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NY Times, LA Times Want Amazon To Collect More State Taxes

theodp writes "Recalling that CEO Jeff Bezos originally explored placing Amazon.com on an Indian Reservation near San Francisco to 'have access to talent without all the tax consequences,' the NY Times argues it's time to put an end to the e-tailer's 'entity isolation' tax-avoidance games. The LA Times chimes in, saying Amazon's claims that collecting sales tax constitute an undue burden are 'worth a horselaugh,' noting that Amazon boasts it has no problem keeping track of millions of unique products."

507 comments

  1. How do you think it works in the EU ? by BESTouff · · Score: 3, Informative

    Amazon has to collect taxes in countries where the law makes it mandatory, e.g. in the EU. So it's not so hard.

    1. Re:How do you think it works in the EU ? by DrXym · · Score: 0, Redundant
      Amazon has to collect taxes in countries where the law makes it mandatory, e.g. in the EU. So it's not so hard.

      I believe it would hideously complicated to implement requiring lawyers and accountants to sift through tax laws to figure out what it needs to collect, what it needs to declare to revenue etc. Other smaller retailers manage it, and Amazon themselves manage it in outside the US. So it is lame for them to claim they can't do it from a technical, fiscal or legal standpoint. I can well understand why they wouldn't want to do it from a sales standpoint though.

    2. Re:How do you think it works in the EU ? by demonlapin · · Score: 1

      Yes, but do the EU countries have multiple sales tax regimes within each postal code, or a national VAT? There is a big difference between the two.

      Remember, too, that Amazon already pays corporate income tax (the US has one of the highest rates in the world) and its shareholders have to pay taxes on any dividends. They do pay taxes. They just don't collect sales and use taxes except where they can't avoid it. Regulatory arbitrage is not something to be ashamed of.

    3. Re:How do you think it works in the EU ? by Dhalka226 · · Score: 5, Insightful

      Those entities where they do it are done on a country level, which is fairly simple.

      I won't claim that Amazon can't get it done, because they're smart people with incredible infrastructure and metric crap-tons of money that they could throw at the problem if they so desired. I can tell you that I live in Cook County, Illinois where Amazon would be forced to collect not only the Illinois state sales tax, but also a Cook County sales tax. I can tell you that since they sell cigarettes, that county sales tax is different for that product versus others. I can tell you that while I myself do not live in Chicago, if I did and I ordered from Amazon they would also then be obligated to collect yet another sales tax. And that, you guessed it, Chicago also levies "sin taxes" on certain products including cigarettes, soft drinks and--don't ask me why--bottled water. And I can tell you that the tax rates are scheduled to change in July 2010.

      That is, of course, one potential set of jurisdictions for one potential customer. Now multiply that ridiculous level of legal complexity for every possible combination of city, county and state that are applicable and you're quickly arriving at a system of rather ridiculous proportion. Better that we not bother, in my mind.

      Before anybody says "but we're only talking about state taxes!" I'll head it off by saying two things: First, that if we're going to make them collect state taxes you can bet the next debate is going to be about other levels of government as counties* and cities all complain about how their budgets are struggling too. And second, that it only helps marginally. In my example, about half of those county and city taxes are actually collected and administered by the state of Illinois, essentially making them state taxes that are only applicable in certain areas.

      I understand the plight of the brick-and-mortars who not only have to compete on price but also on a lack of sales tax. I also understand the struggles of many cities and states with their budgets for the past decade or so now. But this is a ridiculously complicated system, far different from the "ZOMG X% VAT" that Amazon deals with in other countries. Setup would be bad enough, much less maintaining compliance with all such systems.

      Impossible? No. Unwieldy? Definitely. Worthwhile? Not in my mind.

      * I think Cook County may be the only county in the country that is legally permitted to levy its own sales tax, but I'm not sure.

    4. Re:How do you think it works in the EU ? by Runaway1956 · · Score: 0

      Brick and mortar stores - all of which have to collect and pay sales taxes - also have to pay corporate income taxes. Why should Amazon have such a huge advantage over brick and mortar stores?

      I'm not concerned with the difficulty involved, either from an administrative POV, or a technical POV. In effect, Amazon is doing business in my county, so it's up to them to comply with the tax laws in my county. And, they are also effectively doing business in New York City, Seattle, Miami, Anchorage, Bangor, and Los Angeles. They OWE it to each of those jurisdictions to collect, then submit, the proper sales taxes.

      --
      "Windows is like the faint smell of piss in a subway: it's there, and there's nothing you can do about it." - Charlie Br
    5. Re:How do you think it works in the EU ? by Anonymous Coward · · Score: 0

      Amazon doesn't day any dividends, jackass. And the 35% corporate tax rate is trivially avoided by not having book profits.

    6. Re:How do you think it works in the EU ? by Grimbleton · · Score: 1

      Nope, you're not the only one getting screwed at the county level too.

    7. Re:How do you think it works in the EU ? by GizmoToy · · Score: 2, Interesting

      Perhaps, I'm not familiar with the tax laws in the various EU countries. I do know that there are many states that have taxes that vary by county. Counties are not easily discernible by zip codes, which makes it very difficult to accurately determine the buyer's location. You can't trust the buyers to do it, either, because if given the option they'll choose the one with the lowest tax.

      Add in the fact that each county has different taxes for different items (cigarettes, alchohol, ammo, soft drinks, even junk food in some) and you have yourself a mini nightmare of tax law. Ohio, for example, has 88 counties, all of which tax differently. Not only can these taxes change at any time, it's not unheard of to redraw county lines. You can see where online retailers are going to need an army of tax lawyers to make sense of it all and keep it up to date.

      Either way, Amazon probably has the resources to do so, but do all online retailers? I doubt it...

    8. Re:How do you think it works in the EU ? by Cwix · · Score: 4, Informative

      * I think Cook County may be the only county in the country that is legally permitted to levy its own sales tax, but I'm not sure.

      http://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States. I know for a fact that counties in georgia also levy sales taxes, theres more listed here.. trust me cook county isnt the only one, and to assume so showed you have never left home.

      "Georgia has a 4% state sales tax rate. Groceries are exempt from the state sales tax, but still subject to tax by the local sales tax rate. Counties may impose local sales tax of 1%, 2%, or 3%, consisting of up to three 1% local-option sales taxes (out of a set of five) as permitted by Georgia law."

      MANY MANY MANY counties have sales taxes across the country.

      --
      You are entitled to your own opinions, not your own facts.
    9. Re:How do you think it works in the EU ? by larry+bagina · · Score: 2, Informative

      Aside from county sales tax, some cities/municipalities have their own sales tax. And sometimes the maps for them get very strange.

      --
      Do you even lift?

      These aren't the 'roids you're looking for.

    10. Re:How do you think it works in the EU ? by pmonje · · Score: 2, Informative

      * I think Cook County may be the only county in the country that is legally permitted to levy its own sales tax, but I'm not sure.

      I'm not sure about others, but in NY we have taxes at the state, county and city level.

      This seems like a case of the states trying to make a grab for more money without upping their own taxes.

      Catalogs have never had to pay out of state sales tax unless the company owned land in the state they were shipping to, like a warehouse, store or distribution center.

      NY has been pushing this idea for a while now. Most people don't realize that NYS now demands sales tax on any item purchased out of state for use or consumption within NYS. They passed the law a couple years ago without much fanfare and buried it in a small easily overlooked section of the NYS tax return. I imagine it's just lurking there until they find an easy way to track incoming parcels from amazon and QVC.

      So if you walk over the border to Pennsylvania, buy a candybar and don't eat it till you return home to NYS, you're supposed note that purchase on your tax return and pay the applicable sales tax on April 15th.

    11. Re:How do you think it works in the EU ? by Anonymous Coward · · Score: 2, Insightful

      I really don't get that argument - they have no physical presence (ignoring their distribution center locations) in your county/town (maybe in your state, I don't know how large a region each distribution center services). Why should they be subject to sales taxes from an area they have no presence in? I would view this as equivalent to your home county trying to charge you taxes on souvenirs purchased in NYC or DC. I would be perfectly fine if they charged sales tax at the site(s) of the distribution centers that ship the products or at the location of their corporate headquarters.

    12. Re:How do you think it works in the EU ? by lena_10326 · · Score: 3, Interesting

      Brick and mortar stores - all of which have to collect and pay sales taxes - also have to pay corporate income taxes. Why should Amazon have such a huge advantage over brick and mortar stores?

      Huge advantage? Ever heard of shipping? Bumps the price of the item up about as much as sales tax. In fact, since I live in WA I already have to pay sales tax on my Amazon orders on top of shipping costs. It makes small items cost about 2 or 3 times what they cost in the local Target/Walmart.

      --
      Camping on quad since 1996.
    13. Re:How do you think it works in the EU ? by MooUK · · Score: 3, Insightful

      If the buyer lies, that's the buyer committing tax fraud and the buyer's problem, not Amazon's. 'Least, that's the way I'd see it. Require the buyer to state their county, and work it for that. Job done.

    14. Re:How do you think it works in the EU ? by d'fim · · Score: 1

      "Now multiply that ridiculous level of legal complexity for every possible combination of city, county and state that are applicable . . ."

      It's called a tree-shaped data structure and I'll bet somebody could start a subscription-based website that maintains a current database of such info for its customers, if it hasn't already been done.

      --
      Adherence to the truth is a form of disloyalty.
    15. Re:How do you think it works in the EU ? by Nutria · · Score: 2, Informative

      In Louisiana, there are also Water Districts and Levee Districts, which overlap county boundaries and almost certainly overlap zip code boundaries.

      The constantly changing tax rates, plus constantly changing exception lists, makes management a nightmare.

      But a jillion national brand brick-and-mortar companies (Walmart, Home Depot, Sears, JCPenney, etc, etc) know how to do it, so Amazon and NewEgg can figure out how to do it.

      --
      "I don't know, therefore Aliens" Wafflebox1
    16. Re:How do you think it works in the EU ? by demonlapin · · Score: 2, Insightful

      All the B&M companies only have to figure it out once per store. I'm pretty sure Amazon can afford to do this per customer, but there are a lot of small companies that can't.

    17. Re:How do you think it works in the EU ? by demonlapin · · Score: 1

      The buyer is already committing tax fraud by not voluntarily submitting use tax on all purchased items to the appropriate tax agencies. And, as others note, some taxes span multiple counties; sometimes places with the same postal (ZIP) code have different taxes.

    18. Re:How do you think it works in the EU ? by daveime · · Score: 1

      Having working in the hotel reservation business for the past 8 years, I can tell you there's nothing simple about EU taxes either, especially in France.

      Apart from the TVA (basic VAT) at 5.5% based on the whole cost of the stay, there's also a City Tax, that applies only in Paris, and can be a monetary amount anywhere between 1.00 and 7.00 EUR (seemingly based on how many rooms the hotel has and which "friends" work in local government and can give you a better rate).

      Of course this tax applies when someone stays, on a per night basis, also applies to early cancellations, but not to no shows.

      And that's just one city in one country. Making a blanket comment like "it's easy" does NOT do the issue justice.

      I'm imagining with 50 odd states, and each state having local variations in each major city, even describing a tax structure for the US would be a nightmare.

    19. Re:How do you think it works in the EU ? by thisnamestoolong · · Score: 2, Insightful

      Not to mention the advantage of being able to walk into the store and leave with whatever it was you were looking for -- rather than having to wait a few days and then deal with the damn UPS guy who always seems to come in the 10 minutes that you left to go pick up a few things at the store.

      --
      To the haters: You can't win. If you mod me down, I shall become more powerful than you could possibly imagine
    20. Re:How do you think it works in the EU ? by mcgrew · · Score: 2, Interesting

      * I think Cook County may be the only county in the country that is legally permitted to levy its own sales tax, but I'm not sure.

      No, Sangamon County has a sales tax as well. Here in Springfield there's the state sales tax, county sales tax, and city sales tax. Oddly, when I buy a $.99 loaf of bread at County market, it comes to an even dollar, so I guess food isn't taxed at the state or city level (not sure why though).

      That is, of course, one potential set of jurisdictions for one potential customer. Now multiply that ridiculous level of legal complexity for every possible combination of city, county and state that are applicable and you're quickly arriving at a system of rather ridiculous proportion.

      That's what computers are for.

      Worthwhile? Not in my mind.

      Well, I don't like paying taxes either, but I'd say if they're going to those lengths to dodge taxes and the various governments are fighting so hard to collect them, maybe it is worthwile. I'd rather pay income tax than sales tax, and IMO property tax is downright evil. I knew an elderly couple about 20 years ago who had paid off their house, but its valuation rose so mch that they lost the house over the taxes.

      Once I've paid for something it should be mine; nobody should be able to collect any more money for it.

    21. Re:How do you think it works in the EU ? by azrider · · Score: 3, Interesting

      And sometimes the maps for them get very strange.

      And it can get even stranger. At least in Arizona, your zip code is not an indicator as to the county you live in (not to mention what city). In order to administer collection of sales/use taxes down to the local level (yes, we do have cities that levy sales taxes), you would almost need GPS/GIS information.

      If you have a Queen Creek zip code, you might live in Queen Creek, in unincorporated Maricopa county or in unincorporated Pinal county (all at different rates). Which combination of state/county/local sales taxes do you collect?

      The same goes for the Pinal/Pima county line (Red Rock and Marana). Once again, one zip code with multiple jurisdictions with different tax rates.

      When the politicians say this is an issue of fairness (no sales tax - competitive advantage to online retailers), they somehow miss the other side of the coin. When the brick and mortar stores add handling and delivery charges the online stores should collect sales taxes.

      --
      And ye shall know the truth, and the truth shall make you free.
      John 8:32(King James Version)
    22. Re:How do you think it works in the EU ? by Nutria · · Score: 3, Insightful

      There's a business for you and a CPA: create a GIS-style database, continuously updated, that determines the sales tax rates of every address in the country. License it, along with an API, to Big Internet, like NewEgg and Amazon, and as SaaS to small companies.

      --
      "I don't know, therefore Aliens" Wafflebox1
    23. Re:How do you think it works in the EU ? by Anpheus · · Score: 2, Insightful

      I think that's the bigger issue. If we set a precedent where you have to have the infrastructure to keep track of all the sales taxes in the US in order to operate an online storefront, we'll end up killing all but the biggest players.

    24. Re:How do you think it works in the EU ? by Dun+Malg · · Score: 2, Insightful

      How do you map the last few branches of the tree, when tax rates do not map to anything less complicated than the lat/lon coordinates corresponding to the delivery address? Are counties/cities going to provide that insane GIS data set?

      Smugly focusing on the data structure rather than the real problem, which is the selection process shows how poorly you understand the problem.

      --
      If a job's not worth doing, it's not worth doing right.
    25. Re:How do you think it works in the EU ? by nedlohs · · Score: 1

      NYS does not demand sales tax on any such thing, to do so would be in violation of the constitution of the United States and would survive about 43 seconds before being struck down.

      NYS has had a use tax for a long time - but that isn't a sales tax.

      They added a line to the tax return for the use tax in 2003, but that wasn't the addition of the tax itself (which had been required to be paid for a long time previously) just recognition that shopping on the internet had become popular enough to mean a significant number of people would be above the exemption limit so it was worth putting it on the return.

    26. Re:How do you think it works in the EU ? by Anonymous Coward · · Score: 0

      Well a brick and mortar store only has to keep track of the taxes where the stores are located. But taxes for online sales are based on where the customer lives. And that's not necessarily obvious and easily obtainable information, especially county-level info, which isn't explicitly part of your address, although you can usually determine it from the zip code.

    27. Re:How do you think it works in the EU ? by demonlapin · · Score: 1

      Oh, and they would earn every penny of it.

      When I was in college, a friend of mine worked at a nearby Little Caesar's. The cash register was in the back of the store. Why? Because the back of the store was outside the city limits, allowing them to avoid an extra 2% restaurant tax on food. Can you imagine trying to identify precisely where every building is located?

    28. Re:How do you think it works in the EU ? by nadaou · · Score: 1

      NY has been pushing this idea for a while now. Most people don't realize that NYS now demands sales tax on any item purchased out of state for use or consumption within NYS. They passed the law a couple years ago without much fanfare and buried it in a small easily overlooked section of the NYS tax return. I imagine it's just lurking there until they find an easy way to track incoming parcels from amazon and QVC.

      It's an issue, and has been an issue for a long time, if you are a business and you get hit with a tax audit. ping! It's a real favorite.
      NY is nothing. If you want to see real abuse of interstate commerce check out Rhode Island laws.

      --
      ~.~
      I'm a peripheral visionary.
    29. Re:How do you think it works in the EU ? by alen · · Score: 1

      Intuit seems to have no problem making a new version of TurboTax with all the new tax law changes every year. where i work we get tax data from a third party company every month and load it into a database because in telecom taxes change on a monthly basis sometimes and we have to keep track of it. no big deal.

    30. Re:How do you think it works in the EU ? by nadaou · · Score: 1

      How do you map the last few branches of the tree, when tax rates do not map to anything less complicated than the lat/lon coordinates corresponding to the delivery address? Are counties/cities going to provide that insane GIS data set?

      The US Census Bureau provides the TIGER dataset which maps street addresses to finer detail than the county level, and is free to all. It is kept updated on a constitutionally mandated time schedule.

      --
      ~.~
      I'm a peripheral visionary.
    31. Re:How do you think it works in the EU ? by d'fim · · Score: 1

      "Are counties/cities going to provide that insane GIS data set?"

      Only if they actually want the money.

      --
      Adherence to the truth is a form of disloyalty.
    32. Re:How do you think it works in the EU ? by nadaou · · Score: 1

      Chicago also levies "sin taxes" on certain products including cigarettes, soft drinks and--don't ask me why--bottled water.

      bottled water because it is a completely useless waste of the local taxpayers' money which also contributes to the waste management problem. they are trying to legislate against stupidity. Many towns have banned bottled water completely.

      the bottled water biz's business plan relies of laziness and fear. Widespread (and usually completely out of whack with reality) fear of the local water supply makes the local politicians look bad. Life Tip: never make your local politicians or local police look bad. You'll lose.

      (outside of extremely rare areas with polluted bores (who should be getting it tankered in anyway) or during a few days of storm emergencies of course; then we are glad that the bottled water infrastructure is in place)

      --
      ~.~
      I'm a peripheral visionary.
    33. Re:How do you think it works in the EU ? by nedlohs · · Score: 1

      Clearly a subscription would cost money, and Amazon couldn't wait for someone to do so - they'd have to do so themselves in the meantime.

      And it would be a large burden. It would require tracking changes in the rules for every single jurisdiction in the US that can (not just does now) impose a use tax. And for boundary changes in them too (need to notice that some street was moved from being in X to being in Y.

      And this is full address level, the ZIP code I live in overlaps with more than one town level local government area.

      And would be a huge barrier to entry of small sellers - the person who wants to sell a book containing his web comic archive, the person who wants to sell some software they wrote for $5, the artist who wants to sell images (prints, desktop backgrounds, whatever).

      And of course the "unintended consequence" is that foreign competitors don't have that cost and hence now have an advantage - so more jobs and profits move out of the country.

    34. Re:How do you think it works in the EU ? by jackbird · · Score: 1

      How the hell did they get a building permit? Zoning approval? Who did they pay real estate taxes to? Where were their water and gas meters? That story sounds fishy - perhaps management kept the register there for other reasons - to make it easy to cash out delivery drivers who came in the back way, deterring employee theft, enabling management theft, or deterring customers from demanding correct change.

    35. Re:How do you think it works in the EU ? by Anonymous Coward · · Score: 0

      Sounds like a good idea for a startup company, perhaps one could get seed money for it from Amazon, B&N, Overstock, etc.?

    36. Re:How do you think it works in the EU ? by gtarget · · Score: 1

      Chicago also levies "sin taxes" on certain products including cigarettes, soft drinks and--don't ask me why--bottled water

      If you really wonder why they levy a sin tax on bottled water, think about it for a second - you are contributing to waste with plastic bottles, and paying for something you can get out of your tap. If you drink bottled water on a regular basis, you should be taxed for it.

