Slashdot Mirror


New York to Implement an 'Amazon Tax'

theodp writes "NY Governor David Paterson is expected to sign a bill requiring online retailers to collect sales taxes on purchases shipped to the state, even if they have no operations or employees working there. The so-called 'Amazon tax', which applies to Internet retailers who derive sales through affiliate programs, would end what for many New Yorkers had been tax-free shopping and generate an estimated $50M in revenue this fiscal year. Experts predict that other states could follow suit with similar provisions."

411 comments

  1. Star Wars on spike tonight! by moogied · · Score: 0, Offtopic

    Its as if millions of 45 year old women screamed in horror and were then silenced.

    --
    So basically, -1 troll/offtopic is really slashdots way of saying "I hate that you thought of something before me."
  2. they can pass it all they want... by YesIAmAScript · · Score: 5, Insightful

    It's not Constitutional.

    --
    http://lkml.org/lkml/2005/8/20/95
    1. Re:they can pass it all they want... by timeOday · · Score: 5, Informative

      My thoughts exactly. This has "interstate commerce" written all over it.

    2. Re:they can pass it all they want... by FoolsGold · · Score: 1

      Hah! The Constitution doesn't stop jack it seems these days. They'll just find a loophole.

    3. Re:they can pass it all they want... by erroneus · · Score: 1, Offtopic

      It also doesn't stop George, but I think that's what you actually meant in the first place.

    4. Re:they can pass it all they want... by Jafafa+Hots · · Score: 2, Insightful

      You haven't been paying attention the last 7 or so years have you?

      --
      This space available.
    5. Re:they can pass it all they want... by menace3society · · Score: 1

      How exactly has that stopped the government from doing whatever the hell it wants for the last decade or so? Just raise the specter of national security and every judge in the country (especially the Supreme Court) will roll over as always. Just say that the tax revenues go to anti-terrorism activities, or that the taxation is a way of regulating and controlling what comes into the state, to make sure it's not contraband.

    6. Re:they can pass it all they want... by superdave80 · · Score: 5, Insightful

      Not constitutional in our normal, sane eyes, but we are talking about the courts. They make crazy decisions all the time, because they over think the minutiae of these cases. It should take them all of five seconds to declare this unconstitutional, but they probably will say it is fine. Don't think so? Look at use tax.

      Relevant sections of the constitution state:
      "The Congress shall have Power To ... regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes;"

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

      Pretty much sounds like states can't make me pay a tax when passing goods from one state to another, right? Yet states have somehow subverted this by declaring it a 'use' tax, not a 'sales' tax. They claim that they are not taxing the sale of the item, but rather, the use of the item in their state. This would almost be a plausible argument, except for two tiny problems:

      1. The use tax rate is the exact same as the sales tax rate.
      2. The use tax only applies to all items used in a state, but ONLY items brought in from another state.

      If this were a REAL use tax, every item 'used' in the state would be subject to it. The use tax is so obviously nothing more than an interstate tax by a different name. And the courts, almighty protectors of our constitutional rights, have gone along with this bullshit argument.

    7. Re:they can pass it all they want... by flyingsquid · · Score: 5, Funny
      How exactly has that stopped the government from doing whatever the hell it wants for the last decade or so? Just raise the specter of national security and every judge in the country (especially the Supreme Court) will roll over as always. Just say that the tax revenues go to anti-terrorism activities, or that the taxation is a way of regulating and controlling what comes into the state, to make sure it's not contraband.

      If we don't pass this law, then terrorists will be able to buy books and other goods tax-free. It is highly probable that terrorist cells operating in New York will need to order books and electronics from online vendors. Taxing these sales means that it will now cost terrorists 8.4% more each time they order terrorism-related materials from Amazon, dealing a serious blow to Al Qaeda's finances. Imagine how furious Bin Laden will be when he sees that his sleeper cells have gone over their budget.

    8. Re:they can pass it all they want... by dmadzak · · Score: 1

      This has a politicians middle finger written all over it.

      --
      Spelling and grammar mistakes specifically left in to give the grammar and spelling nazis a meaning to their life.
    9. Re:they can pass it all they want... by Anonymous Coward · · Score: 0

      Hey, its to stop the terrorists.

    10. Re:they can pass it all they want... by EdIII · · Score: 3, Interesting

      You know I might get flamed for this, but.....

      The Constitution has nothing to do with this. The founding fathers never envisioned that a person in California (did not even exist yet) and another person in New York could so easily create a sales transaction between them, AND within such a reasonable period of time, deliver the products. I don't think that they thought, or understood, that it could become such an EFFECTIVE loophole to bypass taxes. I don't understand the logical arguments behind interstate commerce laws, but perhaps it was to protect businesses from having to compete in an unfair environment. States could tax the hell out of "foreign" goods thereby decreasing competition (bad). However, the fact that the sending state is not allowed to tax it either, creates the loophole. I dunno, it's just my thoughts on it, and I admit that I don't understand the basis for the laws. I do understand it's effects however, and that leads to the real problem...... ......It's NOT FAIR. Although, I like the idea of getting away with not paying taxes and I have done it for years, it is not fair to local businesses. Only suckers (or principled individuals) paid taxes on their computer equipment in the last 10 years. Local equipment suppliers have a very hard time competing with it, locally at least, and then must rely on out of state sales themselves. So it's kind of ridiculous if you think about it.

      So you have a choice. You can:

      1) Support your local economy and state by spending the money on the sales taxes there...

      or

      2) Bypass taxes and spend a much smaller amount giving it to FedEx, UPS, USPS, or DHL.

      Which one do you want? Give the "taxes" to a corporation or to your local government where there is a small chance it might go towards something meaningful to you?

      Of course, this might all be a moot point since rising fuel costs are going to close the gap between Shipping Costs (the alternative tax) and local Sales Tax.

    11. Re:they can pass it all they want... by FLEB · · Score: 1

      If it was anything else but a rejection of Congress' Interstate Commerce jurisdiction, I'd have to agree. In this case, though, it gets in the way of the Feds' most useful playing card, the "mumble-mumble-mumble-INTERSTATE COMMERCE!" defense. This, of course, is not acceptable.

      --
      Information wants to be free.
      Entertainment wants to be paid.
      You just want to be cheap.
    12. Re:they can pass it all they want... by holywarrior21c · · Score: 1

      Very similar law has already been practiced in Korea. The government sends you a bill: up to 10% as "income tax", even if you are a normal person and sells things in large quantity or large amount of money. I personally sold USD $15,000+ worth of furnitures and other items via one of the major auction sites and the government has successfully sent me bills, about $600 total so far. i say, shit! wait its "sibal" in korean. This doesn't seem like a attempt to revive local economy by discouraging such purchases from other states. Why are they doing this?

    13. Re:they can pass it all they want... by harlows_monkeys · · Score: 2, Informative

      How so?

      It's basically two things: a use tax, and a scheme to collect it.

      The Supreme Court cases on State use taxes are clear: they are Constitutional.

      So that just leaves their scheme to collect. The obvious problem here is the Quill case, but they seem to have found a somewhat plausible argument to distinguish from that, so I could see this go either way on that.

    14. Re:they can pass it all they want... by killdozer3k · · Score: 3, Insightful

      Precisely, Part of the problem is that the law is unequally applied. i wish I had my own right-wing/libertarian ACLU to go around suing for fun and profit all the time. int his case a use tax implies that something is used. Whats next? Taxes from ever state an item is passed across? Why not? Amazon should refuse to collect the taxes and see what NY can do about it. They cant stop Fedex from shipping items from Amazon to NY. I wonder what would happen if someone sued a state fro NOT collecting taxes on all packages shipped across its state? Why not since NY is stating taht all items shipped to it can be taxed.

    15. Re:they can pass it all they want... by davetd02 · · Score: 5, Informative

      Not so fast: You're right that thanks to the "dormant commerce clause," New York can't burden out-of-state commerce or commerce that just passes right through New York without stopping. For example, New York can't tax goods that pass through New York on their way from Maine to Florida on I-95, nor commerce that happens in other states.

      But, almost every state that has a sales tax also has an excise tax for people who import goods from out of state. For example, in most states if you import a car into the state then you pay the sales tax on the car even if you bought it in a state with no sales tax.

      New York can very constitutionally tax goods that are used in New York. And it can reach Amazon to enforce it because Amazon has "purposefully availed" itself of the New York market by advertising there and shipping orders there. See the case Asahi Metal.

    16. Re:they can pass it all they want... by WK2 · · Score: 1

      You start by saying the Constitution has nothing to do with this, and then you seem to argue that this is indeed unconstitutional, but the constitution is obsolete. You make a good argument for this part of the constitution being obsolete. However, if that is the case, legislatures need to amend the Constitution, not ignore it.

      --
      Write your own Choose Your Own Adventure. http://www.freegameengines.org/gamebook-engine/
    17. Re:they can pass it all they want... by mi · · Score: 0

      The Constitution has nothing to do with this.

      You are right. In fact, the only "novelty" of this law, is that the retailers are obligated to collect the tax — and transfer the monies to NY. The sales tax itself always existed. The reason, out-of-state retailers weren't required to help the state collect it was that — for the retailers without physical presence in a state — it was deemed to be too much of a burden to follow that state's tax laws. It is the state's residents duty (widely shirked, of course) to report their out-of-state purchases to their home state, calculate and pay the appropriate taxes.

      Now NY just wants to require (major) out-of-state retailers to familiarize themselves with the NYS' tax code and help it collect their taxes. I didn't think, they can enforce this requirement legally, so it would be interesting to follow...

      ......It's NOT FAIR. Although, I like the idea of getting away with not paying taxes and I have done it for years, it is not fair to local businesses.

      You don't owe diddly squat to "local businesses" (or, to pick on another illiberal cliche, "mom and pop shops"). They exist to provide you with superior selection and/or service, and if they can't beat Amazon (or Walmart or whatever) — too bad. But if you really feel so guilty, do send them a check every time you buy something from their out-of-state competitor...

      What makes them so dear to you, anyway? An incident of geography — that they happened to be located next to you? Why is the shop in your state any more deserving of your business, than the ones elsewhere? Do you also forget the old ones and make new friends, when you move — to keep your friendships "within a community"?

      Which one do you want? Give the "taxes" to a corporation or to your local government where there is a small chance it might go towards something meaningful to you?

      It is a no-brainer, really. To a corporation, of course. Especially, to a good one like FedEx (UPS is union-infested and DHL is government-owned)... According to the article, the State of New York is "deprived of $50mln per year". Guess, who is getting this money? New Yorkers, that's who... This is not even about getting Amazon to pay up (for something?) — it is simply to secure their cooperation in taxing New York residents.

      --
      In Soviet Washington the swamp drains you.
    18. Re:they can pass it all they want... by Lost+Engineer · · Score: 1

      Unfortunately you can't sue a state for not taxing. I've no references at the moment, but it was decided a while ago that you have no standing to sue solely by virtue of being a taxpayer. I don't believe citizenship counts for anything either. So next time you vote remember: these people can piss away your money however they please, and you can't sue them for it. Might want to trust them first, then.

    19. Re:they can pass it all they want... by davetd02 · · Score: 4, Informative

      The constitution prohibits EXPORT taxes, not import.

      There's a big historic difference between the two.

      New York's tax is, for all practical purposes, an import tax.

    20. Re:they can pass it all they want... by EdIII · · Score: 1

      I guess I should have been more clear. I mean to say that the Constitution and it's language involving interstate commerce really has nothing to do with the "heart" of the argument for or against taxing sales derived from out of state customers in our modern times, especially ones derived from the activity on the Internet. To say it is unconstitutional and leave it at that, is really just sidestepping the argument and ignoring the problem.

      The Constitution is protecting the behavior right now, but it did not intend to do so (my belief). You could say that it is an unwitting accomplice to the activities being performed. The Constitution is also not the "Alpha and Omega" of morality and ethics. The inequalities it had for non-whites and female citizens were corrected eventually, but the point is they had to be corrected. So for people to passionately refer to the Constitution when talking about this is puzzling to me, especially when they do not explain why it was good in the first place.

      So I do believe that you are correct, the Constitution should be amended. If we are going to do that though, interstate commerce is the LEAST of our problems with the current taxation environment.

      What I would really like is for somebody, well versed in economics and interstate commerce laws, to explain to me the benefits of protecting such behavior and giving these companies a "tax break". How is it in the best interests of the people to continue doing this?

    21. Re:they can pass it all they want... by davetd02 · · Score: 1
      I should have put this in my last post, sorry. Here's a treatise talking about why "export" means "export."

      Clause 5. No Tax or Duty shall be laid on Articles exported from any State. ...
      This prohibition applies only to the imposition of duties on goods by reason of exportation. The word âoeexportâ signifies goods exported to a foreign country, not to an unincorporated territory of the United States. A general tax laid on all property alike, including that intended for export, is not within the prohibition, if it is not levied on goods in course of exportation nor because of their intended exportation.


      Or check Wikipedia on the same point:

      With the grant of absolute power over foreign commerce given to the federal government, the states whose economies relied chiefly on exports realized that any tax laid by the new central government upon a single item of export would apply very unevenly amongst all the states and favor states which did not export that good.


      For the purpose of this clause, "export" means really "export"--as in, export to another country.

      The dormant commerce clause doesn't apply because New York can regulate goods used in New York. See my comment above.
    22. Re:they can pass it all they want... by Lost+Engineer · · Score: 1

      Let's be real about it for a moment. This is just another attempt to take even more money from poor New Yorkers. Poor as in unfortunate not penniless. Whether or not they were supposed to pay the tax before is largely irrelevant.

    23. Re:they can pass it all they want... by thetoadwarrior · · Score: 0

      Yeah because New York's local economy is in the shit compared to the rest of the US. I sympathise with those poor new yorkers.

    24. Re:they can pass it all they want... by EdIII · · Score: 1

      ......It's NOT FAIR. Although, I like the idea of getting away with not paying taxes and I have done it for years, it is not fair to local businesses.

      You don't owe diddly squat to "local businesses" (or, to pick on another illiberal cliche, "mom and pop shops"). They exist to provide you with superior selection and/or service, and if they can't beat Amazon (or Walmart or whatever) -- too bad. But if you really feel so guilty, do send them a check every time you buy something from their out-of-state competitor...

      What makes them so dear to you, anyway? An incident of geography -- that they happened to be located next to you? Why is the shop in your state any more deserving of your business, than the ones elsewhere? Do you also forget the old ones and make new friends, when you move -- to keep your friendships "within a community"?


      I have no particular loyalty or special fuzzy warm feelings for any company due to their "geographical" attributes as you suggest. I said quite clearly, "It's NOT FAIR". That is not a vague statement. It means that Corporation A has an unfair advantage over Corporation B. I like the idea of having truly level playing fields for companies to compete against each other. The only exception being patents, which temporarily reward and create incentives for innovation and the expenditure of resources on R&D. I don't think patents should be longer then 20 years, no extension bullshit.

      So when gargantuan (I so rarely get to use that in a sentence) Corporation A competes fairly against Corporation B (small Mom and Pop) that is fine and dandy. If Mom and Pop can't beat Amazon's prices then so be it. However, when Amazon does not have to charge sales tax, which saves them approx. 7-8% that is a pretty clear advantage over Mom and Pop is it not? I would say... a 7-8% advantage.
       

      It is a no-brainer, really. To a corporation, of course. Especially, to a good one like FedEx (UPS is union-infested and DHL is government-owned)... According to the article, the State of New York is "deprived of $50mln per year". Guess, who is getting this money? New Yorkers, that's who... This is not even about getting Amazon to pay up (for something?) -- it is simply to secure their cooperation in taxing New York residents.


      Really?

      I don't particularly like many big corporations, and I like government less, but at least with government it might actually go to something useful. I know that is a longshot, but it has a greater than 0% chance, which is what you have with a big corporation.

      You of course said it all with, "the State of New York is "deprived of $50mln per year". Guess, who is getting this money? New Yorkers, that's who...". Your not entirely right about that. That 50 million dollars stays in the hands of New Yorkers, but FAR more than that is lost by businesses in New York. So some New Yorkers get to save money while other New Yorkers (especially the Mom and Pops) lose out on MORE money. That does indirectly affect New Yorkers too, since less money being made by businesses translates into less jobs, lower salaries, less benefits, etc.

      Now if you really believe that a corporation enjoying a 7-8% advantage is fair, regardless of size, then I guess we are just going to disagree on what is fair and what is not fair.
    25. Re:they can pass it all they want... by Anonymous Coward · · Score: 1, Informative

      But, almost every state that has a sales tax also has an excise tax for people who import goods from out of state.


      Those "use taxes" appear to be blatantly unConstitutional, too, by virtue of a part of the Constitution that explicitly says that a state may not tax imports unless

      1. It has the permission of Congress

      2. All of the net proceeds from the tax (after inspection costs) go to the Federal treasury. (NOTE - Federal, not State)

      For the current crop of "use taxes", neither of those are the case.
    26. Re:they can pass it all they want... by davetd02 · · Score: 5, Informative

      You mean the import/export clause: No State shall, without the Consent of the Congress, lay any Imposts or Duties on Imports or Exports...

      The terms "import" and "export" in the Constitution refer to imports and exports from other countries. See the treatise here: "Only articles imported from or exported to a foreign country, or âoea place over which the Constitution has not extended its commands with respect to imports and their taxation,â are comprehended by the terms âoeimportsâ and âoeexports."

      Case: Hooven & Allison Co. v. Evatt, 324 U.S. 652, 673 (1945), holding that "These provisions were intended to confer on the national government the exclusive power to tax importations of goods into the United States."

      Last I checked, Amazon shipped from within the US, so it doesn't apply at all.

    27. Re:they can pass it all they want... by penix1 · · Score: 4, Interesting

      So the cure would be to bar sales to New York residents letting them know why. A few years of New York residents not being able to buy things online should make them wake up and smell the coffee.

      --
      This is a sig. This is only a sig. Had this been an actual sig you would have been informed where to tune for more sigs.
    28. Re:they can pass it all they want... by Anonymous Coward · · Score: 0, Offtopic

      Perhaps you'd be so kind as to provide an example of a Constitutional violation our current president has done that previous presidents have not? Not that this excuses any of it...

    29. Re:they can pass it all they want... by frankm_slashdot · · Score: 4, Funny

      you sir, are supporting your argument with valid examples and precedents...

      what the fuck are you doing here on /.

      hehehe, nice work.
      - FJM

    30. Re:they can pass it all they want... by 140Mandak262Jamuna · · Score: 1
      I am glad you were modded up for this. Thanks moderators. If out of state sellers are not taxed but the local producers are taxed it is unfair to the local business. Either tax neither or tax both.

      The main intent of the interstate commerce laws were to prevent states from giving preferential treatment to their local producers.

      People should realize that the "reduce the tax and starve the beast" does not work. Shrinking the government requires hard work by the electorate that gives up benefits, special treatments and subsidies and elects politicians who reduce the spending. As long as we keep electing the "Tax and Spend" Democrats or the "Borrow and spend" Republicans, we would not have the moral standing to demand smaller government.

      --
      sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
    31. Re:they can pass it all they want... by KeithIrwin · · Score: 1

      Most states claim that the use tax applies to all items, but you can deduct the sales tax as an offset to the use tax. So, in practice it only applies to items from out of state and the sales tax applies to in-state items. Although I will note that most states will allow you to deduct sales tax paid to other states from the use tax as well, so that at least it's not tax upon tax when you buy something from out of state.

      Thus far, the courts have upheld this practice, which frankly, seems ridiculous to me.

    32. Re:they can pass it all they want... by Clock+Nova · · Score: 2, Insightful

      As if it somehow matters whether or not other presidents have done it. If it was wrong before, it's wrong now. Torture is torture. Civil rights are civil rights.

      I suppose that since others have committed murder before, It's okay if I go out and kill someone.

      --
      There they were, sitting in the van with all those dials, and the cat was dead. -V. Marchetti, CIA
    33. Re:they can pass it all they want... by nurb432 · · Score: 1

      And that will stop them from passing it how?

      Unconstitutional laws are passed every day. Its then left to us to bring it to the supreme court and hope they are willing to hear the case.

      --
      ---- Booth was a patriot ----
    34. Re:they can pass it all they want... by DAldredge · · Score: 2, Insightful

      I will buy locally when the local shops stop charging 25% to 60% more for the same identical item. Till then newegg is my friend.

    35. Re:they can pass it all they want... by CastrTroy · · Score: 2, Funny

      Have you ever considered that perhaps, the constitution is a little out of date? Do you think they ever conceived that people would be able to buy everything they needed, easily from another state? Couldn't you just find a state without sales tax (i'm sure one must exist) and buy everything from that state. Sure it wouldn't be feasible for some items, but for many big ticket items, which would incur a lot of tax, like cars, electronics, and furniture, it would probably be beneficial to the consumer. Maybe if taxing sales becomes too difficult, they will just have to do everything through income tax, and let sales go tax free.

      --

      Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
    36. Re:they can pass it all they want... by rohan972 · · Score: 4, Insightful

      Have you ever considered that perhaps, the constitution is a little out of date?

      Yes. If we place any value on the rule of law, amending the constitution is the proper response, not ignoring (or reinterpreting) it.

      Do you think they ever conceived that people would be able to buy everything they needed, easily from another state?

      This has always been feasible for people who live near the borders. Not so much for others.

    37. Re:they can pass it all they want... by Anonymous Coward · · Score: 0

      Which one do you want? Give the "taxes" to a corporation or to your local government where there is a small chance it might go towards something meaningful to you? I'm gonna go with the corporation on that, since corporations are what make the economy go.
    38. Re:they can pass it all they want... by Bazar · · Score: 1

      How about this
      Bush suspending the Writ of Habeas Corpus.

      Its written in your very constitution that
      "The Privilege of the Writ of Habeas Corpus shall not be suspended, unless when in Cases of Rebellion or Invasion the public Safety may require it."

      Yet he suspended it with the Military Commissions Act of 2006. Regardless of what you may think about this act, its a matter of fact that it was signed into law specifically against the constitution.
      I also hope no one is silly enough to think that if thats the case, they can just appeal to something about its unconstitutionally, because without the right of the Writ of Habeas Corpus, you have no rights to justice until the time of your trial, whenever that may (or may not) be.

      A little insight as to what it can and eventually will mean:
      http://www.youtube.com/watch?v=Xf4W8F5HpiQ

      --
      To avoid criticism; Say nothing, Do nothing, Be nothing.
    39. Re:they can pass it all they want... by sqlrob · · Score: 1

      suggest. I said quite clearly, "It's NOT FAIR". That is not a vague statement. It means that Corporation A has an unfair advantage over Corporation B.

      So no, Corporation A instead of not being taxed has to worry about taxes in thousands of tax zones (which is where this is going) instead of the one Corporation B has to worry about. How is this fair?

    40. Re:they can pass it all they want... by Dekker3D · · Score: 1

      well, i'm thinking "patriot act". sure, others have done similar shit before, but this does beat them all as far as i know. or.. am i mistaken?

    41. Re:they can pass it all they want... by CastrTroy · · Score: 1

      Let me rephrase that then. Do you think they ever conceived that people would be able to buy everything they needed, easily, from any other state? Also, even considering buying from the next state over was quite a challenge in the horse and buggy days. It would have probably taken you a whole day to travel to the next town over, just to buy your goods. Now you can place your order in 5 minutes, and it's delivered to your house in a day or two.

      --

      Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
    42. Re:they can pass it all they want... by superwiz · · Score: 4, Insightful

      Excise tax on imported goods is buyers' burden. And the burden for compliance is on the buyers as well. With cars it's easy to track because a car must be registered in the state into which it has been brought. NY State is proposing to make this tax the sellers' burden. It's not the same situation. The question is whether they can compel Amazon to report to the NY State information about Amazon customers with NY shipping addresses. If they can't, then this is an exercise in futility. They might as well pass laws about non-US nationals on non-US territory.

      --
      Any guest worker system is indistinguishable from indentured servitude.
    43. Re:they can pass it all they want... by patiodragon · · Score: 1

      Pretty easy to say, not so easy to get acknowledged in court. There has been a "commuter tax" on people who work on NYC for years and nobody has been successful in getting it revoked.

      In Connecticut, this is a moot point. According to the tax law, there is a "use tax" for stuff bought out of state but used in house (i.e., where you are represented). If you've already paid a tax in another state, you can subtract it. It was meant for people who bought cars and other big ticket items in states with lower sales tax.

    44. Re:they can pass it all they want... by ClientNine · · Score: 0, Flamebait

      It's only unconstitutional or net infringement if a conservative does it. This guy is a Dem, so we should all whole-heartedly support his noble efforts to uplift the poor. Or something.

    45. Re:they can pass it all they want... by rohan972 · · Score: 1

      Also, even considering buying from the next state over was quite a challenge in the horse and buggy days. It would have probably taken you a whole day to travel to the next town over, just to buy your goods.
      Which is why I mentioned people living near state borders. Remember it was a much higher proportion of people in rural areas too, so for many it wasn't a matter of going from one town to another (inconvenient) but from their farm to a town. For those near the border, a town in the next state could well be closer than one in their own state. For a store owner in a town near the border, a supplier from the next state could well be closer than one in their own state.

      Now you can place your order in 5 minutes, and it's delivered to your house in a day or two.
      If you lived more than a few hundred yards from your town, you couldn't buy something in 5 minutes in state either.

      Consider than within 50 years of the Constitution being in place, the USA was selling ice to India. http://www.todayinsci.com/T/Tudor_Frederic/IceTradeAmericaToIndia.htm Buying goods from more than a days journey away was most definitely not an unknown phenomenon.
    46. Re:they can pass it all they want... by drsquare · · Score: 1

      Plus, it's not a duty to charge the same sales tax as any other goods bought in the state.

    47. Re:they can pass it all they want... by thePowerOfGrayskull · · Score: 2, Interesting
      The key difference is that it is the /individual/ who must pay the excise tax. That's a far cry from requiring every single business who ships into New York from paying. If this is allowed to stand, could you imagine the precedent it will set? Picture life as an online retailer, where you must pay separate taxes to all 50 states based on how your sales break up.

      For a lot of small retailers, the answer is simple. Stop selling to New York.

    48. Re:they can pass it all they want... by gladish · · Score: 1

      The real value (shareholder value) with businesses like amazon are they they have an enormous customer base with much less overhead than a traditional retailer. They don't have the employee count, real estate requirements, etc. This makes them a much more efficient business. Taxing the shit out their products is going to cut into their revenue. Ultimately with sales tax and shipping costs, which are increasing as another poster pointer out, will make shopping at the local walmart a better option. So now you throw in a bunch of states and a federal goverment that can't stop spending OUR money and a bunch of walmart lobbyists and what do you get. Well, they stymie companies like amazon so they can spend more of OUR money on god knows what, and throw a bone to companies like walmart. This causes companies like amazon to let go of some of those well-paid programmers, admins, etc, and guess what??? Walmart's hiring.

      I've seen a bunch of very interesting comments revolving around politics and law. What I'd like to see is people on slashdot spending more of their intellectual energy challenging our local political system. I think collectively we can have an affect.

    49. Re:they can pass it all they want... by mi · · Score: 1

      it might actually go to something useful. I know that is a longshot, but it has a greater than 0% chance, which is what you have with a big corporation.

      • a prospering corporation means better service (for you and me) and prospering share-holders (you and me);
      • once you realize, the government might spend the largesses on something stupid or even evil — making negative rather than zero outcome possible — your equation becomes even less convincing.

        So some New Yorkers get to save money while other New Yorkers (especially the Mom and Pops) lose out on MORE money. That does indirectly affect New Yorkers too, since less money being made by businesses translates into less jobs, lower salaries, less benefits, etc.

        • The New York shops have their home state to blame — there is a good reason, why interstate commerce is the federal government's prerogative: out-of-state can not vote and thus can't influence the state's government. Thus laws in a locale, which affect people from other locales, are to be avoided and are only acceptable.
        • Nothing prevents New York shops from taking advantage of the situation "in reverse" and enjoy their advantage. The sales tax in Seattle, WA, where Amazon is headquartered is 9%....

        Forcing a company to know local tax codes (some goes to state, some to the city, but sometimes there are "sales-tax free" days, but only on items under $120, etc. etc.) of their every customer is what's unfair.

      --
      In Soviet Washington the swamp drains you.
    50. Re:they can pass it all they want... by mwlewis · · Score: 1

      Why should a state be allowed to tax activities taking place outside of their state? Would NY like it if CA started taxing their activities? It's not simply the actual tax. The consumer obviously pays that. But there's also the cost of administration and record keeping, audits, etc. Suppose you operate an online store. Suddenly, instead of just worrying about the feds and your home state, you have 49 other states burdening you with their own bizarre tax codes and requirements. I'd like to think that the only people who could possibly support this sort of thing would be politicians interested in spending other people's money, but every year or two, millions of my fellow Americans amaze me.

      --
      JOIN US FOR PONG!
    51. Re:they can pass it all they want... by mwlewis · · Score: 1

      I don't particularly like many big corporations, and I like government less, but at least with government it might actually go to something useful. I know that is a longshot, but it has a greater than 0% chance, which is what you have with a big corporation.
      WTF? So paying workers and buying things from other countries is not useful? I agree, that if the money gets spent on the military, or maybe police or fire services, it's probably a useful dollar to the government, but really, how many of those dollars go there?
      --
      JOIN US FOR PONG!
    52. Re:they can pass it all they want... by maxume · · Score: 1

      For a long time, you could order a house out of the Sears catalog. That was pretty interstatey.

      Hell, I bet the founding fathers occasionally had things shipped from overseas. And by occasionally, I mean more often than you or I ever do. The fact that the transactions are initiated electronically, rather than by written letter doesn't really change anything.

      --
      Nerd rage is the funniest rage.
    53. Re:they can pass it all they want... by Moe+Taxes · · Score: 1

      Constitution has nothing to do with it.

      Jurisdiction is what New York does not have.

      If they want their Sales and Use tax they need to take it from their citizens themselves. They've got no authority to tell a company in Washington to collect taxes for New York.

      --
      It took a real world war to end the airplane's patent wars. - Fâché Rouge -
    54. Re:they can pass it all they want... by Anonymous Coward · · Score: 1, Informative

      "No state shall, without the consent of the Congress, lay any imposts or duties on imports or exports"

      Article 1, Section 10.

    55. Re:they can pass it all they want... by Dun+Malg · · Score: 4, Informative

      tax also has an excise tax for people who import goods from out of state. This is precisely where their argument (and yours) falls apart. They only have legal standing to demand tax from the person bringing the item into the state. They have no legal right to demand that Amazon, an out of state seller, do anything at all for them. Any taxation they demand has to come from regulation of the buyer. The Asahi Metal Industries v Superior Court of California was about product liability, not taxes. The Interstate Commerce clause trumps a narrow ruling on what constitutes a business presence for purposes of liability. If Amazon was sending Amazon-branded* flaming balls of pitch to New York that were starting fires, the Asahi case might have been relevant, but they're not---- they're sending mundane products, made by other companies, through the US Mail!

