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Internet Taxation May Be Imminent

Posted by ryuzaki0 on from the coming-and-going dept.

redfenix writes " Here, there, and everywhere, the words "Internet Tax" are being uttered with intentions of bolstering state budgets. It may be inevitable that products purchased on the net will be taxed someday. The real question is: can the fragile internet economy really help local tax economies now?"

2 of 743 comments (clear)

  1. Re:Why not cut spending/waste/fraud? by seichert · · Score: 1, Troll
    A very good question. Let me endeavor to give you a good answer. The purpose of state sales taxes is to provide services to the people and businesses of your state. If I own a business outside of that state, it's not really fair to ask me to pay for services that I am not able to utilize, even if I am selling an item to somebody who lives in your state.

    Now, you could point out that a sales tax almost always is passed directly to the consumer, so it's really my customers who are paying the tax, but it's still being collected from my business, which means it's my accounting headache.

    Furthermore, as a consumer, I don't mind paying state and local sales taxes on items I buy in brick-and-mortar stores. It's logical... that money goes to pave the road so I can get to the store, and to pay the cops to keep the store from being ripped off, and to pay the fire department to keep it from burning to the ground, it even pays for public education so they can hire minimum-wage 20 year-olds who have an outside chance of getting my change correct. Since state and local infrastructure makes our transaction possible, it seems reasonable to me that we, as buyer and seller, help fund that infrastructure. In the case of something I buy from Amazon.com or EBay, how does the state justify its claim to a slice of the pie? It didn't do anything to facillitate the trade. [Flamebait Warning] Collecting a compulsory percentage without offering anything in return is called racketeering. [Flame off]

    The purpose of state sales tax is to collect tax revenue for the state. The state (or locality) is under no obligation to keep the roads paved or fix the pot holes. The locality is under no obligation to protect your store from being ripped off (that is your responsibility (i.e. buy an alarm, gun, etc.)). Should your store catch fire, the fire department is under no obligation to see that it does not burn to the ground. The state is under no obligation to train your perspective employees (i.e. min wage 20 year olds).

    You are a business owner and you will collect sales tax for the state/locality whether you like it or not. Whether you receive good services or no services at all. Whether you think someone else (i.e. a private company) could provide better services or not. That is the nature of taxation. It is NOT voluntary, it does not care whether you "mind" or not. You will pay. And when you don't your store will be closed down, your employees will be sent home.

    --

    Stuart Eichert

  2. Dear god.. by PhoenixK7 · · Score: 0, Troll

    Am I really on /.?

    This story seems to have actually sparked intelligent discussion..