    37. Re:How do you think it works in the EU ? by i.r.id10t · · Score: 1

      On top of this, I have a mailing/physical address that is associated with a city and zip code. But I live in an un-incorporated area - not in the city limits. So if I were to buy something from Amazon et. al., would I have to pay the city sales tax, or just the state and county?

      --
      Don't blame me, I voted for Kodos
    38. Re:How do you think it works in the EU ? by nedlohs · · Score: 1

      I'm not concerned with the difficulty involved, either from an administrative POV, or a technical POV. In effect, Amazon is doing business in my county, so it's up to them to comply with the tax laws in my county. And, they are also effectively doing business in New York City, Seattle, Miami, Anchorage, Bangor, and Los Angeles. They OWE it to each of those jurisdictions to collect, then submit, the proper sales taxes.

      That's a great way to put huge numbers of small businesses out of business. You know all the home businesses selling stuff on the internet. For example, http://store.schlockmercenary.com/ , http://www.hemispheregames.com/osmos/ , etc (I have no idea if those are both US based, but just pretend).

      And an incentive for big players to move overseas completely.

      Both just what the US economy needs.

    39. Re:How do you think it works in the EU ? by slarrg · · Score: 5, Informative

      It's not just a tax rate per address. It's per address per product. For example, in New York, clothing under $110 is exempt from state taxes but not necessarily exempt from county, city or other local taxes. Any clothing item over $110 is charged tax on the full price. In Massachusetts, clothing under $175 is exempt from state level sales tax but only the portion above $175 is taxed for higher ticket clothing items. In Connecticut only some clothing items under $50 are exempt from state sales tax. So, just in the category clothing, you can see that what is taxed, which portion is taxed and which items are included in the category definition is different. This is just on the state level and not including the myriad city, county, district and other taxes.

      Taxes may be based on types of products: in Massachusetts, the American flag, among other items, is exempt from taxes; in Pennsylvania, textbooks and disposable diapers, among other items, are exempt; or as another poster mentioned, the Chicago Soft Drink Tax (where additional taxes are charged for "soft drinks".) Taxes may be based on areas: higher taxes for Bay Area Rapid Transit district and Louisiana tourism district or reduced taxes for New Jersey's Urban Enterprise Zones. Taxes can be charged based on intended use: in Indiana, a 15 ounce bag of potato chips is tax exempt (food items are exempt) whereas a personal sized bag is taxed because it is for immediate consumption and in California fertilizer is exempt if it's used to grow food.

      Realistically, taxes can be based on any criteria that enters the twisted mind of a politician in the tiniest of jurisdictions, Currently, sales taxes can differ based upon temperature of food, whether the customer is a college student, distance from an airport, whether the product is in its original package, whether the product is intended to be used at home, etc. Most sales taxes are charged based upon the sales price while Hawaii also charges a portion of their excise tax (their sales tax equivalent) on the wholesale price and other states only charge on a portion of the sales price (such as the amount of clothing over $175 above.) Many states and municipalities also charge a restaurant and/or hotel tax and it's amazing what can get swept into that tax, such as candy, chips, soft drinks, juice boxes, bottled water, or other immediately consumable items, which an online retailer may sell.

      In addition, many states have tax "holidays" when taxes are not charged: in Florida, a "back-to-school" tax holiday is often enacted on clothing, books and school supplies under a certain price; in Georgia, a tax Holiday, usually in October, is enacted on Energy Star rated appliances; Texas's tax holiday lasts for an entire weekend and applies to many items and exempts clothing and footwear under $100 but still taxes golf shoes, no matter the price.

      Sales taxes are much more complicated than most people realize and they are completely at the whims of state, county, regional and municipal government officials. The category definitions are different from state to state and often different for local taxes within the state. This means the local taxes are often different from other locations within the state but also means that the local definition may differ from the state's own definitions. So for any given product, any of the taxes; state, county or municipal; may or may not apply. For a physical store, a local accountant can advise you how the taxes apply for that particular location but an online store would need to know what rate applies for every single product for every single address. Obviously, most of these combinations would never actually occur but the databases would need to contain a solution prior to the person placing the order.

    40. Re:How do you think it works in the EU ? by Anonymous Coward · · Score: 0

      Yeah, you also get that a bit north along the Apache Junction/Mesa line for Pinal/Maricopa county. Street addresses may say AJ, Mesa, or neither. It'd be a serious headache to try to figure out the taxes for anyone living in Arizona, that's for sure.

    41. Re:How do you think it works in the EU ? by rsborg · · Score: 1

      And, as others note, some taxes span multiple counties

      So you register each county as having that tax or not.

      ..sometimes places with the same postal (ZIP) code have different taxes.

      A zip+4 should give enough accuracy to determine by that level.

      --
      Make sure everyone's vote counts: Verified Voting
    42. Re:How do you think it works in the EU ? by Anonymous Coward · · Score: 0

      Think Zip +4 not zip. That goes down to the individual cluster mailbox and could be manipulated to handle the taxing zone boundaries. Note that there exist it companies who provide this service today.

    43. Re:How do you think it works in the EU ? by bwalling · · Score: 1

      Impossible? No. Unwieldy? Definitely.

      Unwieldy? Not hardly. You can buy this information from companies that provide it. It's not even that expensive. National retail chains all seem to manage just fine. Walmart, Target, Best Buy, CVS, Walgreens, Hallmark, Dollar General, etc. Just sign up for the service and integrate the data into your shopping cart. Big Whoop.

    44. Re:How do you think it works in the EU ? by BoogeyOfTheMan · · Score: 1

      If you buy something at Sears and have it delivered to a different state/county/municipality than the one it was sold in, we charge the tax rate of the place it is being delivered to. And Sears has a store in hundreds of locations across the country, so if they can do it for every store, Amazon can do it as well.

      I think Amazon just doesnt want to because it would cost a lot of money and make their prices less attractive.

    45. Re:How do you think it works in the EU ? by Anonymous Coward · · Score: 0

      >>theres more listed here.. trust me cook county isnt the only one, and to assume so showed you have never left home.

      Tosser. He didn't "assume" at all, he said he *thought* Cook Country was the only one. He said he *wasn't* sure.

      But don't let the facts get in the way of you taking an opportunity to belittle someone. Dick.

    46. Re:How do you think it works in the EU ? by demonlapin · · Score: 1

      Well, looking at it on the GIS mapper for the city (http://map.richmondgov.com/parcel/), it looks like the parking lot is in the city, while the store is in the county, so file under "partially true". The point in question is at the northwest edge of the city, corner of Three Chopt and Patterson.

      But check out the intersection of Williamsburg Ave and Hatcher St on the east side of the river - the line runs pretty clearly through some warehouses.

    47. Re:How do you think it works in the EU ? by MrLint · · Score: 1

      Well then the counter to this that there will need to be a standardized framework for every sales tax levying entity to publish their tax rates in a normalized, portable and regulated format.

      IIRC here in NYS, there are some products that are (or used to be) taxed differently depending on which dept in the store they were in. So there is more then mere collection going on here. Not to mention the fact that there are ppl who live in one county/town but the postal address is in another county/town/tax district.

      In short, the states/localities have their own crap to deal with first.

    48. Re:How do you think it works in the EU ? by tf23 · · Score: 3, Informative

      And I thought Ohio was the only state that had such fucked up sales tax laws. In Ohio, too, you cannot plainly use a zip code to determine sales tax, because the county lines to not abide by them. So you have to factor address, city, county and zip code.

      You can find some information from the state of ohio in pdf's and csv's to try and help you sort through it. However, the same information can change depending on the election cycle ( https://thefinder.tax.ohio.gov/StreamlineSalesTaxWeb/ ).

      While a prior poster mentioned that surely Amazon is full of intelligent people who can figure all this out, I do not believe they should have to. I cannot imagine having to put together a system that deals with each and every states archaic tax laws that change at any given time. What a pain in the ass that'd be. And how costly that would be to implement, ugh.

    49. Re:How do you think it works in the EU ? by d'fim · · Score: 2, Interesting

      http://www.zip2tax.com/z2t_services.asp

      Looks like someone already does this for about $1100/year -- and that was just the first Google hit.

      --
      Adherence to the truth is a form of disloyalty.
    50. Re:How do you think it works in the EU ? by Jeff+DeMaagd · · Score: 1

      That's just one problem, and I think it's of a different scale in the US. Are there special taxes for each major city? I think the EU has maybe 20-30 tax rates. In the US, cities and counties also charge taxes, and they too are hoping to get in on the deal, last I recall, that's 2000 different tax rates, 2000 different checks you might have to cut. For Amazon, it's not actually a big deal, but it's a problem for smaller shops. And add to that, each jurisdiction might have different definitions of what is taxable, in some places, donuts are taxable while bagels aren't, even if they're relatively similar in nature, and there are a lot of goofy distinctions made by different states.

      Also, there is a pesky matter of jurisdiction and law. The current law says that all the states are supposed to harmonize the definition of what is taxable before they're allowed to ask outside retailers to tax their citizens, and so far, they've done a lot more complaining than actually doing anything about that. It's hard for me to sympathize with the states when I haven't even heard anything about the states trying to do the harmonization work.

    51. Re:How do you think it works in the EU ? by socsoc · · Score: 1

      Plenty of places don't tax food intended for home consumption. Illinois state sales tax for groceries is a lower rate than other goods.

    52. Re:How do you think it works in the EU ? by BESTouff · · Score: 1

      [...]

      I can tell you that while I myself do not live in Chicago, if I did and I ordered from Amazon they would also then be obligated to collect yet another sales tax. And that, you guessed it, Chicago also levies "sin taxes" on certain products including cigarettes, soft drinks and--don't ask me why--bottled water. And I can tell you that the tax rates are scheduled to change in July 2010.

      That is, of course, one potential set of jurisdictions for one potential customer. Now multiply that ridiculous level of legal complexity for every possible combination of city, county and state that are applicable and you're quickly arriving at a system of rather ridiculous proportion. Better that we not bother, in my mind.

      Gimme a break. Tax law is complex everywhere, not only in the US. All that sort of computations are exactly what a computer is made for.

      The only problem I see for them is they'll compete more fairly with brick-and-mortar shops.

    53. Re:How do you think it works in the EU ? by ptbarnett · · Score: 2, Interesting

      I do know that there are many states that have taxes that vary by county.

      It's worse than that. In Texas, the sales tax varies by city. There are a few towns/villages in the D/FW area that are literally a few blocks in size.

      Either way, Amazon probably has the resources to do so, but do all online retailers? I doubt it...

      The last time this subject came up on Slashdot, someone posted a link to an online source for sales tax assessment. I don't know if it used zip+4 or even the specific address.

      But, I think the real problem is not how complex it is: it's the penalty if you get even the slightest detail wrong. If Amazon screws up an order and annoys a customer, they might lose a customer. If they make their best effort to collect sales tax and some bureaucrat disagrees, the state can come down on Amazon with the full force of the law.

      Given the ambiguities of geopolitical boundaries (disputes are common), I wouldn't want to be in the cross-hairs of an bureaucrat that decides they want to make an example of me.

      Traditional brick-and-mortar (and resident mail-order) businesses get a certificate from the state/city/county that specifically spells out the sales taxes they must collect, ideally before they ever make a sale. At least in my state, that's a defense against arbitrary changes after-the-fact.

    54. Re:How do you think it works in the EU ? by Anonymous Coward · · Score: 0

      http://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States. I know for a fact that counties in georgia also levy sales taxes, theres more listed here.. trust me cook county isnt the only one, and to assume so showed you have never left home.

      Why do you have to be a dickhead about it? Your lame insult doesn't even make sense. I've been to most of the states in the USA and even I don't know about counties that have their own sales tax. Next time just give us the facts and keep your unwarranted insults to yourself, that is of course, only if you don't want to appear like a dickhead. That may be your cup of tea, however.

    55. Re:How do you think it works in the EU ? by nametaken · · Score: 1

      It's even more complicated than that. We have at least 2 Cook County Sales & Use tax zones near the Itasca/EGV border that depend on street location, not county. Yet another complication separate of the Chicago city taxes you mentioned. Having started a couple here, I think it's fair to say Illinois sucks for business in pretty much every way imaginable. Oh and the weather sucks.

    56. Re:How do you think it works in the EU ? by Anonymous Coward · · Score: 0

      You should really send this as letter to the editor of both the LA and New York Times.

    57. Re:How do you think it works in the EU ? by Anonymous Coward · · Score: 0

      He said it may be the only county, but isn't sure. How is this a statement of where he's traveled?

      I've been to more countries than most people have counties, and I don't know the details of how any of them delineate their sales tax zones. The same goes for states.

    58. Re:How do you think it works in the EU ? by Blakey+Rat · · Score: 1

      County?

      Man I pay more in my home city then I would in the unincorporated county. And in Seattle, it can vary by *block*. (There's one tax, a restaurant tax, that's calculated via proximity to Qwest Field, IIRC.) It's far more fine-grained than county, from my experience... county would only be 50 states times 45-50 counties each, that would be somewhat manageable.

      That said, I'm all for online retailers paying taxes. Mostly because most of them are already in Washington State, so I already have to pay the base Washington sales tax-- all you freeloaders in the rest of the country can suck it! (Heh.)

      What's crazy is that I have to pay the base WA rate (6.5%) for Steam games, even though the product isn't even a physical product at all, and Valve just happens to run their data center from WA.

    59. Re:How do you think it works in the EU ? by SirGeek · · Score: 1

      Unwieldy? Not hardly. You can buy this information from companies that provide it. It's not even that expensive. National retail chains all seem to manage just fine. Walmart, Target, Best Buy, CVS, Walgreens, Hallmark, Dollar General, etc. Just sign up for the service and integrate the data into your shopping cart. Big Whoop.

      And the difference ? They have brick and mortar stores in those tax areas so they're QUITE used to collecting sales tax.

    60. Re:How do you think it works in the EU ? by Blakey+Rat · · Score: 1

      But a jillion national brand brick-and-mortar companies (Walmart, Home Depot, Sears, JCPenney, etc, etc) know how to do it, so Amazon and NewEgg can figure out how to do it.

      Those jillion brick-and-mortar stores all have a general manager whose job it is to ask the city/county/whatever where it's located how to calculate the tax, then implement that. In short, they have actual human presence in every place where there is a store, and therefore they can ask the tax schedule in a way that local governments are set up to deliver that.

      Amazon doesn't currently have that manpower. They'd have to hire thousands of employees to fill an initial database of tax rates, and that's assuming that the local cities/counties are set up to respond to those requests via email. Amazon could pull it off, but it would kill smaller online retailers, then there's less competition all-around.

    61. Re:How do you think it works in the EU ? by ceoyoyo · · Score: 1

      "Those entities where they do it are done on a country level, which is fairly simple."

      Nope. In Canada Amazon collects provincial AND national sales tax, including all the variations for what is taxed and how much in each province. Considering the entire country has about the same population as one of the larger US states, collecting sales tax wouldn't seem to be overly burdensome.

    62. Re:How do you think it works in the EU ? by Anonymous Coward · · Score: 0

      Amazon needs to validate it's shipping addresses for every shipment in order to get postal rate discounts. The many software packages used for this also provide extra databases that include the tax rates for the address that it validated. Getting the correct local rate for any address is as easy as getting the correct 9-digit zip code so this should be a no brainer. Sales taxes are also collected at the state level (at least in California) and the state then allocates the appropriate amount to the county and/or city where the purchase was made. Amazon or any other vendor would need to remit payment for sales taxes on a quarterly basis.

    63. Re:How do you think it works in the EU ? by TheWGP · · Score: 3, Informative

      Please read the discussion - zip2tax provides only zip code tax information, which is 100% useless for many places, where zip codes cross county and city lines at will. Much greater specificity than zip code alone is needed; whether that entails lat/long coordinates or merely address tracking is not clear.

    64. Re:How do you think it works in the EU ? by EllisDees · · Score: 1

      >In effect, Amazon is doing business in my county, so it's up to them to comply with the tax laws in my county.

      No, they are not. It is exactly the same as ordering from a catalog. You are not walking into your local Amazon store, you are purchasing a product from a company in a different state. It is not their responsibility to pay your taxes for you.

      --
      -- Give me ambiguity or give me something else!
    65. Re:How do you think it works in the EU ? by guruevi · · Score: 1

      But the brick-and-mortar companies also seek out the best tax rates for their shops. If you go look at the border towns of 2 states you'll see that the town in the state with the least tax burden gets the Wal-Mart and a mall while the other town has absolutely nothing but a restaurant and a few bars. Where I live in NYS we have a mall that's right outside the city's borders (it starts right where the sign says "Welcome to...") in order to profit from the 4% sales tax instead of the 8%.

      --
      Custom electronics and digital signage for your business: www.evcircuits.com
    66. Re:How do you think it works in the EU ? by cryfreedomlove · · Score: 1

      Sorry, your argument is bogus. This is a solved problem. ETailers that charge sales tax today use a service provider that calculates sales tax for them for any given zip code.

    67. Re:How do you think it works in the EU ? by Sigmon · · Score: 2, Informative

      It's even more complicated than that, really. As the post points out, Amazon boasts about being able to track millions of individual products. Not only does each taxing jurisdiction (state, county, local) have its own tax rate, but some may have different tax rates for different types of products.

      A snickers bar, for example, may be considered 'food' in one state and taxed at an appropriate rate. Whereas another state may consider it to be 'candy' and taxed differently. Some states base their classification on the ingredients... Does it contain peanuts?... ok, it's food. Some states consider it 'food' only if the product is served with eating utensils... i.e. a fork.

      So, you can imagine... It's not as simple as plugging in a percentage for a sales order going from point A to point B. It's stupid complicated, unrealistic to expect businesses to do the government's dirty work. The states need to get their tax laws in-tune with the modern age.

      Amazon alone would be required to hire hundreds or literally thousands of people... JUST to keep track of this stuff. Now guess how much MORE you're gonna be paying for that little trinket you just bought because it took 2 full-time employees three months to classify the product in all taxing jurisdictions and keep track of the ever-changing laws. It's nuts!

    68. Re:How do you think it works in the EU ? by cob666 · · Score: 1

      I don't think you have been reading any of the parent posts, in your example Sears is only charging the applicable sales tax for where the physical store is located. Imagine if every time you walked into a Sears you had to present an ID with an address and your sales tax was based on your physical address, even if you lived out of state from where the store you were shopping at was located.

      --
      Do what thou wilt shall be the whole of the Law - Aleister Crowley
    69. Re:How do you think it works in the EU ? by Darkness404 · · Score: 1

      I have to say that I don't think taxes in the first place are a good idea. Abolish all tax codes and have a free economy. Then we will see America prosper again.

      --
      Taxation is legalized theft, no more, no less.
    70. Re:How do you think it works in the EU ? by d'fim · · Score: 1

      I did read the discussion.
      I also comprehended it.
      I'm just not quite so willing as you to give up on the technical issues as impossible to solve.

      Notice your qualifier "for many places" -- there are such things as interim solutions until some acceptable approximation of perfection can be attained. One possible eventual outcome is that U.S. customers may ultimately be required by law to provide zip-4 for online purchases; another is that some jurisdictions will not be allowed standing for recovery unless they have made their demographic datasets available up front.

      To paraphrase Jurassic Park, money will find a way.

      --
      Adherence to the truth is a form of disloyalty.
    71. Re:How do you think it works in the EU ? by cob666 · · Score: 1

      In most states that have a sales and use tax you are required to pay the sales and use tax on any item you purchase that is taxable that has not already had the full tax paid on it.

      --
      Do what thou wilt shall be the whole of the Law - Aleister Crowley
    72. Re:How do you think it works in the EU ? by rickb928 · · Score: 1

      "I think Cook County may be the only county in the country that is legally permitted to levy its own sales tax, but I'm not sure"

      In Arizona, they call it a 'privilege tax', but yes, it is a county sales tax.

      In any county that wants to here.