      * note that a key fact in the Asahi case was that Asahi was the manufacturer of the product in question.
      --
      If a job's not worth doing, it's not worth doing right.
    56. Re:they can pass it all they want... by Anonymous Coward · · Score: 0

      And torture and civil rights are discussed where, exactly, in the constitution?

    57. Re:they can pass it all they want... by TooMuchToDo · · Score: 1

      Maybe if taxing sales becomes too difficult, they will just have to do everything through income tax, and let sales go tax free.

      Actually, it would be better to move the tax burden to sales tax and let income be tax free. This would promote saving vs. promoting spending.

    58. Re:they can pass it all they want... by nullforce · · Score: 1

      It is only suspended for aliens, and then only until after a military trial. After which, they can petition a civilian court via a Writ of Habeas Corpus. I do believe it is unconstitutional because I don't believe the public safety requires it, but Congress and the President seem to believe so.

    59. Re:they can pass it all they want... by DarkOx · · Score: 1

      Really its worse then that. Almost every state New York included, I just IMed a friend who lives there, already requires you to pay sales tax or rather "use tax" on goods purchased out of state and not taxed by that state, some even if those goods were taxed by the other state. When you file your state income taxes there is a line that says something like, "do you owe use tax on items purchased out of state...."

      Most likely if you bought something from Amazon you do. Now the state has no way to know this and outside of asking questions about big ticket items for which there would be records likes cars, they could not even hope to discover this information in an audit; so most people I know lie and answer zero. Stil I don't see what justification New York can have for effectivly shifting the burden of enforicing its tax laws on business that operating outside the sate? That certainly is not fair. New York should find a way to deal with the dishonesty and tax evasion of its own citizens on its own.

      I also have to wonder if there is any legal way for New York to enforce such a rule. Does Amazon for instance use FOB shipping? If they do then they accepted money, outside of the state, and completed their liability getting the product to UPS outside of the state. UPS or whatever shiper then might be liable for some New York taxes since they have to complete part of the transaction in the state. If the sellers agrement is FOB though then they have really done no part of the transaction inside the state and can't be held to its tax rules.

      It seams to me it would be more fair for the state to levy some sort of out-of-state sales tax recovery as part of income, and give residents the option to itemize or pay the standard levy. That would stop people from reporting 0 without at least some evidence.

      --
      Repeal the 17th Amendment TODAY! Also Please Read http://www.gnu.org/philosophy/right-to-read.html
    60. Re:they can pass it all they want... by the+eric+conspiracy · · Score: 1

      The problem with repealing income tax in favor of higher sales taxes is that middle and lower income individuals have to spend a larger percentage of their income on day to day living requirements than higher income individuals do. So instead of a progressive income tax we would now have a flat or regressive tax policy.

      The result of such a tax plan would be n acceleration in the already great imbalances in wealth between the upper income and middle income groups. This would be very bad public policy.

    61. Re:they can pass it all they want... by superdave80 · · Score: 1

      If it's so perfectly legal, why do states not just call it an 'import' tax?

      Also, if I am sending something from California to New York, am I not EXPORTING it? Wouldn't this mean that New York has taxed an export?

      "No Tax or Duty shall be laid on Articles EXPORTED FROM ANY STATE." (emphasis mine)

    62. Re:they can pass it all they want... by AK+Marc · · Score: 1

      I don't think that they thought, or understood, that it could become such an EFFECTIVE loophole to bypass taxes.

      You are missing the point. The taxes are currently due. The $50,000,000 that New York claims it will gain is money that is already owed and not being paid. Rather then enforcing current law (use tax on its residents), it is passing a new law. However, the problem with the new law is how does a state enforce law against an entity with no operations in that state? Is New York going to call up other states and get them to arrest and extradite Amazon? Are they going to fine them when they have no means of enforcing it? Are they going to stop all mail trucks entering the state and search for items coming from Amazon and confiscate them?

      The Constitution has nothing to do with this.

      The Constitution (and federal law based on it) is the only means New York has to enforce any such law on an entity with no presence in its state. I don't see it as an issue of taxation. I'm not sure about New York, but if they are like most places with sales taxes, they have a matching use tax to cover such mail orders. But they are not enforcing that law because it is inconvenient and people don't want to write a check to the state. That's much harder to do than have an amount deducted as part of the transaction. So they are making a law to force Amazon to deduct the money, despite the fact that there is no presence in the state. They should be collecting it from those that have a presence in the state, their residents. And they already have that law and the means to enforce it, but they choose not to because it is inconvenient and unpopular. That is not a good enough reason for new laws. If they tried to enforce it and ran into trouble, then it might make sense to adjust the laws, but to give up without ever trying means that the first law was ill conceived and a waste of time, and likely the second law is too.

    63. Re:they can pass it all they want... by superdave80 · · Score: 1

      I've never understood why any government would tax a sale. Why would you increase the cost of something, and thus make it harder for consumers to buy?

      Plus, people have to pay that tax, whether they have a steady income or not. Same for property tax. The government is making you pay taxes ON THINGS THAT DO NOT GENERATE INCOME FOR YOU TO BE ABLE TO PAY THE TAXES! For example, if I'm out of work, I am still expected to pay property taxes on my house and car, and for certain necessities (some basics are excluded). Where am I expected to get this money to pay the taxes if I'm out of work? It seems that if states just did away with all taxes except for income tax, the tax system would be simpler and more fair.

    64. Re:they can pass it all they want... by dodobh · · Score: 1

      Think about customs duties. The state can simply hold the package until duties are paid.

      --
      I can throw myself at the ground, and miss.
    65. Re:they can pass it all they want... by Bazar · · Score: 1

      Funny, I cannot find one instance he suspended it on American soil or for Americans. Heres an excerpt from:
      http://en.wikipedia.org/wiki/Jos%C3%A9_Padilla_(alleged_terrorist)

      Jose Padilla ... is a United States citizen convicted of aiding terrorists. Padilla was arrested in Chicago on May 8, 2002, and was detained as a material witness until June 9, 2002, when President Bush designated him an illegal enemy combatant and transferred him to a military prison, arguing that he was thereby not entitled to trial in civilian courts. Padilla was held for three-and-a-half years as an "enemy combatant" after his arrest in 2002 on suspicion of plotting a radioactive "dirty bomb" attack. That charge was dropped and his case was moved to a civilian court after pressure from civil liberties groups. US Citizen, in the US, kept for 3.5 years without trial, because the president prevented both the trial while denying his freedom.

      The Military Commissions Act of 2006 simply expands the scope. Where as before the act, only the president could authorize detention without cause. Now the president can authorize other people and even departments with such powers. It also removes in its entirety the right of the Writ of Habeas Corpus, where as before the president's authority to detain could be challenged.

      So there we already have a precedent of a US citizen being detained without cause, on US soil.

      Getting concerned yet? You should be.

      I won't even bother to point out that you'd have to be a selfish bastard, as well as ignorant to think only American's have the right to Habeas Corpus.
      --
      To avoid criticism; Say nothing, Do nothing, Be nothing.
    66. Re:they can pass it all they want... by Dun+Malg · · Score: 1

      For the current crop of "use taxes", neither of those are the case. Of course that's why they hide it behind the thin veneer of "use", rather than "import". It's a complete sham, of course, a bunch of weasel words that get around the letter of the law by circumscribing the items to be taxed in negative, rather than naming the items by their untaxable true category. It's what happens when you let lawyers run a country.
      --
      If a job's not worth doing, it's not worth doing right.
    67. Re:they can pass it all they want... by Anonymous Coward · · Score: 0

      So if Amazon availed itself of NAFTA and shipped all goods bound for NY from Mexico or Canada, would they be covered by the Import/Export clause?

    68. Re:they can pass it all they want... by Grishnakh · · Score: 1

      Who cares if it's Constitutional? Since when did that stop the American government from enforcing a law?

    69. Re:they can pass it all they want... by Anonymous Coward · · Score: 0

      You said: "For a lot of small retailers, the answer is simple. Stop selling to New York." I don't understand why you limited it to small retailers. If Amazon stopped selling to New York addresses, and indicated the reason in a prominent message on the web site, can you imagine the heat the New York public would pour on the politicians? The politicians would melt instantly.

    70. Re:they can pass it all they want... by Anonymous Coward · · Score: 0

      A few years? I'd bet the heat generated would melt the policians in a few days.

    71. Re:they can pass it all they want... by CrimsonAvenger · · Score: 0, Offtopic
      To digress completely...

      Torture is torture.

      It is, eh? So, is serving bacon and eggs for breakfast torture? Or not? It arguably is, if you're a Muslim or Jew, but isn't if you're a Christian.

      And does its "torture" status change depending on how you cook the eggs? Eggs fried in bacon grease - yummy! Unless you're a Muslim or Jew. And not knowing - what does that do to the torture status of breakfast?

      Unless you're a Vegan, of course, in which case it might always be torture.

      Is serving "mystery meat" torture? Again, for some people, knowing what they're eating is essential, to others it's not so important.

      In other words, while there are some things that are probably clearly torture, there are a LOT of things that MAY be torture. Or not. Depending....

      --

      "I do not agree with what you say, but I will defend to the death your right to say it"
    72. Re:they can pass it all they want... by STrinity · · Score: 1

      Unless you're referring to the New York state constitution, it is. My tax returns for Virginia have included a line asking you to declare all online purchases made in the past year and add the unpaid sales tax to your total. California and several other states do the same. NYers should suck it up. Or simply leave that line blank. Your choice.

      --
      Les Miserables Volume 1 now up with my reading of
    73. Re:they can pass it all they want... by Anonymous Coward · · Score: 0

      You aren't up to date on the proposals to replace income tax with sales tax. The current proposals include a cash payment to everyone for the amount of sales tax corresponding to the purchases that a person/family need to support a certain minimum standard of living. This eliminates the regressive nature of sales taxes that you are complaining about.

      I think the proposals make a lot of sense. Imagine the savings involved -- no wage withholding for income tax, no record-keeping for income tax, no tax return preparation (or paying someone else to do it for you), greatly reduced size of IRS. Except in a few states, retail businesses already collect sales tax, so the extra work of collecting the additional sales tax would probably amount to merely changing the tax percentage value in their computer. The actual work of sending the appropriate portion of the tax to the federal government would be done by the state tax offices, not by the individual retailers, and that would be a very small extra burden.

      The proposals have been tuned to set the new sales tax rate at a level such that the revenue would exactly match the revenue lost by elimination of the income tax. The net system is still progressive in that rich people tend to buy more, and more expensive, goods, so they will pay more sales tax than people with more modest incomes. And the payment to everyone I mentioned in the first paragraph completely eliminates the tax burden on low income people.

      A very good idea, assuming we can insure that the politicos really give up on income taxes. That's the only danger I see to the idea.

    74. Re:they can pass it all they want... by jb68321 · · Score: 1
      It's already done in FL. It's called a "use tax," defined as follows:

      Use Tax and Consumption Use tax complements and is applied in the same manner as sales tax. The use tax rate and sales tax rate are the same, including discretionary sales surtax, if applicable. Use tax is due on purchases made out of state and brought into Florida within 6 months of the purchase date. Also, if you purchase a product tax-exempt that you plan to sell at retail, but end up using it at your place of business, the "use" of the product is subject to tax. If you purchase materials that are "consumed" in a manufacturing process to create your end product but are not part of the end product, those materials are subject to tax. The "use" component of the sales and use tax provides uniform taxation on items that are purchased outside Florida but are used or stored in the state. If the item brought into Florida is subject to tax, a credit for lawfully imposed taxes paid to another state, a U.S. territory, or the District of Columbia is permitted. Credit is not given for taxes paid to another country.
      You are expected to send in any tax that wasn't already levied when you purchase something online, in quarterly installments with a document. About half the people from FL I've talked to so far knew about this... not sure how long it's been around, but I just found out about it.
    75. Re:they can pass it all they want... by Anonymous Coward · · Score: 0

      I am glad you were modded up for this. Thanks moderators. If out of state sellers are not taxed but the local producers are taxed it is unfair to the local business. Either tax neither or tax both.
      You seem to be confused. It is not the sellers that are taxed / pay the sales tax, it is the buyers. In all cases it is the obligation of the buyer to pay the required sales tax. The only difference is that the state has jurisdiction over intrastate commerce and can mandate that the seller collect that tax for them at the point of sale. The state government has no such authority with regards to interstate commerce, so they have to rely on buyers to self report their purchases and pay the taxes themselves. You do pay your sales tax on everything you buy from out of state, don't you?

      Amazon should just tell them to go pound sand.
    76. Re:they can pass it all they want... by putch · · Score: 1

      right, so online retailers are voluntarily going to stop selling to one of the most populous and wealthy cities in the country? fat chance.

      by the way, keeping track of 50 sales tax rates really isn't that hard these days. it's 2008--it would be trivial to create publicly accessible database that linked zip codes to sales tax rates. it only gets really tricky if you start applying COUNTY LEVEL tax rates. and many states, ny in particular, have sales tax rates that vary by county.

      --
      just because I don't care doesn't mean I don't understand!
    77. Re:they can pass it all they want... by thePowerOfGrayskull · · Score: 1

      Good in theory, but it will cost the large etailers less to deal with the taxes than it will in lost profits if they stopped selling.

    78. Re:they can pass it all they want... by krazytekn0 · · Score: 1

      This is exactly what I was thinking, I don't have the manpower to deal with New Yorkers any more if this law is enforcible. A New York shipping address will simply not be validated if shipping something to New York requires me to collect more taxes and file another form every month/quarter/whatever.

      --
      Not all life is cyber. Extra Income
    79. Re:they can pass it all they want... by Anonymous Coward · · Score: 0

      Unless you're referring to the law prior to 1877, there's absolutely no legal requirement for an entity to have a physical presence inside a state for a state's law to affect it.

      For starters read http://en.wikipedia.org/wiki/Pennoyer_v._Neff

      This is a stupid move by New York, but you're very wrong in saying "the constitution is the only means New York has to enforce any such law on an entity with no presence in its state." The State of New York was imposing taxes well before the United States existed under the constitution and New York retains all of those powers except those ceded to the federal government by the constitution (see 10th amendment). State courts regularly enforce judgments outside of the federal constitution on non-residents.

      You would be right if you said that New York would have a hard time enforcing its judgments on Amazon without the Constitution. In that case, New York wouldstop Amazon's trucks at the borders, seize their cargo, and sell it, until it had recouped its judgment.

    80. Re:they can pass it all they want... by EaglemanBSA · · Score: 1

      Now, that brings up an interesting point - say they (NY) get this law passed, and suddenly want detailed lists of products and their prices on all good shipped to NY addresses...would that violate amazon's (or similar sites') privacy policies?

      --
      Quiz: True or False -- On a scale of 1 to 10, what is your middle name?
    81. Re:they can pass it all they want... by danielsfca2 · · Score: 1

      You know, I agree with your thesis, but I think it's laughable that you're so biased against unions. You cited UPS. Hm, let's see. Both UPS and FDX can deliver a package for you in your choice of 1, 2, 3 days, or ground, both are highly reliable, and both cost about the same on average. Both of them make a tidy profit.

      Yet UPS drivers, loaders, etc. are paid more and have better benefits. Why? Because FedEx are union-busters, so their management and shareholders keep more of their company "pie."

      I know who I'd rather have handling my breakable electronics and stuff... A better-paid employee who has a contract and a vested interest in staying with a company where he's getting a good deal.

      And DHL's quality (which is admittedly low in my limited experience) has nothing to do with Deutsche Post. In this country what's now DHL used to be a private enterprise called Airborne Express. It's always been the economy carrier. It charges accordingly, and you get about what you pay for.

    82. Re:they can pass it all they want... by wideBlueSkies · · Score: 1

      >>have no particular loyalty or special fuzzy warm feelings for any company due to their "geographical" attributes as you suggest. I said quite clearly, "It's NOT FAIR". That is not a vague statement. It means that Corporation A has an unfair advantage over Corporation B.

      And the reason said advantage exists is because NY State (and every other municipality) tax the living hell out of everything.

      Of course people are going to look for an alternative... we all pay too much in tax as it is... 47% of my income goes to taxes... In NY I have to pay 8 1/4 % on each purchase....the retailer has to pay 8 1/4 % on his side of the purchase too(plus federal tax as income)... my interest on my bank account is taxed(and the bankd and fed gov't make money using my savings money)... I have to pay tax on my utility bills... and on gasoline... and on food... as do the gas stations, and supermarkets..

      and to top it off I have to spend $8 on a fracking bridge or a tunnel to get out of the city.

      In the end..I think that 70% of money that I earn goes to taxes... the govt finds every little thing and attaches a tax to it...for what? To keep running this awesome country where the 3rd largest city is the prison population?

      But to get back on track.. they THINK they're deprived of $50 million a year. But what's happening is that people are looking for any possible alternative to being squeezed.

      --
      Huh?
    83. Re:they can pass it all they want... by danielsfca2 · · Score: 1

      out of state sellers are not taxed but the local producers are taxed...*whine whine* so unfair...
      OH MY GOD.

      Guess what? We're all out-of-state sellers to 49 states, and in-state sellers to one.

      The reason why this should not be changed is simple. Because if you only sell in-state and are tired of this "unfairness" then set up an online storefront for $100 bucks and start doing business with the 49 other states where you don't have to charge tax. If your customers are buying products you sell from your competitors over the internet, then OBVIOUSLY YOU COULD SELL OVER THE INTERNET TOO

      "Oh, but that's so stupid, we'll waste so much gas sending goods across state lines just to evade income tax."

      GOOD! When businesses start to do more and more of their sales across state lines to avoid their bullshit taxes, then this will force them to think of a better tax strategy!

      This is just globalization on a smaller scale. Continentization, maybe?

      And you don't explain how you propose to allow 49 other states to regulate each business that sells online... So does each business have to write 49 extra sales tax checks every month? And if they don't, then what happens? New York for example, would have to send tax evasion cops into California to arrest you? HOW MANY FREAKING TAX COPS WOULD YOU HAVE TO HIRE TO MAKE THIS WORK?
    84. Re:they can pass it all they want... by falconwolf · · Score: 1

      Just raise the specter of national security and every judge in the country (especially the Supreme Court) will roll over as always.

      Actually the USSC didn't roll over in the José Padilla (prisoner) case. The USSC also upheld Habeas Corpus in Hamdi V Rumsfeld.

      Falcon
    85. Re:they can pass it all they want... by falconwolf · · Score: 1

      It seems that if states just did away with all taxes except for income tax, the tax system would be simpler and more fair.

      Yea, let's tax work that way we can discourage people from working. The only fair taxes are sales and use taxes.

      Falcon
    86. Re:they can pass it all they want... by Maxo-Texas · · Score: 1

      Well new york does have about 10% of your potential customers tho. Someone will serve them and take the tax hit.

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
    87. Re:they can pass it all they want... by wdr1 · · Score: 1

      Somebody tell that to California, as we already have it.

      *grumble* *grumble*

      --
      SlashSig Karma: Excellent (mostly affected by moderatio
    88. Re:they can pass it all they want... by rfc1394 · · Score: 1

      New York can very constitutionally tax goods that are used in New York. And it can reach Amazon to enforce it because Amazon has "purposefully availed" itself of the New York market by advertising there and shipping orders there. See the case Asahi Metal.
      Uh, no they can't. In Asahi Metal Industry Co. v. Superior Court 480 U.S. 102 (1987), the court found the exact opposite of your claim; the forum state lacked sufficient contacts to have jurisdiction over the plaintiff in the case. You might also want to look up Complete Auto Transit v. Brady, for the rules (a four-part test) on when a state tax violates interstate commerce. Further, this issue has long since been settled with the 1992 Quill case (504 US 298). "In Quill Corp. v. North Dakota, the Supreme Court explained that a business had to be physically present in a state before that state could require the business to collect use tax on its behalf." (Tax Foundation Website)
      -- Paul Robinson My Blog
      --
      The lessons of history teach us - if they teach us anything - that nobody learns the lessons that history teaches us.
    89. Re:they can pass it all they want... by Anonymous Coward · · Score: 0

      . i wish I had my own right-wing/libertarian ACLU to go around suing for fun and profit all the time. Bush did one better, his administration made the USAG office a political arm of the Republican party.
    90. Re:they can pass it all they want... by the+eric+conspiracy · · Score: 1

      I am aware of those proposals. They do not eliminate the regressive nature of this proposal because consumption as a percentage of income declines up to much higher income levels than the cash payments cover. While the cash payments cover some consumption basis they do not correct for the regressive nature of the tax above these levels.

      While it sounds attractive because of its simplicity and the idea that it favors saving over consumption, a purely consumption based tax is an extremely bad idea that grossly favors the high income segment of the population to an extraordinary extent and will result in an increasing concentration of wealth in the hands of a small percentage of the population - already a significant problem in the US.

      There are other ways to encourage saving that don't have these problems such as 401K type programs that are have been successful. I think that the expansion of these programs is the correct mechanism to encourage savings.

    91. Re:they can pass it all they want... by Chris+Hiner · · Score: 1

      County, City and other regional taxes make it very complex. And some states, such as California specifically tell you that zip code isn't enough to identify which taxes apply to an address. See http://www.boe.ca.gov/pdf/pub71.pdf

      If you are in doubt about the correct rate, check with your customer, call our toll-free number (800) 400-7115, or call the local Board of Equalization office near you for assistance.

      Yes, that's REALLY easy to automate....

    92. Re:they can pass it all they want... by arminw · · Score: 1

      ....They have no legal right to demand that Amazon, an out of state seller...

      If Amazon or other out of state retailer simply ignores NY's law, could they be called to a NY state court to answer why they are not complying with that law? It seems to me that NY laws and courts have no jurisdiction over a resident or business in another state. Isn't that why there has to be an extradition proceeding in criminal cases?a Since the out of state retailer isn't committing a crime, they should be able to safely ignore any legal summons from the state of NY. Would they not have to get the Federal Courts or other Federal agency involved?

      --
      All theory is gray
    93. Re:they can pass it all they want... by arminw · · Score: 1

      ...New York's tax is, for all practical purposes, an import tax...

      So what? They can tax the one who imports the tax, ie, the NY customers of Amazon. What NY cannot do is force Amazon to collect the tax for them. Amazon and all other out of state sellers should just ignore them. Let NY try to force them to collect the sales tax. I wonder what court of law they would try this in.

      --
      All theory is gray
    94. Re:they can pass it all they want... by Anonymous Coward · · Score: 0

      Note that I said if Amazon stopped selling to New York addresses. You are right that if just a few small online retailers stopped selling to New York, it wouldn't do much good.

      I think that if Amazon wants to stop this, it could, probably all by itself. Even better, I think Amazon could easily promote a boycott on selling to New York, just by some publicity on their web site (not by making any actual agreements or even contacting other retailers). Such a boycott certainly wouldn't be 100% effective, but it probably would be big enough to cause instant uproar and kill the idea very quickly.

    95. Re:they can pass it all they want... by falconwolf · · Score: 1

      The problem with repealing income tax in favor of higher sales taxes is that middle and lower income individuals have to spend a larger percentage of their income on day to day living requirements than higher income individuals do.

      The problem with income tax is that it discourages working and earning. The plus of having no income tax is it leaves more money to be invested which creates more and better paying jobs. As for sales tax, it not need be a problem, don't tax essential things like clothing, food, housing, and medicine.

      Falcon
    96. Re:they can pass it all they want... by arminw · · Score: 1

      ....The result of such a tax plan would be n acceleration in the already great imbalances in wealth between the upper income and middle income groups...

      So then the rich would be able to accumulate untold wealth, but would not be able to buy anything if ALL sales of every sort were taxed at some level. If a rich person wants to enjoy his or her wealth, eventually they would have to buy something, say an expensive car, a yacht, or a fancy mansion by the seashore. They key would be a universal sales tax that would apply to ALL property, whether physical or not. There could not be any buying or selling of ANYTHING, without the taxman getting his cut. Under such rules, the income tax and its attendant complexity could be eliminated.

      --
      All theory is gray
    97. Re:they can pass it all they want... by Bazar · · Score: 1

      The largest purpose of Habeas Corpus is the fact that it prevents you from being detained without a legal reason. The whole idea of Habeas Corpus is that both you and the court are to be held accountable to one another.

      What good is it if you can be detained without accountability indefinitely.

      The biggest cases of Habeas Corpus have been cases where the victims have gone without trial, or even known what they were being charged with for years at a time.

      --
      To avoid criticism; Say nothing, Do nothing, Be nothing.
    98. Re:they can pass it all they want... by arminw · · Score: 1

      ...will result in an increasing concentration of wealth in the hands of a small percentage of the population...

      So what? Let the rich accumulate their wealth to their hearts content. Tax them as soon as they want to convert any of that wealth into goods and services. Tax them any time they buy anything at all, including things like real estate, stocks, bonds, and other transactions currently not taxed. Such a sales tax would have to be levied any time money changes owners. The tax rates could be tuned to be revenue neutral to the present taxes collected. The sates collect all taxes and then send the appropriate amount to the IRS.

      --
      All theory is gray
    99. Re:they can pass it all they want... by arminw · · Score: 1

      ....Give the "taxes" to a corporation or to your local government....

      The bottom line is the final amount. It's not like shipping costs are not included in the locally bought merchandise. Therefore, you even pay sales taxes on the shipping.

      For relatively light, high priced items, shipping, even with high fuel costs, is still cheaper than the taxes. Local Fedex and UPS drivers and other employees pay taxes as well and contribute to the economy.

      --
      All theory is gray
    100. Re:they can pass it all they want... by arminw · · Score: 1

      ....for or against taxing sales derived from out of state ...

      The issue is simply this: Does NY have the constitutional right to force Amazon or other out of state online retailers to become their tax collector? They can and do tax the NY buyers who are supposed to pay the tax. Unless there is an agreement between states, one state cannot enforce its laws in another. Thats why there are criminal extradition agreements between states.

      --
      All theory is gray
    101. Re:they can pass it all they want... by Anonymous Coward · · Score: 0

      Hey, if you wait to find a perfect system, you'll never make any change. Do you really think the proposed system would be worse than the current one? It seems to me to be rather better.

    102. Re:they can pass it all they want... by arminw · · Score: 1

      .....However, when Amazon does not have to charge sales tax....

      Amazon doesn't CHARGE anybody sales taxes. All that NY wants to do is to force Amazon and other out of state entities into becoming tax collectors for NY. The question simply is this: Can NY enforce their laws in some other state? I think the answer is NO.

      --
      All theory is gray
    103. Re:they can pass it all they want... by falconwolf · · Score: 1

      a prospering corporation means better service (for you and me) and prospering share-holders (you and me);

      A prospering corporation may mean better service but it doesn't have to mean that. And I doubt many people are stockholders.

      So some New Yorkers get to save money while other New Yorkers (especially the Mom and Pops) lose out on MORE money. That does indirectly affect New Yorkers too, since less money being made by businesses translates into less jobs, lower salaries, less benefits, etc.

      The New York shops have their home state to blame

      I agree here. There's another thing I doubt many have thought of, I certainly hadn't until I read something about it. Many people believe money spent at a locally owned business will stay there, and this is one reason I'd preferred to support them myself, however it's not necessarily true. I used to love going to this one Middle Eastern deli where I used to live. It was owned by a Syrian or Syrian-American. Some might think he spent or invested his money locally, but he may of actually sent a lot of money to relatives in Syria as remittances. These remittances sent back home, wherever home is, is actually more money than all of the foreign assistance or aid given.

      Falcon
    104. Re:they can pass it all they want... by Clock+Nova · · Score: 1

      Serving bacon to a Musilm isn't torture. . . it's just rude.

      --
      There they were, sitting in the van with all those dials, and the cat was dead. -V. Marchetti, CIA
    105. Re:they can pass it all they want... by superwiz · · Score: 1

      That's irrelevant though. A company's "policy" is just a course of action that it has mandated for itself. They still have to be compliant with the law. But the point I was trying to make was that any law made by the state of NY would not apply to Amazon. Amazon is simply out of their reach.

      --
      Any guest worker system is indistinguishable from indentured servitude.
    106. Re:they can pass it all they want... by pdclarry · · Score: 1

      New York can certainly tax, but the Supreme Court's Quill decision from 20-odd years ago says they can't make the retailer collect the tax. Very similar situation; Quill was a mail-order office supply company that advertised nationwide, sent catalogs nationwide.

    107. Re:they can pass it all they want... by Anonymous Coward · · Score: 0

      That is correct, but not for the reason many people are putting up. The reason this is not constitutional is because of the Complete Auto Transit decision. In this decision, the court elaborated on the Dormant Commerce Clause, and decided that there were 4 criteria in order for a state tax to pass. These four were:

      1) Nexus
      2) No discrimination against interstate commerce (was originally no burden, but that has been changed)
      3) Relevance to services provided by the state, and
      4) Apportionment to each of the states

      In this case, we are looking at nexus. Nexus was more clearly defined for sales and use tax by the Quill case. In this case, The Supreme Court determined that because Quill did not have physical presence in the state, North Dakota could not force Quill to collect their sales tax on the sales inside that state.

      The reason cities and states do not tax internet sales is because this has already been decided: it's not constitutional. Unless Congress specifically makes a law that allows states to do this, states will not be taxing internet sales anytime soon, and they will have to depend on the buyers claiming use tax on their tax returns.

    108. Re:they can pass it all they want... by Reziac · · Score: 1

      Taking your post seriously for the purpose of argument -- do we really want to start amending the Constitution during an era when personal rights and freedoms are eroding at a record pace? What sort of Constitution would we have after that?

      [thinking] A very short one... one line, in fact:

      All things not compulsory are forbidden.

      --
      ~REZ~ #43301. Who'd fake being me anyway?
    109. Re:they can pass it all they want... by Anonymous Coward · · Score: 0

      Asahi Metal? How about a decision that's 5 years more recent? Quill v. North Dakota.

      http://en.wikipedia.org/wiki/Quill_Corp._v._North_Dakota

    110. Re:they can pass it all they want... by Anonymous Coward · · Score: 0

      I assume that Amazon.com is located in a state as well, thus amazon.com is EXPORTING it's items from that state to New York State. Thus this is a tax on, "Articles exported from any State." So, yea, the tax is Unconstitutional. Like I said before, there's no interpretation in the Constitution. It's all spelled out clearly with precise language. It's just over-zealous talmudic scholars that think they can interpret it better than the founders wrote it.

