on items bought outside the state, and send the amount onto the state office in Harrisburg.
I'm not aware that there is a large active office for collecting those revenues. (Disclaimer - I only know this in principle - since I'm not aware of anyone actually doing this.)
I'm pretty sure that I read somewhere that this was true for other states that have a state sales tax. (Some states like Delaware do not.)
In illa quae ultra sunt
President Bush actually wanted to extend it longer than two years. You can read more about the tax extentsion at Yahoo!
--
FearLinux.com
Most states with sales taxes also have use taxes (alluded to elsewhere). You aren't exempt from the tax by paying out of state.
HOWEVER, the SCOTUS (Supreme Court of the United States) ruled that states can only force a company to collect the taxes for them if they maintain a nexus of operations in the state.
If the company doesn't have a presence in the state, they don't need to act on behalf of the state and collect taxes.
This is why companies can't (legally) set up subsidiaries in two states to avoid taxes. Otherwise, locals could order from another state.
The enforcement problem is that they CAN'T enforce it. They can't cross state lines with their taxes.
The Congress and Governors were trying to come up with a solution for a simplified tax system. The idea would be to at least standardize to the point where given a zipcode, a simple lookup would determine the tax base.
Keep in mind, not only do states collect sales tax, some counties and cities add them as well. This creates a mess. It is one thing to have to do a lookup on 50 states, it is another to have to deal with localities.
Companies with solutions have tried to find beta testers, but who will volunteer to collect sales tax just to beta test software that will make it mandatory.
Interestingly, New Hampshire doesn't charge sales tax on liquor (or anything, if I recall), so Mass got annoyed that residents would cross state lines to purchase things, including liquor at the New Hampshire State liquor stores (can only buy booze in New Hampshire at state run liquor stores, right along the highway... isn't that entrampment?). Mass sent staties into New Hampshire, calling back license plates, and arresting people crossing the line (or something similar)... so New Hampshire deployed their troopers to arrest the Mass employees on silly charges, and the situation went away.
States' Rights matter outside the northeast, because the states are huge and do their own thing. States' Rights don't matter in the northeast because the states like to squabble with each other and would like to have more central control because people cross the lines regularly.
Alex