      In Maine, counties share in tax revenues. Just a different collection scheme.

      --
      deleting the extra space after periods so i can stay relevant, yeah.
    73. Re:How do you think it works in the EU ? by werfele · · Score: 1

      . . . create a GIS-style database, continuously updated, that determines the sales tax rates of every address in the country. License it, along with an API . . .

      You're not the first to have thought of this, naturally.

    74. Re:How do you think it works in the EU ? by werfele · · Score: 1

      Actually, this is a more appropriate link for the discussion at hand.

    75. Re:How do you think it works in the EU ? by houghi · · Score: 1

      If they are unable to do business in your county for whatever reason, then they should not be doing business there. You, as the buyer, is in that county, so that is where they do the business. Not where the server is located or the mailbox of the mother company is.

      --
      Don't fight for your country, if your country does not fight for you.
    76. Re:How do you think it works in the EU ? by mabhatter654 · · Score: 1

      Generally the Store Manager is responsible for updating sales tax tables in each store and they only have to be responsible for THEIR STORE.

      They aren't responsible to account for sales tax where the product is USED like Amazon is being asked to. If I buy something at the mall outside the city and take it home inside the city or even a different state the mall store is not responsible as they collected the tax for their physical location.

      The constitution forbids states taxing exports to another state. So it's illegal to ask Amazon in California to pay CA sales tax on things it mails other places.

      I'd think the better places to collect the tax might be the Post Office (which is federal and doesn't have to follow state laws) or UPS/FedEx. As they deliver to addresses and have physical presence, it might be possible to include the sales tax in the delivery fees.

      I'd also consider the Credit card companies, as they are legally regulated at the state level to do business at your physical address.

      I think eventually what will happen is that online sales will have to be reported to the IRS at the federal level, they're the only ones with the authority to demand this. Then that line item gets reported to states and cities and you add that to your tax form. The main problem becomes demanding every mail order/online seller send every customer a "tax form", and also trying to get all those forms collected at the IRS in time to be filed.

    77. Re:How do you think it works in the EU ? by Lil'wombat · · Score: 1

      Yes, and there are several counties that have come into existence since the last update. 10 years is bit too infrequent for a business.

      The 2002 TIGER/Line files include files for all counties and statistically equivalent entities in the United States as well as files for Puerto Rico and the Island Areas. The 2002 TIGER/Line files are released by county or statistically equivalent entity based on the current boundaries in effect as of January 1, 2002 as reported to the Census Bureau by April 1, 2002. Since Census 2000 there have been changes in the universe of counties or statistically equivalent entities. In Colorado, Broomfield County was created from parts of Adams, Boulder, Jefferson, and Weld Counties. This change has resulted in the creation of a separate TIGER/Line file for Broomfield County, Colorado. In Virginia, the independent city of Clifton Forge changed its status to become Clifton Forge town and is now part of Alleghany County, Virginia; it appears in the Alleghany County, Virginia TIGER/Line file. Beginning with the 2002 TIGER/Line files, the Census Bureau no longer will produce a TIGER/Line file for the Midway Islands.

      --

      Truth: If it's not one thing, it's another

    78. Re:How do you think it works in the EU ? by Nimey · · Score: 1

      Missouri also allows county and city sales taxes. It's how the governments pay for a lot of things.

      --
      Hail Eris, full of mischief...

      E pluribus sanguinem
    79. Re:How do you think it works in the EU ? by ottothecow · · Score: 1
      I don't think you are quite right there...

      I live in chicago and frequently buy things online, often from retailers with an in-state and in-city presence. Even though chicago has had the highest sales tax in the country (ridiculous for such a liberal city to have such a regressive tax), when I buy something online, I only pay something like 6.25%.

      I can walk into the apple store and buy a $1000 computer and end up paying ~$100 in sales tax or I can order it online and save $30-40 if the shipping is free. I think its rather bad for business downtown...especially if you go to the apple store to try the computer and then order it online or go to the clothing store, figure out the sizes you want, and then order it online.

      I do think it is silly though to levy any state sales tax on online purchases if they don't have a retail outlet in the area...there is simply no way that the state did enough to help me out on that purchase for it to be worth the additional tax. Postal service/UPS would all run just fine without sales tax (people get packages in Delaware right?). I get it that my local government wants a cut...but I am pretty sure they already took a cut out of my paycheck and unlike store purchases (where I might be traveling to somewhere where I haven't paid income taxes), you can be almost sure that any online purchase is getting mailed to a place where I have already had my income taxed.

      --
      Bottles.
    80. Re:How do you think it works in the EU ? by Anonymous Coward · · Score: 0

      Amazon's claim is silly. So is taxing my income and then taxing my spending. Tax me once, please.

      Let's have fed, state, and local taxes all income taxes, and then have no charges for anything after. Not for riding the bus, not for a driver's license, not for a building permit.

      This will never happen, because the tax code has been written for corporations, not taxpayers, and we'd all see how much the government actually takes from us.

    81. Re:How do you think it works in the EU ? by AdamWeeden · · Score: 1

      I do know that there are many states that have taxes that vary by county.

      It's worse than that. In Texas, the sales tax varies by city. There are a few towns/villages in the D/FW area that are literally a few blocks in size.

      At the risk of sounding absurd, in all seriousness, it can get worse than that. I live in a state with sales tax. I live in a county that has a sales tax. I live in an unincorporated part of the county outside of a city that has a sales tax, but my address indicates (for mail delivery reasons) that I do live in that city. My zip code does not belong to that city, but does include at least two other cities that have their own sales tax rates. There's times when I can barely figure out what my sales tax rate is, how is Amazon supposed to?

      --
      I was quoted out of context in my autobiography...
    82. Re:How do you think it works in the EU ? by ottothecow · · Score: 1
      And when a brick and mortar store sets up shop, the government probably shows up and kindly informs them how much tax they should be paying.

      Not that I am in favor of applying state sales tax on internet purchases (I am very much against it), but if they were really going to do it, the fair way woudl probably be for the government provide a system and set of APIs where any retailer can plug in the shipping address (or should you use billing? mine are in very different states with very different tax laws) and get a tax breakdown.

      --
      Bottles.
    83. Re:How do you think it works in the EU ? by SydShamino · · Score: 2, Interesting

      As others have noted, zip code is woefully inadequate for determining sales tax rates. At best, that company can give a list (from one to a half dozen) of sales tax rates that might apply to those living in that zip code.

      Personally, if this needs to be fixed at all, I think states should just set a fixed sales tax rate and mandate all online retailers collect to that level.

      --
      It doesn't hurt to be nice.
    84. Re:How do you think it works in the EU ? by nedlohs · · Score: 1

      No.

      You are not required to pay "sales tax" on items bought out of state but you are required to pay "use tax". And you are not required to pay "use tax" on items you bought in state and hence already paid "sales tax" on (ignoring places which morphed their "use tax" into a "sin tax").

      "use tax" is just a way to end run around the inability to enforce a sales tax out of state, but of course almost everyone just doesn't report it and hence doesn't pay it.

      The point is NYS does not "demands sales tax on any item purchased out of state for use or consumption within NYS", sure it has a use tax but that wasn't created "a couple years ago without much fanfare".

    85. Re:How do you think it works in the EU ? by Runaway1956 · · Score: 0

      Brick and mortar stores also pay for shipping. Whether it is Wal-Mart, your local Mom & Pop convenience store, the beer store, or whatever - none of them have their goods delivered for "free". That famous "30% markup" that I've heard so much about has a nice portion eaten away just in shipping. Every contract for goods has a clause regarding shipping. Many are FOB origin - which means the factory pays a forklift driver to load the goods into a truck, but the truck is your responsibility. Others are FOB destination - meaning they'll pay the shipping, but your overall cost will be higher - and probably more than the shipping is worth.

      You, the end consumer, just don't SEE those shipping costs.

      --
      "Windows is like the faint smell of piss in a subway: it's there, and there's nothing you can do about it." - Charlie Br
    86. Re:How do you think it works in the EU ? by Anonymous Coward · · Score: 0

      The question isn't "can they", of course they can. The question is *should* they. I say no, if the law allows.

      You pay shipping costs online, or you pay sales tax at brick and mortar. I think it's a fair trade off.

    87. Re:How do you think it works in the EU ? by AlexCorn · · Score: 1

      UPS and FedEx provide a valuable service. I'd much rather they get my money than the government.

    88. Re:How do you think it works in the EU ? by ucblockhead · · Score: 1

      Keep in mind that a store like Walmart only has to know the tax rate of their physical locations. Since they've obviously got many employees at each location, it is not an undo burden.

      Under this proposal, Amazon would have to track tax rates for every conceivable location in the country, not just those locations where they already happen to have employees.

      --
      The cake is a pie
    89. Re:How do you think it works in the EU ? by Anonymous Coward · · Score: 0

      Amazon sells cigarettes? I can't find that anywhere on their site, are you sure about this?

    90. Re:How do you think it works in the EU ? by Anonymous Coward · · Score: 0

      The best complication is that the county someone lives in isn't very easily determined - county borders don't follow zip code boundaries or even street lists, for example. So you have to go through an extra screen of annoying your customers, when after they told you where they live you then go check which counties it could be and ask them to choose, which annoys and confuses the customer because they just told you where they live, so they think you should know.

    91. Re:How do you think it works in the EU ? by oleg_stormforge · · Score: 1

      And http://www.avalara.com/ uses a web services model [though the stability leaves a little to be desired]

    92. Re:How do you think it works in the EU ? by BoogeyOfTheMan · · Score: 1

      Actually, thats exactly what I'm saying. If I sell someone a tv and they need it delivered to a different state/county/city than the one the store is in, our system calculates their tax rate based on the delivery address.

    93. Re:How do you think it works in the EU ? by BoogeyOfTheMan · · Score: 1

      For clarity, its only for delivered merchandise. If you dont have it delivered, you pay the tax for the stores location.

    94. Re:How do you think it works in the EU ? by Anonymous Coward · · Score: 0

      I have some firsthand experience with this kind of stuff. I performed the exact same thing,on a smaller scale for one of the biggest tobacco (and tobacco related products) in the world.

      We used an inference engine. Since taxation is huge, but seldom changes (i.e, yearly), we were able to calculate taxes (state and country wide) in less than 100ms.

      I don't think that amazon is unable to afford a similar solution...

    95. Re:How do you think it works in the EU ? by eison · · Score: 1

      Find the 9-digit rate table for sales tax in Georgia?
      Georgia publishes a taxes-by-county table (soon-to-be-current one is at https://etax.dor.ga.gov/salestax/salestaxrates/LGS_2010_Jan_Rate_Chart_Moore.pdf )
      I have no idea how to map that into zip+4.
      Apple doesn't appear to know either; they just have an extra screen expressly to prompt me which county I live in.

      --
      is competition good, or is duplication of effort bad?
    96. Re:How do you think it works in the EU ? by ckaminski · · Score: 1

      They can outsource the work to specialists who provide software to manage it, like VersaTax or ADP. This is a solved problem. Amazon just knows that if it has to charge taxes, it loses an edge with other etailers, especially the buy-online-ship-to-store guys.

    97. Re:How do you think it works in the EU ? by svallarian · · Score: 1

      Unless, of course, you opt for the $90/year prime shipping option.

      It *really* changes the way you shop when you don't have to factor in shipping costs.

      --
      I patented screwing your mom. But it got revoked for "prior art."
    98. Re:How do you think it works in the EU ? by ColdWetDog · · Score: 1

      And in my town, if you're over 65 you are exempt from sales tax. And it goes on and on and on and on....

      Until the US goes to the VAT route, it won't work.

      --
      Faster! Faster! Faster would be better!
    99. Re:How do you think it works in the EU ? by LynnwoodRooster · · Score: 1

      Interesting idea, but the question becomes how to pay taxes on the service?

      --
      Browsing at +1 - no ACs, I ignore their posts. So refreshing!
    100. Re:How do you think it works in the EU ? by StopKoolaidPoliticsT · · Score: 1

      You did it for one or two categories of products (tobacco and tobacco paraphernalia). Amazon sells how many different categories of products that can be taxed how many different ways in how many different jurisdictions?

      It's not an O(n) problem, it's an O(n^c) problem.

      Is it an impossible problem to solve? No, but it would sap more resources than it is worth. Then there's that whole pesky problem of the Constitution saying that states can't tax imports from other states, so the proper taxing mechanism isn't the seller, but the buyer (via use tax). My state (NY), at a minimum, forces you to pay a use tax on your income tax based on your income or else it's a red flag that increases your chance of an audit (ie, you're presumed guilty if you enter 0 and have to prove your complete tax compliance with every aspect of your income tax, not just prove that you didn't buy anything from out of state (not that you can prove a negative anyway. You might know where my checks and credit charges go, but you don't know where my cash does)).

      --
      Stop Koolaid Politics
    101. Re:How do you think it works in the EU ? by will_die · · Score: 1

      Milk, bread, vegetables and such are not taxed in most states because they are considered basic food items and to tax them places a bigger burden on the poor.

    102. Re:How do you think it works in the EU ? by Stormy+Dragon · · Score: 1

      One particularly wacky example: in Pennsylvania, Mounds candy bars are considered candy and thus covered by the sales tax, whereas Almond Joy candy bars, because of the nuts, are considered food and exempt from the sales tax.

    103. Re:How do you think it works in the EU ? by Sigmon · · Score: 1

      Actually, what we laypersons call a 'sales tax' the states that have them call a 'sales AND USE tax'.... meaning, it not only applies to goods sold within the taxing jurisdiction - but goods sold outside it for USE inside. If you travel to a state without a sales tax, purchase a car and bring it back home to your state which has a sales and use tax - you'll find that you'll probably be getting a bill from your state for not paying sales (use) tax on it.

      So, in effect... the souvenir taxation scenario you described DOES, in fact happen. Perhaps not with small trinkets - because it would be impossible for the government to enforce it... But most of these laws DO, in fact, require you to report such purchases to your local or state government and pay such taxes... although nobody ever does. It's difficult to get away with when you're talking about a car, however... because it has to be registered & licensed with the state in question.

    104. Re:How do you think it works in the EU ? by Eightbitgnosis · · Score: 1

      Washington state, which already has a sales tax, allows different counties to add onto the sales tax

    105. Re:How do you think it works in the EU ? by harlows_monkeys · · Score: 1

      Collecting VAT for sales in the EU is relatively easy. The way the laws work, you can figure out the rate without having to know exactly where the customer lives. You can arrange things so the rate is the rate in the country where you do your payment processing. So, for instance, we are doing that through the UK, and we collect the UK's VAT on all EU sales.

      In the US, sales tax is based on where the buyer lives. And it's not just the state they live in that matters--sales taxes are also imposed by counties within the state, cities within the counties, and often there are special taxing districts on top of that. We have to collect tax for sales to people in the state of Washington, because that's where we are, and it is a pain in the ass. I was able to get a table from the state listing the total tax rate for each zip+4 area of the state (although political boundaries don't always match postal boundaries, so there can be more than one rate in effect in a given zip+4 area).

      I also was able to get a table that lists every possible address in the state, and gives its tax rate. This is less useful than you would think, because people often don't write their address in the official form. For instance, if someone lives on "Martin Luther King Blvd", that can come in as "MLK Blvd", "King Blvd", and many other variations. A human can figure it out, but a computer program to take human-entered addresses and find them in the table would be very complicated.

      What I settled on was using the zip+4 table. From that, I made a table of 5-digit zips. For those that only had one rate in effect in all their +4 areas, that's the rate I use for anyone in the zip. For those that have more than one rate, I take the highest, and that's the rate I use for anyone who gives that zip as a 5-digit zip. If they give zip+4, I use the highest rate in that zip+5.

      I use the highest rate in a zip+4 area because I'd rather deal with a consumer calling to complain I charged him the rate for people that in the special taxing district in his area, even though he's two blocks outside it, than deal with the State auditors calling and saying we've under collected taxes. The former is fixed with a quick credit on the customer's credit card, an apology, and maybe a free extension to the subscription. The later ends up with a full audit, where we have to prove, for pretty much everyone who was not charged the maximum rate, that the rate we charged was justified.

      In reality, in areas where there are special tax districts, so that some in a zip+4 have a higher rate than others, most consumers would not even notice if they were charged the wrong rate. That's because for in-store purchases, the rate is based on the location of the store, not the location of the customer. When someone sets up a special tax district that is going to raise money by sales taxes, they are going to set it up to hit areas with businesses in them, not primarily residential areas. So, the consumer who lives in an 8.25% part of his zip+4 probably does his in person buying in the 8.35% of that area, and is used to that rate. When he sees it on his online purchase, he will probably have no idea that it is higher than it should be.

    106. Re:How do you think it works in the EU ? by winwar · · Score: 1

      "You are not required to pay "sales tax" on items bought out of state but you are required to pay "use tax". And you are not required to pay "use tax" on items you bought in state and hence already paid "sales tax"..."

      Essentially, sales tax is the use tax collected by another party and sent to the government on your behalf.

      "...but of course almost everyone just doesn't report it and hence doesn't pay it."

      Of course, if your state has an income tax form and a place to report a nominal amount, you might want to consider reporting said nominal amount. That category seems to be a pretty good money maker for auditors. It's hard to argue with a paper trail like credit card transactions....

    107. Re:How do you think it works in the EU ? by Anonymous Coward · · Score: 0

      If state tax is such a mess I am wondering how Target and Walmart have been able to figure how much tax to charge you in every jurisdiction where they have a store? What about other big chain retailers?
      I would guess that there are not much difference between Amazon, Target, Walmart and any other chain. If Target and Walmart collect sales taxes why Amazon should be exempt? I think a whole "sales taxes are complicated" cry is just a way for amazon to get a competitive advantage.

    108. Re:How do you think it works in the EU ? by BoberFett · · Score: 1

      A building stays put. When a store is built, you know exactly where it is and that physical location can, with some work by classifying products based on city, county and state taxes, determine what the sales tax should be on every item in that store.

      Selling online, you need to determine at runtime where any particular address is and what taxation jurisdiction it falls into. That in itself can be a complicated procedure. There are software packages that do this, but they are by no means perfect. Zip codes that cover multiple cities or areas that define taxes completely arbitrarily that can't be mapped by address easily.

      In addition, product classification changes from one tax jurisdiction to another. Refer to the poster above who states that Mounds candy bars get taxed one way, while Almond Joy, the exact same candy but with nuts is taxed a different way. The combinations of tax rates and products is incredibly complex.

      There are very good reasons that taxes can't be collected by a seller like Amazon.

    109. Re:How do you think it works in the EU ? by dissy · · Score: 2, Interesting

      ..sometimes places with the same postal (ZIP) code have different taxes.

      A zip+4 should give enough accuracy to determine by that level.

      In my state (Ohio), I live right on a main street that runs through the center of the city.

      On the side of the street I live on, there is one tax rate. Across the street is a different tax rate from being in a township, and down maybe 4 blocks or so from where I live on that same street is the same base tax as on my side of the street, PLUS the county tax.

      All three of those areas are in the same zip+4.

      Another few blocks past there is another zip+4 (BUT note it is the same 5 digit zip still!) that has the first and last taxes in the above description, yet the side of the street is reversed.

      If the state, city, and county governments refuse to use ZIP codes or borders on a map, how do you expect us to do it?

    110. Re:How do you think it works in the EU ? by BlueStrat · · Score: 1

      Then there's that whole pesky problem of the Constitution...

      You *are* kidding, right?

      Politicians ignore the Constitution whenever it suits them. Nancy Pelosi, when asked by a reporter what in the Constitution gives Congress the right to mandate individuals must purchase health insurance, answered "Are you serious?".

      http://www.youtube.com/watch?v=5OnFYXTM1BA

      Even the SCOTUS has bailed on the Constitution, as they've ruled that Eminent Domain can be used by government to confiscate private property from one citizen and give it to another citizen that it thinks may pay more taxes.

      Never mind setting up a tax database information company to provide data for online merchants as was suggested elsewhere in this thread, the real money is going to be in selling torches and pitchforks in Washington D.C.!