    111. Re:they can pass it all they want... by mi · · Score: 1

      A prospering corporation may mean better service but it doesn't have to mean that. And I doubt many people are stockholders.

      It certainly depends on the corporation. All I was saying, was that the difference between a corporation getting one's money and one's local government getting it is not at all clear cut — contrary to the repeated assertions of the person I was responding to.

      Some might think he spent or invested his money locally, but he may of actually sent a lot of money to relatives in Syria as remittances.

      He, likely, does both. It would not worry me at all, if it weren't for the thought, that some of his money may end up helping people like Hezbollah or Hamas. Even if he does not send it to them, contributions to charities operating in the area lift the pressures off these terrorist organizations to provide their populace with services... Unfortunately, there is no way to dislodge an organization like those without real pain to the civilians, who vote for them and/or are controlled by them.

      I try to push these thoughts away, when I visit a local Syrian-owned grocery shop — the owner is a fellow American after all — but it remains a concern...

      --
      In Soviet Washington the swamp drains you.
    112. Re:they can pass it all they want... by falconwolf · · Score: 1

      Some might think he spent or invested his money locally, but he may of actually sent a lot of money to relatives in Syria as remittances.

      He, likely, does both. It would not worry me at all, if it weren't for the thought, that some of his money may end up helping people like Hezbollah or Hamas. Even if he does not send it to them, contributions to charities operating in the area lift the pressures off these terrorist organizations to provide their populace with services... Unfortunately, there is no way to dislodge an organization like those without real pain to the civilians, who vote for them and/or are controlled by them.

      Maybe using a Syrian deli as an example wasn't such a good idea but that's what came to my mind first besides Mexicans. Maybe an Indian restaurant would of been better, or take all those Indians in the US on H1B visas. It's likely some if not many of them send money home to India.

      I try to push these thoughts away, when I visit a local Syrian-owned grocery shop -- the owner is a fellow American after all

      I didn't know whether they, a family ran it, were US citizens, residents wanting citizenship, or just residents. It didn't and doesn't matter to me, so long as a person does not harm or violate another's rights it doesn't matter where they live.

      Falcon
    113. Re:they can pass it all they want... by skywire · · Score: 1

      Looking for a libertarian 'ACLU'? Check out the merry band of litigators at the Institute for Justice

      --
      Those who would give up essential liberty to purchase a little temporary safety, deserve neither liberty nor safety.
  3. How does this work? by The+Ancients · · Score: 2, Interesting

    I'm not an American, so I don't know how the system works.

    My guess is a sales tax is charged (we have GST - Goods and Services Tax - here in New Zealand) on goods sold within the state. Now I presume the purpose of this consumption tax is to pay for goods and services beneficial to the residents of that state.

    Hence I guess the argument lies with whether the burden of payment for this tax (and reaping the benefits of such) comes down to those producing said goods and services, or consuming them.

    Anyone care to clue us non-Americans in on how this is supposed to work?

    1. Re:How does this work? by Ecuador · · Score: 4, Informative

      The tax is supposed to be collected where the purchase is made. So, if you are in NY and order something online, you are supposed to pay the NY tax on it. However, if the retailer does not have an actual presence in the state they are not obliged to collect the tax in behalf of the state, and in that case the consumer has to declare it when filing for state taxes. I guess they have noticed that not many people declare their purchases to pay tax on them...

      --
      Violence is the last refuge of the incompetent. Polar Scope Align for iOS
    2. Re:How does this work? by Anonymous Coward · · Score: 0

      Right. Nobody actually pays those taxes.

    3. Re:How does this work? by doktor-hladnjak · · Score: 5, Informative

      Courts have determined that when you buy something through the mail, the sale takes place at the seller's location not the buyer's location. Hence, when a NY resident buys something from Amazon, the sale takes place where Amazon is based--in WA. The exception is if the seller has a "substantial business presence" in the buyer's state, in which case the sale is considered to have taken place there.

      It's not even a question of the seller not being obliged to collect the tax. In the example, NY has no authority to tax sales completed in WA.

      To get around this, many states have so-called use taxes that are typically equal to their sales tax rates. Use tax is collected when a resident brings a good bought out of state back into their state of residence. The rationale is that the use of the item is being taxed, not the sale of the item. In practice, states only routinely collect use taxes on cars, because it's typically part of the process of registering and titling a car in a new state.

      Personally, I can't see how NY is going to be able to enforce this law. They can't compel businesses outside of their jurisdiction to collect and remit these taxes without some sort of federal law.
    4. Re:How does this work? by Anonymous Coward · · Score: 0

      Anyone care to clue us non-Americans in on how this is supposed to work?


      It's quite simple. The government simply declares that the constitution doesn't apply to whatever law they are passing.
    5. Re:How does this work? by Dahamma · · Score: 1

      I think one reply already gave the genreal idea, but was fairly wordy/roundabout... so, to summarize:

      In the US an interstate sale legally occurs in the seller's state (unless the seller has a "presence" in the buyer's state). US states are Constitutionally not allowed to create laws regulating interstate commerce, so for example if someone in New York buys something from a company in California, the state of New York can't force the California company to collect sales tax.

      To answer your question - the burden of tax payment definitely resides with the buyer if the buyer's state is the one imposing the tax. This is not new, in fact - many states' tax forms already have provisions for Internet purchases into the state... it's just that no one actually fills those out :)

    6. Re:How does this work? by StopKoolaidPoliticsT · · Score: 1

      the consumer has to declare it when filing for state taxes. I guess they have noticed that not many people declare their purchases to pay tax on them... NY State, Income Tax form IT-201 (the main tax form, like a federal 1040):
      Line 59: Sales or use tax Do not leave line 59 blank:

      Now... you can either keep track of all of your out of state purchases and pay the exact amount or you can just go by the income range table:
      up to $15,000: $5
      $15,001-30k: $15
      $30k-$50k: $21
      $50k-$75k: $27
      $75k-$100k: $40
      $100k-$150k: $56
      $150k-$200k: $72
      $200k+: .0361% of income (.000361) or $200, whichever is smaller

      If you don't fill in the line or enter a 0, you're basically begging for a state audit

      So, the state is effectively already charging for out of state purchases and has been for a couple years now... but that's never enough for NY, we need even more taxes. We're $90 billion in debt (if you count the NY State Authorities debt), and are still seeing double digit budget increases every year despite us running in the hole every year. Upstate has been destroyed economically with business fleeing left and right to other states and countries while the state just keeps squeezing more and more. But I guess that's a rant for another day.
      --
      Stop Koolaid Politics
    7. Re:How does this work? by A+nonymous+Coward · · Score: 2, Interesting

      The US political divisions can all levy their own sales taxes. There is no national sales tax, but there are state, county, and city taxes, not to mention all sorts of special tax districts -- mosquito abatement, hospital, etc -- which all have their own sales taxes, altho I think these last have to be given permission by the states, cities, and/or counties -- those details escape me.

      If you have a brick and mortar store, it stays put and your sales taxes don't change from one sale to the next, only when the governments change them, and so it's a simple matter of looking up the tax on a chart or reloading the cash register.

      The trouble begins with out of area transactions. If amazon in Washington state sells to someone across the country in Virginia, how are they supposed to know what that local Virginia tax should be? It's not just the varying state taxes, it's all the little divisiosns, and especially counties and all the mosquito abatement districts, since no one puts those down in their address, yet the tax depends on that. There are some horrendously complicated programs to determine county and tax district from the street address, and not only do they not work well even with perfect data, people misspell names and use Street instead of Avenue all the time. Thus the principle was established that the out of state retailer doesn't have to collect sales tax unless they have a physical presence in that state, and then I don't know the details of how they compute it, but presumably it is supposed to be easier. So Starbucks, for instance -- if they have a web store, they presumably have to collect sales tax based on the buyer's location, not any of their stores.

      This whole thing could be cut like the Gordian knot if they changed the rules to say that every retailer, like amazon, collected taxes based on where the seller is, not the buyer -- after all, that's how brick and mortar taxes work. If you travel across state boundaries to buy something, say on vacation, you don't show an id to the clerk to establish your address so they can figure out the taxes -- they charge based on the store's location.

      Imagine how much simpler it would all be. Of course, amazon would have to charge sales taxes on every thing they sold, not just things sent to Washington state addresses. That would lead to bidding wars, with states even offering special reduced sales tax rates to entice busienss to their area. The loser states would complain that this was unfair, as if the current situation has any resemblance to fair. Customers would also gripe and moan. But I personally wish someone would take the bull by the horns and push for this change, just to get rid of all the bureaucracy that goes along with the thousands of different tax rates.

    8. Re:How does this work? by A+nonymous+Coward · · Score: 1

      Courts have determined that when you buy something through the mail, the sale takes place at the seller's location not the buyer's location.

      Not quite that simple -- the seller doesn't have to pay taxes on out of state sales, which is different from brick and mortar stores. If you travel out of state to buy something from a brick and mortar, you pay that store's tax. If you travel via the web to an out of state web site, you don't pay taxes based on where the web site is, you simply don't pay any taxes.
    9. Re:How does this work? by davolfman · · Score: 1

      Let's not forget that it would mess with the appliance delivery business. This precedent is also applied in that case where living in the suburbs can make a delivered appliance cheaper than a in-store appliance by being outside an incorporated city tax district.

    10. Re:How does this work? by flabbergast · · Score: 3, Informative

      Most states have Sales and Use tax. The use tax is for goods purchased for use within the state. So, the GP is correct: in most states you're supposed to pay taxes on goods purchased over the Internet or through catalogs or if you purchased it from a state with no sales tax.

      If you look at most state personal income tax forms you'll generally see an area for calculating tax on goods purchased from other states or over the internet. I know off the top of my head that Wisconsin, Illinois, Colorado, Ohio and Utah all have some type of line for calculating Use tax on their personal income tax forms.

    11. Re:How does this work? by Lost+Engineer · · Score: 1

      But I guess that's a rant for another day. I'd say that's a rant for this day, considering how close we are to returns' due dates. And so I say, right on! Keep ranting. The bigger the forum the better.
    12. Re:How does this work? by Charcharodon · · Score: 3, Informative
      Generally there are three budgets that need to be funded. Federal - the whole country. State - everything within the State. Finally County/City, sometimes there are seperate County(Parish) and City budgets.

      Typically Federal is funded by Income, Medicare, Social Security, Capital Gaines, Fed Fuel tax, import/export tarrif, drug seisures.

      State is typically funded by a State Income taxes (not all states have income tax), State sales tax (3-9%), State fuel tax, fees (license & permit). State funds typcially tend to pay for local infrastructure (roads, water, power, bridges), education, health care, arts, wild life reserves, etc. It's hard to say that the only ones that pay for those things because there is so much overlap from the cities and federal government.

      County/Parish/City is typically funded by property tax (usually just land/house, though things like cars, boats, aircraft can be taxed as property), permit fees/licenses (building, business, etc), services fees (water, sewer, fire dept)

      While I personally love no sales tax on the internet, it does bleed the State budgets of money, which of course creates new opportunities for the Federal Gov't to come in and pay the bills. Congress is never shy about using that money to blackmail the States in to doing what they want, by threating to withhold the funds. Federal highway funds have been used for years to push varies issues such as polution regs and drinking age limits.

      Most people forget that the US is actually 50 different countries bound together by the Constitution. Each State in turn has its own Constitution which all are similar, but there are some differences. There has been a constant fight between State & Federal government over who is in control of what, generally who is in charge of the money. The Federal Government has been slowly creeping into what traditionally is State territory, sales tax just being the latest. Basically the only thing the Feds are supposed to do is protect the borders, raise a national army, print money, and regulate commerce nationally & internationally, and treaties.

      What's funny these days the Fed's are a little on the broke side so many States are looking to go there own way again. Internet sales tax, education reform, polution, fire arm regulation (the federal government has very little actual say in this, though you wouldn't think so by what you see in the news), and drinking age being the hot topics of the day.

      So that should make it clear as mud for you. If you did understand it all then there are many very high paying jobs waiting for you in the US.

    13. Re:How does this work? by yuna49 · · Score: 1

      Those income-based taxes are pretty meager actually. I would have paid more tax on a single item I purchased from Amazon, a Sony HDTV, than I would be paying under this schedule for all my interstate purchases.

    14. Re:How does this work? by yuna49 · · Score: 1

      I'd guess we'd see a lot of online retailers moving to New Hampshire (which has no state sales tax) if this model were adopted.

    15. Re:How does this work? by Falkkin · · Score: 1

      "Personally, I can't see how NY is going to be able to enforce this law. They can't compel businesses outside of their jurisdiction to collect and remit these taxes without some sort of federal law."

      Sure they can. Maybe they can't sue Amazon for lost revenue, but they can certainly say "you are no longer allowed to sell anything to our residents". At that point they potentially set up a standoff -- if Amazon calls their bluff and shuts down New York operations, would the citizens of New York raise enough hell to make the NY government change its laws?

    16. Re:How does this work? by Ortega-Starfire · · Score: 1

      "At that point they potentially set up a standoff -- if Amazon calls their bluff and shuts down New York operations"

      This is exactly what I hope Amazon does.

      --
      ---- Liquid was a patriot ----
    17. Re:How does this work? by Anonymous Coward · · Score: 0

      Does Eliot Spitzer have to pay a "use" tax?

    18. Re:How does this work? by oyenstikker · · Score: 1

      Read NY's tax law. If I buy a spatula in Ontario county but I live and use the spatula in Monroe county, I have to pay to the state the difference in the Ontario's tax and Monroe's tax with my income tax returns. It gets better. If I buy a bottle of soap in Ontario county and use 27% of it in the parking lot, then take the rest home with me to Monroe county, I have to pay to the state 73% of the difference. The same logic applies to items purchased out of state and brought into the state.

      You already have to declare any such items on your income tax return and pay. If you haven't kept every receipt for every out-of-county purchase for the year, you can calculate a flat rate based on your adjusted income.

      --
      The masses are the crack whores of religion.
    19. Re:How does this work? by tjcioffe · · Score: 1

      We found this out the hard way (NJ) at my company, when our yearly financial audit revealed that we hadnt been paying sales tax on online purchases but due to the (im assuming) use tax that youre speaking of, we were told that we had to go back and pay taxes on all those goods we thought we were getting a better deal on. ended up costing a couple grand if i remember correctly...

    20. Re:How does this work? by Dun+Malg · · Score: 1

      they can certainly say "you are no longer allowed to sell anything to our residents". And how the holy hell would they ever enforce that? Post guards at the state line to stop US Mail trucks to inspect their cargo? Do you have any idea how fast that lands you in federal pound-me-in-the-ass prison? Such a ban would be meaningless. Amazon need not say or do anything, and commerce would continue.
      --
      If a job's not worth doing, it's not worth doing right.
    21. Re:How does this work? by Falkkin · · Score: 1

      The state I live in (Pennsylvania) has a state-wide liquor monopoly, and private citizens are banned from shipping mail-order wine from other states into Pennsylvania without going through a state store (and the state store adds $4.50 + 25% tax per bottle). In theory, this law might suffer from the same enforcement problem you're talking about, but in reality most out-of-state wine sellers won't ship wine to Pennsylvania addresses.

    22. Re:How does this work? by Anonymous Coward · · Score: 0

      In fact, New York is one of those states. In your annual state income tax form, you have to declare how much tax you owe for all goods and services purchased out of state, including interactive online services. You can either choose a flat estimate based on your income or do the calculation yourself. If you don't owe any tax, you have to write in a "0." (In other words, they want to make sure they can get you for filing a false tax return if they can prove you bought something over the Internet in the past year.)

    23. Re:How does this work? by krazytekn0 · · Score: 1

      If you have a brick and mortar store, it stays put and your sales taxes don't change from one sale to the next, only when the governments change them, and so it's a simple matter of looking up the tax on a chart or reloading the cash register. This is why I built my store out of wood...
      --
      Not all life is cyber. Extra Income
    24. Re:How does this work? by splorp! · · Score: 1

      Add California to that list, too.

      Left mine blank.

      --
      Please don't humanize the morons around me. It makes me very uncomfortable.
    25. Re:How does this work? by Anonymous Coward · · Score: 0

      This shows how much US is complicated. In many countries including Australia the GST (Goods and Services Tax) is common in all states. So its doesn't matter which state you buy you pay the same tax to the federal govt. At the end of the year the 100% of the tax is distributed to all the states.

    26. Re:How does this work? by doktor-hladnjak · · Score: 1

      I believe the only reason this is the case with alcohol is because there is federal law in place which gives states wide latitude on regulating alcohol. Moreover, PA could take whoever is doing the deliveries to court for breaking its laws on distribution of alcohol, but I'm not sure they could bust the sender so long as they weren't lying or trying to hide what was in the package.

    27. Re:How does this work? by doktor-hladnjak · · Score: 1

      But can they really do that if Amazon has no business presence in New York? NY State Police can't raid Amazon's Seattle headquarters and the feds won't get involved because there's no federal law being violated. The same would seem to go for any lawsuit. Why would Amazon even have to listen to anything a NY court says? A federal court won't even get involved unless there's a dispute over federal law. If anything, the feds could step in to bitch slap New York for getting involved in interstate commerce--a power reserved for the feds.

    28. Re:How does this work? by doktor-hladnjak · · Score: 1

      It gets even more interesting in states that don't have a personal income tax. I'm sure there's a way I'm supposed to pay WA state use tax on things I buy from out of state, but there's no easy way to do it since there's no state income tax and consequently no state income tax return. I'm sure there's some arcane form you're supposed to go out of your way to get from the state in order to declare the sale and pay the tax, but you've got to wonder who would ever do that and how you'd ever get caught for not doing it.

  4. but I repeat myself by suck_burners_rice · · Score: 5, Insightful

    This sounds like some kind of serious hogwash to me. The laws applying to Internet sales should be no different than those which apply to catalog sales. If you order something out of a catalog and you have it shipped to the same state where the catalog company is, then you pay the sales tax in that state just as if you had gone to a store in that state and bought the item. But if the catalog company is in Maine and you are in Florida, then you don't pay Jack Schitt for taxes. An internet site that sells stuff is nothing more than an electronic version of a page in a catalog. Amazon is nothing more than a vast catalog of products, as are most other electronic retailing sites. So if you're in the same state where Amazon is, it makes sense that the sales tax should be added to the price, but if you are in any other state, there should be NO tax of any kind on the purchase. Amazing and incredible that every time politicians are faced with a spending problem, they just invent more taxes, instead of reducing all the unnecessary spending. Or as Mark Twain said, "Suppose you're an idiot. And suppose you're a member of Congress. But I repeat myself."

    --
    McCain/Palin '08. Now THAT's hope and change!
    1. Re:but I repeat myself by digitalbeing · · Score: 5, Informative

      Whether you order from an out-of-state catalog or an out-of-state internet retailer, you owe local sales tax on the purchase, at least in each of the three states I've lived in.

      However, the out-of-state business is not obligated to automatically collect it - that's the interstate commerce part. You are supposed to self-declare it. How many people do you suppose keep detailed enough records to calculate this on their state income tax form? Or bother to declare any of it?

    2. Re:but I repeat myself by Scrameustache · · Score: 1

      This sounds like some kind of serious hogwash to me. The laws applying to Internet sales should be no different than those which apply to catalog sales. They should, yet people fear the internet because pedos use it while not fearing the postal system they also use.

      I'm afraid rational reactions don't apply to the internet.
      --

      You can't take the sky from me...

    3. Re:but I repeat myself by davolfman · · Score: 2, Interesting

      I'm pretty sure it varies from state to state. CA does it, but I don't think CO does for example. As I explain to the occasional european there are legal differences between states because of the fact that the US is a union of states rather than a state with provinces.

    4. Re:but I repeat myself by Antony-Kyre · · Score: 1

      (I sure hope I understand this.)

      This is a problem, what New York is doing. I don't think they have the legal authority to do this. I'd guess this could potentially reach SCOTUS.

      From what I understand, a commission is like paying someone for hawking their product. But the key difference is this. Unlike a sales person earning a commission for selling cars at a car lot, these people who are earning a commission aren't located at/employed by Amazon.com.

      I think affiliates are more like people who would be paid to wear t-shirts advertising someone's artwork, but instead of getting paid an amount to wear the t-shirt, they are getting a portion of the money generated from those who "mention" they are buying because they saw the t-shirt.

      What happens when someone skips the affiliated link and buys direct from Amazon.com?

      At the very least, perhaps Amazon.com should collect sales tax based on the proceeding money going to said affiliate, if said affiliate is indeed located within New York. Of course, that would be incredibly minor, and not worth it.

      What we need is to get retailers to agree to collect sales tax when they don't have to, out of the sure moralness of it all. I, for one, pay my state's sales tax when I purchase items from a retailer, who has no physical presense here. Although I'm sure my government would never find out if I never were to pay said tax, given these are minor purchases.

      I don't know the details of the Streamlined Sales Tax Project. I don't know if it solves the issue of some/all states have complex sales tax codes, given that even if we always use shipping destination, there are many local sales tax locations.

      I feel we need to consider making a national sales-tax database, accessible via the Internet, in which the shipping location could be entered and the sales tax could be determined, along with the address in which to send the tax to be remitted. Ideally, a business should have no problem figuring out how much to tax, in doing such, all they need to do is record the amount of tax collected, tie it to a given location, and send it to the state's department of revenue.

      Things we might want to consider is changing the law so businesses don't have to send in sales tax but just once a year. Some states require the tax to be remitted monthly, and that may prove to be a problem for small businesses.

    5. Re:but I repeat myself by Anpheus · · Score: 3, Insightful

      Oh so the United States is kind of like the European Union?

      No, seriously. The EU is the ironically more successful implementation of the ideals laid out by our founders. It's missing as firm a constitutional backing, which I imagine will be rectified eventually, but cooperation through the EU combined with shared defense forces through NATO has basically given the exact situation the founders wanted the US to become. A large number of varied states with different philosophies under a shared infrastructure for commerce and dealing with legal issues, with minimal overhead over those member states. And the EU "federal government" is tiny, indeed.

    6. Re:but I repeat myself by yuna49 · · Score: 2, Insightful

      Have you ever heard of the (unelected) European Commission? Battles have been fought for decades now over the power of the EC bureaucrats to impose regulations at whim with little oversight by the European Parliament. Then there's the little problem that the proposed EU "constitution" is about ten times longer than the American one and written in impenetrable bureaucratese. Constitutions are supposed to set basic structures in place, not govern policy details. It's no surprise to me that getting public support for such a "constitution" has proven a difficult task.

    7. Re:but I repeat myself by ogrizzo · · Score: 1

      The Commission is as much unelected as any government. The commissioners are appointed by the Council (which is formed by the national presidents and/or prime ministers) and they have to be OKed by the Parliament (which is elected).

      If you remember that the US Senators were appointed by state legislatures until not so far ago, I'd agree that our system is not that much different from what the US was before the Civil war.

      Since now it's possible for national Cabinet members to commute to Brussels, we don't need senators any more to represent the states. That's the main difference, with the other being not having an elected president.

      Oh, BTW, here states do have the right to force companies in other states to collect taxes

    8. Re:but I repeat myself by sasdrtx · · Score: 1

      I live in OH, so I have to do this. There doesn't seem to be any requirement for detailed records, so I just estimate. This year I estimated my Internet buying to be about $15.39, so I had to cough up an extra $1 on my OH income tax.

      --
      Most people don't even think inside the box.
    9. Re:but I repeat myself by STrinity · · Score: 1

      No, seriously. The EU is the ironically more successful implementation of the ideals laid out by our founders.
      No, the EU is closer to the original Articles of Confederation than the Constitution. Whether it'll be more successful remains to be seen.
      --
      Les Miserables Volume 1 now up with my reading of
    10. Re:but I repeat myself by meringuoid · · Score: 1
      I'm pretty sure it varies from state to state. CA does it, but I don't think CO does for example. As I explain to the occasional european there are legal differences between states because of the fact that the US is a union of states rather than a state with provinces.

      Funnily enough, the EU is a union of states too, but far less close a union than the USA. Each state has its own taxation system, its own army, its own legal system. Some states still maintain their own currency. Yet when I import goods from another member state for my own use, no tax is payable. Duty is only payable on goods I mean to sell.

      Not that anybody's told HM Customs about this. They still seem to think there's some 'personal allowance' and that you have to pay them if you have more than a certain amount of booze and fags in the back when you get back from Calais. Not so; but just you try convincing them that the entire truckload of cigarettes you've got are for your own use...

      --
      Real Daleks don't climb stairs - they level the building.
    11. Re:but I repeat myself by jb68321 · · Score: 1
      Do you still believe you don't owe tax in that situation after reading the following?:

      Use Tax and Consumption
      Use tax complements and is applied in the same manner as sales tax. The use tax rate and sales tax rate are the same, including discretionary sales surtax, if applicable. Use tax is due on purchases made out of state and brought into Florida within 6 months of the purchase date. Also, if you purchase a product tax-exempt that you plan to sell at retail, but end up using it at your place of business, the "use" of the product is subject to tax. If you purchase materials that are "consumed" in a manufacturing process to create your end product but are not part of the end product, those materials are subject to tax. The "use" component of the sales and use tax provides uniform taxation on items that are purchased outside Florida but are used or stored in the state. If the item brought into Florida is subject to tax, a credit for lawfully imposed taxes paid to another state, a U.S. territory, or the District of Columbia is permitted. Credit is not given for taxes paid to another country. They don't levy taxes automatically online, but you're expected to pay up quarterly. I had no idea this rule/law existed until a few days ago, but here's my source for that quote: http://dor.myflorida.com/dor/taxes/sales_tax.html
    12. Re:but I repeat myself by falconwolf · · Score: 1

      No, seriously. The EU is the ironically more successful implementation of the ideals laid out by our founders. It's missing as firm a constitutional backing, which I imagine will be rectified eventually

      Are you serious? Have you seen how many pages the proposed EU Constitution had that the French vetoed? 485 pages. The USA Constitution only needs 1, 2 pages at most. The amendments fit on another 2 pages. And unlike the Constitution of the USA, which lays out only what the federal government can do, the EU Constitution detailed what the government must do or guaranty.

      Falcon
    13. Re:but I repeat myself by Anpheus · · Score: 1

      And the result, we have seen, is that when you are too terse, the true meaning of certain sentences is lost or pushed aside.

      We can't even agree on most of the amendments, certain sentences are twisted and abused, the entire constitution of the US is wrapped up in a semantic nightmare wherein we try to interpret what we -want- to interpret out of a two hundred year old document. It wasn't long ago that people didn't directly vote in their Representatives and Senators. That's a pretty big change don't you think? The fact that the constitution sets out so little on the requirements for election?

      The US Constitution is a -great- document, don't get me wrong, but its brevity has been its downfall.

    14. Re:but I repeat myself by Anonymous Coward · · Score: 0

      Have you ever heard of the (unelected) European Commission?

      You mean like the United States Senate was between 1787 and 1913? Senators used to be appointed by the State legislature, i.e. not directly elected by the people. This was changed with the 17th amendment which was first used in the elections of 1914.

  5. Paterson can't see a problem with that. by Fear+the+Clam · · Score: 1, Funny

    Thanks, folks, I'll be here all week. Try the veal.

  6. As much as I hate taxes . . . by TXISDude · · Score: 5, Insightful

    This is an eventuality, and a needed leveling of the playing field. Why should a multi-billion dollar company get a competitive advantage over local businesses? Hate taxes all you want, but hate them fairly, not just those on your local small businesses. If e-commerce continues to grow, and is not taxed equitably with other businesses, this becomes a tax break for the big internet based merchants, and they need it the least. Consider this another play on the idea of a fair tax - one that levels the playing field for all businesses

    --
    Hope is the worst of evils, for it prolongs the torment of man. -- Friedrich Nietzsche
    1. Re:As much as I hate taxes . . . by Anonymous Coward · · Score: 0

      Two wrongs make a right, you say.

    2. Re:As much as I hate taxes . . . by SirGeek · · Score: 1

      So.. Since I live close to New Hampshire (No Sales Tax), I shouldn't purchase from there regardless of them having the lower sale price ?

      Let NY do what Mass does, Says if your income is $ X, then pay $ Y as an assumed sales tax (usually much less than what I've purchased out of state).

      It gives them their money and I still save money over all.

    3. Re:As much as I hate taxes . . . by Jeff321 · · Score: 1

      This is an eventuality, and a needed leveling of the playing field. Why should a multi-billion dollar company get a competitive advantage over local businesses? Hate taxes all you want, but hate them fairly, not just those on your local small businesses. If e-commerce continues to grow, and is not taxed equitably with other businesses, this becomes a tax break for the big internet based merchants, and they need it the least. Consider this another play on the idea of a fair tax - one that levels the playing field for all businesses I disagree. There are small businesses online, too.
    4. Re:As much as I hate taxes . . . by Jeff+DeMaagd · · Score: 4, Interesting

      It's not that simple. The Supreme Court placed specific requirements on states and cities before they are allowed to do this, and I don't think any of them have complied yet.

      I have a problem with governments being able to reach beyond their jurisdiction to demand out of state / out of city companies collect their taxes for them.

      I sell things online, and I don't want to be liable for collecting taxes for 30 states and maybe hundreds of cities. I've heard that the big internet retailers are fine with these taxes, because it's a burden they can easily absorb while hurting smaller internet retailers.

    5. Re:As much as I hate taxes . . . by Fjandr · · Score: 4, Informative

      There's this part of the US Constitution granting sole authority to regulate interstate commerce to the federal government. Person A from State A buying goods from State B is an act of interstate commerce, and states have no authority to interfere in said transaction. Additionally, one state's laws cannot be applied to an entity that has no presence in that state. Without an entity having presence in a particular state, there is no jurisdictional authority.

      There is little in the law that is "fair" when multiple separate legal entities all have sovereignty within their respective borders. Particular states are always able to compete for the dollars of other people by creating more favorable business environments.

      I'm usually not in favor of defending federal control of something, but in the case of interstate commerce it makes a lot of sense to prevent individual states from denying access to their citizens of all the benefits of living in a confederation. If people go outside New York to shop, maybe it shows there's something wrong with the priorities of the New York legislature, rather than being "unfair" to local businesses.

    6. Re:As much as I hate taxes . . . by menace3society · · Score: 1

      Then the solution is to lower or eliminate local sales taxes, isn't it? Or at least reduce them to the point that the difference between local sales tax and S&H is negligible. You can think about it in terms of big businesses not being taxed enough, or you can think about it as local small businesses shouldering an unbearable tax burden.

      In fact, in a place like New York, you might bring in more revenue with a lower sales tax, more people staying local for big-ticket purchases instead of hopping over the border.

    7. Re:As much as I hate taxes . . . by DaedalusHKX · · Score: 1

      From personal experience, I'm willing to bet 50 bucks that the only businesses that will be hurt, will be the ones that get taxed heavily... and they'll outsource or close, depending on how small they are.