      If the government tries to force this upon online businesses, most smaller online businesses will close and the larger ones will relocate outside the country. Heh, maybe Amazon will relocate to the actual Amazon, and tax collectors will receive a poison blowgun dart for their trouble!

      Strat

      --
      Progressivism (aka US 'Liberalism'): Ideas so good they need a police/surveillance-state to enforce.
    111. Re:How do you think it works in the EU ? by AK+Marc · · Score: 1

      Last I heard, there are more than 1000 tax rates in the US (somewhere around 5000, or so, but I don't recall exactly). How many rates, on average, are there per country in the EU? Last I heard, it was around 1. My guess (feel free to prove me wrong) is that there are more different sales tax jurisdictions within the US than the rest of the world (not just EU) combined.

    112. Re:How do you think it works in the EU ? by ncc74656 · · Score: 1

      since I live in WA I already have to pay sales tax on my Amazon orders on top of shipping costs.

      I live in Nevada; even though they have a distribution center about a half-hour outside Reno, I've not been charged sales tax on any purchases I can recall. I wonder how they get away with that. (Not that I'm complaining. :-) )

      --
      20 January 2017: the End of an Error.
    113. Re:How do you think it works in the EU ? by Anonymous Coward · · Score: 0

      Is there a +5 "Sticky this for every new /. submission on sales tax" ??

    114. Re:How do you think it works in the EU ? by AK+Marc · · Score: 1

      2000 different checks you might have to cut.

      My understanding is that you can cut the check to the state. So you cut 51 checks (states plus DC), but you do still have the thousands of individual tax locations. Though I only know this for the one place I paid taxes directly (in Texas years ago) so I don't know if that applies everywhere (or even if we were doing it correctly then).

    115. Re:How do you think it works in the EU ? by AK+Marc · · Score: 1

      Having working in the hotel reservation business for the past 8 years, I can tell you there's nothing simple about EU taxes either, especially in France.

      Those are all special cases excluded from this. You can't mail order a hotel room (or a restaurant meal or a rental car, which are also special cases). Does the same apply for a book? How many possible tax rates are there levied on the sale of a book in France?

      I'm imagining with 50 odd states, and each state having local variations in each major city, even describing a tax structure for the US would be a nightmare.

      Describing it is easy. Sales taxes go to pay local utilities (including mass transit, roads, and other such services) with lines that don't necessarily line up with any geo-political boundary. Then there are the political boundaries, which overlap with cities that cut across counties and such. And add to those, the state rate, and you have the tax rate for that area. It's not hard to describe, it's just that there are thousands of such locations to calculate for, and no certified free way of doing it. If the states want to require people do it, the least they can do is make the database available free online.

    116. Re:How do you think it works in the EU ? by aztracker1 · · Score: 1

      But those rates apply differently to differing products, food, tobacco, alcohol, candy, etc are all differently taxed in various states/counties/cities. You're only breaking down part of the problem, the other part is applying the correct tax at each level. As it stands, they should be allowed to continue operating under the same laws as all mail order services.

      --
      Michael J. Ryan - tracker1.info
    117. Re:How do you think it works in the EU ? by aztracker1 · · Score: 1

      I wouldn't mind published tax rates for a nationally defined set of items, for each state. However this is really a problem if you break things down for county/city taxes, which is where this rabbit hole leads us to. It would be best to establish a national mail order tax, that is a single rate, that is paid to the states where packages are delivered on a quarterly basis, let the states handle apportionment from there.

      --
      Michael J. Ryan - tracker1.info
    118. Re:How do you think it works in the EU ? by aztracker1 · · Score: 1

      Now add in the exception rates for every item for every zip+4 you have... It isn't even a single rate per zip+4, there are different rates for different items, and types of items. There are even exception rates for parts of towns. Without a federal law to regulate this data, it would be impossible. For the time being they are protected under the same laws for all Mail Order Services, despite the ordering being done online over a catalog and mail/phone.

      --
      Michael J. Ryan - tracker1.info
    119. Re:How do you think it works in the EU ? by aztracker1 · · Score: 1

      You point out the single largest issue and then blow it off as "That's what computers are for." Which locations have which combinations of taxes, and on what item. In some places alcohol, tobacco, and even Candy is regulated and taxed at varying levels. Some food items are taxed at varying levels as well, and not consistently. Same goes for clothing, and other exception rates. Some locations are divided where a given zip code will have a different combination of city, county and possibly state. What would be needed is a database of every address, zip+4 designation and tax rate for every single item in amazon's inventory, That is truly an impractical set of data to collate. Add in the fact that said rates change regularly at arbitrary intervals for all locations, it becomes an impossible task.

      If there were a national "Mail Order Tax" imposed of say 4%, that is sent to the states with a list of how much is for each zip+4 code, and let the states deal with the logistics I'd be fine with that, only if it meant there were no localized taxes for the states in which these companies reside. I think that California (being where Amazon is located) would have a fit.

      --
      Michael J. Ryan - tracker1.info
    120. Re:How do you think it works in the EU ? by dougmc · · Score: 1

      in your example Sears is only charging the applicable sales tax for where the physical store is located. Imagine if every time you walked into a Sears you had to present an ID with an address and your sales tax was based on your physical address, even if you lived out of state from where the store you were shopping at was located.

      He wasn't exactly clear, but what if you order it at sears.com? If there's a Sears store in that state, and they're the same business entity, then they DO have to work out your sales tax based on your physical address.

      Considering that there's a Sears in most states, they would have to do this for most of the country.

      ... unless they can make the claim that Sears stores and sears.com are different entities. Which I imagine they do -- but then they still have to handle the really screwed up tax situation, but at least just for one state -- the one that sears.com is in.

      My wife made custom purses a few years back. She had to collect Texas sales tax. Much of her business was over the Internet, and much was in Texas, so she had to figure out where people live and charge them the proper tax -- she had to keep track of every single sale. It was a serious pain in the ass for her, but the alternative was to not sell the purses (which she finally decided to do.)

    121. Re:How do you think it works in the EU ? by d'fim · · Score: 1

      Indeed. Too bad no one has invented any sort of device for keeping track of such complex interlocking sets information . . . an "Information Technology," if you will . . .

      --
      Adherence to the truth is a form of disloyalty.
    122. Re:How do you think it works in the EU ? by Anonymous Coward · · Score: 0

      Those products already exist. Vertex, Sabrix, etc.

    123. Re:How do you think it works in the EU ? by Anonymous Coward · · Score: 0

      Sin Tax?
      That figures.
      Speaking of which, how about the AIR TAX?
      The Carbon tax just that, and is a mafia protection money racket straight out of 1930s Chicago mafia hell!
      "Listen up, chump. Ya gotta pay. It's like taxes, ya know? And everybody's gotta pay taxes, don't they? And if ya don't pay, somethin' bad's gonna happen. Have you got that? So, you're gonna pay now ... or pay later. Got it? You'd better, or else."
      I wonder what the rate of tax is on selling indulgences?

    124. Re:How do you think it works in the EU ? by lena_10326 · · Score: 1

      Uhh.. how do you think the products get from the factories to the Amazon fulfillment centers? Shippping. Der.

      --
      Camping on quad since 1996.
    125. Re:How do you think it works in the EU ? by Anonymous Coward · · Score: 0

      No, it's not just Arizona. I've run into the same problems in Arizona, Louisiana, California, Texas, and other states. We tried to solve that problem by using a combination of city and zip code, but that didn't work either because folks in say outlying areas of Culver City, California would give us Culver City as the city. I wouldn't be the least bit surprised if the larger metropolitan areas are getting taxes that should have gone to the outlying areas, but you don't hear the metropolitan areas complaining about it.

    126. Re:How do you think it works in the EU ? by aztracker1 · · Score: 1

      It's not that IT and even Relational Databases do not exist, there simply aren't a clean set of rules that apply for each locality (combination of city, county and state) which include override rates for given types of items, or how those items are classified for a given location. I don't think you understand the depth of the issue at hand.

      Even beyond this, a given location has *NO RIGHT* to tax a business that operates outside its' juristiction, and must defer to U.S. law, which says that states can *NOT* tax goods delivered from companies in other states (Mail Order). The idea of sales taxes on interstate commerce is wrong altogether, beyond being logistically improbable and illegal.

      --
      Michael J. Ryan - tracker1.info
    127. Re:How do you think it works in the EU ? by Anonymous Coward · · Score: 0

      Generally the Store Manager is responsible for updating sales tax tables in each store and they only have to be responsible for THEIR STORE.

      They aren't responsible to account for sales tax where the product is USED like Amazon is being asked to. If I buy something at the mall outside the city and take it home inside the city or even a different state the mall store is not responsible as they collected the tax for their physical location.

      The constitution forbids states taxing exports to another state. So it's illegal to ask Amazon in California to pay CA sales tax on things it mails other places.

      I'd think the better places to collect the tax might be the Post Office (which is federal and doesn't have to follow state laws) or UPS/FedEx. As they deliver to addresses and have physical presence, it might be possible to include the sales tax in the delivery fees.

      I'd also consider the Credit card companies, as they are legally regulated at the state level to do business at your physical address.

      I think eventually what will happen is that online sales will have to be reported to the IRS at the federal level, they're the only ones with the authority to demand this. Then that line item gets reported to states and cities and you add that to your tax form. The main problem becomes demanding every mail order/online seller send every customer a "tax form", and also trying to get all those forms collected at the IRS in time to be filed.

      Maybe we should see how the B&M stores like the idea of paying sales tax the way amazon is being asked to.

      California already makes you pay California sales tax on car purchases within the last year, regardless of where you bought it. (if you want a license plate)
      I didn't even live in California when I bought a car, moved there 9 months later. Went to get license plate (as legally required) and was told I owed a ton of sales tax.
      I told them to shove it, they said "fine no tag" I said "oops, someone already gave me one..." they get away with it all the time.
      But my desire to see most lawmakers jailed is beside the point.

      Ask ALL retailers to pay sales tax based on where the consumer lives.

      See how well it goes over.

    128. Re:How do you think it works in the EU ? by shentino · · Score: 1

      Don't be so smug.

      Hell hath no fury like a scorned politician.

      And no tactic, not even stuffing the judiciary, is above them.

    129. Re:How do you think it works in the EU ? by Runaway1956 · · Score: 1

      You're sure of that? There is no requirement that Amazon, or any other online store actually stock anything in their own warehouse(s). What was the postmark on your last several Amazon packages? "Shipping" to an Amazon warehouse may or may not be a matter of driving a forklift across an alley. I don't know how Amazon works, and maybe they DO have between 4 and 40 central warehouses scattered around the nation, and all their goods actually pass through their own warehouses. I'm not assuming anything, though. It may all be done electronically. So much for "shipping" - YOU pay for it.

      --
      "Windows is like the faint smell of piss in a subway: it's there, and there's nothing you can do about it." - Charlie Br
    130. Re:How do you think it works in the EU ? by shentino · · Score: 1

      Politicians are also usually lawyers that have spent their careers profiting off of the convolutions of the system.

      It would not surprise me one bit if they keep things twisted out of loyalty to their profession.

    131. Re:How do you think it works in the EU ? by shentino · · Score: 1

      There are plenty of things that everyone wants that nobody wants to pay for.

      Actually that's pretty much everything.

      Some of those however, also known as public goods, do not go away for one person just because he doesn't pay for them, which is why they are funded with taxes and not donations.

      Mind you though, I wish the supposed efficiency of private capitalistic competition were to make its way into the public sector.

    132. Re:How do you think it works in the EU ? by Anonymous Coward · · Score: 0

      Ummm.... There are single lots in Missouri that have a county line running through them. I guess if you order on the left side of the house you get a different tax rate than if you use the computer on the right side. :)

    133. Re:How do you think it works in the EU ? by Anonymous Coward · · Score: 0

      You pay shipping when using Amazon? Isn't everything $25 and up free shipping?

      One sided thinking... The solution is to get rid of sales tax. Then that "advantage" is level for everyone again.

    134. Re:How do you think it works in the EU ? by Anonymous Coward · · Score: 0

      Be careful, that service generated the wrong rate for me. Granted, for most of my zip code it would be correct, but I live in a different municipality within that zipcode.

      Its okay though, my own city insisted that I need to call the other one to get the water bill in my name when I bought the house in October. After three phone calls, one with the current account number so they could see they were currently billing for the address, I gave up and called the mayors office. If a city can't correctly identify that an address is in its jurisdiction, can a retailer really be expected to?

      I think each state that wants sales tax levied should have to provide a web service to get that information (and the formats should be standardized). Then the federal government should test that they comply with the standard (and address complaints). If a state's web service passes, then they should be listed in a federal web service. So you query the federal, then query the states. I think if a state is down, timeouts etc then you should legally be allowed to sell sans sales tax. That way you don't have to turn people away just because you were unable to query. I could see having some cache requirements for larger retailers, but for smaller one's is just doesn't make sense.

    135. Re:How do you think it works in the EU ? by dcw3 · · Score: 1

      You'll have to take the time of year in to consideration as well. Some locations have tax holidays for things like back to school sales...Virginia is an example of that.

      Good luck

      --
      Just another day in Paradise
    136. Re:How do you think it works in the EU ? by lena_10326 · · Score: 1

      You're sure of that?

      Yes. I am sure.

      There is no requirement that Amazon, or any other online store actually stock anything in their own warehouse(s). What was the postmark on your last several Amazon packages? "Shipping" to an Amazon warehouse may or may not be a matter of driving a forklift across an alley. I don't know how Amazon works, and maybe they DO have between 4 and 40 central warehouses scattered around the nation, and all their goods actually pass through their own warehouses.

      There are 53 Amazon fulfillment centers which stock real merchandise. That merchandise is delivered to the centers by shipping trucks from manufacturers. How do I know? I'm not assuming anything; I've been to one. I've talked to people who make it happen.

      I'm not assuming anything, though. It may all be done electronically. So much for "shipping" - YOU pay for it.

      And, how does one go about electronically packaging and shipping a product out of thin air?

      --
      Camping on quad since 1996.
    137. Re:How do you think it works in the EU ? by Anonymous Coward · · Score: 0

      I've written a number of programs to calculate sales tax in the US - there are about 40,000 different rates/jurisdictions that need to be tracked. It gets very difficult to do this properly - you need to subscribe to tax newsletters that state what taxes have changed; but there are 2 issues that you need to consider. First off, not every product is taxed the same way. In my county in NC, I pay 0% for a haircut, 2% at the grocery store, 7.75% (5.25 state, 2.5 county) at the hardware store, 7.75% on the cost of the oil/filter at Jiffy Lube (no tax on the service part), and 8.75 (5.25 state, 3.5 county) at a restaurant. So you have to identify every product you sell to determine its tax worthiness on a state by state basis, which might be tough for a reseller like Amazon, which sells everything. The next issue is which jurisdiction you pay to - Atlanta, for example, is in 4 counties - so you need to track which country it is in, but also whether you are in a certain city or not (sales tax rates vary by city in Arizona, for example). There are also tax maximums - in Tennessee (until recently), you only paid a maximum of $25 in county tax - good deal if you buy a car!

      Net is that you need to track the product to determine the tax category, but you need to also track the State/County/City/Outside City Limits of your seller. What happens if I pay with my credit card, and ship it to someone else? Then you need to hire people to file all of the tax returns, handle audits, etc.

      To solve this problem is easy - get the federal government to modify the 10th amendment and the constitution (no tariffs across state lines) to remove this restriction, and get all states to agree on simplified rules to make it so that it is easier for these online resellers to keep simpler books. Sales tax is very regressive, and since computer/mail order is usually done by people up the food chain, mail order makes sales tax even more regressive.

    138. Re:How do you think it works in the EU ? by Runaway1956 · · Score: 1

      Alright, I'll spell it out.

      Corporate headquarters determines that x% of sales are from manufacturers and/or distributing businesses within 100 miles of some town in New Jersey - where one of their major suppliers happens to have a factory. Corporate purchases a warehouse very close to the supplier - next door, if possible. That particular supplier's shipping is now just about zero. The shipping from all those other suppliers within ~100 miles is now reduced to some negligible amount, compared to shipping somewhere like Los Angeles.

      Taking this idea a step further, Amazon could rent an office in an individual supplier's plant, put an employee in that office, and make orders for whatever quantity of sales they make each week, to be "delivered" to the employee within the plant. That employee then packages and mails off each individual order.

      Going even further, Amazon could easily negotiate a contract with individual manufacturers and suppliers, whereby Amazon is only a middle man. Amazon makes the sale, enters the shipping information from a terminal anywhere in the world, and the manufacturer ships the item directly to the customer.

      In this day and age, I'd be terribly surprised if NO ONE has thought of this, and made it work. It's quite possible to buy and sell goods that NEVER pass through any warehouse, office, or even a labeling facility that you own. Yes, someone somewhere actually has to produce the goods, package them, and ship them - but nothing says that Amazon has to do anything more than just collect the money, and distribute that money to the people actually providing the goods and services.

      I saw the low-tech version of this decades ago, when the normal mode of communication was by telephone. Brokers set up little offices outside of Chicago, with nothing more than a phone, a filing cabinet, and a desk. From that office, they could receive orders for all manner of goods, from anywhere. The broker makes all the arrangements for purchase, shipping and delivery, and often times the whole deal was "blind". That is, the broker went to great lengths to ensure that the buyer never learns where the goods were actually purchased, or shipped from. And, of course, the broker never warehoused a thing. You CAN'T warehouse much in a motel room in Hobart, Indiana!!

      --
      "Windows is like the faint smell of piss in a subway: it's there, and there's nothing you can do about it." - Charlie Br
    139. Re:How do you think it works in the EU ? by lena_10326 · · Score: 1

      I don't think you have a point. The original topic was about Amazon having an unfair advantage, but your posts are increasingly meandering and filled with conjecture. I told you Amazon builds out fulfillment centers, stocks them with merchandise, and ships directly from the centers. What more can I say about that? Theorizing about what Amazon does or could do with on-demand shipping direct from the manufacturer is pointless. The product still has to be shipped from a manufacturer to a customer, which means collecting shipping costs: separately or adding it to the item price. It's paid by the customer in either case. My point is both Amazon and brick & mortar stores have equalizing factors: Amazon incurs extra shipping costs and delivery waits, physical stores charge sales tax and deal with theft by customers.

      You seem to be unusually focused on "middle man" brokers and have a negative opinion of them. Your comments portray Amazon as one of those brokers that greedily skims off the sale price but offers no value. I don't know where you got that concept from, but consider a common grocery store is a middle man that also skims money off the sale price. It doesn't matter how Amazon gets the product to you or the route it travels, because it's just another marketplace just like the grocery store. They catalog and gather products from a variety of sources and make them available in one location for customers. That carries enormous value. I'm not understanding why you don't recognize that.

      --
      Camping on quad since 1996.
    140. Re:How do you think it works in the EU ? by Runaway1956 · · Score: 1

      *sigh*

      Taxes. Whatever costs Amazon has, your local vendor has them too. PLUS, he is REQUIRED to collect those taxes. Amazon doesn't have to collect taxes. No matter what you think of my conjecture, Amazon does indeed have an unfair advantage over a brick and mortar store.

      More, let's not forget that Amazon has the same advantage over any local store that WalMart has - volume buying and sales.

      Joe Schmuck stocks his shelves with items that he had to pay 10 bucks for - but BOTH WalMart and Amazon can get the same items for about 9 bucks.

      In short, if you're interested in starting a business, you can't compete with WalMart OR Amazon.

      --
      "Windows is like the faint smell of piss in a subway: it's there, and there's nothing you can do about it." - Charlie Br
    141. Re:How do you think it works in the EU ? by lena_10326 · · Score: 1

      In short, if you're interested in starting a business, you can't compete with WalMart OR Amazon.

      Amazon Marketplace. Any sized business is free toopen an Amazon merchant account and setup shop inside the website. Their products show up on Amazon search and the ordering system is fully managed by Amazon. The merchants need only pull the list every day and ship out the orders. Amazon has enabled more small merchants than Walmart has destroyed.