      And then the dickheads who liked the tax will go crying to government goons to "stop the evil outsourcing"... and the government will yet tax them even MORE to be able to hire more worthless, unproductive bureaucrats to shuffle papers and "prevent the evil outsourcing".

      And who's to blame? Well obviously the small businesses who had to operate on yet a smaller than profitable margin in order to stay competitive with the huge businesses which didn't pay the taxes or weren't subject to them in the first place. Call it the Amazon tax, but realize that it will hit the small online shops... not the big ones. The big ones will not even notice it.

      Nothing new. Government creates problems, it never solves them.

      --
      " What luck for rulers that men do not think" - Adolf Hitler
    8. Re:As much as I hate taxes . . . by Anonymous Coward · · Score: 0

      Fair tax for small businesses? Amazon and other online retailers sell products from thousands of small businesses, nationwide, giving them far more advantage than they'd get from some tax increase. A tax on those sales is only going to hurt those small businesses and the consumers buying their products. Nothing fair about that. If anything those small offline businesses need to evolve & get an online presence of some sort.

      To answer the question why should they have an advantage, a few things come to mind. They have no store front so they don't take up land communities could otherwise use, people can shop 24/7 instead of 9-7 without directly employing anyone in NY, no electricity/gas/water from the state of NY will be used by Amazon, etc. In other words NY would be taxing something that is not hindering or limiting any of NY's resources, as a small business would.

    9. Re:As much as I hate taxes . . . by Anonymous Coward · · Score: 0

      You do realize this means all businesses (not just the bigwigs like Amazon) outside the state of New York will suddenly have to deal with filing sales taxes with New York (ie. dealing with an entirely different state's tax laws) if they happen to receive an order from a customer residing in that state?

      "So what?" you say? "It's just one extra thing businesses outside New York will have to deal with if they want to ship their products to New York!"

      Ok, so what happens when other poorly managed states hop on this bandwagon to prop up their failing fiscal policies? It means even small online businesses (again, not just the bigwigs like Amazon) will have to a) register for sales tax ID in another state, b) modify their systems to accommodate sales tax for another state, c) file sales taxes with another state, and d) keep up with sales tax law for another state .... for MULTIPLE states.

      "So what?" you say? "Online businesses with a nexus in other states already do this anyway!"

      Ok yeah, but there's a reason why: chances are if they have a nexus in another state, they're already big enough (read: have the money and resources) to deal with the red tape in other states. The little guys though (you know, those thousands of people who run online businesses out of their homes across the country) don't have that luxury.

      I have a great idea for New York and any other state thinking of getting in on this scam: how about you get your public spending under control instead of forcing people outside your damn state to fix your problems?

    10. Re:As much as I hate taxes . . . by LM741N · · Score: 1

      Bull. Amazon has an advantage because they have excellent service, are convenient, and have a wide variety of goods. It has nothing to do with taxes.

    11. Re:As much as I hate taxes . . . by amiga500 · · Score: 1

      Actually, it's easier for the multi-billion dollar company to keep it's tax rules up to date than it is for the small sites. It's only the largest merchants who can keep tax rules on all states up to date, and send the tax revenue onto the appropriate state.

    12. Re:As much as I hate taxes . . . by Anonymous Coward · · Score: 0

      Let NY do what Mass does, Says if your income is $ X, then pay $ Y as an assumed sales tax (usually much less than what I've purchased out of state).

      Massachusetts has made a clever move here. That's not an 'assumed sales tax' in anything but name. It's an income tax!

      It's a shame that they couldn't just bundle all sales tax into the 'assumed sales tax'. This would simplify transactions and keep folks such as yourself buying stuff in-state rather than out-of-state.

    13. Re:As much as I hate taxes . . . by Anonymous Coward · · Score: 0

      For some people the prospect of not paying sales tax is pretty enticing (unless you're in one of those 4 or so states), but I think it weighs in equally alongside the other factors you mentioned (service, convenience, product variety) and then some (price, special offers, clearance items, promotions, etc).

      Take NewEgg. I live in one of the states in which NewEgg has to collect sales taxes (TN). I order pretty much all of my computer parts from them certainly not because I don't have to pay sales taxes (because shit, I have to), but because I have yet to find another computer parts retailer that can beat all three of the most important factors to me: service, price, and variety.

      This whole "level the playing field" thing just sounds like some local businesses whining to the government about new competition instead of taking steps to stay competitive in the face of it, which to me says they shouldn't be in business in the first place.

    14. Re:As much as I hate taxes . . . by Lost+Engineer · · Score: 1

      I'm pretty sure NY already does this. See the poster above. Might want to double check your returns if you live in that state.

    15. Re:As much as I hate taxes . . . by freedom_india · · Score: 1

      I bet $110 that next year NY will NOT collect $50m in tax from amazon as it thinks it will.
      It WILL be considerably less than that.
      Because once you tax, people start buying lesser.

      --
      "Doing what i can, with what i have." ~ Burt Gummer
    16. Re:As much as I hate taxes . . . by Anonymous Coward · · Score: 0

      You do know that a portion of sales taxes goes to the retailer to pay for their collection costs, don't you?

    17. Re:As much as I hate taxes . . . by Jeff+DeMaagd · · Score: 1

      Yes, but I don't see it as my responsibility to collect taxes for a state or city I've never been in, simply because I mailed something there. My business isn't about tax collecting, and I see it as a needless distraction from what I'm trying to do.

    18. Re:As much as I hate taxes . . . by duffbeer703 · · Score: 1
      You do realize this means all businesses (not just the bigwigs like Amazon) outside the state of New York will suddenly have to deal with filing sales taxes with New York (ie. dealing with an entirely different state's tax laws) if they happen to receive an order from a customer residing in that state?


      <p>I'm glad that you mentioned that. In New York, counties and some cities have the authority to levy sales taxes... so the rates vary. Collecting the 4% state sales tax is easy, but the local sales tax component ranges from 3-6%. AND some counties have exceptions for clothing under $110.</p>

      <p>How the fuck is a small merchant in Nevada going to figure this out?</p>
      --
      Conformity is the jailer of freedom and enemy of growth. -JFK
    19. Re:As much as I hate taxes . . . by Just+Some+Guy · · Score: 1

      Hate taxes all you want, but hate them fairly, not just those on your local small businesses. If e-commerce continues to grow, and is not taxed equitably with other businesses, this becomes a tax break for the big internet based merchants, and they need it the least.

      They are being taxed equitably, considering that Amazon receives no services from NY. If the street in front of their office gets potholes, do they call the NY Streets Department? Does NYFD give them fire protection? Does 911 trigger the arrival of New York's Finest? Local business pay local taxes because they receive local benefits.

      --
      Dewey, what part of this looks like authorities should be involved?
    20. Re:As much as I hate taxes . . . by drsquare · · Score: 1

      Why should a multi-billion dollar company get a competitive advantage over local businesses? Hate taxes all you want, but hate them fairly, not just those on your local small businesses.
      What exactly stops small businesses shipping across state lines?

      If all business moves to the Internet, then states with sales taxes will have to compete to lower taxes, which probably isn't a bad thing.
    21. Re:As much as I hate taxes . . . by Trailer+Trash · · Score: 1

      You do know that a portion of sales taxes goes to the retailer to pay for their collection costs, don't you?

      In Indiana, yes, in Tennessee, no. And in Indiana, it's like 1% of the tax collected, which for a business like mine that does $1000 of taxable business in a quarter, I would make $4/year on that (at TN tax rate). Do I need to tell you how far that would go toward covering my expenses of collecting and remitting sales tax? In truth, I spend more money to deal with sales tax than the sales tax that I collect and remit.

    22. Re:As much as I hate taxes . . . by sribe · · Score: 1

      I sell things online, and I don't want to be liable for collecting taxes for 30 states and maybe hundreds of cities.

      No, tens of states, hundreds of counties, thousands of cities, and tens of thousands of local "special tax districts". It is a nightmare, and one that local governments should definitely not be able to "export" to businesses in other states.

    23. Re:As much as I hate taxes . . . by DaedalusHKX · · Score: 1

      I'll bet your assumption couldn't be more wrong. People have no notion of freedom.

      They will comply and keep spending. Their house gets foreclosed, they'll keep paying mortgage. Their car loan gets recalled and it gets repossessed, they'll keep making payments. Its amazing to me, the sheer sheep factor I see in men and women today. Boggles my mind how obedient they can be.

      Not that I'm "surprised" by any of this. I passed the stage of "plausible surprise factor" some two or three years ago... now I'm just coming to terms with the enormity of it all.

      I expect that people will buy "lesser" just like they bought less gasoline when it jacked up over 4 bucks a gallon, while salaries stayed the same. Like they buy less cheap walmart goods, or less "cheap" food and necessities (which have been going up in price like crazy).

      Lets get real... the people that will thrive in this coming decade saw the writing on the wall... the rest, are either furniture, or lunch. Fact of life, and one which neither you, nor I, can change.

      As for your sig... you ARE aware that neither of the bushes, daddy or sonny are from Texas? They're from Tennessee last I heard. East coast northern socialists. Sure, Republicans are Democrat Lite, or Diet Socialists, but what did you expect, the people get what the people want... and they've learned, since school, to NOT pay attention to what they're told to ignore?

      --
      " What luck for rulers that men do not think" - Adolf Hitler
    24. Re:As much as I hate taxes . . . by Anonymous Coward · · Score: 0

      This is an eventuality, and a needed leveling of the playing field. Why should a multi-billion dollar company get a competitive advantage over local businesses? I call BS

      The ostensible reason businesses pay taxes (and a sales tax is a tax paid by the business) is because they use state infrastructure. Out of state businesses have no moral obligation to pay such taxes.
    25. Re:As much as I hate taxes . . . by Eil · · Score: 1

      If e-commerce continues to grow, and is not taxed equitably with other businesses, this becomes a tax break for the big internet based merchants, and they need it the least.

      I think you're a bit confused here. When has a business ever beared the burden of sales tax? Yep, that's right, never. Per-item taxes and fees are always passed on to the consumer. Businesses do not ever absorb any cost if they can think they can get away with passing it onto consumers. And they almost always do.

      It seems like anymore, the government and corporations treat Americans as if they were nothing more than millions of little bank accounts. Did anyone else notice that as soon as the federal government announced their little "economic stimulus package", states and local governments started proposing new taxes left and right? Or how the oil companies are posting record profits while gas prices are edging towards $4/gallon and the economy spirals toward recession?

      I guess I better leave it at that before I _really_ launch into a rant...

    26. Re:As much as I hate taxes . . . by Jackie_Chan_Fan · · Score: 1

      Ok if we want to level the playing field, why not split the current value of sales tax in ny, and apply the other half to online sales...

      Oh thats right, because they wont get more tax dollars.

      This is about money... Perhaps NY should dump all sales tax to be competitive. NY toll booths make plenty anyways :)

    27. Re:As much as I hate taxes . . . by Grishnakh · · Score: 1

      Oh please. Why should a multi-million dollar local business (one that can afford to rent/buy commercial brick-and-mortar space) get a competitive advantage over small retailers on the internet operating out of peoples' basements? Maybe you haven't noticed, but not all internet retailers are huge companies like Amazon. Many of them are tiny companies operating out of peoples' homes. These are companies that never would have been viable before the internet, because the overhead costs were much higher before the internet and Google came along to make it easy for buyers to find sellers with no more start-up capital than that needed to open a website (less than $100 / year), and these tiny retailers would never have been viable in a brick-and-mortar store because there wasn't enough of a customer base for their obscure products in one geographic location, whereas the international exposure of the internet makes them not only viable, but highly profitable.

      Local businesses deserve to pay more taxes. They're more inefficient: they encourage people to use cars to visit them, which means more cars on roads, meaning more road construction, more pollution, more traffic accidents. Internet businesses bypass all of that, since people don't even have to leave their homes to shop there. The only physical transaction comes with the shipping company, which 1) is more efficient than everyone driving their car to strip malls all over their city looking for something, and 2) the shipping company can pay any taxes involved in delivering the product, and pass that cost to the customer in the shipping price. Small companies are already paying their proper operating taxes, such as property taxes, taxes on their utilities, etc., which should cover all the costs for fire, police, etc.

      I'm all for preventing any sales taxes on internet businesses. It's just a ploy to bring in more money for state governments to waste. Internet shopping is far more efficient for society than people driving to B&M stores, and should be encouraged. If this means lots of B&M retailers go out of business, then that's a good thing. There's still lots of small B&M retailers that will survive, such as restaurants, massage parlors, etc.

    28. Re:As much as I hate taxes . . . by pavera · · Score: 1

      You are so unbelievably wrong on this as to be labelled naive. Something like this 100% favors the big internet retailers at the expense of small local businesses and small internet retailers.

      Think of it like this.

      Amazon already has billions in sales and hundreds of millions in profits. They can afford to hire an army of accountants to file state sales tax returns in all fifty states. If you've ever run a business you would know that state sales taxes are some of the most complicated, most time consuming, and most expensive to file. Most states charge different rates not only within the state, but within counties and even within cities the tax rates vary. I ran a business in Utah for 4 years. Just for utah there are more than 200 different tax rates depending on county, municipality, types of goods sold, etc. You have to file sales taxes every month, itemized by good sold, county and city the good was sold into, and each month it cost me > $1000 in accountant fees to go through my receipts and calculate the sales taxes I owed to the state.

      For a small internet merchant, they have no chance to comply with any of this. Even for a modest sized company with 10-50 million in revenue a proliferation of laws like this will spell instant doom. I would estimate the cost of compliance with this if all 50 states do the same thing as NY would run into the 10's of millions/yr. And the cost will be the same whether you are selling 10 million in goods or 10 billion, because you still have to calculate hundreds and hundreds of tax rates, and categorize all of your sales, and then submit all of the forms properly to all 50 states. This will put basically all small online retailers out of business instantly.

      For a small local business this will instantly kill any thoughts of opening an online store to grow their business. When the cost of just opening an online store includes registering for 50 state tax IDs and filling out all the paperwork, and then beginning to file tax returns in all 50 states (you have to remember as well, once you have a state tax ID, you are required to file sales tax returns every month, even if you don't have a single sale in the state in question, and the fines for filing late are very high ($2-300/mo/state).) If this really is "inevitable" as you state, then the US is doomed.

    29. Re:As much as I hate taxes . . . by pavera · · Score: 1

      Except of course, there will be a huge administrative cost associated with this inside the business. Sure they can pass on the 7.5% tax to the customer, but they can't pass on the thousands of accountant hours it takes to calculate, verify, file, and pay the taxes to the states. Well they can, but it will be in the form of higher prices on all goods sold online.

      This will of course cause most online retailers to be unable to compete, and most will fold. If the cost of doing business online has to include filing state sales tax with all 50 states, every month (which is generally the timeframe on state sales tax) then no one will be able to open online businesses. The administrative burden will be 50 times greater than the administrative burden on a small retail shop that only sells goods locally.

      I used to sell computers retail locally. The administrative cost of filing taxes (I outsourced my accounting) was ~$500/mo. If I had to file in all 50 states, it would cost $25,000/mo. If you have to be able to afford $25k/mo in accounting fees from day one (and you would, because you'd have to file for a state tax ID in all 50 states day one, and once you have the tax id you have to file state sales tax returns every month regardless if you have a sale in that state or not), well... that is an impossible proposition for starting a business.

    30. Re:As much as I hate taxes . . . by pavera · · Score: 1

      Not in any state I do business in (Utah, Nevada, Arizona, California, Idaho, Wyoming).

      They make no provision for covering the cost of collection. It is 100% up to me to cover the costs of collecting, calculating, filing, and remitting the sales taxes, and I am not allowed in any of these states to increase the "sales tax" line item on my sales to cover my cost. My only option is to increase the cost of the goods themselves, which makes me less competitive with other businesses that operate in less states.

      If this actually happens, and online retailers have to compete when they have 50 times the admin overhead for sales tax as the regular brick and mortar retailer... well all the small ones will be out of business in about a week

    31. Re:As much as I hate taxes . . . by Anonymous Coward · · Score: 0

      "Why should a multi-billion dollar company get a competitive advantage over local businesses?"

      How is that what this does? Do small businesses not have websites now? Of course they do. And a small business that operates out of some home office in Rhode Island but sells to 49 states without collecting tax is given an *advantage* against a big company with locations in Los Angeles, New York, Chicago and Atlanta that has to collect tax on the sales to the hundred million or so people who live in states they have a presence in. If anything this sort of tax will *kill* these sorts of small businesses because they'll suddenly have to comply with the tax laws of 50 different states rather than just the one they're in -- avoiding which was the entire point of the interstate commerce clause in the first place.

    32. Re:As much as I hate taxes . . . by Anonymous Coward · · Score: 0



      NONSENSE. ***MOST*** online retailers ARE MOM AND POPS. You and anyone who believes what you just posted are seriously kidding yourselves if you think this levels the playing field for us small guys. Quite the contrary, whereas Amazon has revenue and money to easily absorb added costs associated with collection of and remittance of this tax, this is a substantially harder burden to shoulder for us smaller players. Perhaps not so bad if it's just New York, but when everyone else gets in on the act, it's going to hurt the small guys while simply being a blip on the radar for the big players with deep pockets.

      The reality is, your local small businesses, if they are losing sales to the internet, are rarely losing it because of taxes. Rather, the overhead of maintaining a brick and mortar operation makes it nearly impossible to compete price wise with online offerings who don't have that overhead. In my own niche for my own small online business, I can honestly say they could levy a 50 percent tax and I would still be able to slaughter my brick and mortar competitors pricewise. A less than 10 percent sales tax isn't likely to cost dissuade a single customer from choosing us over a local shop. I'm sure you could find some exceptions, but in general, this is the rule.

      Two nights ago I told my wife it was just a matter of time before the big guys made moves against us small guys online and I wondered what those moves would be. Now I know, they'll do the same thing they've done to limit the playing field offline... regulations that are easy for deep pockets to comply with but that add complications to small operations. This is just the beginning. The sad thing is, the politicians who back this, on both "sides" will get their clowns^h^h^h^h^h tools^h^h^h^h^h voters to believe that this is being done to help the little guy. How? Howabout by giving nicknames to such legislation like "Amazon tax". It's worked before, why shouldn't it keep on working?

    33. Re:As much as I hate taxes . . . by falconwolf · · Score: 1

      This is an eventuality, and a needed leveling of the playing field. Why should a multi-billion dollar company get a competitive advantage over local businesses?

      Hey, those local businesses can sell online too. I knew 2 people who had their own book stores, both in converted houses. Both put a store online thus expanding their market reach a lot. One of them sold her brick and mortar store after a couple of years as she was making more from her online store than she did at her physical location.

      Falcon
    34. Re:As much as I hate taxes . . . by SimFlyer · · Score: 1

      It would only be a level playing field if the local business had to ask every in store customer where they live and collect and submit the appropriate sales tax for the in store buyers location just as you propose for the online seller.

  7. Intrastate Commerce by Anonymous Coward · · Score: 0

    In a sense, I've been waiting for this to happen. Ever since nearsighted liberals defined the surveillance between a U.S. telephone party and a foreign one as "domestic spying," I've been anticipating our spend-happy state government leftists to define intrastate commerce as between their state and another. There's too much money on the table and political power to be had to ignore minor details like laws and logic.

    I can't wait for all the follow-along regulations on "intrastate" commerce, like bans on pornography, deviant speech, oppression of people we don't like, etc. If we're gonna tax it, we're sure as hell gonna control it. Deviance like boingboing, foobies, voyeurweb and ebay will be eliminated as soon as some county in Ohio decides these sites violate their moral code. Since local and state taxes transcend Internet boundaries, so will prescriptions on the freedom expression.

    It's not like we libertarians warned you all...

    1. Re:Intrastate Commerce by Nullav · · Score: 1

      It's not like we libertarians warned you all...
      For a libertarian, I find your lack of faith disturbing. Don't worry, the Free Market(TM) will sort things out eventually.
      --
      I just read Slashdot for the articles.
  8. I don't know about other states by MarchTheMonth · · Score: 3, Interesting

    but i know in Ohio, we're supposed to report any out of state purchases that arrive in Ohio (like all the computer stuff i get from newegg) on our 1040s. i say supposed to because i haven't reported any of my purchases any year. god i hope no one from the ohio tax office is reading this...

    1. Re:I don't know about other states by Anonymous Coward · · Score: 2, Funny

      We are.

    2. Re:I don't know about other states by barzok · · Score: 1

      NY has this requirement as well. I don't know anyone who tallies up all the mail-order purchases they make to report on their state taxes.

    3. Re:I don't know about other states by maxume · · Score: 1

      You should look into how it is set up. In Michigan, for purchases less than $1000, the use tax is graduated. If your AGI is $50,000, you only have to pay $23 of tax to make up for the sales tax you didn't pay(People making less than that pay even less, the most you have to pay is 0.05% of your income, or you can itemize and pay the 6% on your purchases). For individual purchases over $1,000, the full 6% is due. For someone who spends in the ~$500 range, just paying the tax every year is probably easier and cheaper than dealing with even one audit or round of fines.

      --
      Nerd rage is the funniest rage.
    4. Re:I don't know about other states by drewness · · Score: 1

      NY has this requirement as well. I don't know anyone who tallies up all the mail-order purchases they make to report on their state taxes.


      NY also has the option to pay a fixed amount based on your income. That's what I do. It's a lot easier than figuring out every place I bought something online and how much I paid, and probably well under what sales tax would've been.
  9. New York took down license plates from people... by Jafafa+Hots · · Score: 4, Interesting

    ...shopping in PA malls just over the border, and sent them notices that they had to pay NY sales tax. NY also is trying to force Seneca store owners on sovereign indian land to collect NY sales tax.

    --
    This space available.
  10. Ohio will love this by Anonymous Coward · · Score: 0

    Ohio already charges tax on internet purchases with their Sales and Use tax, expecting consumers to keep tabs of all internet and tax-free out of state purchases and then pay a lump sum of it at the end of the year.

    Of course, such a useless tax is currently unenforceable. Here's hoping they don't put the pressure on the vendors like NY will.

  11. Sounds like an extension of existing policies by r_jensen11 · · Score: 2, Interesting

    It doesn't sound too irrational to me. States can already tax you for making purchases out of state and bringing them within state borders. If you buy a car in a state where the sales tax is only 5% and your state's sales tax is 6.5%, the state can charge you a 1.5% import tax. I know that imported liquor is subject to excess taxes in Minnesota if it surpasses a specified volume. I'd be surprised if this didn't apply to other states as well.

    1. Re:Sounds like an extension of existing policies by Dogun · · Score: 3, Interesting

      Those are called Use Taxes. IMO, they should also be ruled unconstitutional in some cases:

      INIAL, and I may be woefully incorrect about all of this, but, IIRC, the supreme court has ruled in the past that an interstate commerce tax is unconstitutional if it fails to violate either of the following:

      1) must be compensating for an identifiable a tax burden. Decreased revenues due to 'lost sales' in other states do not count - clearly the NY interstate book tax would fail here.

      2) The inter-and-intrastate taxes must be approximately equal. (You can't jack up the taxes for interstate commerce beyond what you demand of your own intrastate commerce. NY is probably okay here.)

      The Use Taxes on vehicles /might/ be okay, provided the vehicles have a tax burden associated with them. And, vehicles do, though the burden probably ought not to be measured by the sales tax inside the state, but rather whatever vehicle-specific surcharges the state has.

    2. Re:Sounds like an extension of existing policies by Anonymous Coward · · Score: 0

      INIAL, and I may be woefully incorrect about all of this, but, Dyslexia knows no state boundaries...
    3. Re:Sounds like an extension of existing policies by pavera · · Score: 1

      I don't know of any state that does sales tax that way on cars.

      I have purchased/moved cars between 5 different states and I've never seen it done as you speak. When you purchase a car they ask you which state you are going to register it in, if you are registering it in the state in which you purchase it, you pay sales tax at the dealership (if it is a private purchase, you always pay sales tax when you go to register the car, regardless of which state you bought the car in). If you are moving it to a different state, they don't charge you sales tax at the dealership, and you pay the full sales tax at the time you register it in the destination state.

      I have purchased cars in California and registered them in Nevada, Utah, and Arizona. I have purchased cars in Nevada and registered them in Idaho, Utah, and California. I have purchased cars in Utah and registered them in Idaho and Wyoming. Maybe its just the tax crazy east coast that does things differently?

      Every car purchase I have ever made that is going to cross state lines is handled this way, paying the sales tax when you first register the car and request a title. Once the car is titled, you are not charged sales tax again, even if you move from state to state. If some states actually do things the way you say, then I would sue the state because "import taxes" are unconstitutional.

    4. Re:Sounds like an extension of existing policies by r_jensen11 · · Score: 1

      2) The inter-and-intrastate taxes must be approximately equal. (You can't jack up the taxes for interstate commerce beyond what you demand of your own intrastate commerce. NY is probably okay here.) This part of the requirement is basically that you can't give domestic services an 'unfair advantage' by taxing imports at a rate greater than the domestic tax.

      And regarding Pavera's post below:
      As far as what I've learned, the law applies to people who live in State A and purchase a vehicle in State B whilst living in State A. If you move to another state and bring your vehicle with you, there is no tax.

    5. Re:Sounds like an extension of existing policies by Dogun · · Score: 1

      Untrue, at least in Washington State. I got hit with a use tax here when I brought my new car with me.

  12. Re:HAHA Kiss My Ass Amerikanos by calawain · · Score: 1

    Yeah only if we get the same benefits you do...

  13. and the retailers respond... by Anonymous Coward · · Score: 0

    You know what online retailers will do?
    Simple, they will change their shipping policy to something along the lines of 'Will not ship to new york'.

    1. Re:and the retailers respond... by jcr · · Score: 4, Interesting

      Then we'll see a bunch of businesses pop up in New Jersey and Connecticut which will forward packages to New York. They're not the buyer or the seller, so they'd have no obligation to tell New York what they shipped to whom and when.

      -jcr

      --
      The only title of honor that a tyrant can grant is "Enemy of the State."
    2. Re:and the retailers respond... by Anpheus · · Score: 1

      Ah, I imagine they'll have names like "FedEx" and "UPS" or even the "United States Postal Service."

      Such parcel delivery services sound very promising indeed.

      Care to join me in such a venture, jcr?

    3. Re:and the retailers respond... by Blackknight · · Score: 1

      Actually that would be considered tax evasion and no legitimate business is going to get involved in that.

  14. If I was a Online retailer by VEGETA_GT · · Score: 1

    I would say fine, guess what you live in NY, I don't sell to you. As in the end every online store needs to add this sort of thing in at there expense and is something that is a joke to begin with. So Hey take Newegg, anazon and a few other major ones say nope no NY, to bad, the backlash would be nough to get somthing roling in getting this joke removed as again how can NY state tell me in Michigan what to so.

    1. Re:If I was a Online retailer by happymellon · · Score: 1

      but wouldn't this mirror the insurance laws in Florida? For those who don't know, Florida is the most expensive state due to the number of natural disasters for insurance companies. The local government decided that it didn't like the insurance companies jacking up the prices so made it illegal without their approval to have any price increases (guess what, they don't approve any increases). Now it is almost impossible to buy insurance from anyone other than a couple and the state run insurance company which was created due to all their residents being denied. Florida doesn't look like it is going to back down and it is all the citizens who are going to pay when they bankrupt the state insurance due to a major hurricane. Just because insurance companies deny residents insurance because they can't charge then even the same amount as they would for any other state (which are less likely to have a disaster) doesn't stop them screaming like children and doesn't introduce sanity.

    2. Re:If I was a Online retailer by NormalVisual · · Score: 3, Interesting

      The insurance companies in Florida got a pretty nice 12-year run of luck after Andrew where they weren't paying out substantial claims but were still collecting inflated premiums,. There was a lot of whining from insurers about "we need increases so we can replenish our reserves", but absolutely nothing mentioned about the billions that were collected between 1992 and 2004 that went straight into shareholders' pockets, the billions collected in the 70's and 80's prior to Andrew, or the billions in profit they've seen since 2004. They're insurance companies, they're paid to assume risk, so pardon me for not feeling their pain when they have to pay out the claims they agreed to. The fact that one of them is getting their knuckles rapped because they're willfully refusing to provide documents subpoenaed by the state isn't helping their relationship with the state either .

      I'm looking forward to the unimaginable degree of whining we're going to hear from this industry once the San Andreas Fault has its next big slip.

      --
      Please stand clear of the doors, por favor mantenganse alejado de las puertas
    3. Re:If I was a Online retailer by Anonymous Coward · · Score: 0

      Insurance is a competitive industry just like most others. There are no insurance monopolies, and as far as I know there is no insurance price fixing.

      If prices are higher than they need to be, then all an insurance company needs to do to start making tons of money is to drop their prices a bit. Tons of new customers will arrive, and while they'll be making less money per customer, having all these extra customers will more than make up for it.

      Of course in reality a single company never gets an edge like this. Instead, prices drop until they reach a balance between profit and cost. The other companies aren't stupid, and if one company drops their prices and remains profitable than the rest will do so as well.

      If these companies were charging "too much", then why didn't anybody come in and take all their money by charging less? Why didn't you start an insurance company to take all of this money by charging less? The answer is, of course, that they were a lot more justified in raising their premiums than you give them credit for, and that the whining on the part of the customers led the state into price fixing with a completely predictable result: a near elimination of supply.

    4. Re:If I was a Online retailer by NormalVisual · · Score: 1

      The answer is, of course, that they were a lot more justified in raising their premiums than you give them credit for

      Then Allstate should have no problems whatsoever providing the subpoenaed documentation to the state which should clearly demonstrate the need for the higher rates. Apparently Allstate feels it's more profitable to be unable to be barred from writing any new policies of any kind rather than give the Florida insurance commissioner the information to which he's legally entitled. I might also point out that any private citizen would be in jail for flouting a subpoena the way Allstate has.

      --
      Please stand clear of the doors, por favor mantenganse alejado de las puertas
    5. Re:If I was a Online retailer by coredog64 · · Score: 1

      > I'm looking forward to the unimaginable degree of whining we're going to hear from this industry once the San Andreas Fault has its next big slip.

      According to Google, only 15% of California residents have earthquake insurance. Those that do have insurance typically have policies
      with high deductibles and strongly worded limits that lay out what they will pay for. In general, Californians have learned it's better
      to bolt their houses to their foundation, secure large and/or flamable objects, and take the good with the bad.

      For what it's worth, I threw some numbers in for the house I used to live in in California. A $500,000 house with a 15% deductible, $25,000 personal property limit and $10,000 in loss-of-use coverage comes out to $2400/year. That would be on top of your standard homeowners insurance. And what do you get for the money? $460K in coverage and you're responsible for the first $75K of damages.