      --
      Camping on quad since 1996.
  2. Amazon UK manages it by amorsen · · Score: 5, Informative

    Amazon UK manages to collect the appropriate VAT, depending on country. Which is why, if you buy from e.g. Denmark, you should order from one of the smaller UK book stores so you get to pay the UK VAT (0% on books) instead of the Danish one (25% on everything).

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    1. Re:Amazon UK manages it by ZarathustraDK · · Score: 1

      Which is why, if you buy from e.g. Denmark, you should order from one of the smaller UK book stores so you get to pay the UK VAT (0% on books) instead of the Danish one (25% on everything).

      Ah yes, but people need their Lego and butter-cookies. Got some pretty famous cartoons too, MUAHAHA!

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    2. Re:Amazon UK manages it by Anonymous Coward · · Score: 0

      That is only correct in as far as you need to declare the purchase and pay the tax in the EU anyway. Of course it is convenient to "forget" it, but customs here in Belgium at least does track down a significant amount of such purchases. I know from personal experience and hearsay that they will come to your door to collect the tax and possible fine.

      Of course the Danish might have more luck.

      Bottom line: when in the EU, buy in the EU.

    3. Re:Amazon UK manages it by EraserMouseMan · · Score: 0, Troll

      Ah if only the global population were more intellectual. Then us lowly ingrates would all happily pay whatever tax the authorities mandate necessary to solve our social problems. I love the word 'social'. It reminds me of ice-cream. So let's all be intellectual, eat ice-cream and pay taxes.

    4. Re:Amazon UK manages it by amorsen · · Score: 1

      News for you: The UK is part of the EU.

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    5. Re:Amazon UK manages it by eht · · Score: 1

      That would work great if every state had a single tax rate, they don't. New York State for example, the state collects a tax, the county collects a tax and in some cases an individual city collects a tax too. New Jersey has Urban Enterprise Zones, where taxes change from their normal rates seemingly at random. Oh, and different items in each state have a different tax rate, clothes might be taxed, or might not.

    6. Re:Amazon UK manages it by amorsen · · Score: 2, Insightful

      Ouch, changing taxes within the state can be a problem (but then Amazon UK has to handle the Channel Islands which probably presents similar problems). Varying tax on different items is very common across Europe. Generally luxury goods are taxed higher, and it can be somewhat amusing to compare which countries consider which items to be luxuries. Well perhaps I'm just easily amused.

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    7. Re:Amazon UK manages it by matija · · Score: 1

      Yeah, but Amazon UK is very clever: it correctly collects VAT for Slovenia (an EU member), but it charges the same shipping costs to Slovenia as it does to Japan (other EU countries are charged a different, much lower shipping rate). To make it even funnier, Amazon DE charges a much more reasonable shipping rate (AND offers a separate category for English books), but you have to shop for English books using a German interface. Hilarious.

      --
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    8. Re:Amazon UK manages it by aztracker1 · · Score: 1

      VAT is far less complicated than the variations of State, County and City taxes as well as overlapping boundaries that mean many addresses are in a different combination of city/county/state within the same zip code even. Complicated further by varying levels of taxes depending on very arbitrary item selection. In some locations food is taxed at a lower rate or not at all. In others, hard candy is considered candy, but some candy bars are considered food. In some states there is no tax on clothing under a certain amount with differing rules on tax rates for items over said amount. Again, it is far more complicated in the US than all of the EU combined.

      --
      Michael J. Ryan - tracker1.info
  3. Note the lack of mentioning all the other taxes by AndOne · · Score: 4, Insightful

    The NY times article chooses to skip mentioning all the taxes other than sales tax Amazon would be paying in those areas with its isolated tax groups. I also think it's cute that they feel amazon has a moral right to pay more taxes in this 'time of hardship'. But really, people are surprised when a company is avoiding as many taxes as possible, especially a tax that would make them less able to make a profit? They're surprised people aren't paying use taxes?

    --
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    1. Re:Note the lack of mentioning all the other taxes by Anonymous Coward · · Score: 0

      Actually, back in the 50's and 60's, businesses considered it their duty to pay taxes and help the local community. Now, these companies do everything to not pay taxes, while paying their CEO's obscene amounts. American businesses are no longer American in anything EXCEPT for name.

      America needs to start collecting the taxes.

    2. Re:Note the lack of mentioning all the other taxes by jacobsm · · Score: 2, Insightful

      You are missing the point of the article, the articles are not proposing that Amazon et al. pay one more cent of tax on their income just collect and remit to the proper taxing authorities taxes that are legally owed by the purchaser of the goods. Would it increase the cost of doing business for e-commerce firms, yes but so what? The cost of doing business is part of any business plan. Amazon and its ilk are utilizing a legal loophole to get an unfair advantage over local merchants.

      The handwriting is on the wall, there are too many states hurting for revenue. The current environment isn't fair, isn't sustainable, isn't long for this world.

    3. Re:Note the lack of mentioning all the other taxes by adisakp · · Score: 2, Informative

      In the Chicago area, we have the highest as well as one of the most complicated sales tax in the nation. I live in the NW Suburbs we pay a state tax, a cook county tax, and a local (city) sales tax. The total in most places in Chicago and surrounding suburbs is 10.5%. There is also a dine-in sales tax of 1-2% depending on city and a "loop" sales tax so you pay around 13% tax to eat out in a restaurant. We have different sales tax rates for General Merchandies (9%) , Qualifying Food and Drugs (yep food taxed at 2.25%), Vehicles (7.25 or Chicago Home Rule Tax of 8.5%). We have a "use tax" which may be charged instead of "sales tax" on certain occasions for General Merchandis (6.25% - note not equal to 9% sales tax) or Qualifying Food and Drugs (1% - again not equal to sales tax). We have different local rates for taxing over 2,000 special items (cigarettes, liquor, and other "sin" sales tax varying rates per community make up many of these) in IL depending on municipality including taxes on bottled water (per bottle) and a proposed additional tax on soda pop.

      I could be paying 12-13% sales tax for an item while someone 50 miles west of me in Rockford, IL (same state - 45 min drive on highway @65 MPH) pays only 6.5%.

      To be honest, if I drive the 3 miles from one town's shopping center to another here in IL, I never have any idea what the exact rate I'll be paying other than it'll be too much.

    4. Re:Note the lack of mentioning all the other taxes by Grimbleton · · Score: 1

      So I take it you don't like being able to afford things? Because business don't pay taxes - consumers do.

    5. Re:Note the lack of mentioning all the other taxes by Targon · · Score: 1, Offtopic

      And, for an out-of-state company, the taxes would NEVER go to the local community, because the business isn't in that local community. There is the other problem of state governments spending so foolishly that NO ONE would approve. When public school teachers make upwards of $80,000 to teach from September through June, with MANY vacations and days off due to government holidays on top of that, there is a huge problem, and no one seems to be willing to step up and DO anything about it.

      Why should government offices and schools be closed for Columbus Day for example? It is one thing to record things in history books, but SERIOUSLY, in times of financial difficulty, why are there so many PAID days off for government employees? The governments need to just re-evaluate the pay they give employees as well, and make sure they are appropriate for the local cost of living and what is being paid in the private sector. If someone in the private sector gets paid $25,000/year to answer a phone, then a government employee doing the same job should be getting paid $25,000/year, not $40,000/year plus better benefits and a pension on top of it. How about caps on pensions where people can NOT collect a pension for longer than 2/3rds of the time they were working(meaning 30 years of service would only provide 20 years of pension)?

      Cut the cost(not size) of government, and the need for all this extra tax money would go way way down.

    6. Re:Note the lack of mentioning all the other taxes by AndOne · · Score: 5, Insightful

      Requiring retailers(online or not) to collect use taxes starts us down a rather slippery slope and is probably not constitutional. Requiring they collect sales tax without 'a nexus of operations' is unconstitutional.

      I didn't miss the point of the article, I was pointing out that the article is disingenuous in it's description of the situation. The only legal loophole amazon is exploiting is the separation of sub-entities related to it's primary business as a way to avoid the presence of a legal nexus of operation. And those sub-entities are still paying taxes with respect to everything else that they do. Even if that loophole was closed then only a handful of additional states would be receiving sales tax.

      Additionally, if laws are passed requiring all online businesses to collect sales taxes this will have a distinct chilling effect on all but the largest of retailers.

      As a final note, perhaps states should start enforcing use taxes if they're that concerned about it, but given the complexity of doing so, and the fact that enforcing it would probably cost more than could be recouped from them, use taxes still seem rather silly in their logic. Americans(speaking of patriotism) pathologically do not like paying taxes and expecting them to volunteer(in the sense of paying a nearly totally avoidable and confusing tax) even more money during a recession seems like an exercise in futility. Perhaps if the government provided a line item receipt on how tax money was spent we might feel differently.

      --
      I don't care what you say, all I need is my Wumpabet soup.
    7. Re:Note the lack of mentioning all the other taxes by AnotherUsername · · Score: 1

      I prefer my country not being indebted to other countries, just to keep it running. I prefer my country not spending more than it takes in. I prefer my country being able to afford to keep all those government services that keep it running strong. If that means that I have to pay more in taxes, then I am ready to do so.

      --
      I don't like Linux. This doesn't make me a troll.
    8. Re:Note the lack of mentioning all the other taxes by AnotherUsername · · Score: 1

      Where are you getting your facts and figures? For one, I have never heard of a teacher getting paid $80,000. Most teachers that I know make half that, if that much. The ones that make more are in the 50,000 dollar range. Also, government jobs generally pay much less than their private sector counterparts. Again, where are you getting your dollar amounts?

      I do not understand why you feel that Amazon sales should not be taxed. If you buy a book from the bookstore, you have to pay a sales tax. If you buy a cd from the music shop, you have pay a sales tax. If you buy a movie from the video store, you have to pay a sales tax. Why should it be different if you order it from Amazon, instead?

      Cutting the cost of the government still wouldn't be enough, because we still have a debt to pay off. Part of the reason we have all these financial difficulties in the government today is being we, as Americans, don't pay enough in taxes. The government just keeps building a bigger and bigger debt.

      --
      I don't like Linux. This doesn't make me a troll.
    9. Re:Note the lack of mentioning all the other taxes by gander666 · · Score: 1

      Add to that the crappy cold winters, and the truly obnoxious gun control laws, and I can't for the life of me see why anyone stays there.

      Well, you do have great food, and the few weeks where the weather is truly perfect, it is gorgeous to look out over the lake...

      --
      Suppose you were an idiot and suppose you were a member of Congress ... but I repeat myself. - Mark T
    10. Re:Note the lack of mentioning all the other taxes by stdarg · · Score: 1

      The LA Times article says:

      The board estimated lost revenue at $1.1 billion annually. To put that figure in perspective, it would pay the salaries of more than 15,000 California schoolteachers for a full year.

      That works out to around $70k as an average salary. There would almost certainly be some $80k salaries in there.

    11. Re:Note the lack of mentioning all the other taxes by jimbolauski · · Score: 1

      State and local taxes go to things like subsidizing public transportation where in all but a few major cities public transportation hemorrhages money. People would not mind taxes as much if they actually though the money was being put to good use, instead of spending money to reduce crime or repairing roads, city hall gets renovated or more bus routes are added with only a few people who use them, not to mention all the entitlement programs. As for CEOs pay it's a joke to think that paying somebody to make tough decisions that they will be held accountable for 100k a year is reasonable. If anybody could run a company then there would be many more successful companies and more then 1/3rd of small business would be able to turn a profit.

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      Money = Work/Knowledge so the less you know the more you make
    12. Re:Note the lack of mentioning all the other taxes by Anonymous Coward · · Score: 0

      It's not a legal loophole. Internet sales *never* had a sales tax. It's not only Amazon that does this. If you force Amazon to do this, you force all etailers to do this and the amount of work required is ridiculous. It's not as easy as in the UK. We have state, city, even county level taxes in places. And they're all different from each other for different products. It's a logistical nightmare. Smaller etailers wouldn't be able to do it.

    13. Re:Note the lack of mentioning all the other taxes by Targon · · Score: 2, Insightful

      I didn't say they should not be taxed, but that the taxes should be paid by those who have access to the services. For example, someone living in New York should not have to pay for local services provided in California. Also, if I go out of state to make a purchase, should I have to pay a SALES tax in the state I live in? Paying INCOME taxes makes sense for a business, but you have to look at what resources the business will be using.

      This is really what it comes down to, fair taxation. The idea that police, fire departments, and emergency services have to be paid for makes sense, and having it paid for by those who have access to these services if they are needed makes sense. So, sales taxes make sense, since even those visiting will WANT those services to be available. So, what about the Internet? If the local Internet Service Providers are paying their taxes in the places they provide service are doing all the maintenance, and the government has not paid for the deployment or maintenance of the lines, then it does not make sense for those out of state to be forced to pay a sales tax.

      This goes back to the problem of where tax money comes from and goes. Shouldn't schools be paid for by EVERYONE living in that school district, not just those who own property in that district? If I were to put up a walled community, provide private police, medical, and fire services, and use NOTHING from the outside, then those living in that community really use nothing from the outside, except perhaps roads to bring supplies in and out. People living inside would not feel that they should have to pay for the services of those outside since their entire community would be cared for. On the flip side, federal income taxes, and even state income taxes would make SOME sense to pay since it is expected that the government DOES need tax money to pay the representatives of the people.

      Oh, and to answer your unspoken question, Long Island is an expensive place, but teachers in many districts make more in under three quarters of a year worth of work than most people working in that area. Looking at your figure, they make $50,000 for how many weeks of actual work each year? Remember, all those school holidays, and summers off, and government holidays....If I could take my current income and get that many paid days off each year, I'd be a lot happier, that's for sure.

      As for government, if they would cut services to pay off the debts so they could in turn lower taxes over time, people wouldn't mind. But running a deficit year after year after year, with no intention of ever getting the debts paid off is also a part of the problem.

    14. Re:Note the lack of mentioning all the other taxes by dummondwhu · · Score: 2, Insightful

      Except it doesn't seem to work that way. It's more like, "Oh, look, more tax revenue! We can create even more government bureauocracy and dig a bigger hole of debt!". No thanks, I'd rather keep my money and drop a lot of the useless crap that people think they need government to do.

    15. Re:Note the lack of mentioning all the other taxes by EastCoastSurfer · · Score: 2, Insightful

      For one, I have never heard of a teacher getting paid $80,000. Most teachers that I know make half that, if that much. The ones that make more are in the 50,000 dollar range.

      Depends on the state. In the south it can be as low as 30k, in the NE as high as 80k.

      Also, government jobs generally pay much less than their private sector counterparts.

      Not totally true, but the big difference is that government jobs rarely if ever go away. In this tough economy where companies are having to cut salaries and/or lay people off, government just keeps on hiring and paying people to do lots of nothing. And before you say that's not true, I've worked for the government before and have seen all the waste first hand. Bothered me enough that I quit and went back to private enterprise.

      I do not understand why you feel that Amazon sales should not be taxed.

      It's not Amazon getting taxed, it's you and me. IMHO, I'm getting taxed more than enough. The government wastes enormous amounts of money. The first step to paying off the debt is to cut the cost of government.

    16. Re:Note the lack of mentioning all the other taxes by sheph · · Score: 1

      Actually America needs to start treating the taxes they already get like it's their own money instead of someone elses. Then they might not have to be constantly looking around for where they can squeeze more from. Honestly, with the way the current administration is spending I don't see how we are going to survive as a country. I'm all for paying what's due, but it's gotten so ridiculous that we'll soon be handing over our paychecks to uncle sam, and letting him care for us. If you think that's a good thing, try living on welfare, visit a DMV sometime, try to replace a lost birth certificate when you're adopted, etc. The government currently can't find its ass with both hands, and it was never able too before. What makes you think giving them more of our money is a wise investment?

      --
      I don't believe in karma, I just call it like I see it.
    17. Re:Note the lack of mentioning all the other taxes by cptnapalm · · Score: 1

      My "local merchants" are out of state businesses that send their profits elsewhere. Why should I care?

    18. Re:Note the lack of mentioning all the other taxes by Acron · · Score: 1

      A 20/20 episode (one of those John Stossel bits) earlier this year noted that the average income for teachers is roughly $61,000. That's pretty decent pay for only having to work roughly 9-10 months out of the year.

      That's cow poo to say that cutting the cost of government wouldn't be enough, that's the excuse used every time they need an excuse to not cut gov't spending while increasing taxes to compensate for reduced tax income. You said it, the gov't keeps on building a bigger and bigger debt, so why exactly should we give them more money to spend? Have you seen a tax increase that went to pay down debt? I never have, usually the tax increase is to keep from cutting gov't programs, and the tax increase doesn't go away when times get better, but gov't spending goes up as the tax income increases.

      The only gov't entity I know of that is even semi-responsive to voters being unhappy about high taxes is my local township, where getting re-elected can hing around keeping taxes flat (as much as possible, the state gov't in NJ enables school districts to keep on spending whatever they want without voter approval - local voters said no to a local school budget and the state stepped in and forced through the spending increase). So the mayor makes a big deal about keeping his part of the property tax flat and sends out a flyer every year to break it down so people can see the increase is not due to him. We get emails all the time about various measures he's taking to make less dollars do more work. They actually laid off a bunch of city employees two years ago.

      You'll never see that at the state level. Those politicians need every special interest group they can get on their side, and that takes spending money and lots of it on this and that and the other thing. It only gets worse at the national level were senators need an average of $9 million to get re-elected - do you think they can raise that based on donations from individuals?

    19. Re:Note the lack of mentioning all the other taxes by b96miata · · Score: 2, Interesting

      According to this page, $50k is closer to a starting salary for NY & LA. (I choose them since it's their papers providing TFA.) If you've been teaching since the 80s and have a master's degree, NYC teachers head towards 6 figures pretty quick.

      $80k may be more than the average for the majority of districts, but you choose the right one and not only is it totally achievable, there's a pretty good overlap with the state/local governments that tend to have budget issues.

      The issue with taxing amazon is quite simple - governments have no business levying taxes outside their jurisdiction. If a citizen of say, California, directs goods to be brought into the state, state law says that individual is responsible for paying use tax, not the merchant from which they purchased said goods.

      The music and video shops in your example have a presence in the local jurisdiction and benefit from its services such as roads, social programs, police/fire protection and so on. Amazon doesn't.

    20. Re:Note the lack of mentioning all the other taxes by Anonymous Coward · · Score: 0

      Umm, my sister (who lives in CA, so its a bit higher COL) made 95k last year as a HS teacher.

    21. Re:Note the lack of mentioning all the other taxes by Anonymous Coward · · Score: 0

      The supplemental income from giving BJs behind the gym shouldn't be counted as part of her salary.

    22. Re:Note the lack of mentioning all the other taxes by iamhassi · · Score: 5, Insightful

      " I also think it's cute that they feel amazon has a moral right to pay more taxes in this 'time of hardship'."

      I think it's cute that the NY Times forgets Amazon is online, they don't rely on local people, and could just as easily move overseas as it could to another state to save that billion dollars in taxes. I'm sure there's plenty of states that would welcome Amazon and the 15,000+ jobs it brings with tax-exempt status.

      Please California, chase away all of your big businesses! Midwestern states would welcome the jobs.

      If online taxes were required I'd just purchase more from eBay and chinese vendors. Is that what California wants? People are going to buy wherever it's cheaper, whether it's down the street, online or overseas.

      --
      my karma will be here long after I'm gone
    23. Re:Note the lack of mentioning all the other taxes by Blakey+Rat · · Score: 1

      I think it's cute that the NY Times forgets Amazon is online, they don't rely on local people, and could just as easily move overseas as it could to another state to save that billion dollars in taxes. I'm sure there's plenty of states that would welcome Amazon and the 15,000+ jobs it brings with tax-exempt status.

      Please California, chase away all of your big businesses! Midwestern states would welcome the jobs.

      Amazon's in Washington.