      CEA Premium Calculator

    6. Re:If I was a Online retailer by NormalVisual · · Score: 1

      In general, Californians have learned it's better to bolt their houses to their foundation, secure large and/or flamable objects, and take the good with the bad.

      I tend to hold a similar outlook regarding living in Florida. Living 40 miles inland does a *lot* to mitigate potential hurricane damage, even for really strong storms like Andrew. I don't get to see a really pretty sunrise every morning, but then again I don't worry every summer about what a 15 foot storm surge might do to my house. If a storm threatens, I park the cars in the garage, board up the windows, and accept that there will probably be some degree of re-shingling in my future.

      --
      Please stand clear of the doors, por favor mantenganse alejado de las puertas
  15. Amazon should already have the software in place by Anonymous Coward · · Score: 0

    Amazon should already have the software implementation that allows them to collect a tax to the authorities of the recipient's home state because the EU already requires them to do it. It sounds insane, but as a European I can't order anything from the US site of amazon.com without being charged the value-added tax of my home country. I have no idea how the EU manages to force this on foreign companies.

  16. How about a levy on DRM? by Homer's+Donuts · · Score: 1
    If you must prevent servers from storing local copies of copyright material, you should pay for sucking up the extra bandwidth.


    A DRM tax could help our government offset the cost of the infrastructure required by these "anti-theft" measures.

  17. The Power to Tax by kilodelta · · Score: 2, Interesting

    I thought that only the fed could levy taxes on interstate commerce.

    Rhode Island gets around it by having what they call a Use Tax. Ask me if I've ever paid it. I haven't. I don't think anyone ever has.

    1. Re:The Power to Tax by Frosty+Piss · · Score: 1

      Washington State has the same thing. I'll bet they collect less than $100 a year on it.

      --
      If you want news from today, you have to come back tomorrow.
    2. Re:The Power to Tax by Anonymous Coward · · Score: 0

      Not quite, think of it like this.

      Its the United States of America, people think of it as just a name, but it is a description as well. Each state is actually more like its own small country than anything else.

      States have almost complete power over internal matters as long as it doesn't violate the Constitution. And the constitution at its core is an agreement between the sates on how they will cooperate for mutual benefit.

      The federal government is severely limited in what federal taxes it can make. A State can tax what ever the hell it wants, there is no such thing as an unconstitutional state tax because the constitution doesn't say what states can and cant do, it describes the limits of the federal government.

      The federal government can forbid a state from trying to tax shipping over things like the interstate because its a federal resource.

    3. Re:The Power to Tax by pavera · · Score: 1

      Unfortunately for your argument this is outlawed in the constitution.

      The states are forbidden from inhibiting in any way interstate commerce by the constitution. If company A is in Nebraska, and sells something to Customer B in NY and NY levies a tax against Company A (exactly what is happening with sales tax) then NY is inhibiting interstate commerce. They are violating the constitution. NY is not allowed to levy taxes against a company which is not in the state of NY. They can levy taxes against their residents (the customer) and businesses that reside in the state, but a sales tax is levied against the company, not the customer, so it should be ruled unconstitutional to levy a tax on a company that has only customers in the state and no physical presence, employees, or anything else. Luckily the SCOTUS is heavily right leaning right now, so they should strictly interpret the constitution and rule in favor of business and against this power grab by NY.

  18. Let your government know what you want by CityZen · · Score: 2, Insightful

    Okay New Yorkers, it's time to talk to your governor, your state senators, and your congressmen and let them know what you want, or don't want.

    Did you ask to be taxed more? No? Well, your politicians seem to be confused. Please set them straight.

    Remember, they are supposed to represent you. It's not as if the government should do whatever it wants to do and you have no say in the situation. It's only that way when you keep quiet.

    1. Re:Let your government know what you want by dmadzak · · Score: 1

      Thats OK, they will say its for the children, elderly, schools, homeless people and then will blame the boogyman from the other party and then everyone will fall in line and pay the tax happily.

      --
      Spelling and grammar mistakes specifically left in to give the grammar and spelling nazis a meaning to their life.
    2. Re:Let your government know what you want by Kymermosst · · Score: 1

      Okay New Yorkers, it's time to talk to your governor, your state senators, and your congressmen and let them know what you want, or don't want.

      Did you ask to be taxed more? No? Well, your politicians seem to be confused. Please set them straight.

      Remember, they are supposed to represent you. It's not as if the government should do whatever it wants to do and you have no say in the situation. It's only that way when you keep quiet.


      AHAHAHAHAHAHAHAAAAAAAAA

      You think your politicians represent you or care about what you think?

      AHAHAHAHAHAHAHAAAA

      Politicians are 100% about having power and control for themselves. They say they want to listen to you, but it is just an act to make you feel like they care.

      In reality, if you tell your elected officials anything, they will find a way to say or imply that they agree with your opinion on the issue, and then vote one of two ways: what they think is best for you regardless of your opinion on the subject, or what is good for them politically.

      --
      "Alcohol, Tobacco, Firearms, and Explosives" should be a convenience store, not a government agency.
    3. Re:Let your government know what you want by CityZen · · Score: 1

      If people make enough noise such that the politicians wonder about having a job after the next election, then they will pay attention.

  19. There's this thing called the Constitution by Anonymous Coward · · Score: 1, Insightful

    You should read it sometime.

  20. Lenovo anyone? by religious+freak · · Score: 1

    Has anyone recently ordered a Lenovo laptop? I just bought a pretty sweet x61 and they charged me tax!

    I live in Arizona and any time I've ordered anything online (including Amazon), I've never been charged tax.

    Even with the tax, they were cheaper than everything else, but calling something "tax" when they are obviously not paying the taxman seems crappy to me.

    I wonder if anyone else has seen Lenovo do this in their state?

    --
    If you can read this... 01110101 01110010 00100000 01100001 00100000 01100111 01100101 01100101 01101011
    1. Re:Lenovo anyone? by Kufat · · Score: 2, Informative

      From Wikipedia:

      Arizona has a transaction privilege tax (TPT) that differs from a "true" sales tax in that the tax is levied on the gross receipts of the vendor and is not a liability of the consumer. (As explained in Arizona Administrative Code rule R15-5-2202, vendors are permitted to pass the amount of the tax on to the consumer, but remain the liable parties for the tax to the state.)

      And Lenovo does have an office in Phoenix, so...

    2. Re:Lenovo anyone? by Anonymous Coward · · Score: 0

      Lenovo has a facility in Arizona, thus if you live there you pay tax on it. The point of this is that Amazon doesn't have a real facility in NY.

  21. Re:HAHA Kiss My Ass Amerikanos by Anonymous Coward · · Score: 0

    Peon pays little but I pay very much more total. These 'benefits' are the same for the peon as they are for me. The rich do not get richer by default, but wars help.

  22. It's already the law in Iowa by jgoemat · · Score: 1

    If you read on your taxes, you are supposed to declare your mail-order purchases. If you didn't pay a sales tax in another state, you have to pay it in your state of residence. I've always thought this silly myself, but this "Amazon tax" isn't new.

    1. Re:It's already the law in Iowa by arth1 · · Score: 4, Informative
      This is called a use tax, and is a loophole that most if not all states who have sales tax use to tax out-of-state purchases. They get away with it because it applies to EVERYTHING, whether bought in-state or out-of-state, but the tax is waived if you either paid sales tax or the purchase was exempt from sales tax (like food and clothing in many states).

      Why does NY want this new tax if they already have use tax? For two reasons:
      1. Most people don't declare use tax, even though it's illegal not to. Either they don't understand that they have to, or they gamble on not being audited.
      2. The state loses interest on the money for several months, because use tax is not paid until you declare taxes next year. Something you buy in January 2008 won't give the state the money until April 2009 (unless you declare your taxes earlier).


      Quite frankly, don't be surprised if new taxes like these appear all over the place. The plummeting economy and rapid devaluation of the dollar means that even states have to collect money where they can.
    2. Re:It's already the law in Iowa by jmorris42 · · Score: 2, Informative

      > If you read on your taxes, you are supposed to declare your mail-order purchases.

      Yup. And if Amazon had the smallest operation in the state of NY they would have to collect and pay NY taxes. But they don't so I'll be blown if I can see how the State of NY will be able to force a CA business to collect a NY tax, do all that bookkeeping and forward the money to NY. If they succeed it will destroy the last fig leaf of Federalism.

      --
      Democrat delenda est
    3. Re:It's already the law in Iowa by penelope_b · · Score: 2, Informative

      This is called a use tax, and is a loophole that most if not all states who have sales tax use to tax out-of-state purchases. We already HAVE a Use Tax in NY! I pay it every year on my state taxes -- it has a handy table to figure out my percentage and everything. What the hell is this? Why should I be taxed TWICE?
    4. Re:It's already the law in Iowa by Anonymous Coward · · Score: 0

      "Quite frankly, don't be surprised if new taxes like these appear all over the place. The plummeting economy and rapid devaluation of the dollar means that even states have to collect money where they can."

      Increased taxation during an economic slowdown is a sure way to destroy the economy. I have not had a pay increase in over 2 years yet the cost of living keeps on rising.

    5. Re:It's already the law in Iowa by JoshHeitzman · · Score: 1

      "Quite frankly, don't be surprised if new taxes like these appear all over the place. The plummeting economy and rapid devaluation of the dollar means that even states have to collect money where they can." And don't be surprised when they are overturned in federal court, since states have already tried requiring retailers, with no presence in their state, to collect sales tax. These use taxes are a result of the federal courts not allowing them to do so.

      --
      Software Inventor
    6. Re:It's already the law in Iowa by Anonymous Coward · · Score: 0
      It's a use tax in California too, and no one pays it except for me I think. I actually read the tax requirements and spend the better part of an evening cursing and doing my best to calculate all of my internet purchases during the year. It's about time they started requiring businesses to do this because it's a waste of my time for very little tax revenue, and I either have to do it or knowingly break the California tax laws.

      And to all you Californians who aren't paying this tax? Screw you. You're increasing my tax burden. I hope they pass this in California ASAP.

    7. Re:It's already the law in Iowa by arminw · · Score: 1

      ...It's about time they started requiring businesses to do this...

      They do require all businesses WITHIN California to collect these taxes. However constitutionally, they cannot force businesses OUTSIDE of CA to do so. That is the entire issue here. NY wants to force Amazon and other online businesses into becoming tax collectors for NY or at the very least forcing them to become informers to the NY tax collectors about NY buyers and the amounts of sales to them. Armed with that knowledge, the NY tax collectors could then go after the NY buyers who did not pay the taxes they were supposed to.

      Congress could make a law that all interstate sellers have to give lists of buyers and the amounts to each respective state that requests such a list. Each state's tax collector could then go after the tax evaders.

      --
      All theory is gray
    8. Re:It's already the law in Iowa by Anonymous Coward · · Score: 0

      You mean you actually pay the use tax? I don't know why anyone would bother. You gotta be kidding.

    9. Re:It's already the law in Iowa by triffidsting · · Score: 1

      Amazon's in Washington state, not California BTW.

      --
      Non, je ne veux pas coucher avec toi ce soir.
    10. Re:It's already the law in Iowa by DGtlRift · · Score: 0

      IANAL, but my understanding for tax filings is that your are providing proof of tax credit (not liability,) and when you are audited, they are putting the burden of proof on you to provide the proof that you are entitled to that tax credit through receipts for business/professional expenses capital improvements etc.

      If they don't believe you've made no purchases out of state, how is that proved?

      Demanding declaration purchases made out of state (I say declaring because that is what you must do at your point of entry to the US, not entering a new state) is illegal.

      --
      How about a spell checker for slashdot, or even more impressive, a spell checker for strings in C-Code? Use lint! -DG
  23. Re-election by Anonymous Coward · · Score: 0

    I guess this governer isn't worried about his re-election.

  24. washington state residents have always paid by sentientbrendan · · Score: 1

    Amazon is based in Seattle, so Washington state residents already have to pay the roughly 8% sales tax on Amazon goods. I've always wondered if it would be ever worth it to ship expensive items to an address of a friend outside of Washington, and then just have him ship it back. This would potentially work for small items.

    Since you already have to pay for goods shipped in from other states at traditional storefronts, it only makes sense to allow Amazon to be taxed.

    That said, I'm generally opposed to sales taxes, as they are regressive, and think that progressive income taxation is the way to go.

    1. Re:washington state residents have always paid by falconwolf · · Score: 1

      Since you already have to pay for goods shipped in from other states at traditional storefronts, it only makes sense to allow Amazon to be taxed.

      Amazon is taxed, they pay property tax where they use services, and they pay fuel tax where they ship stuff.

      That said, I'm generally opposed to sales taxes, as they are regressive, and think that progressive income taxation is the way to go.

      Yea, make workers pay tax for the privilege of working while letting them consume as much as they want without being taxed.

      Falcon
  25. Would Elliot Spitzer have to pay? by snow2go · · Score: 1
    Hypothetical: If Elliot Spitzer arranges for goods or services (or good service as the case may be) in New York State and then has the aforementioned good service delivered to another state or territory (say Washington, DC), would he still be liable to pay NYS sales tax or could he apply to Albany for a rebate?

    Just askin'...

    1. Re:Would Elliot Spitzer have to pay? by Anonymous Coward · · Score: 0

      No, he wouldn't, because as you say, what he paid for was a SERVICE not goods. And at least where I live, you can't slap sales tax on a service.

  26. It's actually a very deep issue by Gazzonyx · · Score: 1

    Since you aren't an American, I presume you don't know, interstate and intrastate commerce and taxes were actually a very big factor in the American civil war just over a hundred years ago. Although it seems like more stupid greed and politics, this issue was settled at gruesome cost a century ago, and we shouldn't even touch this topic with a ten foot pole. Ever. IMHO.

    To belabor the point... (sorry!)
    This also relates to the state vs. federal rights which declares that federal law overrides state law, which is why you can be arrested for something that is legal in your state, but illegal at the federal level; many cultural and socio economical come to a head at this junction.

    Someone please correct me if I've got my history wrong... I'd rather be made a fool here than on a date with a history major :).

    --

    If I mod you up, it doesn't necessarily mean I agree with what you've said, sorry.

    1. Re:It's actually a very deep issue by Anonymous Coward · · Score: 0

      Actually it was the Revolutionary war where taxes were a very big issue. The British empire was trying to impose taxes and other laws on the colonies without their consent, and the Colonies revolted - hence the Boston tea party.

    2. Re:It's actually a very deep issue by Lost+Engineer · · Score: 1

      Yeah well unfortunately they settled it wrongly way more than a century ago so we're still going to have to debate it today. I'm glad, however, that someone else realizes that our civil war wasn't entirely about slavery.

  27. More info, thoughts of an internet retailer (me) by asackett · · Score: 2
    See also: State Taxation and Regulation: the Modern Law. Although it's not a gimme in this fascist dicatorship in which we now live, the Supreme Court has already established precedent that would overrule the state legislation.

    As it should. I, as an internet merchant, ship my products "FOB here", which means that from the moment the article is delivered to the carrier, it belongs to the buyer. The transaction legally happened here, not in New York. If New York can get away with an import tax, fine... not my problem.

    --

    Warning: This signature may offend some viewers.

  28. We've had this for a while... by CompMD · · Score: 1

    We have a "destination tax" in Kansas. Anything we buy we're supposed to pay tax on, regardless of where it comes from. We're supposed to pay tax on online purchases when we do our taxes every year. If you make a mail order purchase from a company that has no existence in Kansas and is aware of Kansas destination tax, they will charge you Kansas sales tax based on your location, not theirs.

    Now, does anyone actually volunteer to pay those taxes? That's a different story...

  29. For all of you IANAL types... by deblau · · Score: 1

    Who think the Commerce Clause gives Congress exclusive and complete control over interstate commerce, read up on the Dormant Commerce Clause. Or if that's too dense, go to the Wikipedia article, although that's more confusing.

    --
    This post expresses my opinion, not that of my employer. And yes, IAAL.
  30. How to simplify the sales tax collection process by Skapare · · Score: 1

    Collecting sales tax is horribly complicated. It's not just a simple percentage for each state. There have been some attempts to simplify it, but they have so far failed (to come up with something basically simple). Even if they did simplify things enough to have a known percentage for each state or zip code of delivery, what about electronic delivery (stuff you pay for then get to download)? I once suggested states be required to standardize tax rates based on zip code (or just one percentage for the whole state). But some internet sales won't have a zip code of delivery.

    I suggest a major change to the way the taxes are collected. Instead of the retailers collecting it, have the credit/debit cards and other payment handlers like PayPal collect it. That way there would not be a million retailers for all the states to have to deal with. And these payment handlers know where most of their account holders live (for those cases where the retailer doesn't need to know). The retailers would simply include as part of the charge to the payment handler, a breakdown of the amount into the various standardized classes of product and service categories that might have different tax rates.

    --
    now we need to go OSS in diesel cars
  31. Oh please by FranTaylor · · Score: 2, Interesting

    Your argument holds no water at all. Sales transactions have been conducted remotely via the mails since before the founding of our country.

    1. Re:Oh please by EdIII · · Score: 2, Funny

      "conducted remotely via the mails since before the founding of our country"

      I did not know the pilgrims ordered their canned cranberries from catalogs from outside of their "states".

      You learn something new everyday I guess....

      Seeing though, as we are talking about interstate commerce, can we keep the arguments to AFTER the signing of the Declaration of Independence and the ratification of the Constitution?

      Or we could do it your way and talk about the Odin Express (TM) and Thor's Mighty Catalogue of Sharp and Pointy Objects in ye old past.

    2. Re:Oh please by Smidge204 · · Score: 1

      The pilgrims have nothing to do with it. Don't be a douchebag.

      By the time the Constitution was drafted, there were already colonies with independent economies and even separate currencies. Trade between colonies was without a doubt a very common thing. Just because it didn't take place over thousands of miles doesn't make it any different, and just because it took days instead of minutes doesn't make it any different.

      For the record, online sales are probably STILL going to be cheaper from many retailers if only because the bigger operations are effected less by operational overhead, just like most big chain stores are cheaper than small mom-n-pop businesses.
      =Smidge=

    3. Re:Oh please by duffbeer703 · · Score: 4, Informative

      Actually, you have no clue about this. In the colonial days, British law essentially prohibited significant industry from forming in the colonies. So if you wanted to order a manufactured good, including cloth, you had to order it from England.

      Mail ordering has continued since then. In the late 1800's, many people ordered kit houses from the Sears catalog. Until the 1940's, if you didn't live in a city, you basically had to mail order many products.

      --
      Conformity is the jailer of freedom and enemy of growth. -JFK
    4. Re:Oh please by CrimsonAvenger · · Score: 1

      I did not know the pilgrims ordered their canned cranberries from catalogs from outside of their "states".

      George Washington used to order a great many things from Great Britain, before there was a United States. He'd provide a list to his broker every year, and the broker would see that the stuff was on the next ship heading toward Virginia.

      Pretty common among the colonial "aristocracy" (note that the British Aristocracy didn't consider Colonials to be Aristocrats.) actually - pretty much every plantation owner did it as a matter of course.

      You learn something new everyday I guess.

      I do. Hopefully you do. But I'm not betting much on the prospect.

      --

      "I do not agree with what you say, but I will defend to the death your right to say it"
    5. Re:Oh please by Reziac · · Score: 1

      Very true. And just because the ordering process is now handled online rather than via telephone or mail should not be regarded as a fundamental change of operations.

      Nowadays people are accustomed to buying a prebuilt house, and going down to the mall to buy everything else. But until about 40 years ago, a very large percentage of interstate commerce was via mail order. Sears, Spiegel, Montgomery Wards, and probably others I'm not familiar with all had catalogs 2 inches thick, where you could order almost anything other than food, and in most small towns, catalog shopping was the rule rather than the exception. Sears and others sold kit houses; they and other catalog vendors also sold carpet, appliances, furniture, etc., all via mail order. (Yes, Sears and Monkey Wards had widespread storefronts, but the selection was limited; you still wound up ordering most stuff from the catalog. Eventually they killed most of their storefronts and went to primarily catalog sales.)

      BTW, Sears kit buildings (you could buy not only houses, but also barns and outbuildings) are being sought for the Historical Register. One of the attic trusses will have a date plaque which serves to document the building.

      (As it happens, I live in a mail-order kit house, tho it's a "U-Build-It" brand, and dates to 1956.)

      --
      ~REZ~ #43301. Who'd fake being me anyway?
  32. TAXED TO DEATH by Tuoqui · · Score: 1

    Someone needs to tell the government to fuck off and stop double, triple and quadruple dipping into the Taxpayers pockets.

    1) INCOME TAX (Both Personal and Corporate)
    2) SALES TAX
    3) $$$ GAS TAX $$$
    4) Assorted 'Fees', 'Service Charges' and 'Fines'.

    If they were doing their job right they'd only need to tax income only tax sales. Clearly the system is busted because its got its hand out to you on payday, grocery day, garbage/recycling day, even the day you die (Estate Taxes) etc... It is precisely because rich people are utilizing loopholes to avoid taxation like purchasing land and such which gives tax breaks and/or functions as an efficient tax shelter, swiss bank accounts, investments, etc...

    --
    09F911029D74E35BD84156C5635688C0
    +2 Troll is Slashdot's way of saying groupthink is confused
    1. Re:TAXED TO DEATH by EdIII · · Score: 2, Interesting

      Well you are talking about something a heck of lot larger and well outside the scope of the article. It's not offtopic exactly, but "above" topic so to speak.

      That being said, I do wholeheartedly agree with you. "If they were doing their job right they'd only need to tax income only tax sales."

      If you mean to say there should be only ONE tax in the the whole country and that is all we will ever pay, then AMEN BROTHER, AMEN.

      If we obliterated the IRS, and sent a bill to every single state for it's portion of the taxes we would eliminate 90% of the problem on the spot. We would have 50 states competing on the best way to collect taxes from their citizens. Of course the Census would have to speed up considerably, but it could be done. In addition to the IRS being removed, we should remove all taxes that go to the Federal Government period, and create a constitutional amendment banning the direct taxation of any citizen or corporation by the Federal government. The Feds can only create, modify, or delete line items on the Federal Budget which is then ratified by the states EACH year. So no more extortion by the withholding of funds by the Feds.

      Since the states would be competing, an obvious byproduct of that would be that if you did not like the way New York was collecting the taxes, you could move to New Mexico, Texas, etc.

      I personally believe that the states would be far more pragmatic about collecting the taxes than the Federal government. States would not be interested in active, privacy-destroying methods of collecting taxes as they don't have a need to support the intelligence community with data mining tools. More than likely, the states would just use property taxes, corporate income taxes, and sales taxes and leave the average citizen alone.

      States would be far more inclined to go after businesses as well and eliminate any of those loopholes.

    2. Re:TAXED TO DEATH by CastrTroy · · Score: 1

      I really don't understand this idea in the US of every state doing everything individually in their own little way. I think it would be much more efficient to have one organization at the top managing all the taxes, then having to repeat everything 50 times over. Some things should be governed at the state level, but there are federal taxes for a reason. Federal taxes go to pay for federal programs. Why not just break the US into 50 little countries with no federal control.

      --

      Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
    3. Re:TAXED TO DEATH by karmatic · · Score: 5, Insightful

      It is precisely because rich people are utilizing loopholes to avoid taxation like purchasing land and such.

      No, it is precisely because the government spends way too much money. If our government spent less, there would be less need for taxes.

      As a practical matter, it is always going to be difficult as a matter of practicality to tax the rich, or the corporations for their "fair share", as the more you raise taxes, the more profitable using offshore tax havens, etc. become.

      Corporations, for example, must be able to deduct business expenses. If you don't, any business with razor-thin profit margins (a good thing, competition) would be bankrupt. A 5% flat tax would be wonderful for my software company with 95%+ margins, but "unfair" (and lethal) to someone making 1-5% doing manufacturing. They would have to raise their rates, making it difficult to compete with imports, requiring more taxation on imported goods to maintain a "level" playing field.

      So, it's relatively easy for modern businesses to structure relationships with other companies (not in the US) by licensing technology (for a hefty fee), borrowing money, etc. Payments can go into trust funds, foundations, etc. outside US jurisdiction. To stop these kinds of games, you would need to ban:

      - owning, managing, and receiving payments from foreign corporations
      - banking by private citizens using banks located outside the United States
      - ownership of US corporations by foreign corporations and vice-versa
      - prior approval by the US government for all business transactions between US companies and foreign companies, in order to ensure that all contracts are "fair", and not allowing money to be funneled outside the US
      - use of foreign-based prepaid debit cards/gift cards, and purchase of us-based cards by foreign nationals and corporations

      Even if all this did happen, unscrupulous people would simply conspire with those outside the United States to act fronts. Long story short - the more you attempt to raise taxes on these people, the more profitable it is to be a "tax cheat", and the less revenue you actually bring in.

      Besides, I don't know about you, but I'd rather not live in a world like that. On the other hand, reducing spending by the government would go a long way towards fixing budget problems. How about starting with the illegal/unconstitutional ones?

      That being said, the simpler and easier the tax code is, the harder it is to dodge taxes. The problem isn't the rich, it's the insane inefficiency and incredible waste of government. A simple straightforward sales tax applied to imports and domestic sales (with a prebate to avoid screwing over the poor) would eliminate most loopholes, practically eliminate the need for the IRS (saving a decent amount of money), and save so much time and effort it's scary.

      No "tax day", as your taxes are always paid. No itemization, no deductions, no worrying about whether this is an acceptable business expense.

    4. Re:TAXED TO DEATH by rohan972 · · Score: 1

      I think it would be much more efficient to have one organization at the top managing all the taxes, then having to repeat everything 50 times over.
      You are correct, it would be more efficient. That's a problem, not a solution. The freedoms enjoyed by the west have very often come by making the government less efficient.

      Trial by jury? Inefficient! Just have an appointed judge make a decision.
      Congress? Parliaments? How inefficient compared to having one leader with supreme authority.
      Elections to decide on who governs? Inefficient! Much more efficient to crown the eldest son of the last king.

      Freedom requires a certain level of government inefficiency. Inefficient government must be small in order to not drain the economy, as it is more expensive to get anything done, producing more freedom.

      Federal taxes go to pay for federal programs.
      Most of which could be considered illegall according to the 10th amendment. (And 2nd, 4th, 5th, 6th and 9th)
    5. Re:TAXED TO DEATH by Lawrence_Bird · · Score: 1
      While I have no objection to your general argument, your math is poor so I hope your software firm does not code where numerical precision is important. Virtually any profitable company would jump at the chance to have a 5% flat rate tax.

      A 5% flat tax would be wonderful for my software company with 95%+ margins, but "unfair" (and lethal) to someone making 1-5% doing manufacturing. They would have to raise their rates, making it difficult to compete with imports, requiring more taxation on imported goods to maintain a "level" playing field. The tax rate is not subtracted from the margin rate.

      High Margin Co:

      Revs: 100 Exps: 5 Gross: 95 Tax: 4.75 Net: 90.25 (90.25%)

      Low Margin Co:

      Revs: 100 Exps: 95 Gross: 5 Tax: 0.25 Net: 4.75 (4.75%)
    6. Re:TAXED TO DEATH by Anonymous Coward · · Score: 0

      Funny, I remember a 90% tax on the rich in the 30's and up to 60% through the 70's. We seemed to collect pretty well then.
          We used to have similar taxes here called personal property taxes. The big cities used to rip-off the rest of the state by under reporting and getting away with it all through the sixties. It reached a point of turning into an open tax revolt when the state finally just abolished the damn thing.
          We have a balanced budget mandated by law and we're doing ok. The robbing is still going on, the congresscrooks/unicameralcrooks just use tax funds for their personal projects and leave many agencies to find their own income through fees. Which is technically another tax.
          And to those who think we pay low taxes in the US. Just because taxes are defined differently doesn't mean we don't pay as much. Add all the taxes we pay, income, sales, property, etc. and don't be shocked when it reaches 35-40% or more.

    7. Re:TAXED TO DEATH by CrimsonAvenger · · Score: 1

      If they were doing their job right they'd only need to tax income only tax sales.

      No. The hodge-podge of taxes serves more than a single purpose.

      Imprimus - many of the taxes exist only at certain levels of government. Sales tax is not a Federal Tax, for instance.

      Secundus - the more different taxes you pay, the less obvious the TOTAL amount of taxes you pay is. Very easy to look at one income (or sales) tax rate, and decide that that's too high. Much harder, when you have 37 different taxes, each of which is below your pain threshold, but collectively, they're higher than the single tax could ever be without a tax revolt.

      It is precisely because rich people are utilizing loopholes to avoid taxation like purchasing land and such which gives tax breaks and/or functions as an efficient tax shelter, swiss bank accounts, investments, etc.

      It has little, if anything to do with the "rich" and tax shelters. It has a lot to do with keeping the middle class blind to the total level of taxation they pay. Hint: if you divide your income by GNP, the taxes you pay are about that percentage of the total city/state/federal taxes.

      Note that with the current 3 trillion dollar budget, each person's share of the federal budget is $10000 per year. So $30,000 just for my family of three...

      --

      "I do not agree with what you say, but I will defend to the death your right to say it"
    8. Re:TAXED TO DEATH by Dun+Malg · · Score: 1

      While I have no objection to your general argument, your math is poor so I hope your software firm does not code where numerical precision is important. Virtually any profitable company would jump at the chance to have a 5% flat rate tax. You missed his point. His point was about so-called loopholes and tax dodges. His specific example was the "loophole" of being able to deduct expenses from revenue for purposes of calculating income.
      --
      If a job's not worth doing, it's not worth doing right.
    9. Re:TAXED TO DEATH by Anonymous Coward · · Score: 0
    10. Re:TAXED TO DEATH by danielsfca2 · · Score: 1

      Why not just break the US into 50 little countries with no federal control.
      Indeed, but the people in the states that have very little to contribute would never agree to it. They need the New Yorks and the Californias of the union to survive. They need my federal tax dollars as a Californian to pay them farm subsidies to not grow crops, or to grow crops that nobody needs and store them in huge silos somewhere as a "strategic corn reserve."

      California, no offense to the rest of the states, would be stoked to be on our own. We'd be so much better off not supporting the rest of the country. But ask North Dakota and New Mexico how much they'd like the federal government free money spigot turned off.
    11. Re:TAXED TO DEATH by falconwolf · · Score: 1

      I really don't understand this idea in the US of every state doing everything individually in their own little way.

      So then you also believe there should only be one research lab? Because that's what the states are, research labs. Each state get to do research and try out different things. Then what works in one state another one can try too and what doesn't work the other state doesn't need to try. Having 50 labs will find solutions faster than having only 1 lab.