      Not all of the west coast is California, you know. In fact, the best parts of it aren't. And don't encourage California to kill off their business, or they'll all move up here and ruin our State too.

    24. Re:Note the lack of mentioning all the other taxes by houghi · · Score: 1

      Going overseas would not change anything in retrieving local taxes. If I buy something in the US, I still have to pay taxes in Belgium. Wether I do that or not is another issue.

      From my point of view the point of sale is at the customers home so all taxes should be done there. If the company is unable to do that, he should not be doing business there.

      --
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    25. Re:Note the lack of mentioning all the other taxes by tibman · · Score: 1

      Yeah, or like those road construction workers.. they make all that money standing around and then they get the whole winter season off! Not fair at all.

      I would argue that a good teacher uses a lot of "off work" time to grade papers. I would also agrue that a portion of the summer/timeoff is spent updating and reviewing the curriculum. Not to mention personal research in order to teach more recent material. Honestly, i thought teachers weren't supposed to get paid much.. that way you had teachers that worked for the enjoyment, not for the money.

      --
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    26. Re:Note the lack of mentioning all the other taxes by ucblockhead · · Score: 1

      If Amazon moves overseas, everything they ship into the US is subject to import duties. Import duties are generally much higher than sales taxes.

      Also: Amazon is not in California. It is in Washington. This might clue you in to why the LA times is pushing for this. California is getting zero tax revenue from Amazon at the moment. People pushing for this would require sales tax to be charged regardless of where they ship from be it Washington, Michigan or Shanghai.

      --
      The cake is a pie
    27. Re:Note the lack of mentioning all the other taxes by LynnwoodRooster · · Score: 1

      If Amazon moves overseas, everything they ship into the US is subject to import duties. Import duties are generally much higher than sales taxes.

      Actually, that's not the case. Import duties are typically LOWER than sales taxes; you can look at the import duties here. And for many countries there are zero duties applied to all their products imported.

      Here in Amazon's home State, Washington, there is a 6.5% State sales tax, and in Seattle the total sales tax is 10%. If you're buying an iPod boom box in Seattle, you pay 10%; if you import that item from China you pay 4.9%, and if you import it from India you pay 0%.

      Note that the import tariff schedule is also a LOT simpler than the sales tax fiasco across the nation... It would be a LOT simpler for Amazon to work with the USITC duty schedule as compared to the literally hundreds of thousands of taxation jurisdictions across the US, and the level of tax or duty would often be lower for consumer as well.

      California is getting zero tax revenue from Amazon at the moment.

      And why should they? CA gets no tax revenue if I drive from Riverside to Las Vegas and buy a shirt in Nevada; why should a purchase completed in another State (the financial transaction doesn't happen in CA) be taxed inside CA? CA - and all States - have use taxes that citizens are to pay for products acquired outside the State. That the people don't report and don't pay says a lot about the feasibility of such taxation.

      How can you show that Amazon shipped to a CA resident without the CA resident reporting? Should the State set up and monitor all package shipments into and out from the State, to ensure they aren't commercial products?

      And what if I - residing in WA - buy a gift for a friend in CA. I bought it, I paid for it, I reside in WA so I must pay WA sales tax (Amazon is here). But it is shipped to CA, so does CA get to claim sales tax as well?

      --
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    28. Re:Note the lack of mentioning all the other taxes by Anonymous Coward · · Score: 0

      Also, if I go out of state to make a purchase, should I have to pay a SALES tax in the state I live in?

      If you buy a car in Oregon (no sales tax) and bring it into Washington (with sales tax) you will have to pay the Washington sales tax on it before you can license it. I was behind a guy in the Auditor's office who'd just bought a 6-figure priced Airstream motor home in Oregon and was trying to license it in Washington. When he was told he owed more than $10,000 in sales tax, he just about died on the spot.

    29. Re:Note the lack of mentioning all the other taxes by Anonymous Coward · · Score: 0

      Perhaps if the government provided a line item receipt on how tax money was spent we might feel differently.

      50% interest on the national debt.
      50% defense spending.

    30. Re:Note the lack of mentioning all the other taxes by Anonymous Coward · · Score: 0

      Many large businesses use Vertex brand tax calculation software that is integrated with their billing application. Works pretty good - not perfect, but good. You need a maintenance agreement and to apply frequent upgrades to keep up with the constant changes in local, state and federal tax laws. There are undoubtedly others that I am not familiar with, but an automated tax calculation solution is already available and has been in use for many years.

    31. Re:Note the lack of mentioning all the other taxes by StopKoolaidPoliticsT · · Score: 1

      So, we spend nothing on Social Security, Medicare, welfare, etc? Oh yeah, nanny staters don't like to count THAT spending, just the spending they don't like. Look at how much the government spends on social programs... then factor in the tens of trillions in unfunded obligations those programs owe as well. You may think about the $12 trillion debt, but do you think about the $14 trillion in Social Security obligations, the $19 trillion in Medicare-D obligations, the $74 trillion in Medicare obligations, etc? All of that is going to come due and some of it starts before the decade is out (Social Security and Medicare are essentially insolvent in 2018 and 2017 respectively). You think we've got budget deficits now, just wait until then... plus factor in $2.5 trillion/decade estimated cost on the health care "reform" bill (start counting in 2014 when it starts paying out rather than only counting 6 years of expenditures).

      --
      Stop Koolaid Politics
    32. Re:Note the lack of mentioning all the other taxes by ucblockhead · · Score: 1

      I am not saying California should get tax money from Amazon. I just think it's pretty pathetic that a poster who can't even figure out what state Amazon is in is getting a "+5,Insightful" for warning California that will chase business out of the state by...er...trying to tax businesses who aren't in the state in the first place.

      --
      The cake is a pie
    33. Re:Note the lack of mentioning all the other taxes by Grimbleton · · Score: 1

      AnotherUsername, please read this reply above me.

    34. Re:Note the lack of mentioning all the other taxes by AK+Marc · · Score: 1

      California is getting zero tax revenue from Amazon at the moment.

      Then the issue is that CA is not enforcing its laws. There is a use tax in CA, and if you buy something mail order, you are required to pay it. Rather than educating people and enforcing the law, they are looking for Congress to force taxation without representation by creating new laws that give no more functionality than the current ones, other than the states would have fewer people to attack if something isn't what they like. If they enforced the laws as written now, this would be a non-issue.

    35. Re:Note the lack of mentioning all the other taxes by AK+Marc · · Score: 1

      Aside from "special cases" (hotels, rental cars, and restaurants) what's the maximum tax rate? In Texas, the state charges 6.25% and caps local taxes at 2%, so your rate could vary between 6.25 and 8.25%. So, there's only a small difference in the price of a book. And rarely will driving anywhere save you more than the cost of the gas. The only exceptions to that is is you are right on the edge of some place with a lower local rate.

      You described all sorts of "special cases" but for a book, Amazon's main fare, what are the maximum and minimum taxes someone could see in Chicago and the surrounding area?

    36. Re:Note the lack of mentioning all the other taxes by AK+Marc · · Score: 1

      Looking at your figure, they make $50,000 for how many weeks of actual work each year?

      Wait, so you were lying when you made up the $80,000 number in order to prove your point? Doesn't that make your point weaker when you have to lie to support your point? And why do you hate teachers? If you don't hate them, then why are you lying in order to make them look bad?

    37. Re:Note the lack of mentioning all the other taxes by aztracker1 · · Score: 1

      Companies don't pay taxes... Their customers do. It's even more apparent in the case of Sales taxes. It isn't Amazon that pays the sales taxes, it's their customers, the people. People who the government is supposed to represent.

      --
      Michael J. Ryan - tracker1.info
    38. Re:Note the lack of mentioning all the other taxes by aztracker1 · · Score: 1

      I don't think that Property, Income *AND* Sales Taxes should exist. IMHO they should pick one. I think people have a right to property, and the possibility of having property seized for lack of payment is wrong. As to Income, I'm fine with income tax as long as two things happen. Corporations shouldn't have rights, they also shouldn't be able to bank more than say 10% of annual earnings (paying out the rest in dividends), and they shouldn't be taxed (the owners and stock holders should). Income tax should be a fixed rate, or set of rates without loopholes, or exceptions. By preventing business from owning personal assets, or retaining rights it can be limited as a potential tax shelter. By simplifying tax code, income taxes can be received as appropriate. As to sales taxes, it would be easy enough to have a federally mandated rate that gets apportioned to the states based on delivery, but should be left to the states from there. Let the cities/counties etc complain upwards. If they make an exception for food, or clothing, it should be consistent across state lines. As it stands, Mail Order Services don't have to pay taxes on deliveries outside their state. Amazon shouldn't be singled out, and trying to apply the tax codes and exceptions for sales taxes are impossible as it stands for any company selling multiple types of items.

      --
      Michael J. Ryan - tracker1.info
    39. Re:Note the lack of mentioning all the other taxes by aztracker1 · · Score: 1

      Funny, it would probably be easier for local municipalities (even states/counties) to have a delivery fee, based on weight. Wouldn't be based on the value of an item, but would be easier to manage and collect.

      --
      Michael J. Ryan - tracker1.info
    40. Re:Note the lack of mentioning all the other taxes by Cwix · · Score: 1

      Yes there probably would be, the same teachers who have been teaching forever, and have multiple degrees under their belts. You want to get rid of said highly experienced teacher beacuse why you think they make too much money?

      --
      You are entitled to your own opinions, not your own facts.
    41. Re:Note the lack of mentioning all the other taxes by adisakp · · Score: 1

      10.5% is the normal rate I pay in the NW burbs of Chicago on taxable items : i.e. a book, a video game, a TV or electronic purchase. The rate is the same in the City of Chicago proper.

      However, even though the rate is the same, it needs to be sent to three or four different entities (IL State, Cook County, Palatine Township and Rolling Meadows City). Although the number of special cases (to be totally compliant) is huge - I'm sure they would be happy if Amazon just started charging the base rates and sending them cash though.

    42. Re:Note the lack of mentioning all the other taxes by adisakp · · Score: 1

      Well, you do have great food

      That we do, two out of the top five molecular gastronomy restaurants in the world -- Alinea and Moto plus new entries like Province. One of the worlds largest single location seafood restaurants. Famous namesakes like Charlie Trotters. Tons of great steak houses, pizza, and hot dogs that Anthony Bourdain believes you should try before you can die happily at Hot Doug's.

      There are more good restaurants in Chicago from high-end to casual to down-right "dive with tasty food" than there are days in the year.

    43. Re:Note the lack of mentioning all the other taxes by AK+Marc · · Score: 1

      However, even though the rate is the same, it needs to be sent to three or four different entities (IL State, Cook County, Palatine Township and Rolling Meadows City).

      In Texas, all taxes collected are sent to the state. The state then sends them to any other entities that are due local taxes. So a business has one and only one place to go for rates and payment. The state rate is 6.25%. The local rates can be .5%, 1%, 1.5%, and 2%, and nothing else. There is even an "official" document where you need only look up the city and the county and you will know the rate. Of course, ZIP codes don't line up on county lines. I had thought there was more granularity, but it looks like they may have smoothed some of that out in the 15 years since I last looked.

      Disclaimer: as I have said before, I'm talking about regular items like books, not alcohol, restaurant food, hotels, rental cars, uncooked food, or such.

    44. Re:Note the lack of mentioning all the other taxes by ucblockhead · · Score: 1

      Asking congress to "force taxation without representation" is an idiotic statement. Congress *is* the representation.

      --
      The cake is a pie
    45. Re:Note the lack of mentioning all the other taxes by AK+Marc · · Score: 1

      The taxation is the state. And there is no representation there.

    46. Re:Note the lack of mentioning all the other taxes by ucblockhead · · Score: 1

      There is a state that doesn't have a state assembly? Do tell...

      --
      The cake is a pie
    47. Re:Note the lack of mentioning all the other taxes by AK+Marc · · Score: 1

      I'm confused. How can someone in Washington, with no presence in California, being taxed by California and responsible to California law, vote on that assembly you assert exists? The issue is interstate commerce where you'd be held to the laws of a location where you have absolutely zero legal presence. That's taxation without representation.

    48. Re:Note the lack of mentioning all the other taxes by ucblockhead · · Score: 1

      These taxes wouldn't apply Washington citizens. These are taxes applied to California (or New York) citizens. As a California citizen, it is my representative who would vote for or against these taxes.

      --
      The cake is a pie
    49. Re:Note the lack of mentioning all the other taxes by AK+Marc · · Score: 1

      A Washington citizen shipping to CA or NY would be responsible for paying taxes to CA or NY and would have no way to vote in CA or NY. That's taxation without representation.

    50. Re:Note the lack of mentioning all the other taxes by ucblockhead · · Score: 1

      This is not true. A Washington citizen shipping to CA or NY would be responsible for *collecting* taxes from CA or NY citizens and sending them to CA or NY.

      No one is proposing Amazon pay extra taxes.

      --
      The cake is a pie
    51. Re:Note the lack of mentioning all the other taxes by AK+Marc · · Score: 1

      If Amazon did not collect those taxes, what would be the problem? They are not under the laws of CA or NY. They have no presence there, and aren't residents there. Either they are subject to the tax law, or they are not. "Collecting taxes but not paying them" is being under the tax laws without representation.

    52. Re:Note the lack of mentioning all the other taxes by ucblockhead · · Score: 1

      "Being under the tax laws" is not the same as "taxation". You are confusing businesses with citizens.

      --
      The cake is a pie
    53. Re:Note the lack of mentioning all the other taxes by AK+Marc · · Score: 1

      A business is a person under the laws of all 50 states. And there is no distinction if the company is a sole proprietorship being operated by one person under his personal name, in which case the business *is* a citizen (though that's rarely done for anything bigger than an eBay company because of the legal liabilities, but it is still done).

    54. Re:Note the lack of mentioning all the other taxes by ucblockhead · · Score: 1

      Businesses are voting citizens?

      --
      The cake is a pie
    55. Re:Note the lack of mentioning all the other taxes by AK+Marc · · Score: 1

      A sole proprietorship is.

    56. Re:Note the lack of mentioning all the other taxes by ucblockhead · · Score: 1

      Uh, no. A sole proprietorship does not get its own vote. It's owner, if a citizen, can.

      Regardless, back to the original point:

      The idea that the US Congress passing legislation that allows California to collect sales taxes from Amazon's customers is not "Taxation without representation" because everyone involved, including the customers, and most Amazon employees including Jeff Bezos, are able to vote for Senators and a Representative. Therefore, this act is inherently represented, and therefore "Taxation without representation" does not apply.

      --
      The cake is a pie
    57. Re:Note the lack of mentioning all the other taxes by AK+Marc · · Score: 1

      Uh, no. A sole proprietorship does not get its own vote. It's owner, if a citizen, can.

      If the owner so chooses, and if the owner is a citizen, then there is no legal distinction between the two. They use the same tax number. There is no sharing or splitting of liability. So an owner's vote is the vote of the business. The two are the same legal entity for all (including voting) purposes. No, the business doesn't get it's own vote. The citizen and the business are the same legal object, and together they get only one vote.

      Therefore, this act is inherently represented, and therefore "Taxation without representation" does not apply.

      The law would be requiring residents of WA be subject to tax law of CA without representation in CA. Thus, it is taxation without representation.

    58. Re:Note the lack of mentioning all the other taxes by ucblockhead · · Score: 1

      The law would be voted on by WA senators and representatives...and thus Washington is represented in the decision. Congress (including WA representatives) can vote to allow CA to apply this tax and also later vote to disallow this tax. Claiming Washington voters are not represented is pure sophistry.

      A business does not vote, period. A "sole proprietorship" does not get a vote, only a citizen does. They are not a single entity as can be seen by the fact that one person could have two "sole proprietorships". Claiming the business votes is again pure sophistry.

      --
      The cake is a pie
    59. Re:Note the lack of mentioning all the other taxes by AK+Marc · · Score: 1

      Claiming Washington voters are not represented is pure sophistry.

      You are the one claiming that a person in WA is represented in CA when taxed by CA and subject to CA law when they have no vote in CA. That's the act of sophistry.

      The law would be voted on by WA senators and representatives...and thus Washington is represented in the decision.

      And once that law is passed, what happens when CA changes their laws? Does the person in WA get a say? No? Then they aren't represented. Are they held to the new laws they had no say in? Yes? Then they are held to a law they had no say in.

      The sophistry is that you've decided you want to argue with me, and you will continue to do so without regard to the truth. You will use your rhetorical tricks and such, but aren't addressing the simple fact:

      CA law can be changed at any time, the person in WA would have no input or vote on that law or anyone changing it, and they would be held to the new law. I call that being under the law without representation. You can't prove me wrong, because I'm not. You could have tried to convince me my opinion was wrong, but you didn't go that way. You decided to prove I was wrong by declaring I was wrong and you are right. That's simply asserting your opinion is more valid than mine, rather than actually making arguments. You can't convince me that someone in WA gets to vote on CA law. And it is CA tax law they would be following. Nothing I've said is untrue. You just have some irrational aversion to summing up that situation as "taxation without representation." I assert that paying taxes (whether owed by that entity or collected from others that owe that tax) is taxation. And not being able to vote on that tax rate (not at all, not in the US Congress, nor anywhere else can a WA resident vote on the CA tax rate) is lack of representation.

      Feel free to disagree. But trying to convice me I'm wrong? You are doing nothing other than showing the distinct difference between arguing and discussing. You are an abusive ass, and you are wrong.

    60. Re:Note the lack of mentioning all the other taxes by ucblockhead · · Score: 1

      You are the one claiming that a person in WA is represented in CA when taxed by CA and subject to CA law when they have no vote in CA. That's the act of sophistry.

      No, I am claiming that a person is represented in Congress when congress allows CA taxes to apply. The person continues to be represented in Congress and can at any time ask their Congressional Representation to repeal the law allowing CA taxes to apply.

      It would only be "Taxation Without Representation" would be if CA could somehow apply the tax in a way that Congress (including WA representation) could not prevent. Since CA can *only* apply these taxes through Congress, which much include WA representation, this is not the case.

      You continue to try to defend "Congress to force taxation without representation", a statement which is oxymoronic. Congress *IS* the representation so it can hardly "force taxation without representation" as any act it takes with regards to taxation *IS INHERENTLY REPRESENTATIVE*.

      --
      The cake is a pie
    61. Re:Note the lack of mentioning all the other taxes by AK+Marc · · Score: 1

      It would only be "Taxation Without Representation" would be if CA could somehow apply the tax in a way that Congress (including WA representation) could not prevent.

      But that's how any such law would be. They couldn't *prevent* (your word) any change in CA taxes. They may be able to react after such a change, but never prevent it (based on other similar laws and the proposals to fix this).

      Thus, by your own definitions, since the WA person has absolutely no power, neither in WA, nor in DC to "prevent" CA's changes, then the WA person is not represented in CA, but subject to the laws thereof. I won't argue with you on this point, you've made it clear and I wouldn't want to disagree. You have stated, quite clearly and elegantly, that someone in WA would be under CA tax law, unable to prevent changes, and thus be taxed without representation.

    62. Re:Note the lack of mentioning all the other taxes by ucblockhead · · Score: 1

      But that is completely untrue. A person in WA would be able to ask their representative to put forth a bill in Congress to repeal the law, preventing the tax from taking place.

      You seem unable to grasp that simple fact. You seem to think that if this law were past, Congress would be unable to repeal it.

      --
      The cake is a pie
    63. Re:Note the lack of mentioning all the other taxes by AK+Marc · · Score: 1

      But that is completely untrue.

      I know, I just quoted you, and you've never said anything true yet.

      A person in WA would be able to ask their representative to put forth a bill in Congress to repeal the law, preventing the tax from taking place.

      So, on Monday, Congress passes the law making WA adhere to CA law, then on Tuesday, CA modifies their laws. You are saying that a bill entered on Wednesday will back-date the rules such that the change made on Tuesday will never take effect? It seems to me that someone in WA is either bound to the change in CA law they had no say in, or that you expect Congress to make back-dated laws, which CA could probably get invalidated on Constitutional grounds. So it seems you are incorrect. Practically, Congress is slow enough acting that they will never preempt state changes. That does make the direct effect you claim is impossible, where a change will happen someone has no say in regarding tax laws they are subject to.

      You seem unable to grasp that simple fact. You seem to think that if this law were past, Congress would be unable to repeal it.

      And you seem to be lying about what I do and don't think to belittle me. And, apparently, you think Congress will pass laws in reaction to state's laws before the states pass their laws. And you think that say in Congress about whether CA laws apply is the same as having a direct vote on CA laws.

      I just took your own words. If CA could change the law faster than anyone else could prevent it, then it is taxation without representation. You said that. And I agreed. If you disagree with yourself, then you have to tell me you were wrong when you said that someone in WA could *prevent* a change of law in CA, or you have to convince me that the US Congress works so much faster than the state legislatures that they would be likely to *prevent* a change in state tax law if one were made that they didn't like. I'm only taking your direct words about representation being about the ability to act to prevent a change of laws that affect someone. And under the acts proposed for this, no one would get the ability to prevent any changes made by other states unless Congress was faster than the fastest state legislature.

    64. Re:Note the lack of mentioning all the other taxes by ucblockhead · · Score: 1

      Have you actually read any tax laws? They generally are passed months before they actually take effect.

      --
      The cake is a pie
    65. Re:Note the lack of mentioning all the other taxes by AK+Marc · · Score: 1

      I take it that, since you haven't contradicted me in the last 3 or so posts, that you concede. I accept your concession. Thanks for playing. I'll be here all week.

    66. Re:Note the lack of mentioning all the other taxes by ucblockhead · · Score: 1

      I'll take that as an admission that you have no clue how tax laws actually get passed.

      --
      The cake is a pie
    67. Re:Note the lack of mentioning all the other taxes by AK+Marc · · Score: 1

      You are right. All I know is that a resident of WA has no say in CA's tax law, and no ability to block changes to CA laws that directly affect them, but may have some means to change the law at some future time after they are passed.

      As you said yourself, if you can't block it, you don't have representation. And there's nothing a WA resident, under CA tax law, could do to prevent a change in CA tax law. So, by your definition, that's taxation without representation.

    68. Re:Note the lack of mentioning all the other taxes by ucblockhead · · Score: 1

      First of all, this proposal doesn't propose to make any Washington residents pay any additional taxes. It would allow California to require Washington businesses to collect taxes *from California residents*.

      Second of all, if this proposal, which would be voted by Congress, which contains Washington representation, were to pass, it could also be repealed by Congress, which contains Washington representation.

      In summary, your claim of Washington residents facing "Taxation without Representation" doubly fails, because these *is* representation and there *is not* taxation of Washington residents.

      (Finally, the idea that California could pass new taxes faster than Congress could react is highly amusing given that tax increases are harder to pass in California than any other state in the Union.)

      --
      The cake is a pie
    69. Re:Note the lack of mentioning all the other taxes by AK+Marc · · Score: 1

      First of all, this proposal doesn't propose to make any Washington residents pay any additional taxes.

      Oh, my mistake. I thought that the check to CA would be written by the company in question, thus paying taxes. Having worked with escrow in a few cases, everyone states "the escrow company *paid* the bill." This means that the common use is that the person writing the check paid it. As such, I guess they will be having the customers pay two separate bills, one made out to WA resident and one made out to State of CA. That way, the WA resident will just be forwarding on a payment, as you suggest, and not acting like an escrow company and writing a check for it themselves.

      For someone that has complained about my use of words, you sure seem to be grossly misusing words in order to further your own perception, as opposed to using the language as everyone else in the English speaking world does.

      Second of all, if this proposal, which would be voted by Congress, which contains Washington representation, were to pass, it could also be repealed by Congress, which contains Washington representation.

      Irrelevant to the standard you set. You stated that if they couldn't prevent a change in tax law, that they didn't have representation. Nothing prevents CA from taking one day to pass a new law that couldn't be prevented by the WA resident or anyone they vote for. You can argue the practicality of such, but not the possibility of such. And using your definition you posted here, that means it is necessarily Taxation Without Representation.

    70. Re:Note the lack of mentioning all the other taxes by ucblockhead · · Score: 1

      You are confusing mandated tax collection with taxes. That's a bit lying saying your company pays your income tax for you because they are the ones who write a check to the government for your tax withholding.

      Are you claiming that someone who gets a refund "pays no income tax" because they never write a check to the IRS?

      You stated that if they couldn't prevent a change in tax law, that they didn't have representation.

      Bullshit. Congress can revoke the original law at any time. I've pointed this out repeatedly, and you've had no coherent response other than some confused babble about how California could somehow move too quick for Congress.

      --
      The cake is a pie
    71. Re:Note the lack of mentioning all the other taxes by AK+Marc · · Score: 1

      Congress can revoke the original law at any time. I've pointed this out repeatedly, and you've had no coherent response other than some confused babble about how California could somehow move too quick for Congress.

      You stated that if the law can change based on the actions of people who don't answer to someone, then that's being without representation. CA can change the law without anyone in WA having a say in that. That means, by your definition, WA residents fall under CA tax laws without representation. You are the one bringing up congress passing laws faster than states. If you can't give the number of days from introduction to signature of the average law for CA and DC, I'll assume you are lying to cover up the fact that your argument is shit and that you know you've agreed with me about taxation without representation, but can't let your fragile little ego take the hit. I'm only using your definition now, and stated the obvious.

      You state that WA will be responsible to CA tax law, and that changes in CA tax law will affect WA residents, and that WA residents have no representation in CA. So, you are making up some shit about the US Congress passing laws faster than CA. And then claim that I'm the one asserting some babble. You are the one that asserted that inability to prevent a change proves lack of representation. I just stated the obvious, that laws aren't passed to react to things that haven't happened, so Congress wouldn't pass a law before CA makes a change. You are the one making up babble about Congress passing laws faster than CA in regards to laws that don't even exist. I understand that you have given up discussing the subject. I understand that under the definition you gave that there is necessarily taxation without representation. And I understand that you don't like having that applied, so you are lying to me (and probably even yourself, and that's the saddest part) in order to keep your ego unblemished. If you'd like, I can get some numbers of counselors. They can help you with your obsessive need to win arguments on the Internet. You've already stated that it is taxation without representation. So I can understand how you have to lie to protect your initial stance you can't give up on. But the intellectual inconsistencies are wearing thin. Congress can't pass tax laws in reaction to CA tax laws before the CA tax laws are passed. It's impossible. But yet, that's what's required for your argument to be correct.

      You are the one that brought up which one passes laws faster and all that. I just pointed out that it would have to be a reaction, which requires that the law already be passed, and thus can't "prevent" it, which is your standard for representation.

  4. Only amazon? by BrookHarty · · Score: 0, Offtopic

    Because only amazon avoids taxes with legal loopholes.....

    Nice to know a health care bill goes in with a "tax" per person, but we still cant get microsoft, blackwater, goldmansachs, to their fair share of taxes...

    Guess amazon needs more lobbyists.

    1. Re:Only amazon? by Anonymous Coward · · Score: 1, Interesting

      Obeying the law is not a loophole. They could add taxes to their site for every specific city, county, state, etc. and send them money, but it would be a donation, not a tax. Until the law gets changed, Amazon is neither abusing a loophole nor doing anything morally objectionable. I think singling Amazon out here on the sales tax thing is really low, it's not something Amazon is specifically in the wrong on, it's something the law is in the wrong on. Hating Amazon for not paying taxes is the same as hating the American public for not pushing for the tax.

    2. Re:Only amazon? by gowen · · Score: 2, Interesting

      Obeying the law is not a loophole.

      Of course. It is: that's what "loophole" means - something that is within the law, but allows someone to avoid something to which, morally the should be liable.

      --
      Athletic Scholarships to universities make as much sense as academic scholarships to sports teams.
    3. Re:Only amazon? by value_added · · Score: 1

      To be fair, the theory behind leaving corporations and the rich alone is that doing so will result in greater investment and more jobs. A trickle down, if you will.

      Ok, so it's a goofy concept.

      But it did sound like sound policy to a lot of people back when Reagan was president. The famous words that accompanied this new economic approach were "Government is not the solution to our problem. Government is the problem!" Long live unfettered free-market capitalism.

      Small wonder that belief in government was supplanted by corporatism. I'd like to say we've finally come full circle, but I'm left wondering how many people, rejecting both, having nothing to believe in at all. Cynicism as a belief system is boring stuff, even for the cynics.

    4. Re:Only amazon? by Cwix · · Score: 1

      Wait.. Wha? Corporations have morals now? haha good one.

      --
      You are entitled to your own opinions, not your own facts.
    5. Re:Only amazon? by Neuroelectronic · · Score: 0

      This makes me wonder why they're targeting Amazon specifically. Perhaps a simple conspiracy between the liberal papers to short AMZN's record high stock?

    6. Re:Only amazon? by Anonymous Coward · · Score: 0

      No. That's why my company employs children in China. It's completely legal and cheap as hell! It's great!

      You know that companys are often run by people, right?

    7. Re:Only amazon? by gander666 · · Score: 3, Informative

      Apple seems to handle collection of local taxes quite well. They even know that part of my zip code is PIMA county instead of Tucson city, and thus has a (slightly) different tax rate.

      I am starting a business with a friend (actually, she does the hard work, and I provide the business and some financial backing), but we collect sales tax in Arizona, and California for selling our images. Amazingly, Quickbooks handles this fine. I just do not happen to live on an Indian Reservation, like Amazon did in placing their Arizona presence.

      Truth be told, I do not pick retailers online due to tax free or not. I pick them by reputation, and past experiences. If Amazon one day started collecting taxes and whatnot for the goods purchased through them, I probably wouldn't blink. And I venture to guess that most of their customers wouldn't either. They need to rethink their business plan.

      What this really points out is that the tax code (federal and state) needs a thorough cleansing and simplification. Remove the loopholes, tighten the standards, and make the collection and rates balanced, and much of this behavior should disappear.

      I suspect I will see pigs flying before this happens though

      --
      Suppose you were an idiot and suppose you were a member of Congress ... but I repeat myself. - Mark T
    8. Re:Only amazon? by AnotherUsername · · Score: 2, Interesting

      Reagan did lower taxes...only to raise them again, a year later. Apparently he saw that the deficit grew too large too quickly. However, this part of the Reagan aura is frequently left out by his devoted followers. Even Reagan realized that Reaganomics didn't work. However, tax cuts are popular, and tax increases are unpopular, and thus we find ourselves in the situation we are in now, with trillions of dollars in debt, and the light at the end of the tunnel growing dimmer and dimmer.

      --
      I don't like Linux. This doesn't make me a troll.
    9. Re:Only amazon? by thisnamestoolong · · Score: 1

      Why should they be morally liable to do this? Should we honestly expect companies to make business decisions not required of them by law, which will in turn harm them? Why? From what I can see, it is not even actual dollars that Amazon has issue with -- it is the incredibly convoluted series of taxes they would have to follow. Not only do most states in the U.S. have their own sales tax rates, but many counties and municipalities do as well. Above and beyond this, many areas have specific tax laws for specific items (tobacco and alcohol typically have so-called "sin" taxes attached to them). Do you really think that Amazon ought to be paying someone to keep up on the tobacco tax in Frog Balls, Arkansas? None of this is anywhere near as much of an issue for brick and mortar stores, as they stay in one place and have to keep up with one series of tax codes, which is difficult enough. Far from 'leveling the playing field', this would be an unfair stab against Amazon that would cost them far more to implement and keep track of than would ever be collected for the government.

      --
      To the haters: You can't win. If you mod me down, I shall become more powerful than you could possibly imagine
    10. Re:Only amazon? by Cwix · · Score: 1

      No I assumed they were run by GPS tracking nanites. Cant take a joke today? Anyways the "people" running those companies (note the correct spelling of companies) are often looking out for the best way to stuff more dollars in their pockets, their morals go out the window shortly after. So most companies do not have morals.

      --
      You are entitled to your own opinions, not your own facts.
    11. Re:Only amazon? by sribe · · Score: 1

      Apple seems to handle collection of local taxes quite well.

      Unless you're near a municipal boundary, in which case their database may be wrong, and they may charge you about twice the correct rate, and you may have to jump through hoops to prove it and get your money back.

      Yeah, the problem is so laughably easy that companies that exist solely to provide the databases and charge big bucks for annual subscriptions still do not get it right down to every house--which of course is what Amazon would want. Take it from me, customers really don't like it when a vendor tacks on 5% more in taxes than are actually owed.

    12. Re:Only amazon? by Anonymous Coward · · Score: 0

      Amazingly, Quickbooks handles this fine.

      I really really doubt that. There are dozens of local taxes in each county across America and I doubt that Quickbooks keeps up with it that much.

      Part of this could be solved by having a web service for each state that everyone can query and get back an appropriate tax rate. There will have to be a consistent bucketing system for each item though and that could get hairy. For example a lot of localities put "sin taxes" on things -- I suppose that's okay if it is just limited to things like cigarettes and liquor. But as someone pointed out above that includes bottled water in Chicago. Okay then just have a bucket for bottled water. What next?

    13. Re:Only amazon? by Anonymous Coward · · Score: 0

      You'll notice that Apple only collects sales tax for those states in which it has a physical presence. Just like Amazon. Just like the law requires.

    14. Re:Only amazon? by Anonymous Coward · · Score: 0

      With the prices Apple charges for their commodity hardware they could pay sales tax in every city/county a purchaser has ever lived in and still sip Mai Tais on the beach until the end of time.

    15. Re:Only amazon? by Anonymous Coward · · Score: 0

      Reagan only advocated. Congress is ones with power to tax and spend. I wish people would quit inferring God-like powers to the Presidents. There is no light at the end of the tunnel. The proper analogy is America has jumped of a 100 story building, and while falling, at every floor, politicians are saying "so far, go good, so far, so good" America couldn't collect enough taxes to pay for the political pay-offs currently in the pipeline, and its stupid to act like raising taxes is the "brave" unpopular solution thats going to solve the problems.

       

    16. Re:Only amazon? by BoberFett · · Score: 1

      So... corporate trickle down is bad, but government trickle down is good? Lowering taxes on the wealthy hoping the money will trickle down the plebes will never work, but sending all of your money to Washington and hoping they distribute it back to the people fairly is a good idea?

      Who spent hundreds of billions of dollars to occupy Iraq recently? Amazon or the US government?

    17. Re:Only amazon? by aztracker1 · · Score: 1

      Apple also only has one type of product. What are the tax rates for clothing there? How about food? What qualifies as food? Is candy or soda taxed at a different rate? That is something amazon would have to contend with that Apple does not. It's not just the tax rates for a given location, but given items at a different location... Also differing locations classify items differently. Hard candy is often "candy" under sin taxes, but a candy bar may be "food" or "candy" based on content. This content is different at given locations. soda with suger may be sin taxed at various locations, where bottled water or sugar free soda may be food, or may be taxed differently altogether.

      --
      Michael J. Ryan - tracker1.info
    18. Re:Only amazon? by aztracker1 · · Score: 1

      It's more complicated than that. In the proposed (and in some cases passed) candy tax, some candy is "candy" under tax terms, and others are "food" depending on the sugar content. some soda is sin taxed, others are not. It also varies for each state+county+city+district depending on terms within some cities and counties. Certain types of items within a mile of an airport or stadium may be taxed differently even.

      --
      Michael J. Ryan - tracker1.info
    19. Re:Only amazon? by aztracker1 · · Score: 1

      I believe the Medicare and Social Security taxes were increased, but the Income taxes were cut. Also, the result of those cuts accounted for far more growth in GDP during his terms in office than any other growth in the history of the country. The amount of federal income from taxes also grew during that time. Also, we are paying more per person of a tax load (as a percentage) than at any other point in our nation's history. Once you combine all the taxes the average person pays, more than half of most people's income goes into various taxes. It's simply ignorant to assume we need to pay more. As to the national debt, there's a simple answer, STOP SPENDING SO MUCH! Cut all the unconstitutional programs from the federal budget, and things would lighten up substantially. Follow this up with a 50% cut in the military budget and we'd be even in the next decade or two.

      --
      Michael J. Ryan - tracker1.info
    20. Re:Only amazon? by tacocat · · Score: 1

      Morally Liable?

      Since when is paying taxes an issue of Morality?

      Paying taxes is an issue of not going to prison by mandate of the state. There's no morality there. Morality is not stealing from them. But the Government seems to be the only ones who are free to do this, much freer than you or I.

      The government does a fine job stealing from people. Using Morality as an argument for supporting state run theft is an oxymoron.

      The decision to force the minority of this nations population to pay the majority of taxes for projects and programs that they, this minority, will never see amounts to theft on a grand scale. If you want to talk about Morality then think about how moral it is to require different minorities in this nation to suffer at the hands of the majority.

      If they were of a different color it would be called racism. And that has some moral backing to it. But paying taxes...

    21. Re:Only amazon? by tacocat · · Score: 1

      Not full circle. Only half the circle. If you kept the Corporations out of the Government then you would be full circle and we might actually have unfettered free-market capitalism.

      But we have not had a Free Market since the early 1800's.

      • Bailing out the banks was a mistake the Government made.
      • But the banks got into trouble because the banks could offload loans into Government managed Freddie/Fanny.
      • And the Federal Reserve allowed interest rates to run unnaturally low rather than rising as they should have starting in the 1990's.
      • The Federal Reserve was created by the Government as a lender of last resort for the banks in the 1910's. At the time interest rates for the Fed were kept unnaturally high as a punitive measure for borrowing money from the Fed. Since then, Banks have convinced the Fed that they need the have lending rates managed unnaturally low by the Fed to manage stimulus.
      • Since the 1920's we have been a banking system of fractional reserve banking. This is a sure fire recipe for Boom/Bust cycles as has been witnessed time and again.
      • Since 1970's we have been a fiat currency nation without any real hard money. With this the government can monetize debt, direct inflation at will, and create money out of thin air for their own uses. And the rest of us wonder why food is so much more expensive today with all the efficiency improvements in the last 100 years.

      The interference of the Government upon Free Market is the cause of these economic problems, not the solution. If you doubt this then consider the success of the communist experiment of the USSR. How's that working for them? Similarly Zimbabwe might have a few lessons as well as the Weimer Republic

      You sound like a socialist.

  5. From the NYT article, they are following the law by Suki+I · · Score: 2, Insightful

    Amazon has found a way to put portions of its business into the tax-haven equivalent of reservations. By creating wholly owned subsidiaries for the parts that are treated separately for tax matters, Amazon is under no obligation to collect sales tax. This legal technique is called “entity isolation,” said Michael Mazerov, a senior fellow at the Center on Budget and Policy Priorities in Washington.

    The state and federal governments made complicated tax laws and Amazon is following them in a business efficient manner. What is their problem?

  6. What's the big problem here? by ZarathustraDK · · Score: 1

    Everybody knows that if you call Amazons customer support you'll get transferred to an indian.

    --
    If you quote this signature there'll be 72 copies of Windows ME waiting for you in Heaven.
    1. Re:What's the big problem here? by gander666 · · Score: 1

      Oh, the world for some mod points...

      --
      Suppose you were an idiot and suppose you were a member of Congress ... but I repeat myself. - Mark T
  7. Smaller companies? by alzoron · · Score: 4, Insightful

    It might not be an undue burden to Amazon, but what about smaller online companies? You could use software to manage the collecting of sales tax for everything but the real problem comes to sending off that money to every town, county, and state that collects sales tax. Someone buys something for a couple bucks and suddenly you have to send payments of a few cents to three different places. Even if you save it all up and send it bi-yearly you could be looking at thousands of separate payments based on how widespread your client base is.

    You can't just look at a huge company with millions in revenue and make a one size fits it all decision.

    1. Re:Smaller companies? by Attila+Dimedici · · Score: 1

      Exactly, keeping track of and collecting the sales tax in the many different governmental authorities that levy a sales tax wouldn't be that hard for Amazon. It would however place another barrier to entry for a small business that would like to get started selling over the Internet. Which is why the NYT and LAT are for it, small businesses are harder to regulate and control and reduce people's dependency on the government.