      Falcon
    12. Re:TAXED TO DEATH by darkwhite · · Score: 1

      No, it is precisely because the government spends way too much money. If our government spent less, there would be less need for taxes. No, the problem being discussed is not the use of tax money but the structure of their collection. In the US, the problem is that the extremely rich and the overly powerful corporation pay comparatively very little while the upper middle class pays most of the nation's budget. The tax is not progressive enough, and there is not enough corporate taxation.

      A 5% flat tax would be wonderful for my software company with 95%+ margins, but "unfair" (and lethal) to someone making 1-5% doing manufacturing. Why would a tax on corporations be flat? Of course a tax on corporations should be progressive on net profit.

      If you're talking about the tax being discussed in the article, somehow everyone doing business within the state has been able to pay that flat tax, right? For practical purposes, if the state starts really enforcing sales/use tax, it won't matter if the business or the consumer pay it, the expenditures will be identical.
      --

      [an error occurred while processing this directive]
    13. Re:TAXED TO DEATH by triffidsting · · Score: 1

      You must not live in the People's Republic of California.

      --
      Non, je ne veux pas coucher avec toi ce soir.
    14. Re:TAXED TO DEATH by karmatic · · Score: 1

      Why would a tax on corporations be flat? Of course a tax on corporations should be progressive on net profit.

      You missed the point. My point is that one _cannot_ do a flat tax on corporations; however, the alternative is exploitable, and gets more so the higher taxes get.

  33. Stick with the coke and broads Gov. by Ottair · · Score: 1

    Unreal.

  34. Extapolate this trend... by WoollyMittens · · Score: 1

    I can only see them maneuvering this to a destination where you would be paying double taxes. At the point of sale and at the point of purchase. Offcourse, at that point both parties will also have indirectly paid income tax over it.

  35. Free Lunch is Over? by DigitalisAkujin · · Score: 3, Insightful

    I fully expected this to eventually come about. There's a huge chunk of commerce in the US done through the Internet which drains a lot of possible Tax Revenue from the states when before people would just go to the local electronics store.

    I don't believe it's right to tax us this way however, nor do I think it's truly enforceable at this time since tax rates in various states are so complicated and if this actually passes it will be a big precedent for other states and local governments the follow suit, further complicating the situation.

    It will be interesting to watch this play out. Sadly, the American people are gonna have to start paying taxes from somewhere. We have a huge debt and a lot of immediate things the government simply needs to take care of.

    1. Re:Free Lunch is Over? by Anonymous Coward · · Score: 0

      How about a real stand. Taxes are robbery, made "respectable" by a bunch of slaveowners 300 years ago who got together and wrote a bunch of crap down on a piece of paper. Yet, if 9 people got together and voted that it was ok to steal from the 10th, how quickly everyone would recognize that for exactly what it was. Somehow, writing down on a piece of paper that it's ok to steal from others, apparently in the minds of the dolting masses, makes that just fine and dandy.

    2. Re:Free Lunch is Over? by hacker · · Score: 2, Insightful

      We have a huge debt and a lot of immediate things the government simply needs to take care of.

      Do you honestly believe, even for a moment, that one cent of this additional revenue will go towards debt?

      No, it will go to fund new programs, which will then incur even more debt, of course. It will pad and line the pockets of industries that do not exist yet, further complicating the problem.

    3. Re:Free Lunch is Over? by CodeBuster · · Score: 1

      It will be interesting to watch this play out. Indeed it will, but perhaps not for the reasons that you may think...

      Sadly, the American people are gonna have to start paying taxes from somewhere. I would prefer that the government cut spending first. There are entirely too many programs, earmarks, and expenses that are entirely superfluous or completely unnecessary. Of course, there are many people who are very comfortable with the present arrangement and they will fight tooth and nail to keep their subsidies, grants, and handouts flowing, but that is another argument for another day. As for paying taxes, well that is where things get interesting.

      We have a huge debt and a lot of immediate things the government simply needs to take care of.

      The finances of nations operate under a somewhat different set of rules than they do at the individual level and primarily for one simple reason: the government has the sovereign power to create money out of thin air (a power which they share with the banks, but for all intents and purposes the creation begins with the government). Thus, every dollar in your pocket or in your bank account exists because of debt (i.e. somebody owes somebody else or has a claim on a fixed amount of the property, labor, or capital resources of another). If there were NO debt then there would be NO money in circulation (or at least debt backed money as we know it today) and we would be forced back into commodity backed private currencies (which where quite common during the early part of the history of the United States) or perhaps even the barter system, the most primitive and least efficient of all monetary systems because it relies on the coincidence of wants between groups of people (i.e. if you want an iPod and you work as a gardener then you must find someone who is willing to trade you an iPod for gardening services or perhaps something else that you can trade to still someone else for that iPod and so on).

      Now, in practice the government will ALWAYS have debt because they want to maintain an equilibrium in the system by ensuring that there is sufficient money (not too much and not too little) to promote the optimum equilibrium efficiency of the economy. As you can see, this is a very difficult job to do well and the history of central bankers around the world is good reason for people to be skeptical. However, the basic system as it exists today in the United States, Europe, and other parts of the world, including debt, is very necessary for our modern economy to function and you would be hard pressed to find many people who would prefer to go back to the standards of living that were commonplace a few hundred years in the past before substantial economic growth and modern finance made our modern world possible.

    4. Re:Free Lunch is Over? by ScotchDiver · · Score: 1

      I liked where you were going, but your logic jumped the rails on the last sentence.

      >>However, the basic system as it exists today in the United States, Europe, and other parts of the world, including debt, is very necessary for our modern economy to function and you would be hard pressed to find many people who would prefer to go back to the standards of living that were commonplace a few hundred years in the past before substantial economic growth and modern finance made our modern world possible.

      I hear this a lot, and yet there is not ONE SINGLE SHRED of evidence that a fractional reserve currency facilitates economic growth better than hard currency (I.E. gold notes, silver notes, wheat notes, or, even better, amalgam notes that combine many commodities). You still get portability, fungibility, and divisibility with the added benefit of stability. The current federal reserve system wasn't established in the U.S. until 1913 and then it proceeded to immediately cause the first nation wide boom/bust cycle in the 1920's and 30's. The economy in the U.S. actually grew faster the century before we adopted fiat money.

      It's a mistake to attribute quality of life and growth of technology over the last century to any positive influence of the government or it's bastard step-child, the federal reserve. The explosive growth of the industrial and information ages occurred here mostly because we had lots of space, vast resources, little regulation, a literate population, and, last but defintely not least, freedom for one to succeed or fail on their own merits. Combine all that with advances in financial instruments (stocks, options, hedge funds, etal.) and even government incompetence couldn't screw it up.

    5. Re:Free Lunch is Over? by CodeBuster · · Score: 1

      I also agree that hard currency would be preferable to the current fiat money system as it exists right now in the United States if only because it would force the current government to put their financial house in order (this incidentally is one of the main reasons why liberals argue so vociferously against a return to the gold standard, because it would put the brakes on their government spending plans and reduce or eliminate their ability to confiscate and redistribute wealth by devaluing the fiat currency through inflation which is really a back door tax).

      However, there are problems with commodity money. For example, whenever the money is backed by a commodity that commodity must be carefully stored, husbanded, and taken care of so that it may preserve its value as a store of value. This is the primary reason why gold and other precious metals have traditionally served this role. They are durable, recognizable, divisible, rare and not easily counterfeited, and they store lots of value in a relatively small volume (every thing that one could want out money). However, if exceptional care is not taken then these storage and management costs can escalate until a substantial amount of the stored value is spent ensuring the continued survival of the commodity which stores that value. In theory, a wisely managed fiat money system could preserve many of the values of a commodity based money system without the attendant storage drawbacks provided that our leaders were wise enough and disciplined enough to exercise restraint and adopt good judgment in economic policies, but that is the very problem isn't it...these philosopher kings never seem to be around when you need them.

      As for government incompetence, it can always screw things up. However, even though I am sympathetic to the gold standard I am not yet prepared to back a return to the gold standard for two (2) primary reason: First, it is impossible to know for sure who has already horded gold and where and in how much quantity. Thus, at least for the short term, it would open us up to outside meddling in our economy and money supply by alternatively hoarding or dumping of gold supplies until an equilibrium was reached. Second, there is not enough physical gold in existence to back every transaction which occurs in our global economy with a meaningful quantity of gold. The present value of the dollar in terms of fractions of ounce of gold probably does not reflect the true scarcity of gold that would be necessary to cover the transaction if gold were actually being used as backing for the currency.

      I do not attribute the economic growth and increase in quality of life over the last several hundred years to the government. However, it is true that the government exercises a great deal of control, by virtue of their monopoly on hard power (i.e. military might), over the money supply so any solution to the fiat money problems or even commodity money must involve the government at some level, unless one is advocating anarchy which I reject as unworkable.

    6. Re:Free Lunch is Over? by ScotchDiver · · Score: 1

      >>However, if exceptional care is not taken then these storage and management costs can escalate until a substantial amount of the stored value is spent ensuring the continued survival of the commodity which stores that value.

      The fed charges interest on money they create out of thin air. Since 1955, this interest has averaged around 5%, but it has been as high as 16.39% in 1981. Every dollar in circulation is a perpetual stream of profit to the cartel of banks making up the federal reserve system, for doing absolutely nothing. In contrast, bailment companies provide secure, and insured, storage of commodities and charge a fee around 1% of value for major customers. Why would anyone not prefer the latter?

      >>...I am sympathetic to the gold standard I am not yet prepared to back a return to the gold standard for two (2) primary reason: First, it is impossible to know for sure who has already horded gold and where and in how much quantity. Thus, at least for the short term, it would open us up to outside meddling in our economy and money supply by alternatively hoarding or dumping of gold supplies until an equilibrium was reached. Second, there is not enough physical gold in existence to back every transaction which occurs in our global economy with a meaningful quantity of gold.

      Granted, but you are arguing against a straw man. Most hard money advocates don't propose a return to a gold backed dollar, at least not right away. The first step would be to decriminalize the use of alternate currencies backed by commodities. You'd immediately see gold notes, silver notes, and a host of other currencies with all the benefits of a dollar, but without the fed tax. Over a period of years, decades maybe, demand for fed notes would wither as they continued to inflate the greenback into oblivion. At first, it would be painful to have to constantly check conversion rates, but this would pass soon enough. I'm sure technology would fill that void as your cell phone could provide real time market data anywhere. The price of an item would, one day, be shown as g-Au, g-Pt, g-Ag for grams of gold, platinum, or silver for example.

      The worldwide supply of elements useful for representing wealth is surprisingly predictable. The point here is: hoarding doesn't work; it usually hurts the hoarder most. Consider too, no one has succeeded at "cornering the market" on a commodity used as currency. There are very powerful economic equilibrium forces that make it impractical.

      >> ...the government exercises a great deal of control, by virtue of their monopoly on hard power (i.e. military might), over the money supply so any solution to the fiat money problems or even commodity money must involve the government at some level, unless one is advocating anarchy which I reject as unworkable.

      I absolutely agree. To my reckoning, anarchists are actually more delusional than communists. At least communists can honestly say there has never been a real life test of communist theory (per Engels, Marx, etal). Anarchists, on the other hand, have lots of historical examples of what happens to people that don't organize enough government to at least provide a common defense. They get killed, pillaged, and conquered.

    7. Re:Free Lunch is Over? by CodeBuster · · Score: 1

      Interesting response, although I expect that we will still be using the fed notes (unfortuantely, since you and I both are aparantely not crazy about the current system), baring some major meltdown, for the remainder of my lifetime. As for unwinding the federal reserve system by reintroducing private commodity backed money, I can only say that if it was not done very carefully, so as to avoid a perciptious drop in the dollar over too short a period of time, then it could result in a very hard landing for our economy and that would not ultimately serve the best interests of anyone. Your arguments ring true though and helped clear a few things up for me so thank you.

  36. Sounds like gender discrimination to me. by fellip_nectar · · Score: 1

    Wonder Woman is going to be pissed off by this.

    --
    Worst. Signature. Ever.
  37. An interesting problem by acanofspam · · Score: 1

    Isn't a corporation governed by the laws of the state within which it is incorporated? For example, if my business is incorporated in Delaware (heh, no sales tax at all, as far as I recall), then how could New York require me to do anything? All they could do is limit my ability to import goods to that state. Even then, if the customer is the one ordering the item, aren't they the ones calling for the item to be shipped, and therefore the ones who are doing the importing? If the customer is importing the goods, they are the ones required to pay the import taxes. However, FedEx and UPS are corporations which themselves are operating on a national level. Since it is not against federal law to import goods, I doubt there'd be much of anybody tracking down the "unreported" imports. Then again, I'm a computer scientist, not a lawyer, so I may be wrong on all of this.

    1. Re:An interesting problem by RoboRay · · Score: 2, Informative

      if my business is incorporated in Delaware (heh, no sales tax at all, as far as I recall), then how could New York require me to do anything? All they could do is limit my ability to import goods to that state

      They couldn't even do that. Congress regulates interstate commerce, not the individual states. Since you have no presence in the state, and they can't apply state laws to you out of the state, there's really nothing they can do but ask politely for you to voluntarily pay these "taxes."

  38. Re:Amazon should already have the software in plac by Anonymous Coward · · Score: 0

    The problem is the US (as a federal system, vs the EU's confederacy) has taxing jurisdictions that don't correspond to postal codes.

    The taxing jurisdictions are frequently at the state level (that is easy), but many are at the town/city/group of towns level.
    Postal codes are assigned (with no thought to tax codes) by the national postal authorities and do not correspond to the tax jurisdictions.

    So, AMZN would have to map addresses to tax jurisdictions (possibly via GPS) without using the shipping information.

  39. Meanwhile, in the European Union... by GeneralSunTzu · · Score: 1

    It looks like NYers are rattled by this perspective.
    In any of the 27 European Union (EU) member states it is instead very simple.
    Mail order/internet order?
    The firm shipping will charge VAT (Value Added Tax) at the rate of the destination country (Member states send each other the amounts they have collected on behalf of the other member states).
    Should you instead go to another EU country and buy something there (though not a car, because it must be licensed in your country of residence), then you will pay at the VAT rate of the country where you are making your personal purchase, and have no more obligation to do anything at all in your own country.
    No sweat and no need for painkillers...

    --
    The Force actually is with me.
    1. Re:Meanwhile, in the European Union... by Gabest · · Score: 1

      Is this already in effect? As I heard it was only planed for the future. I live in Hungary and never ever had to pay our ridiculus 20% tax (lowered from 25% a year ago) for anything bought from another EU country.

    2. Re:Meanwhile, in the European Union... by GeneralSunTzu · · Score: 1

      Well, not all are very diligent in collecting it, but yes, it is already in effect for cross-border purchases.
      Should you, e.g., buy books over the internet from Amazon UK, they will charge VAT according to the country of delivery (on books and newspaper the VAT rate in the UK is 0...).
      In Belgium, where I live, it is also a ridiculously high 21%.

      --
      The Force actually is with me.
  40. States are facing dropping tax revenue by rachit · · Score: 2, Insightful

    Thanks to the housing bubble bursting, states are facing severe budget problems. Expect to see all sorts of ways to tax come out of the woodwork.

  41. Re:New York took down license plates from people.. by ChunderDownunder · · Score: 1

    I was going to suggest this. Some enterprising opportunist could open a book store just over the state line to avoid the sales tax.

    They could call it Borders.

  42. Mailbox by J'raxis · · Score: 1

    If you live close enough to make it economical, get a mailbox out of state.

  43. Then change the constitution by the_raptor · · Score: 1

    If that is the case then the constitution should be changed, or amended, using the legal process to do so. The ability to change the constitution was put in precisely for this reason. Government does not get to skip due process simply because it is convenient.

    --

    ========
    CINC, 4th Penguin Legion
  44. Didn't we do this already? by Jay+L · · Score: 1

    I'm confused: All this outrage, but not one "Yeah, so?"

    I've lived in both Virginia and Massachusetts - certainly opposite states with respect to economic policy. At the dawn of the Internet, buying things online was a great way to avoid sales tax. But over the years, more and more companies had to collect sales tax from me; I can't remember the last time I bought something online and paid no tax.

    I thought I remembered this exact controversy happening, nationwide, a few years back; online retailers were going to have to collect the use tax on behalf of the consumer, in an amount equivalent to the sales tax the consumer would have paid. So I figured that's what has happened.

    But no? Is it just that most of these companies have a "substantial presence" in both VA and MA, so I ended up being taxed?

    1. Re:Didn't we do this already? by acanofspam · · Score: 1

      I'm confused: All this outrage, but not one "Yeah, so?" I've lived in both Virginia and Massachusetts - certainly opposite states with respect to economic policy. At the dawn of the Internet, buying things online was a great way to avoid sales tax. But over the years, more and more companies had to collect sales tax from me; I can't remember the last time I bought something online and paid no tax. ... But no? Is it just that most of these companies have a "substantial presence" in both VA and MA, so I ended up being taxed? I don't know about your experience, but I almost never pay taxes on items I have shipped to MD. Or PA for that matter. MA and VA are popular locations for businesses to have locations, MA especially. So perhaps like you said they do have locations there, or perhaps there is something like this law there and they "voluntarily" choose to obey a law for a state which has no jurisdiction.
  45. American judicial logic by iconara · · Score: 1

    As a european this just sounds like the usual Americal judicial logic: laws that demand things from entities over whom the laws has no jurisdiction.

    Consider MPAA vs. The Pirate Bay:

    MPAA: You have violated paragraphs A, B and C of the third amendment of the fifth subsection of the ACMD! Cease and desist!
    TPB: This is not America you schmucks, we don't care.
    MPAA: But, but... we are Americans!
    TPB: Up yours.

    Just because you have a law doesn't mean people and companies in other countries (or states in this case) have to follow them.

    However, I can see that this is slighly more complicated since there might be federal laws that also play a role here.

    1. Re:American judicial logic by SAABMaven · · Score: 1

      The real effect of the Colonial Rebellion (if you set aside the whole 'freedom' propaganda) was to create a new class of those who are almost always above the law. By 'The People' what they really meant was 'Their People'. And they held on to the instutution of Slavery much longer than the civilised world did. As long as they possibly could.

      This is why the many levels of bureaucratic government in the US so easily scoff at International Law, but create one stupid law after another, to keep the masses in line.

  46. Nobody has mentioned "affiliate programs"... by BUL2294 · · Score: 1
    (IANAL) One thing the article keeps touching on, yet nobody here has brought up, is that this law deals with affiliate programs that "reside" in NY. From the article...

    The so-called "Amazon tax" closes a loophole for Internet retailers who derive sales through affiliate programs in which Web site owners place a link to the merchant on their site and earn a commission on sales made from referrals.
    Looks like the solution is simple--Amazon dumps their affiliates that reside in NY--and every other such state that tries BS like this. (I assume that most/all of the NY online retailers that use Amazon.com as their web presence already charge NY tax, so this wouldn't affect them). Frankly, it's not like Amazon really needs affiliates--I'd say it's a pretty well known company by now... And if I were an affiliate making heavy $$$ from referrals to Amazon.com from my website, I wouldn't think twice about moving from an over-taxed/regulated/burdened state like NY (no flame intended)--in order to keep my livelihood... This doesn't punish Amazon, it punishes their own affiliates that reside in the state!

    So, it looks like it will be headed for a showdown in the courts, but it looks like the spirit of the "mail order" court ruling is retained...
    --
    Windows 3.1x calc: 3.11 - 3.10 = 0.00
  47. Sales tax on rebates by Anonymous Coward · · Score: 0

    What about not taxing rebates?

    I buy a lot of things here in Michigan that come with, say, a $30 rebate. Yet, the state doesn't give me a tax rebate on that. In my estimation, I've paid sales tax on a couple hundred dollars of rebates.

    Multiply $20 by 5M people and that's plenty of revenue for the state that they shouldn't be getting.

    1. Re:Sales tax on rebates by base3 · · Score: 1

      And once rebates are on their radar, they'll probably make those offering them send a 1099 and charge you income tax on them.

      --
      One CPU cycle wasted on digital restrictions management is ONE TOO MANY.
  48. New York is not a leader. by KeithIrwin · · Score: 1

    What's with this "Experts predict that other states could follow suit with similar provisions" bit? Only if said experts are idiots. Everyone already knows that most states have use taxes already. New York must be one of the last states which doesn't.

  49. I think you meant... by sakti · · Score: 1

    > ...and generate an estimated $50M in revenue this fiscal year.

    I think you meant "...and steal an estimated $50M from its residents this year".

    --
    "It is better to die on one's feet than to live on one's knees." - Albert Camus
  50. So it begins by Badmovies · · Score: 1

    Obviously, this was going to happen sooner or later as online selling matured. I believe that many smaller, independent operations will run afoul of this until the change becomes common knowledge. Something all of those little online retailers will need is a website where they can go to check the current sales tax for the state they are shipping to (if their online ordering system does not calculate it automatically).

    --


    Andrew Borntreger
    Champion of cinematic disasters
  51. Re:How to simplify the sales tax collection proces by rcastro0 · · Score: 1

    Yes, yes. We have had such an idea considered/discussed here in Brazil since a Professor wrote an article at a major newspaper about it. His name is Marcos Cintra, here is his web site (in portuguese): http://www.marcoscintra.org/iut/index.asp

    Anyway, his proposition was: substitute all taxes for one single tax, to be charged as a small percentage of all electronic financial transactions. He calculated how small the percentage would be, and defended it on the grounds of being easy to collect, harder to evade, and applied over a much wider collection base.

    What came out of it? The government implemented it, called "CPMF", acronym for Provisory Contribution over Financial Movements. It was 0,38% of all money transfers (credit, debit, wire transfers, anything) between two different persons, between a person and a company, or between two different companies. Even when transferring money to an investment fund (a different legal entity) this would be charged. It was promptly implemented by the banks and it worked (as expected) flawlessly, generating billions in tax revenues to the government.

    The only catch is: being the government as it is, they implemented that idea but did not bring down the others (!). So the government broke the key premise of simplifying the taxes, and instead used this collection method to *add* taxes.

    CPMF, the "provisory" (temporary) contribution lasted for ten years, but came down a few months ago (a major defeat to the government, a victory to the opposition).

    I don't know if you can trust *your* government not to get greedy, and hold on to the old taxes as it brings on the new. But I know what happened down here.

    --
    Quem a paca cara compra, paca cara pagará.
  52. worthless jerks by Anonymous Coward · · Score: 0

    Screw that worthless cocksucker Paterson. Useless piece of shit. I hope someone assassinates him.

  53. Good. NC has had one for years by gelfling · · Score: 1

    And I've been screaming that it's unfair. If you can't pass sane laws then at least everyone should suffer equally.

  54. Nonsense by fileufel · · Score: 4, Insightful

    The terms "import" and "export" clearly refer to imports and exports into the state, regardless of where from. Court precedents are not always Constitutionally correct -- to assume otherwise is naive and logically inconsistent (as they often contradict other court cases). At the time the Constitution was ratified, the states clearly would have considered imports into the state to be imports. The states are each sovereign and independent states -- at the time of the signing of the Constitution this was obvious and commonly understand -- see, for example, the Treaty of Paris 1883. For further proof, see Article I Section 9, clause 4: "No Tax or Duty shall be laid on Articles exported from any State." Thus the word "export" (and hence) "import" do apply to the states (even though this prohibition in particular is on Congress).

    1. Re:Nonsense by Amilianna · · Score: 4, Interesting

      At the time the Constitution was ratified, the states clearly would have considered imports into the state to be imports.

      This may have been true (not having been there, it would be difficult to say one way or the other) but realistically irrelevant in many ways. At the time the Constitution was ratified, we didn't have the internet, shipping methods or many things that have altered the world we live in. The job of our courts is to interpret the Constitution's intent and apply it to modern-day situations, which it was obviously not equipped to deal with since it had no knowledge of the changes that would occur. So to say that this is unConstitutional simply because the founders of our country could never have conceived of the ease of internet shopping is a bit silly. And, in our country, the courts are correct until overturned. That is the way our legal system works. So if you feel the ruling is unConstitutional, your recourse would be to sue the state of New York and take it up to the Supreme Court who could then make a direct ruling on whether or not their bill is unConstitutional or not.

      Until then, it is a Constitutional as any of the rest of our laws that are drafted to deal with realities that a document written in 1787 couldn't possibly have conceived of.

      --
      "Does bouncing count?" - Silk, Magician's Gambit by David Eddings
    2. Re:Nonsense by arminw · · Score: 1

      ...The job of our courts is to interpret the Constitution's intent ...

      Not, the job of the court is to obey what exactly the constitution SAYS. Words have meaning and that meaning of the actual words is what the court has to ascertain and follow. Of course the liberals DO want the courts to play fast an loose with the true meaning and interpret the intent, rather that what is says. The current administration just simply ignores the parts of the constitution that don't fit with their agenda. The congressional democrats acquiesce to that gutting of the constitution.

      --
      All theory is gray
    3. Re:Nonsense by Amilianna · · Score: 1

      I'm sorry, are you implying that the current administration is liberal? Because your original argument was against liberals, but then you illustrate it with a point that says that our conservative current administration ignores the pieces of the Constitution that don't fit with their agenda and that the democrats (the liberal party, arguably) merely acquiesces - although what they are suppose to do (when they don't have enough of a majority to overturn any republican motions and it is the Supreme Court's job to check when laws are passed that violate the Constitution) I'm not sure.

      --
      "Does bouncing count?" - Silk, Magician's Gambit by David Eddings
    4. Re:Nonsense by arminw · · Score: 1

      Basically all I'm saying is that there isn't much difference between the Democans and the Republicrats. Its six of one and a half dozen of the other. They both make promises which they know they cannot keep or maybe even have no intention of keeping. The left has a history of re-interpreting the constitution and the right simply ignores it.

      --
      All theory is gray
    5. Re:Nonsense by Anonymous Coward · · Score: 0

      "interpret the Constitution's intent"

      This statement is ridiculous if not downright silly. You don't interpret something that is clear and concise, something that is spelled out in very precise language. The world may have changed, but the English language has not. There is nothing that has changed about this world that has made anything in the Constitution outdated. Anyone who claims that content within the Constitution is in anyway subjective or subject to interpretation simply has not read the document.

    6. Re:Nonsense by DGtlRift · · Score: 0

      I don't think it would take to long for this to go to a federal court. Exactly how does New York legally enforce this when Amazon doesn't have a nexus in New York. Create an embargo at the state border demanding that UPS, FedEx, USPS and what ever other shipper dump any shipment from Amazon? Sounds to me like the Sith are involved.

      --
      How about a spell checker for slashdot, or even more impressive, a spell checker for strings in C-Code? Use lint! -DG
  55. Nothing new here by ocbwilg · · Score: 1

    It's called "Use Tax", and most of the 50 states have had it for years.

    1. Re:Nothing new here by ocbwilg · · Score: 1

      I take that back, I totally misread the article. Use tax is when the state requires you to pay sales tax on something that you bought out of state that didn't have sales tax already collected on it. This would require the merchant to collect the "use tax", which is totally different.

  56. on what basis can a state tax imports? by OrangeTide · · Score: 1

    if the purpose is to protect the state's own retail industry over that of other states, then it violates the commerce clause.

    taxing goods that were neither produced or sold in the state seems suspicious because the state did not use any of its resources to make these out of state products happen. normally land, business licenses, etc are things a state contributes to enable a business to exist. take that away and I wonder how a state can expect to get a foot in the door to justify taxation.

    a state could charge tax on the the shipping charges. because it is a service with a presence in every state. (poor UPS!)

    New York already has an income tax. Or are they so used to taxing consumers twice?

    --
    “Common sense is not so common.” — Voltaire
  57. Bloody americans and taxes by Anonymous Coward · · Score: 0

    I wonder how anything ever gets done in the US with this ridiculous attitude towards taxes. You are the lowest taxed country in the world (well, the western world anyway) and yet you continually bitch and moan about something like a sales tax on amazon sales, when you already have state sales taxes when buying brick and mortar goods. Is that fair to those who also pay property taxes in the state? No, it's bullshit. Shut up and pay your sales tax on yoru amazon tax, or work to have the sales tax repealed, and continue with the Republican agenda to starve all levels of government of the money they need to function. Health care, fsck that, we don't need no sticking health care (until you loose your jobs and end up without insurance and find that you have cancer, then you're fscked). And this after the repugs bail out the banking industry which is currently responsible for what looks like a world wide recession. you're all being fscked over by your governments who claim they work for you, but they only work for big business to line each othres pockets with filthy lucre while you get screwed over and over and over. It really is pretty comical to watch this happen again and again, from the outside.

  58. Small online retailers by Anonymous Coward · · Score: 0

    There's also the huge problem with this of smaller online retailers, of which I use many. They'll have huge hurdles to jump to try to pay taxes for random shopper in state XYZ who really just wants his product.

  59. Probably not by A+nonymous+Coward · · Score: 1

    Other states would lower their sales taxes to compete. Plus, states collect a certain amount of taxes one way or another, whether sales taxes, property taxes or high income taxes.

    And New Hampshire doesn't have the population or infrastructure to support big companies.

  60. I can't wait! by Dash+Hash · · Score: 1

    I can't wait for the first person to be double-taxed because of this and sue over it.
    Sure, very few people do bother to declare their online or catalog purchases, but surely there are at least a few people out there who do, even if the numbers are quite small.

    If they get taxed at the point of purchase because of this, then get taxed again when they declare it (let's face it, the government isn't organized enough to change quite that quickly), I can foresee a very heavy-handed slap from the lawyers.

    --
    Calling a sword by a pretty name is no more than adding perfume to poison.
  61. NE, NY states too small for this BS by Simonetta · · Score: 1

    NE, NY states too small for this BS. Every other place in the world that is this physical size has an economic treaty with their neighboring small states to avoid tariffs like this.

        Actually the Boston-to-WashingtonDC assemblage of little states into a single city-single economic zone has already happened. Its economic integration is overseen the US federal government. If the feds accept this new individual purchase tax on out-of-state goods enacted by a single one of this little pissant states, then they will have to do so for all the little pissant but legally-independent states that make up the Boston-Washington North American economic zone.

        The overseers or guiders of the economic and legal framework that oversees this contradiction between mini-states and a single economic zone may frown on this development. They will take the case to US Supreme Court. In past cases like this, the Supremes voted against sales taxes on mail order for private individuals. I don't know the specific case but if they had voted to allow it then we would be paying it on all net purchases. This case would probably lose also if it made it that far.

        I think that the New Yorkers are beginning to become aware that they chosen as their new leader a blind man who doesn't really like rich white people. The Albany pols are realizing that they need more money to keep up their little scams. This looks like an easy source.

        I'm always amused at all the former powerhouse, but now presumptuous little legal entities using historical boundaries to magnify their status as states. Yes,they are old historical boundaries. But there are six separate states between the Northern Boston suburbs and the New Jersey suburbs of New York City. A distance of about 250 miles by 100 miles. There is one state for three of these economic areas on the west coast: California having the Bay Area, LA and the Valley suburbs, and San Diego-Tijuana zones.

    Imagine every little municipality in each of these California zone going up to Ahh-nold and telling him that they are going to double the sales tax on everything that comes into their village and they aren't going to give any of to him.

      Big Mistake!

      Why all these little pissant states in the North East think that they can just do this and get away with it confounds us Westerners in the NAFTA zone. If I recall, you can cross from the eastern to the western edge of Rhode Island (one of these little NE pissant states) in an afternoon: on a bicycle.

    1. Re:NE, NY states too small for this BS by Beyond_GoodandEvil · · Score: 1

      Why all these little pissant states in the North East think that they can just do this and get away with it confounds us Westerners in the NAFTA zone.
      Some guy from Alaska called to say his state/penis is bigger than yours.
      Imagine every little municipality in each of these California zone going up to Ahh-nold and telling him that they are going to double the sales tax on everything that comes into their village and they aren't going to give any of to him.
      I believe the people of Berkeley tried that with coffee not too long ago.

      --
      I laughed at the weak who considered themselves good because they lacked claws.
    2. Re:NE, NY states too small for this BS by necrognome · · Score: 1

      Pissant states? ROFL. Do us a favor and stay the hell away from here when oil exceeds $200 a barrel. Enjoy the desert and the global warming.

      --


      Let's get drunk and delete production data!
  62. I'll give you a reason by way2trivial · · Score: 1

    the playing field is level for all businesses-
    the business chose its location!
    they had the same opportunity to locate where the multi-billion dollar company did

    (paraphrasing from a vorkosigan novel)
    imagine 50 little islands of economic evolution-

    it makes a great system of checks and balances between citizens, government, and businesses

    the corporations, and businesses can choose where they do business,
    based on the market and regulations in effect where they set up shop
    (yes, even the local mom & pops can decide where to sign a lease)

    if an enlightened state greases their tax structure to be more appealing to a corporation,
    then the corporation will register there, build offices there, grow there, and the government base for revenue will grow

    if a stodgy state taxes everything under the sun- business will leave, citizens will leave, and the governement will wither

    Do you know how much Philadelphia & NY city wage tax sucks? terms of residence and state of residence variations?

    I like it- as long as the field for government to tax is indepenedent of other states,
    they have to compete with other states or lose out either in citizenry or businesses

    --
    every day http://en.wikipedia.org/wiki/Special:Random
  63. I reside in NY by krygny · · Score: 1

    We have several taxes like this. They fall into two categories. It's either a "where's-the-money-and-how-do-we-get-some" tax or simply the all-inclusive "we're-the-government-and-we-can-do-whatever-the-fuck-we-want" tax. This would be the former.

    --
    Research shows that 67% of those who use the term "research shows", are just making shit up.
  64. Erm... by Anonymous Coward · · Score: 0

    Yes, this is exactly what the US economy needs right now, more regressive taxation.. that should put us back on track.. on no wait.. seriously there should be a class in basic economics that politicians need to pass before they are allowed to have any control of the tax system.

  65. The USA is the european union by Simonetta · · Score: 1

    The USA is the European Union. The USA is the first and only successful long-term attempt of the European peoples to create an economic and political union. The fact that the people forming the union were all thrown of Europe, and that there were significant numbers of non-European people in their union, doesn't change the essential nature of the first successful European Union. In fact the USA was of minor importance in world affairs until all the little European countries decided to commit mass suicide in the years 1914 to 1945.

        Whether the survivors and new generations of Europeans can sustain this new European Union remains to be seen.

  66. Re: Governor Patterson signing this travesty... by CowboyCapo · · Score: 1

    Congratulations, asshole. You've just successfully signed into law the bill that will ensure we leave your smoldering hellhole of a state alone. Have a good day, and do not expect to get any money from us, as we are ceasing operations in New York State. Undersigned, E-Bay Amazon TigerDirect et al

  67. Re:New York took down license plates from people.. by thewils · · Score: 1

    If the book store straddled the state line you could sell to both states!

    --
    Once I was a four stone apology. Now I am two separate gorillas.
  68. New York Loves Taxes by Anonymous Coward · · Score: 0

    Remember when Governor Cuomo sent police to New Jersey mall parking lots to scout for New York license plates that were then cross-referenced with tax records?

    New York already requires, "under penalty of pain of perjury," reporting of use tax with annual individual filings. In fact, big ticket items (>$1000) must be itemized.

  69. Re:New York took down license plates from people.. by digital_rich · · Score: 1

    Dear Gov Patterson, I bought a slice of pizza and a coke in the food court. Here's your 43 cents sales tax.

  70. Additional thoughts from another Internet retailer by Prisoner's+Dilemma · · Score: 1

    While we don't want to collect tax from everyone because we will lose sales, that's not the big problem. We are a small internet retailer (www.buysomebooks.com) and it is already a costly time consuming process to keep up with just two states we need to collect sales tax for. Every state has different amounts, different filing periods, different deadlines, different forms, different rules, and annual filing fees.

    On the surface, people position it as "helping out the local guy", but in reality, if the local guy sells online through their website or ebay, this could put him out of business.

    Some other things people forget is that the interstate Internet retailer is someone else's 'local business'. I know we are currently less United and more States, but not caring about 'other local' business is not good. We need a little more 'team' spirit right now. It's unfortunate if this type of thing is defining the new American way.

  71. The Bush family isn't from TN by drewness · · Score: 1

    As for your sig... you ARE aware that neither of the bushes, daddy or sonny are from Texas? They're from Tennessee last I heard. East coast northern socialists. Sure, Republicans are Democrat Lite, or Diet Socialists, but what did you expect, the people get what the people want... and they've learned, since school, to NOT pay attention to what they're told to ignore?


    The Bush family is from OH (I admit sadly as an Ohioan), and later moved to CT.

    And, uh, I don't know where you're getting your political spectrum from, because US politics are some of the most right wing and authoritarian in the industrialized world. If anything mainstream Democrats are Republican Lite, not the other way around.

    And the Bush's were very right wing Republican industrialists. They made their money in banking, steel, and railroads. Prescott Bush *hated* FDR. And the only welfare George Bush Sr and Jr are interested in is corporate welfare.
    1. Re:The Bush family isn't from TN by DaedalusHKX · · Score: 1

      So you're saying that FDR was a good guy? Ye GODS MAN! Are you nuts? They were all out to rule you, and yet you claim some were better than others?

      Wow, I don't know where your moral compass comes from, but it seems to have been forged in the mind smashing complexes known as schools.

      Guess anyone who robs Peter to pay Paul will count on the support of Paul. "Thems the breaks I guess."

      --
      " What luck for rulers that men do not think" - Adolf Hitler
    2. Re:The Bush family isn't from TN by freedom_india · · Score: 1

      FDR was the guy who introduced Social Security, which is going to pay you to live after you retire because none of the banks or corporate pension schemes are willing to pay you.
      They would rather pay their CEO and boards $126 million a year than pay you $50 K a year.

      --
      "Doing what i can, with what i have." ~ Burt Gummer
    3. Re:The Bush family isn't from TN by falconwolf · · Score: 1

      FDR was the guy who introduced Social Security, which is going to pay you to live after you retire because none of the banks or corporate pension schemes are willing to pay you.

      That same money deduced to pay Social Security would earn you more if you invested it in stocks. Whereas SS only increases with a cost of living adjustment, which is tied to inflation, the stock market averages much more over an extended period of tyme, even over 20 years. Starting at the age of 18 a person can invest $2000 a year for 7 years, until they're 25 then not invest any more money and with an ROI, Return on Investment, of 10% a year when they reach the age of 65 they will have more than $800,000 invested. Think Social Security can beat that? At 65 even if you put $800,000 into US Treasury securities earning 4% that's still $32,000 a year, tax deductible. Social Security has outlived it's usefulness.

      Falcon
    4. Re:The Bush family isn't from TN by freedom_india · · Score: 1

      Yeah... Why don't you invest your money in CDOs, Securitized Products with different Traches for safety. Probably the Tranche 5(with most risk) would earn you so much money.
      After all it did help Bear Stearns earn so much that JP Morgan is buying it for a WHOLE 2 DOLLARS a SHARE !!!
      Go ahead, put your money where your mouth is.

      --
      "Doing what i can, with what i have." ~ Burt Gummer
    5. Re:The Bush family isn't from TN by DaedalusHKX · · Score: 1

      Social security has not, and will not pay for a single member of my family. I'm sure it will pay for all those people who depend on it. Of course, they'll have to fight with all the other weaklings who depended on the empty promises of FDR (who was a central banker, by family and by profession, so don't bad mouth him, Social security was needed to keep peons in their place and keep fleecing them of a goodly section of the fruits of their labor.)

      I recall that old story from the early days of social security, how people who put weeks of SS payments in, collected 20 to 30 grand? And remember how SS was passed as a "special dedicated account for each taxpayer, that nobody could touch" ? Hahaha... and yet it is insolvent? How is that possible? Someone lied to you... and you passed the lie on, and those you've lied to will lie to others, all expecting it to be the truth.

      --
      " What luck for rulers that men do not think" - Adolf Hitler
    6. Re:The Bush family isn't from TN by falconwolf · · Score: 1

      Yeah... Why don't you invest your money in CDOs, Securitized Products with different Traches for safety. Probably the Tranche 5(with most risk) would earn you so much money.

      Right, invest in these bundled credit instruments. They're part of the reason for the economic slowdown if not recession we're in. But I suppose you know that. I'd stay away from them and stay with stocks and bonds. If I were able to invest, I'm on disability and don't work, I'd invest say 25% of my investments in aggressive growth stocks. Another 50% in growth stocks, 15% in income stocks, and 10% in value stocks. That is after I had 6 months living expenses in money market funds, CDs, and in savings. I'm hoping, rsn, to start working as a photographer and when I do I'll start my investments in growth stocks. Oh, like my brother-in-law did, I'd also like to do some trading once I built up enough of a fund to do so.

      Falcon
    7. Re:The Bush family isn't from TN by freedom_india · · Score: 1

      This i agree.
      Spreading the investment like you suggested makes a lot of sense rather than blindly investing in stocks.
      I split my investments in two separate parts: One periodic (SIP) that goes directly to buying gilt-edged funds only.
      The second goes directly to buying only growth stocks.
      Both are equal amounts albeit different periods of SIP.
      And both are done with entirely different finance institutions.
      Hopefully the former should pay for my retirement, and the latter for my son's college 18 years down the line....provided the economy doesn't crash before that very badly.

      --
      "Doing what i can, with what i have." ~ Burt Gummer
  72. Two steps to sove the issue by Michael0001 · · Score: 1

    There are two steps to solve this issue. First have all retailers collect taxes for ALL sales as if they were made in their store. Next, have all prices INCLUDE this tax. This is what the governments do NOT want. It will drive companies to areas with better (lower) tax rates. The government is always afraid of competition, and when it does happen it's the public that will benefit.

  73. What about the small internet retailer? by Anonymous Coward · · Score: 0

    If NY, or more states implement this, it could be very difficult and expensive for a small internet retailer to collect the tax and file it in the correct state.

    If NY implements this, I'll collect the tax, but I won't it pay it to NY! Go ahead and try coming after me. I'm hoping it won't be worth their time.

  74. tax based on seller by Dillenger69 · · Score: 1

    If they want to tax they should keep it simple and tax based on the location of the seller, not the buyer.

    --
    09 F9 11 02 9D 74 E3 5B D8 41 56 C5 63 56 88 C0
  75. I'll never buy anything from CA while i live in NY by Jackie_Chan_Fan · · Score: 1

    All of these sales taxes are going to kill the online sales industry. If you are in NY and were to buy from a CA based online store, you would get taxed the ridiculous CA sales tax percentage + the soon to be ridiculous NY sales tax.

    THEN add in the cost of delivery.

    Fuck that...

    It makes buying online not worth it. However most local retail stores have a very small selection of in store goods. Usually you have to go online to find something.

    I hope our blind governor is read this part of the bill before he signs this stupid bill. That or i hope he just signs the desk and misses the paper all together.

    If we had our whore fucking super god eliot spitzer as gov... he would not sign this. Perhaps thats why he was ratted out.

  76. I know we all hate taxes, but... by SETIGuy · · Score: 1

    No Tax or Duty shall be laid on Articles exported from any State.
    I know we all hate taxes, but the above sentence is in Article I Section 9 describing limits of the powers of Congress. It means what it says. It says Congress may not place export taxes on items exported from the states. That clause does not prevent the states from doing so.

    A clause that might limit the states is in Article I Section 10, which places limits on the actions of the States.

    No state shall, without the consent of the Congress, lay any imposts or duties on imports or exports, except what may be absolutely necessary for executing it's inspection laws: and the net produce of all duties and imposts, laid by any state on imports or exports, shall be for the use of the treasury of the United States; and all such laws shall be subject to the revision and control of the Congress.

    It's best to understand the document before basing arguments upon it.

    1. Re:I know we all hate taxes, but... by superdave80 · · Score: 1

      "The Congress shall have Power To ... regulate Commerce with foreign Nations, and AMONG THE SEVERAL STATES, and with the Indian Tribes;"

      That power lies with Congress, not the states.

      It's best to read my whole post before making arguments about it.

  77. You're missing the key point... by shmlco · · Score: 1

    You're missing the key point. Reread the summary, especially the part that says "... which applies to Internet retailers who derive sales through affiliate programs."

    Obviously, they're proceeding on the grounds that since Amazon must have affiliates that live in New York, Amazon has a "physical presence" in New York, which in turn allows them to collect sales tax. So the question becomes, is having an "agent" in that state the same as having employees or a b&m store?

    This one may have to work it's way up to the Supreme Court.

    --
    Any sect, cult, or religion will legislate its creed into law if it acquires the political power to do so.
    1. Re:You're missing the key point... by superwiz · · Score: 2, Informative

      Affiliates are not agents though. They are business partners. Affiliation is a voluntary relationship and as such does not allow one party to compel another to do anything through a mandate (only through an agreement). Agents can be compelled to act on a mandate and as such are part of a company. In other words, affiliates are entities with which Amazon does business (just as it would with vendors and end-customers). NY still can't compel Amazon to do anything, BUT and (here's where you might be right) NY can compel NY-based affiliates to collect sales information for the purchases made from them (but not from all of Amazon).

      --
      Any guest worker system is indistinguishable from indentured servitude.
    2. Re:You're missing the key point... by shmlco · · Score: 1

      Agreed, but regardless of what you or I think, NY believes that Amazon having "people" in NY is sufficient, and is probably the loophole through which they're acting. Their logic may be flawed and the whole thing subject to appeal, but I suspect that they've decided to roll the dice.

      Lose, they're out legal fees for lawyers they already have on staff, win, and they stand to collect millions in tax revenues.

      --
      Any sect, cult, or religion will legislate its creed into law if it acquires the political power to do so.
    3. Re:You're missing the key point... by superwiz · · Score: 2, Informative

      But the state of NY has no recourse. If they believe that Amazon is in violation of NY State tax code, they would have to raid their facilities to get evidence and then try to sue them (and possibly collect by liquidating their NY assets). But they don't have offices in NY. They don't have assets in NY. The affiliates are separate companies which do not have access to the records of customers that purchased from Amazon itself or other affiliates. My point is not that NY cannot claim to have jurisdiction. They claim it. But the reality simply disagrees.

      --
      Any guest worker system is indistinguishable from indentured servitude.
  78. It's more of the same old Democrats tax and spend by msoftsucks · · Score: 1

    Whenever a Democrat gets a chance, he'll impose yet another tax. Democrats rob the middle class to waste on the poor. Republicans rob the middle class and send our jobs overseas. Either way America is done for by these crappy politicians.

    --
    Quit playing Monopoly with Bill.
    Linux - of the people, by the people, and for the people.
  79. Illegal since 1789. by Iowan41 · · Score: 1

    In fact, this is one of the chief reasons that we have the Constitution instead of the Articles of Confederation.

  80. Re:TAXED TO DEATH - well just the poor by NIckGorton · · Score: 1

    A simple straightforward sales tax applied to imports and domestic sales (with a prebate to avoid screwing over the poor) would eliminate most loopholes, practically eliminate the need for the IRS (saving a decent amount of money), and save so much time and effort it's scary. And taxation would become even more regressive.

    Say the tax was a flat 20%. My partner and I make about $250,000 annually. Our expenditures on items that are sales-taxable is about $50,000 annually. We would pay $10,000 in taxes - or 4%. When I was in residency, I made $45,000 annually and spent about $20,000 on sales-taxable items. I would have paid $4,000 in taxes - or 8.9%.

    As it stands, my tax burden as a percentage of my income is far less now. I pay about 27% now and paid about 35% in residency. (Just by virtue of the fact that Social Security tax stops at $75,000.) However a sales tax only system would make it far more regressive. Poor people pay a far greater portion of their income in sales-taxable items than the wealthy, so unless you are going to tax hiring a lawn guy, tipping a waiter, investing in stocks, paying for boutique health care, and sending junior to Harvard, we have a moral disaster of monumental proportions on our hands.
  81. Like tea. by Iowan41 · · Score: 1

    I recall the British East India Company having some difficulties collecting that tax at one point. . . ;-)

  82. "Our liberties we prize, our rights we shall maint by Iowan41 · · Score: 1

    it is time for Iowans to re-read their -real- State motto, and cast the urban demonrats out of office. And DON'T give in to losing representation and self-governance through the county reorganization proposal!

  83. This isn't going to work out very well by Whuffo · · Score: 1
    While it's claimed that online businesses gain an advantage over "brick and mortar" businesses due to purchases being exempt from sales tax - that's not the whole story.

    Look at it from the buyer's point of view. If they buy at a local store they end up paying sales tax. But if they buy it online they may not pay sales tax but they'll have to pay for shipping. Sometimes the shipping charge is more than the sales tax would have been, sometimes it's the other way around. Still, the buyer has the choice of vendors and none has a significant pricing advantage.

    If NY finds a way to make this proposed tax legal and workable it'll change the balance to where online businesses are disadvantaged. If the purchase includes sales tax either way but also includes a shipping charge if purchased online - this would pretty much kill online businesses. Nobody would pay more and wait for delivery if they didn't need to.

    And of course there's some legal problems with the whole idea - New York may decide to require an online business located in California to collect and forward New York sales tax, but that business in California is not subject to New York laws. This is what the Commerce Clause is all about; to federally regulate interstate transactions because of non-overlapping state jurisdictions. I'm sure that many quasi-legal hairs will be split during the spirited discussions on this topic but the whole Amazon tax idea rests upon a pretty important concept: are citizens of other states under the jurisdiction of New York courts? Not according to the Constitution...

  84. The USA is at war by tjstork · · Score: 1

    So there we already have a precedent of a US citizen being detained without cause, on US soil.

    Getting concerned yet? You should be.

    I won't even bother to point out that you'd have to be a selfish bastard, as well as ignorant to think only American's have the right to Habeas Corpus.


    Ok. Check this out. The USA has a -long- tradition of temporary suspensions of some civil liberties during war time. Last time I checked, the USA is in a war.

    As much as the left wing bashes Bush for, honestly, going after Padilla, whose just a stupid muslim gangsta anyway, they've neglected that Lincoln not only suspended Habeus Corpus in the civil war in general, but he flat out executed a shitpot of confederate spies - no trial. Just whacked them. Then, in World War II, you had Roosevelt go and throw all the Japs into camps. What was their crime? And this guy has his head stamped on every US dime.

    After the war is over, and peace breaks out, then the USA's civil liberties go back.

    I have no problem saying that terrorists or Iraq or Afghan insurgents do not get Habeus Corpus. It's a battlefield, and if a US soldier -thinks- they might get shot at by you, then they should shoot you first. Sorry, its a war. War sucks. But, I don't see any Arab organization actually arguing in favor of any civil rights for anybody. ... so really, when it boils down to it, American military rules of engagement are most likely a step up in civil rights for most arabs.

    --
    This is my sig.
    1. Re:The USA is at war by Bazar · · Score: 1

      Ok. Check this out. The USA has a -long- tradition of temporary suspensions of some civil liberties during war time. Last time I checked, the USA is in a war. You are correct that it has been suspended in the past. Those times however, it was acceptable due to the public safety, the condition required to suspend Habeus Corpus

      I'll quote the constitution again.
      "...Habeas Corpus shall not be suspended, unless when in Cases of Rebellion or Invasion the public Safety may require it"

      The public safety was always considered in jeopardy in previous suspensions, but this wasn't the case in iraq. Its very nature conflicts with the constitution.

      As much as the left wing bashes Bush for, honestly, going after Padilla, whose just a stupid muslim gangsta anyway, they've neglected that Lincoln not only suspended Habeus Corpus in the civil war in general, but he flat out executed a shitpot of confederate spies - no trial. Just whacked them. Then, in World War II, you had Roosevelt go and throw all the Japs into camps. What was their crime? And this guy has his head stamped on every US dime. I don't see what this point is about. Are you suggesting that because past presidents have abused the system, that its acceptable to let the current president's abuse slide uncontested?

      The general direction of your post is along the lines of "The ends justify the means". This is problematic because without supervision, the potential for abuse is unparalleled. The Writ of Habeas Corpus is the most fundamental building block of justice and without it, the only thing gained is a new level of injustice.
      --
      To avoid criticism; Say nothing, Do nothing, Be nothing.
  85. US States are sovereign by tjstork · · Score: 3, Informative

    I really don't understand this idea in the US of every state doing everything individually in their own little wa

    It's really best to think of the US Constitution as a treaty between the states that allows for the creation of a strong federal government but with limited powers. Thus, the commerce clause argument that both left and right wingers always have.

    The only reason that the USA wound up with a strong federal government was because the previous "federal" government, the Articles of Confederation, was an abject failure and almost doomed the USA to perpetual inter-state bickering. The US Constitution changed all that, and eventually, the EU will most likely evolved into something like it.

    --
    This is my sig.
  86. About time by Anonymous Coward · · Score: 0

    It's about time that this loophole gets plugged. It is really unfair to local retail stores.

  87. Mailboxes Etc. by Anonymous Coward · · Score: 0

    note to self -- pick up a franchise or two of these... right in PA along the NY state line...

  88. Re:How to simplify the sales tax collection proces by Jaime2 · · Score: 1

    I agree. New York is one of those states where each County has a different tax rate, and they seem to change every five years or so. I can't imagine how a non-New York retailer is going to pay their New York sales tax bill. If five or six other states start doing this, it will be very difficult for small businisses to sell on the Internet.

  89. From NYC by wideBlueSkies · · Score: 1

    I live in NYC.

    What an assenine bill. I didn't even know this thing existed...sneaky bastards..I wonder if this is a leftover from Spitzer's todo list.

    Hell, if this passes I will just have to buy internet stuff from my NJ work location, have it shipped to my Brother-In-Law's house in Piscataway, NJ, and pick it up on my way home from work after it's delivered.

    I know that most don't have this option, but it's a workaround I'd be able to live with, given that I'm in NJ 6 days each week....

    --
    Huh?
  90. Re:TAXED TO DEATH - well just the poor by JesseMcDonald · · Score: 1

    You've somehow managed to completely overlook this bit from you own quote:

    with a prebate to avoid screwing over the poor

    The "FairTax" group is essentially proposing that the zero-point for their sales tax be placed at the poverty income level. Their "prebate" cancels out the sales taxes up to the estimated expenses for a poverty-level household. For yearly taxable expenses below the poverty line there is a small net handout; above the poverty line the effective sales tax rate asymptotically approaches the per-transaction rate. Thus the "poor people" (presumably poverty-level and below) pay no federal taxes at all under this system.

    This comment should not be taken as an endorsement of the "FairTax" system.

    The previous disclaimer should not be taken as an endorsement of the status quo.

    --
    "The state is that great fiction by which everyone tries to live at the expense of everyone else." - Bastiat
  91. Sell your grave plot if you move out of NY by Anonymous Coward · · Score: 0

    Seriously. An accountant told a friend of mine to do that, otherwise NY State would claim they still had an established residency in the State, and claim taxes. I sold at a market in Manhattan for many years and found the NY Tax bureau to be the absolute worst bloodsuckers I have ever in my life dealt with. I sold on a show circuit spanning 6 states and also dealt with 5 other State tax bureaus, and never had problems with any of the others. 3 out of 4 quarters NY claimed I lied to them and BILLED me for double. Then I'd have to go through the malarkey of making copies, and justifying my numbers.

    This is just the tip of the iceberg for NY State. I'm sure they've got a lot more of this stuff up their sleeve. Oh, and don't die without a will in NY State. Look it up. It's horrifying.

  92. Re:TAXED TO DEATH - well just the poor by NIckGorton · · Score: 1

    The "FairTax" group is essentially proposing that the zero-point for their sales tax be placed at the poverty income level. Their "prebate" cancels out the sales taxes up to the estimated expenses for a poverty-level household. For yearly taxable expenses below the poverty line there is a small net handout; above the poverty line the effective sales tax rate asymptotically approaches the per-transaction rate. Thus the "poor people" (presumably poverty-level and below) pay no federal taxes at all under this system. I have some news for you: you can be poor and make above 1xFPL. But let me re-do the math for you: In residency I made 45k, and spent 20k on sales taxable items. The FPL for a single person is 10,210. I would pay 1958 in taxes, or 4.4%. Now we make 250k and spend 50k on taxable items. The FPL for two is 13,690. I would pay 7262 in taxes, or 2.9%.

    4.4% is still significantly higher than 2.9%. Making something less unfair doesn't make it fair. Making a regressive tax marginally less regressive doesn't make it progressive.

    Or fair.

    And the FairTax group is like Focus on the Family or Concerned Women for America. Calling your organization the 'Basket of Puppies and Kittens Association' doesn't mean that you poop rainbows if your agenda is evil.
  93. Re:TAXED TO DEATH - well just the poor by JesseMcDonald · · Score: 1

    I have some news for you: you can be poor and make above 1xFPL.

    Where would you draw the line? The term is completely subjective; to someone living under an oppressive dictatorship a penniless vagrant in the U.S. may be "rich", and yet the average citizen might reasonably consider that same vagrant "poor". The FPL is at least a defined term, although there is room for debate over the meaning of "necessities."

    I already said that I don't completely agree with the "FairTax" proposal. I also don't agree with the concept of so-called "progressive" taxation. You rightly object to implications of the "FairTax" name; the same applies to the whole "regressive"/"progressive" naming scheme. There's nothing inherently good about transferring money from high-income to low-income groups -- unless, of course, one happens to be in the low-income group oneself.

    If the point is fairness, as you seem to be implying, then IMHO a "regressive" tax scale would be better. I think one could argue for the rich being less of a burden on the government, and thus for a decreasing absolute tax scale, but I'd settle for somewhere between a flat absolute tax and a constant percentage of income. This is assuming total spending equal to total tax revenues, with both tending toward zero.

    --
    "The state is that great fiction by which everyone tries to live at the expense of everyone else." - Bastiat
  94. taxes on purchases by falconwolf · · Score: 1

    Only suckers (or principled individuals) paid taxes on their computer equipment in the last 10 years.

    Even if you order a physical item from out of state, say on the net, you're still paying taxes. Say you order a computer from Newegg and they ship it FedEx. FedEx still has to pay the state fuel tax. FedEx pays the tax then includes it in the cost of shipping. FedEx also has to pay property tax as a part of doing business.

    Of course, this might all be a moot point since rising fuel costs are going to close the gap between Shipping Costs (the alternative tax) and local Sales Tax.

    The local store has to pay those rising fuel costs too, and so does the shopper. This is something I think about, as I'm on disability and don't work I have to watch my expenses and with rising fuel costs I'll be driving less than I already do.

    Falcon
  95. equality by falconwolf · · Score: 1

    The Constitution is also not the "Alpha and Omega" of morality and ethics. The inequalities it had for non-whites and female citizens were corrected eventually

    The original "Declaration Of Independence" though did have equality in it. When Thomas Jefferson wrote the DOI he wrote that Blacks and women had the same rights and slavery should be abolished. However others had to approve it so those parts were removed from the final version.

    I can hear it now, somebody's saying TJ was a slave owner and therefore couldn't believe in abolishing slavery. Well every slave he owned he inherited from his father or his father-in-law. He didn't buy any slaves himself but he did free some, and wanted to free all of them but he was frequently in financial trouble and thought he couldn't afford to.

    Falcon
  96. So... by Bones3D_mac · · Score: 1

    Anyone want to start a "purchase-by-proxy" service? Simply put, such a service would involve payment up front to temporarily "hire" a third party to make a purchase on your behalf, then turn around and re-ship the unopened box from their location into your state. Yakuza-operated pachinko bars in Japan have been using similar methods for years as a loophole to gambling laws by allowing customers to leave the bar with a particular non-cash prize (such as a stuffed animal) then go to another near-by location owned by the same group to then "sell" the prize in exchange for cash.

    Everyone knows it happens, and yet no one interferes.

    --


    8==8 Bones 8==8
  97. not really true by Trepidity · · Score: 1

    The only two high-profile Guantanamo-related cases to get to the Supreme Court, for example, have both gone against the government---in 2004 Hamdi v. Rumsfeld held that detainees have a right to challenge their detention judicially, and in 2006 Hamdan v. Rumsfeld held that the military commission trials Bush had initiated were illegal.

    More recently, there doesn't seem to be much serious belief that the courts would, for example, side with the administration on the issue of illegal wiretapping by AT&T and others. The bigger threat there is that Congress will grant them immunity.

  98. I consider it payback for Prop 13 by Anonymous Coward · · Score: 0

    fuck all those old-money californians not paying property taxes; they're costing a lot more than I am

  99. strong federal government by falconwolf · · Score: 1

    The only reason that the USA wound up with a strong federal government was because the previous "federal" government, the Articles of Confederation,

    Actually the reason the federal government got so strong was because of the Civil War. Prior to it states had more power and the federal government had less. Ultimately that's what the civil war was about, it wasn't about slavery.

    Falcon
    1. Re:strong federal government by tjstork · · Score: 1

      Actually the reason the federal government got so strong was because of the Civil War

      True to a point, but also some big reforms in the 1890s and onwards also changed that. But it was really Roosevelt who created the modern USA.

      Ultimately that's what the civil war was about, it wasn't about slavery.

      Actually, it was all about slavery... Slavery was a topic that bedeviled the founding fathers even. Adams, Jefferson, others all admitted their deal with the devils to get through the day and that they punted the problem to future generations. The framers of the constitution blew it off in order to get the south to join the union but a civil war on the issue was more or less inevitable, especially as the north began to figure out how to use machines to be more productive than the southern slave based economy.

      --
      This is my sig.
  100. sales and use tax by falconwolf · · Score: 1

    if the catalog company is in Maine and you are in Florida, then you don't pay Jack Schitt for taxes

    Oh but if you live in Florida, I used to, you may be legally required to pay a use tax. Florida has no income tax so there's a special form that's supposed to be filled out. Other states have a line on their income tax forms where people are supposed to list what they bought from out of state.

    Falcon
  101. USA Constitution by falconwolf · · Score: 1

    We can't even agree on most of the amendments, certain sentences are twisted and abused, the entire constitution of the US is wrapped up in a semantic nightmare wherein we try to interpret what we -want- to interpret out of a two hundred year old document.

    The only reason the amendments, and Constitution, have been twisted around is so that those who do the twisting get to say what it means. Take for instance the 2nd, because it mentions militias anti-guns activists say the right to bare arms is not a person right only a collective right. However if you read the writing of the Founding Fathers that it is in fact a personal right, the Founding Fathers feared government and wanted people to have the means of overthrowing the government. Thomas Jefferson said it quite succulently when he wrote:

    "God forbid we should ever be twenty years without such a rebellion. The people cannot be all, and always, well informed. The part which is wrong will be discontented, in proportion to the importance of the facts they misconceive. If they remain quiet under such misconceptions, it is lethargy, the forerunner of death to the public liberty. ... And what country can preserve its liberties, if it's rulers are not warned from time to time, that this people preserve the spirit of resistance? Let them take arms. The remedy is to set them right as to the facts, pardon and pacify them. What signify a few lives lost in a century or two? The tree of liberty must be refreshed from time to time, with the blood of patriots and tyrants. It is its natural manure."

    It wasn't long ago that people didn't directly vote in their Representatives and Senators.

    The citizens voted for the Representatives it was the Senators the state legislators chose, see:

    Section 2 - The House
    The House of Representatives shall be composed of Members chosen every second Year by the People of the several States

    And:

    Section 3 - The Senate
    The Senate of the United States shall be composed of two Senators from each State, (chosen by the Legislature thereof,) (The preceding words in parentheses superseded by 17th Amendment, section 1.) for six Years; and each Senator shall have one Vote.

    That's a pretty big change don't you think?

    And changed via the 17th Amendment.

    The fact that the constitution sets out so little on the requirements for election?

    The only requirement I see that could be added was a test on the Constitution, which I fear most politicians would lose. Are you suggesting only a certain class of people should be representatives and senators, an aristocracy? The Constitution specifically bans an aristocracy.

    1. Re:USA Constitution by Anpheus · · Score: 1

      I'm not going to dignify the rest of your post with a reasoned, well thought out response, explaining my views on the second amendment or the misinterpretation that the constitution is fraught with...

      Because you strawmanned me -twice-. First you assumed that I am against the 2nd amendment as a personal right, and then launched a tirade against me replete with quotation. (This substantiates my view, however, that the constitution as a document is inadequate at explaining all of its content.) Then you later accused me suggesting that by mentioning requirements for election, I was attempting to justify an oligarchy, aristocracy, an elite class, and the mere suggestion that I would only want a particular class of people reeks of an insinuation of racism or sexism or something-ism that I can only say is deplorable.

  102. Re:New York took down license plates from people.. by falconwolf · · Score: 1

    NY also is trying to force Seneca store owners on sovereign indian land to collect NY sales tax.

    Yea, I read about how NY tried to get the tribes to collect the tobacco taxes back in the 1990s.

    Falcon
  103. Re:TAXED TO DEATH - well just the poor by flynnternet · · Score: 1
    Now we make 250k and spend 50k on taxable items

    Under the FT scheme there would be far more taxable items / services. The $$$ (UN-income-taxed) you then spend, (on services, nail jobs, cars, whatever) would be now taxed. So the more $ you spend, the more $ you'd contribute to the cause ... (Not to say that we could not cut down on the $$$ that the Fed spends/wastes...)

    You may be "rich", but what good are those $$$ if you cannot convert them into real world goods/services?

    --
    ----------

    I'd buy That (sig) for a Dollar...

  104. Bullshit by fileufel · · Score: 1

    In our country, facts are facts and words cannot be redefined nor can documents be re-written arbitrarily by courts. If you don't like that, go somewhere else -- this is not your country. The courts are either correct or they are not -- that is a logical necessity -- "correct" is not defined simply as "had the last word" or "not proven incorrect yet" or "not yet contradicted since speaking". Those are your definitions of "correct" and they are, frankly, bullshit, as is the entire system of relativism that you blindly follow. To summarize, A is A. Truth is truth. Regardless of interpretation. Also, the charge that the Constitution is not "equipped" to deal with the internet and modern shipping is ridiculous. The fact is that the Constitution does deal with such issues by specifically leaving them out of the purview of the state governments. We the people deal with the internet and shipping just fine, by utilizing them freely. The claim that because we have technology that did not exist 220 years ago, the Constitution is no longer valid, is, to say the least, preposterous.

    1. Re:Bullshit by Amilianna · · Score: 1

      I did not claim that the Constitution is not valid - I claimed that many of the things that they specifically addressed or did not address were defined by the realities of that time. Do you deny this? And, I'm sorry, where are you living?!? Words can not be redefined? Do you know what Webster did when he created his "dictionary"? He altered words and redefined things and changed spellings merely so that American English and British English would be different! Besides, we are not talking about arbitrarily rewritting things, we are talking about working within the current era to produce laws that make sense rather than keeping laws as they were 220 years ago which were not equipped to deal with the world we live in now.

      Also, while the writters of the Constitution were still alive to protest whether or not it was appropriate, the Supreme Court began "interpreting" the Constitution. (The following taken from wikipedia, boldness added for emphasis of point) "The ability of the courts to interpret the Constitution was decided early in the history of the United States, in the 1803 case of Marbury v. Madison. In that case, the Supreme Court established the doctrine of judicial review, which is the power of the Court to examine legislation and other acts of Congress and to decide their constitutionality. The doctrine also embraces the power of the Court to explain the meaning of various sections of the Constitution as they apply to particular cases brought before the Court. Over the years, a series of Court decisions, on issues ranging from governmental regulation of radio and television to the rights of the accused in criminal cases, has affected a change in the way many Constitutional clauses are interpreted, without amendment to the actual text of the Constitution."

      So how you can sit there and claim that it isn't the courts job to interpret the Constitution is beyond me. It is also the right of any citizen to challenge a lower court on whether or not their rulings are Constitutional. So, as I said before, if you feel the courts are wrong you should sue and take the case up to the Supreme Court so they can make a ruling. Then, per our Constitution and per the precedent set during the time the Constitution was written, they're ruling will be as good as if it were an Amendment until they overturn it in a similar case.

      --
      "Does bouncing count?" - Silk, Magician's Gambit by David Eddings
  105. I already pay sale taxes on Amazon purchases by jrincayc · · Score: 1

    I live in Idaho and I already have to pay sale tax on any Amazon purchases. The way this works is I keep track of my internet purchases, and then at the end of the year I add the up the amount and add 6% of the amount of total purchases to my Idaho 'income' tax. It's a pain and usually takes more time than the rest of my income tax (especially when Idaho does something annoying like change the amount of sales tax in the middle of the year). http://tax.idaho.gov/answers_Sales_tax.htm#11

  106. convenient for the honest by pruss · · Score: 1

    For those who have already been paying use tax--it is required by law in many states--it will be really convenient to have it collected by the seller. It is a big nuisance to have to write down every untaxed online household purchase in a notebook, then add them all up annually, fill out a use tax form, and write check.

  107. federal internet sales tax/no state by multicsfan · · Score: 1

    What we really need is a federal sales tax on internet sales delivered to addresses in the US. One that prohibits states from taxing these sales. Otherwise we will have every state passing different tax laws with different rules making it a bookkeeping and reporting nightmare.

    What I propose is a federal sales tax on internet commerce (with reciprocal rules for other countries that pass compatible laws.

    a 5% tax that is distributed as follows:

    2% goes to the federal goveernment.

    2% to the state/province with the only reporting done by zip code/postal code and city

    The remaining 1% is split and goes to the following purposes as needed:

    part goes to FEMA/disaster relief fund so funds are already on hand, no need to wait for congress to authorize funds to help with a disaster (or maybe something like FEMA). This would be used to reimburse the DOD for disaster relief missions, emergency food and supplies, etc.

    part goes to setting up public internet exchange points and transit capacity between these points.

    part goes to internet R&D and deployment of new technology (like ipv6).

    part goes to basic R&D grants/NSF.

  108. Re:New York took down license plates from people.. by Reziac · · Score: 1

    Unless the mall is visible from the NY side of the state line, they were out of their jurisdiction.

    I once got a cop fired for harrassing someone (myself :) while out of his juridiction -- that last part was what interested his boss, and got him the boot.

    --
    ~REZ~ #43301. Who'd fake being me anyway?
  109. Re:TAXED TO DEATH - well just the poor by NIckGorton · · Score: 1

    Where would you draw the line? The term is completely subjective; to someone living under an oppressive dictatorship a penniless vagrant in the U.S. may be "rich", and yet the average citizen might reasonably consider that same vagrant "poor". The FPL is at least a defined term, although there is room for debate over the meaning of "necessities."

    Well, let's see. I would call food, clothing, shelter, and health care necessities. The cost of those for Americans far outstrips the federal poverty level regardless of how thrifty you are. Hell, just the cost of purchasing health insurance alone eats up well over half (and that doesn't count copays etc.) Unless you think that health care, food, and a roof over one's head are luxury items?

    I also don't agree with the concept of so-called "progressive" taxation. You rightly object to implications of the "FairTax" name; the same applies to the whole "regressive"/"progressive" naming scheme. There's nothing inherently good about transferring money from high-income to low-income groups -- unless, of course, one happens to be in the low-income group oneself.

    1)As income level rises, consumption as a proportion of this income falls. Progressive taxes tend to have an economic stimulating effect because they decrease the tax burden on those who plug back a higher proportion of their income back into the economy.

    2)As long as your post tax income increases in proportion to productivity there is a motivation to work. For a given income goal, the higher the tax rate, the more you have to work to reach that goal. (A person making 20,000/year might have to increase his gross by 1,200 to see 1,000 in his pocket, while a person making 200,000/year would have to increase his gross by 2,000 to see 1,000 in his pocket.) So the greatest stimulus for productivity occurs in people with higher income (who are often the most skilled workers and the most valuable in society.)

    3)Progressive taxation does have an effect to (marginally) redistribute wealth, but largely this is in that it maintains a middle class within a society. Those countries with the most progressive tax systems also have the largest middle classes and the lowest proportion of people living in poverty. In fact one of the effects of the last few decades where the tax system in the US has become more regressive (starting with Reagan) is that we are undergoing what is termed 'third-worldization'. The US middle class shrinks every year, the number of Americans living in poverty is rising, the real median family income is falling, and we perform in measures like infant mortality at about the level of a developing nation. When I was a resident in, I saw American born children who had true protein calorie malnutrition. While it was a good learning experience as a physician, it was eyeopening to see the kwashiorkor and marasmus I would expect to find in Ghana or Nigeria in Flatbush Brooklyn. Though its not surprising since 40% of the kids in NYC live in poverty.

    4)The wealthy benefit disproportionately from maintaining the security of their property rights, maintaining a fire department, maintaining an army to defend our borders (because they would have more to lose.) Therefore a proportionally higher contribution is appropriate.

    5)A progressive tax is an automatic income stabilizer in that if you lost your job and got one paying a lower rate, it would soften the blow.

    However with regard to your comment about the inherent 'goodness' of alleviating the wealth disparities (to a small extent) as would be done with progressive taxation, from my perspective it would be good even though my tax burden would increase. Because I don't want to live in a society where I see a child in the ER with severe protein calorie malnutrition who will be sick for the rest of his life because he wasn't given food. I don't want to live in a place where poverty is so bad that my car gets broken into repeatedly (because as poverty rises, so does propert

  110. Sounds like good ol' fashioned government greed by Anonymous Coward · · Score: 0

    Should they tax it just because they can? Is there some pressing need for the additional money? Most of us out here don't see getting more money into the government as a priority in our lives. They're just greedy, that's all it amounts to.

  111. Because you strawmanned me -twice- by falconwolf · · Score: 1

    This is my last response as you're doing exactly what you accuse me of doing.

    First you assumed that I am against the 2nd amendment as a personal right, and then launched a tirade against me replete with quotation.

    I did no such thing. Not once in my part about the 2nd Amendment did I say you were against it as a personal right. I dare you to point out where I did.

    Then you later accused me suggesting that by mentioning requirements for election, I was attempting to justify an oligarchy, aristocracy, an elite class, and the mere suggestion that I would only want a particular class of people reeks of an insinuation of racism or sexism or something-ism that I can only say is deplorable.

    Perhaps your reading comprehension is below par, but I made no such statement. Instead I asked if that's what you meant as I have no idea what other requirements you would require.

    Anymore correspondence on my part would be a waste of my tyme.

    Falcon
  112. Re:TAXED TO DEATH - well just the poor by karmatic · · Score: 1

    As income level rises, consumption as a proportion of this income falls. Progressive taxes tend to have an economic stimulating effect because they decrease the tax burden on those who plug back a higher proportion of their income back into the economy.

    Generally speaking, rich people tend not to be really stupid. Those who are don't (usually) stay rich very long.

    We start by assuming the goal is to get money out of the rich, in order to save the poor people from paying an "unfair" portion of taxes. My goal would be to decrease spending, but that's a seperate issue.

    So, the "ideal" situation would be that the rich spend 100% of their money, or at least enough to cut the taxes of the poor (and middle class) down to "fair" levels. This would maximize the amount of the money that goes to the government coffers.

    Ok, let's consider the "worst case" scenario. As you state, consumption tends to decrease as a percentage of income as income rises, so let's assume that 0% (effectively) is spent on consumption. What happens?

    Since this is the "worst" case scenario, the hypothetical rich person is monumentally stupid. He hordes all his money, and gets to face inflation.

    Now, the current CPI is misleading using pre-clinton style numbers it's around 7.5%.
    Still, it makes more sense to look at the worldwide buying power of the dollar.
    USD vs Euro: Down almost 15% YOY.
    USD vs Hungarian Floring: Down around 13% YOY.
    USD vs Chinese Yuan: Down around 9% YOY
    USD vs Swiss Franc: Down around 18% YOY
    USD vs Japan Yen: Down around 15% YOY

    So, even if we weren't facing 8%+ inflation, we'd still be losing 9-15% of the value of the dollar this year. So, even in the "worst case" scenario, the rich man is still paying considerable taxes. Sales taxes apply once, income taxes apply once. Inflation disproportionally affects those with money way more than those without, and happens every single year. In fact, those with massive amounts of debt and no currency whatsoever can end up benefiting from it, as the "real world" cost of their debt drops.

    So, let's look at a more real world scenario, shall we? Rich people stay rich because they do things with their money. If you aren't seeing a return on your investments, you are losing money every day. So, what happens when money is invested? It doesn't sit there - it moves around. Money that doesn't move doesn't make a return.

    What happens when money goes into the bank? Well, historically speaking, we tend to have about a 10% reserve. So, a $100,000 deposit turns into $900,000 worth of loans. These tend to go towards purchasing goods for businesses (business loans), or things like mortgages.

    So, we have a $100,000 deposit that leads to $900,000 worth of loans. Say these go to construction loans. The fairtax percentage of 23% results in $207,000 worth of sales taxes paid on $100,000 worth of deposits. Where does the difference come from? Inflation, of course, resulting in even more taxes for those with money.

    The money can also be loaned to individuals, for things like buying cars (sales tax is paid), or to businesses (where it can be taxed as income to employees, tax on the goods purchased with it, or tax on the goods sold derived from it). Ultimately, it all gets taxed, because it's either spent, loaned to someone who spends it, or taxed away in the form of inflation.

    Currently, the mortgage market is largely dead, which would change things slightly; however, ultimately it won't matter because the federal reserve has no money.

    To quote them, "By definition, nonborrowed reserves are equal to total reserves minus borrowed reserves." So, a negative nonborrowed reserve would mean that we have, in fact, loaned out more money than is in the reserve, leading to a system where we can just print up however much money we want, since we've abandoned any pretense of trying to maintain our currency. So, we just print money like it's coming out of style, and then ramp up welfare programs to help the impact of rising costs in food, energy, etc.

  113. Re:New York took down license plates from people.. by Jafafa+Hots · · Score: 1

    They're still trying. Its in court.

    --
    This space available.
  114. investing by falconwolf · · Score: 1

    Spreading the investment like you suggested makes a lot of sense rather than blindly investing in stocks.

    An investor should have an investment strategy based on part on their age, someone young should invest for growth. While the risks are a little higher they still have plenty of tyme to make up for loses whereas someone nearing retirement should shift to investments producing income, which have less risk. It sometimes amazes me many people though don't understand this as I learned it in jr high and high school, in public schools. Then again I had to explain this to my sister, who's 3 years younger than I am, when she was in college majoring in accounting.

    Falcon
  115. tribes and tobacco tax by falconwolf · · Score: 1

    They're still trying. Its in court.

    I thought the USSC already ruled New York didn't have the authority to force tribes to collect and pay the tobacco taxes. Googling it appears I was wrong.

    Falcon
  116. states rights by falconwolf · · Score: 1

    Ultimately that's what the civil war was about, it wasn't about slavery.

    Actually, it was all about slavery...

    Only peripherally, the southern states ceded because they believed their states' rights were being violated.

    Slavery was a topic that bedeviled the founding fathers even. Adams, Jefferson, others all admitted their deal with the devils to get through the day

    Yea, when Thomas Jefferson first wrote the "Declaration of Independence" he wrote that everyone, including Blacks and women, had the same rights. However as slave owners and others who believed in slavery, and subservient women, had to sign the DOI he removed those parts.

    a civil war on the issue was more or less inevitable, especially as the north began to figure out how to use machines to be more productive than the southern slave based economy.

    Actually in part because of the efficiency of machinery and manufacturing slavery was doomed. Economically slavery was unsustainable, it costs less to pay willing employees a living wage than it does to keep slaves.

    Falcon
  117. Existence exists by fileufel · · Score: 1

    I wonder if it is even worthwhile trying to reason with you. Do you believe in reality? You don't seem to. (To quote you, "where are you living?!?")

    You may not have explicitly stated that the Constitution is invalid, but the effect of your words was to say that it is. If portions of the Constitution can be set aside completely in order to deal with "the realities" of our present time, the logical consequence is that the document is invalid. If you believe that "the realities" of our time require something like, for example, an import tax by a state, then the only way in which you can advocate such a tax is by first advocating a Constitutional amendment to allow said tax, without arguing, explicitly or implicitly, that the Constitution itself is invalid. (Or, of course, you could argue that the state secede from the union, as then it would no longer be bound by any US Constitutional restrictions; but then the Constitution would become literally invalid in that state, anyway.)

    The Constitution was not intended to provide for merely "the realities of the time". It was intended to establish a government with strictly delimited powers, whose limitations were based on absolute principles. Granted, it had its weaknesses as far as that goes, but in no way can it be argued that those limitations were intended to be disregarded by future judges. Also, as mentioned already, a method of amendment was provided in the Constitution itself, in case of some significant change over time which was deemed to actually require government involvement.

    Where do you get the idea that Webster changed the spellings of words, rather than using spellings which were already common in America when he made his dictionary? It's an interesting charge, and I'd like to see evidence of it if you have any, even though it is rather peripheral to our discussion.

    I did not say that the meanings of words cannot change over time. I said that the words of 220 years ago cannot be arbitrarily redefined to suit our present needs, desires, or intentions. The meanings of words can change naturally over time as their use changes. For an extreme example, take the evolution of the word 'liberal' from 'liberty-oriented' to 'socialist', its current most-common sense. But while reading a word in the Constitution, any honest person will endeavor to read the word in its 18th-century meaning, even if that meaning is the opposite of the common meaning of the same word. Similarly, when a word has two or more meanings, we must read the meaning which was obviously intended in the Constitution -- thus, "the right to keep and bear arms" was not intended merely to prohibit forced amputations. If the word "speech" somehow evolves into the meaning "eating" in the course of the next 200 years, that will have no impact on the actual meaning of the phrase "freedom of speech" as found in the First Amendment. Actually my exact words were "words cannot be redefined ... by courts", so perhaps it's that to which you're opposed. Would you like to have the court system re-writing our dictionaries and forcing us to use words with the new meanings they ascribe to them?

    Even if the power of the courts to interpret the Constitution is granted, that does not mean they have the power to redefine the Constitution. An interpretation is an explanation -- putting the same meaning into different words -- not rejecting the old meaning and imposing a new one. Any "interpretation" of a 220 year-old document, then, which is not consistent with the actual meaning of that document, is not an interpretation. Further, no two contradictory interpretations over any expanse of time can both be valid, and it is an uncontestable fact that court cases have often conflicted with other court cases (a fact which you allude to yourself).

    The claim that court rulings are as good as Constitutional amendments is a very dangerous view. The Framers of the Constitution deliberately made it relatively difficult

    1. Re:Existence exists by Amilianna · · Score: 1

      It seems to me that the recourse of a person with a poor argument is to insult and degrade the person that they are arguing with, rather than merely sticking to facts as presented. Regardless, the discussion in this thread is about whether or not the courts have the right (or, actually, the ruling body of a state, which has very little to do with its courts) have the right to interpret whether or not the term "import" applied to state-to-state commerce as well as commerce coming from another country.

      Now, you may feel free to quibble on whether or not the original drafters of our Constitution intended the word "import" to be used as it applied to states, and we can argue back and forth on whether or not the reasonings behind that addition to our Constitution were put into place with the intent of allowing a business and/or consumers to circumvent paying taxes to the states in which they live - taxes that have been passed into law long ago - but we can never know their true intent. All we have to go on is the word "import", and whether you're talking about 220 years ago or today that word still implies transportation between countries - not within a country itself. Taken from dictionary.com (bold added for emphasis): "1. to bring in (merchandise, commodities, workers, etc.) from a foreign country for use, sale, processing, reexport, or services."

      Now, no matter how much freedom individual states are given with their internal government, we are all still one country. California is not a foreign nation to New York (no matter how both peoples might feel about each other). That being said, I still hold fast to my assertion that even if (and I feel this is a strong "if" at this point) the drafters of our Constitution intended to use the word import in a fashion that no one else had intended, it is still a very different situation. I'm sure that if you could go back in time and ask the founding fathers what they thought about people circumventing the taxes that paid for the services where they lived by exclusively buying from retailers in another state, they would find the idea ludicrous. The taxes that are levied on the peoples in each state are (theoretically) used for their benefit - to fix the roads they drive on and to fund the schools their children attend. The idea of people circumventing this with internet buying could not have occured to our founding fathers - they having no knowledge of the ease of internet buying - and I think that they would feel it was a gross abuse of the system that they helped create. But, again, as I do not have a working time machine at this time I can't actually know for certain.

      So you may bluster and moan about the illegality and unconstitutionality of the situation, but the reality is that our Constitution - if taken literally at its word, as you seem to feel we should - makes no license for States to not implement this sort of tax. If you feel that the spirit of the word (not its literal definition, but its intent) was to prevent this sort of tax, then you will need to take the issue before the Supreme Court and let them decide, as that is the recourse that our country and the Constitution provides for you. If you are unwilling to do that, then I feel it is safe to say that bluster is all you have and not the will to back it up.

      By the by, taken from wikipedia (once again, bold added for emphasis): "Noah Webster, the author of immensely popular readers and spelling books for schools, published his first dictionary, A Compendious Dictionary of the English Language, in 1806. In it, he introduced features that would be a hallmark of future editions such as American spellings (center rather than centre, honor rather than honour, program rather than programme, etc.) and including technical terms from the arts and sciences rather than confining his dictionary

      --
      "Does bouncing count?" - Silk, Magician's Gambit by David Eddings
    2. Re:Existence exists by fileufel · · Score: 1

      It's interesting that you think the framers of the Constitution would have been on your side. Tell me, why did the American Revolution of 1776 occur? Hint: it wasn't because the Founders thought they should be taxed more.

      You suggest that this tax was passed "into law long ago". Then why does this article exist? This article is about a new tax passed into law by the state of New York, not a tax passed "long ago".

      And then you claim that the Constitution doesn't allow the states not to lay such a tax? Please show me where the Constitution requires the states to tax imported goods. Then tell me why the states need a "license" from the Constitution not to implement this or any sort of tax. The Founders did not need to have the internet in order to conceive of inter-state imports and exports -- they had the latter already. If anything, if the Founders had had any idea of the degree of technology which was to develop over 220 years, they would have put much stricter limits on government powers, not enhanced them.

      Taxes are used for the benefit of the people? No. Only a tiny fraction of the taxes could be categorized thus, if any.

      You claim that I could somehow take the issue before the Supreme Court and "let them decide", but the fact is that the courts, and the Supreme Court especially, do not take a case unless they interpret that the plaintiff is directed affected by. As I do not live in New York and I do not run an inter-state Internet-based company, they would not hear the case.

      Wikipedia is sometimes a useful short-cut, but unfortunately it is often inaccurate and misleading, as is the case with the article on Webster's dictionary. As I suggested, Webster spelled words as they were spelled already, although these varied widely.

      See, for example, the word 'honor', not 'honour', here. Also 'colourable' in this document. 'Labour' is used in the Constitution, as are 'chuse' and 'chusing', along with 'defence' and 'controul'. See also here ('honor') and here ('honour').

      'Labor' and 'honor' are used both in the Anti-Federalist and the Federalist Papers, not 'labour' or 'honour'. These also use 'centre'. In case you hadn't noticed, all these were pre-1806.

      My apologies for the mis-use of the term 'sir'.

    3. Re:Existence exists by Amilianna · · Score: 1
      If you don't mind, I'll address each point separately rather than have a large reply for all.

      It's interesting that you think the framers of the Constitution would have been on your side. Tell me, why did the American Revolution of 1776 occur? Hint: it wasn't because the Founders thought they should be taxed more.

      The Revolution came for a variety of reasons, really, but the one most often quoted (the so-called straw on that oft-abused camel's back) is "No Taxation without representation". It wasn't that the Founders were against taxes in any way. It was that they were opposed to taxes that were passed by some far off King who had no idea of the realities of the American situation. It was because the Americas were not allowed a presence in the government and therefore had no say at all in what taxes could be passed regarding them. This is why I feel that the founders would have agreed with me on the issue - because I feel that they would see it more as a State issue to tax its people - the people who elected those officials into their offices and who therefore represent them - in order to supply them with services.

      You suggest that this tax was passed "into law long ago". Then why does this article exist? This article is about a new tax passed into law by the state of New York, not a tax passed "long ago".

      Actually, the tax was passed into law long ago. We have had sales tax for many years. This is not in essence a new tax, but a new application of an old tax. The bill is not suggesting that they make a special "internet shipping" tax, but rather that they implement the sales tax that is already a part of law in New York on sales that its citizens make which are shipped from out of state.

      And then you claim that the Constitution doesn't allow the states not to lay such a tax? Please show me where the Constitution requires the states to tax imported goods. Then tell me why the states need a "license" from the Constitution not to implement this or any sort of tax. The Founders did not need to have the internet in order to conceive of inter-state imports and exports -- they had the latter already. If anything, if the Founders had had any idea of the degree of technology which was to develop over 220 years, they would have put much stricter limits on government powers, not enhanced them.

      The Constitution doesn't allow or disallow many things that we have made into law - especially State-level or below laws. If you wanted to disallow every law that was not specifically spelled out in the Constitution, then States wouldn't have the right to implement a sales tax at all! And I am not suggesting that they couldn't conceive of interstate imports at all, but merely that the concept of the ease and facility at which these items are being bought by the average person (instead of businesses) and shipped all over the country - keeping those people from going down to the store and buying it (and thus paying sales tax) - is something that we have only (relatively) recently begun to see. More and more people are doing a bulk of their shopping online and from out of state, meaning that states are losing thousands in revenue. This leads me to your next point, which was:

      Taxes are used for the benefit of the people? No. Only a tiny fraction of the taxes could be categorized thus, if any.

      I realize that this cynical view is shared by many - and may even be true up to a point - but let's look at this realistically. Imagine if the State couldn't collect any tax - or, even specifically, any sales tax. What would happen to that State's roads? Their schools? All the other services that the State pays for? You may feel that only a tiny fraction of taxes get used for things that the citizens need, but then you must also agree that a dip in revenue will see even that tiny fraction evaporate. Yet I'm sure that people who are buying from internet shopping with the

      --
      "Does bouncing count?" - Silk, Magician's Gambit by David Eddings
  118. What conservative current administration? by fileufel · · Score: 1

    That depends on your definition of 'liberal', as this is one of the words which has received the most abuse in the past century. Originally a 'liberal' was someone interested in small government and high individual liberty; hence its similarity to the word 'liberty' itself. However, over the last century the word has been co-opted by socialists and the true (classical) liberals have, quite often, allowed this. Now most people who use the term 'liberal' don't even know the original meaning, assuming it's always meant 'socialist'. Over the past 60 years then, 'conservatives' have been far closer to (classical) liberalism than the supposedly 'liberal' Democrats, who have twisted the word to their own uses. If we're using the modern sense of the word 'liberal' as socialist or collectivist, then, the current administration is 'liberal'. It is exactly the modern 'liberals' who advocate more government power, and Bush is certainly in line with them on that. There are disagreements as to just how that power should be used, sure, but the main point is that they agree in taking the power from individuals and wielding it in the form of the government. I've come to dislike this usage of the term 'liberal', prefering the older meaning, but to be consistent, if you apply it to the modern Democrat, then you've got to also apply it to the 'neocons' Bush, McCain, et al., no less.

  119. Virginia has it too by NightStriker · · Score: 1

    I was filling out the TurboTax form for my Virginia taxes last night and they asked me how much I had purchased from out of state and then used in-state. They called it a use tax, but it was the same rate as the sales tax.

    So much for the Internet Tax Moratorium. It may be constitutional, as discussed above, but it is prohibited, unless I missed something.

  120. Taxes...taxes...that's life in NYC. by Anonymous Coward · · Score: 0

    These buttocks in Albany, are nothing more then elected thieves. It's high time for New Yorkers to wake up, and vote these 'wined, dined, and pocket lined,' crooks out of office. I'm disgusted by these tax hiking politicians and their promises to cut taxes, and then turn around and pull the rug from under us all. Maybe we should change the name from the 'Empire State', to 'The Tax State', and, 'I love New York',to 'I hate New York'!