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    2. Re:Smaller companies? by berberine · · Score: 3, Insightful

      Ten years ago, I worked for Nebraska Bookstore. It's not huge when compared to Amazon or Barnes and Noble. I worked in their catalog department. When we rang up an order, out of state purchases got 0% tax and, if it was shipped in-state, there was a little chart above the register with each city listed alphabetically and what their tax was. This was because, in Nebraska, there is a state tax and a city tax. So, they figured out what the two together were and made a handy list for us.

      Everything we did was manual but, from what I've heard, they now have a computer program that figures it out for you and you just punch in the complete total (purchase+tax+shipping) when you ring it up. I would assume that since this was ten years ago, there are better programs now to do the same thing.

    3. Re:Smaller companies? by peragrin · · Score: 2, Interesting

      There is over a hundred different tax rates in NY state alone. The company I work for has seven different locations in seven different counties. Any one can come to us and buy stuff. However since we do somuch business around the state we have to deal with taxes to the point where one of our accountants (out of three) spends half of her week justkeeping it straight. Failure is expensive. You see when the state audits you they take a sample of errors made and multiply that by the number of years they go back. It doesn't matter if that sample is accurate. So multi million dollar fines are the norm.

      If a local company has to hire a person just to manage the problem amazon will have to hire 100. Not that amazon can't but tax law is so complicated lawyers have given up trying to figure it out

      --
      i thought once I was found, but it was only a dream.
    4. Re:Smaller companies? by ZorbaTHut · · Score: 2, Insightful

      My mom has been trying to start a new museum lately. One of the big projects is to set up Internet-based donations. Naturally, every state has its own laws on how donations to non-profits work. Non-profits have to be registered separately in every state (technically there is a "standard form", but the states who take it all require extra documentation as well) and tax reporting is just a gargantuan enormous burden. Too complicated for any small non-profit to ever manage.

      As a result, there are companies that specialize in doing this for you. They take a small slice of the donations (something like 2%) and in exchange they manage all of the annoying reporting and legal issues involved.

      It turns out that they're good at it. So good, in fact, that the Red Cross uses them because they find it cheaper and more reliable.

      I see no reason whatsoever that a similar business couldn't form for internet sales tax. And, in fact, I find it almost inevitable that such a business will form once it becomes an issue. So, as for how much it will cost, and how difficult it will be to manage: well, about 2% of your revenue, if the non-profit area is any indication.

      Plus the taxes that you now have to pay, of course.

      --
      Breaking Into the Industry - A development log about starting a game studio.
    5. Re:Smaller companies? by mikelieman · · Score: 1

      Well, I can't speak to other states, but in New York, it's ordered by County ( with a very few City jurisdictions ), and you remit the total tax collected on a single check with a quarterly form. It's fairly trivial.

      --
      Technology -- No Place For Wimps! Grateful Dead and Jerry Garcia Chatroom -- http://www.wemissjerry.org
    6. Re:Smaller companies? by FrozenGeek · · Score: 1

      Wait a minute. Nebraska has a book? Comic or colouring?

      --
      linquendum tondere
    7. Re:Smaller companies? by coaxial · · Score: 1

      It might not be an undue burden to Amazon, but what about smaller online companies? You could use software to manage the collecting of sales tax for everything but the real problem comes to sending off that money to every town, county, and state that collects sales tax. Someone buys something for a couple bucks and suddenly you have to send payments of a few cents to three different places. Even if you save it all up and send it bi-yearly you could be looking at thousands of separate payments based on how widespread your client base is.

      Sounds like a business opportunity! Or actually something that Google, Yahoo, Microsoft, Amazon, and eBay can easily provide through their checkout services.

    8. Re:Smaller companies? by xmundt · · Score: 1

      Greetings and Salutations.
                Yea...that 2% is not all that much, however, as an example, my local taxes (state and county) add up to 9.75%. So...how happy would YOU be if all of a sudden your order was 12% more expensive? I think that would cut down on the number of purchases made by a chunk...and hurt the economy.
                  regards
                  dave mundt

      --
      YAB - http://blog.beemandave.com/
    9. Re:Smaller companies? by ceoyoyo · · Score: 1

      Amazon would have to write a few thousand cheques? Say it isn't so!

      Strange how Wal-Mart and your other national chains manage to do it.

    10. Re:Smaller companies? by Cytotoxic · · Score: 1

      Someone buys something for a couple bucks and suddenly you have to send payments of a few cents to three different places. Even if you save it all up and send it bi-yearly you could be looking at thousands of separate payments based on how widespread your client base is.

      This is so on-point that it clearly doesn't belong on slashdot.

      I'll do you one better, having collected multi-jurisdictional sales taxes in the past myself: You can't save it up and send it bi-yearly. Most places require monthly filing of sales taxes. That's right, every month. So if you made a few dozen sales per month as a small online retailer, you'd have to send sales tax payments to every jurisdiction involved in their own approved format with their own approved forms.

      In my business in Georgia I had to file sales tax forms every single month, even if I didn't have any sales that month. So if I were a nationwide online retailer doing 20 transactions per month, I'd have to fill out sales tax forms for every single jurisdiction every single month, even though most of them were getting nothing and a few were getting a couple of bucks. The cost of compliance with the tax will easily far exceed the amount of tax paid, both for me as the retailer and for the government as tax collector. A true lose-lose situation.

      The only way nationwide sales tax collections can possibly prove workable is via a centralized electronic tax clearinghouse. This would actually be of benefit to brick and mortar retailers as well, as it would simplify their compliance too. This is why it is so unlikely to happen. Online retailers enjoy the benefits of an internet tax haven and have no inclination to give up this advantage. Brick and Mortar stores want the advantage of localization without competing against a tax advantaged competitor - so they'd love to keep the barrier to entry high for non-local retailers.

      It is a shame, because this would be a pretty simple system to implement by federal fiat - simply publish the XML schema for the data interchange and set up a deadline for implementation for states and for retailers. Retailers could roll their own or contract with a service provider. The whole thing would be trivial (-ish) with that top-down mandate. My dev team could definitely handle this project, probably going live within 30 days. The whole thing depends on having complete definitions from the states. Given that, the rest is a fairly trivial web service and database.

    11. Re:Smaller companies? by winwar · · Score: 1

      "You could use software to manage the collecting of sales tax for everything but the real problem comes to sending off that money to every town, county, and state that collects sales tax."

      If so, then the best way to force a change to the system is to require the system be used by EVERYONE. It was my understanding that the taxes went to the State in question and it was THEIR job to redistribute them. Of course, I imagine that varies by State.

      I realize that Slashdot is a diverse group of people. But the goal posts seem to keep getting moved on this topic. First it was too hard to collect the taxes. Then it's too hard to distribute them. Sorry, if collecting taxes is too difficult and time consuming, don't go into business. It's certainly one of the reasons that I don't want to start a business. If you feel that sales taxes are a bad idea and want to abolish them, that's okay too. But I wish people wouldn't whine about the difficulty of doing something when it is the thing that they don't like.

    12. Re:Smaller companies? by AK+Marc · · Score: 1

      No, they don't (well, the mail-order people do, but not the stores you are talking about). They calculate the tax for the location of the store, not the people's home addresses. They then send in the checks based on the one store. They don't know or care where the people are from. They do no calculations about anything other than calculating one number that probably doesn't change any more often than once every 5 years, and they don't have to calculate anything based on any other jurisdiction.

      Now, the mail order side of Wal-Mart has to calculate everything for everywhere, since I think Wal-Mart has a store in every state (or close to it). But they are one of the rare stores that is nation-wide brick-and-mortar, as well as mail order.

      But some guy on eBay that sells something mail order would be required, by law, to figure out what the tax rate is for the person who bought something, then send a separate check to the state the buyer lives in. Unless they add some arbitrary limits to make it only apply to large organizations like Amazon (in which case it isn't about "fairness" but is instead about targeting and harming a single commercial entity), it will cause massive damage to small business that sell mail order. Or, more likely, would turn most of eBay sellers into criminals because they wouldn't do it and would expect that no one would go after them because they are so small.

    13. Re:Smaller companies? by bcrowell · · Score: 1

      Someone buys something for a couple bucks and suddenly you have to send payments of a few cents to three different places.

      Yep, and there are practical issues that make it hard to work around this. E.g., one way to handle this would be to have a uniform internet-based system for making the necessary micropayments automatically. This would effectively mandate that every small business have a computer and a working internet connection, which would be unreasonable. You could get around that by making small businesses exempt, but (a) big businesses would complain about unfair competition, (b) you'd have to get every state to agree to such a system. The real killer is b. No way are all the states going to agree on such a thing.

      Another way to handle it would be to set a standard federal sales tax of, say, 5%, and make it the only sales tax that could legally be applied to interstate transactions. This is close enough to the average state use/sales tax rate that it would eliminate most of the incentive to buy from out of state in order to avoid tax. But again, this isn't going to happen because the states would see it as a huge power grab by the federal government, and low-tax conservatives would see it as a de facto tax increase (even though it would really have a net effect more akin to simply enforcing the existing use tax laws).

      Another solution: get every state to eliminate sales tax and raise other taxes to compensate. Problem: states like California are already in horrible budgetary straits because they depend too much on one type of tax, which fluctuates a lot.

    14. Re:Smaller companies? by ceoyoyo · · Score: 1

      We have exceptions where, if your business makes less than a certain amount, you aren't required to collect sales tax at all, because it really would be a significant cost to a small business or individual. It also works well for the jurisdiction because they get tax money but can still benefit from the economic activity of very small businesses, both electronic and physical. A similar system would seem to be a good solution to your problem.

    15. Re:Smaller companies? by aztracker1 · · Score: 1

      That's only for a single type of item.. Now add in all items with exception rates for each city/county/state and even different districts within cities, counties and states.

      --
      Michael J. Ryan - tracker1.info
  8. Amazon == Borg by Frosty+Piss · · Score: 0, Troll

    The reason that Amazon has the advantage over all the local retailers that it puts out of business, is because it plays by different rules. No, it's not right, and Amazon needs to start playing by the same rules as everyone else.

    --
    If you want news from today, you have to come back tomorrow.
    1. Re:Amazon == Borg by drinkypoo · · Score: 1

      The reason that Amazon has the advantage over all the local retailers that it puts out of business, is because it plays by different rules.

      Yeah, like low overhead due to a lack of retail space.

      Retail is on the way out whether etailers pay the same sales taxes as everyone else, or not. Arguably, they should, as they receive the same services as retailers. But etail has certain inherent advantages that, over time, will kill off all non-big-box retailers and leave only niche, specialty stores, Target, and Wal-Mart.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    2. Re:Amazon == Borg by thisnamestoolong · · Score: 1

      You really think that just because a business out-competes and sinks other businesses that it deserves to be hurt? Do you think that anyone who sells anything online should have to deal with the thousands of different sales tax rates in the United States? You do realize that this will only make Amazon that much more monolithic by presenting a barrier for up and coming e-tailers that could compete with them, right? Our nation was founded on capitalism, which is based on fair competition. Amazon has been playing fair (at least in this regard) and has demolished the competition by being the best, and now we want to punish them for it. This is an extremely stupid reaction and is consequently one of the main reasons our country is becoming such a turd -- we punish greatness and reward mediocrity.

      --
      To the haters: You can't win. If you mod me down, I shall become more powerful than you could possibly imagine
    3. Re:Amazon == Borg by nycguy · · Score: 1

      Our nation was founded on capitalism, which is based on fair competition.

      Nonsense. While the United States may have been founded on capitalism, there's nothing in capitalism that requires "fair competition." For example, John D. Rockefeller was certainly a capitalist, but he also stated on several occasions that competition was wasteful and that well-meaning, privately-owned monopolies could best deliver products and services to society. (Whether that's true or not is another matter.)

      In a broader context, there's nothing in capitalism that is inherently opposed to cartels or monopolies--the former is simply the free association of individuals or corporations to determine the "rules" of an industry (particularly with regard to pricing) and the latter is the natural end-state of an industry in which one company has outmaneuvered all others. Both are certainly anti-competitive by definition, however, and most capitalist countries have laws to prevent or regulate such entities.

    4. Re:Amazon == Borg by socsoc · · Score: 1

      I never thought I'd see someone describe Walmart and Target as niche specialty stores rather than discount retailers.

      If only target.com served as a front-end to amazon.com and walmart.com was expansive, wait, they are.

    5. Re:Amazon == Borg by Golddess · · Score: 1

      Amazon needs to start playing by the same rules as everyone else.

      You're absolutely right, they should play by the rules of everyone else.

      In the United States, an advantage of this type of shopping is that the merchant is typically not required by law to add sales tax to the price of the goods, unless they have a physical presence in the customers' state. Instead, most states require the resident purchaser to pay applicable taxes. There has been periodic discussion about amending the law to make these sales taxable.

      Offhand, I don't know what states Amazon has a physical presence in, but per the law as it is written today, in those states and only those states should they be required to pay sales tax.

      --
      "I'm not sure I like the fugnutish tone you used in your post!" -RogL (608926)-
    6. Re:Amazon == Borg by drinkypoo · · Score: 1

      But etail has certain inherent advantages that, over time, will kill off all non-big-box retailers and leave only niche, specialty stores, Target, and Wal-Mart.

      I never thought I'd see someone describe Walmart and Target as niche specialty stores rather than discount retailers.

      You haven't. I didn't say "specialty stores like Target and Wal-Mart", I put a comma there: "specialty stores, Target, and Wal-Mart". It's not my fault that English uses the same operator as an array separator and as a pause. I didn't say "niche, specialty stores, and big-box retailers" because I wanted to imply that the only big box stores which would survive would be Target and Wal-Mart. Now you know, and knowing is half the battle.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    7. Re:Amazon == Borg by socsoc · · Score: 1

      You're right, I misread it. Maybe we should use pipes to as an array delimiter :)

    8. Re:Amazon == Borg by tacocat · · Score: 1

      On Monopolies. You are right.

      But with the ability of the Monopoly Company to influence Government to interfere with the Free Market via Lobbying and Special Interest Groups it becomes possible for a Monopoly to extend their influence far beyond what a Free Market would allow.

      Without a Government that bends to the will of the corporations the Free Market would be doing much better. There would be a LOT of bank failures, but some might argue that isn't a bad thing.

  9. Wow by Irontail · · Score: 1

    The New York Times article states that Amazon collects sales tax in the four states (Washington State, North Dakota, Kentucky and Kansas) in which it has presence that legally requires them to collect sales tax. It has offices in other states, but due to the nature of these offices, amazon is not required to collect taxes in these states.

    So, basically, the NYT is saying that Amazon should go above and beyond its legal obligations and pay more taxes for the hell of it. I somehow don't see that happening anytime soon. Perhaps those states with unbalanced budgets that could benefit from Amazon paying additional taxes should start enforcing their existing use tax laws?

    1. Re:Wow by Anonymous Coward · · Score: 0

      Living in Washington state myself, I wonder how many Washingtonians realize that when they buy something online, which isn't subject to tax, "use tax" ends up being due.

      When I buy from Amazon, I get taxed. When I buy from Newegg, I have to file use tax. With Newegg, it's a hassle, because it means printing out the form, and mailing it in with a money order.

      And for those who realize it is due, I wonder if they are honest enough to file it.

      Chances are, if people don't file use tax on mediocre purchases, they won't get caught. I think someone is much more likely to get caught, and in trouble, when they buy big ticket items. How? I don't know.

      Anyways, I don't know what Amazon's problem is. If it is simply the sales tax, or if it is a combination of things. Maybe the New York government could work out some sort of agreement, if legally possible. Like if Amazon collects a flat tax from all purchases made by New Yorkers, and New York's DoR could divide it up according to some elaborate formula among all their localities. Like, based on regular purchases, it wouldn't be hard to figure it out.

  10. Re:From the NYT article, they are following the la by Anonymous Coward · · Score: 0

    The state and federal governments made complicated tax laws and Amazon is following them in a business efficient manner. What is their problem?

    It is the whole 'letter of the law' vs 'spirit of the law' thing... The letter of the law may allow someone with access to expensive lawyers to avoid paying taxes, but it is not in the spirit of the law?

  11. Wouldn't it be wonderful, by CrackedButter · · Score: 3, Interesting

    if there were no tax heavens anywhere in the world and businesses just paid what they owed like the rest of us. Sure the prices will go up but if this happened from the get go, it wouldn't be an issue. I'm annoyed with companies avoiding paying tax but then using the government system to seek protections or create laws for their benefit.

    1. Re:Wouldn't it be wonderful, by night_flyer · · Score: 3, Insightful

      "businesses just paid what they owed like the rest of us"

      Businesses don't pay taxes, the consumer does.

      --


      Thanks to file sharing, I purchase more CDs
      Thanks to the RIAA, I buy them used...
    2. Re:Wouldn't it be wonderful, by EastCoastSurfer · · Score: 1

      Ugh, businesses don't pay sales tax. They simply administer it (that adds overall item cost) and collect it from the buyer. The buyer just happens to be normal people who are probably pinching every penny they can in the current economic climate. Forcing Amazon to collect sales taxes is an administration cost for them and a tax increase for us.

    3. Re:Wouldn't it be wonderful, by FooAtWFU · · Score: 1

      Businesses don't pay taxes, the consumer does.

      Not always true. A tax acts to reduce both the producer surplus or the consumer surplus, depending on the relative price elasticities of supply and demand. It's true that where it's levied doesn't really make a difference, however. So business-owners (of all sizes) do end up paying taxes.

      Anyone here own any businesses? Say, in your retirement portfolio?

      --
      The World Wide Web is dying. Soon, we shall have only the Internet.
    4. Re:Wouldn't it be wonderful, by Anonymous Coward · · Score: 1, Informative

      and businesses just paid what they owed like the rest of us

      Funny you mention that. Amazon doesn't pay sales tax, you and I do. Amazon is the tax collector in this case. Also, there is a line on your tax forms where you are supposed to enter in the amount of sales tax you owe but didn't pay. But I bet you always put "0" for that line. You don't pay the tax because it's difficult to keep track of and because you know that you won't get caught.

      Assuming I'm correct and that you don't manually tally up the sales tax on all non-local purchases -- if you go on vacation in another state and buy some knickknacks, you are technically supposed to pay your local sales tax on them, even if the other state also charges a sales tax! -- then it would appear that businesses do pay what they owe just like the rest of us. That is, when it's easier and cheaper to pay than it is not to, or when there's a high probability they would get caught cheating.

      Of course, I'm being a little glib here, and I admit that. I do recognize that companies... well, perhaps it's not cheating, exactly, but they certainly do engage in some practices which clearly are not in the spirit of the law. They get away with it because they have armies of tax lawyers to defend them against the IRS. That's an advantage that big companies have which you and I don't: the government is still bigger and badder than they are, but not nearly so much as for us individual private citizens. And I think it's the difference: I firmly believe that someone making $40k a year would engage in exactly the same sort of loophole-finding, rule-bending behavior when it comes to taxes if he had the opportunity to do so. So I don't think we can exactly claim the moral high ground here. IBM et al. are just acting the way you or I would if we had their resources available to us.

    5. Re:Wouldn't it be wonderful, by frankxcid · · Score: 1

      This is the main problem in the way you and others like you think. It is not Amazon that pays taxes. It is you and all the other customers that pays. It is silly to want to pay additional taxes when enough is already collected. I have a deal for you, send me the extra taxes you want to pay and I promise to send them to the government.

    6. Re:Wouldn't it be wonderful, by bendodge · · Score: 1

      Why do businesses have to owe anything? Why can't we have:
      a) A flat tax on income, or
      b) A flat tax on consumption?
      It seems to blindingly simple. Even if you have two or three (Federal, State, Local) it would be so much simpler. And as far as fairness goes, you can't get much fairer than a flat percentage.

      Some say it would decrease revenues be lowering taxes on the rich and big businesses, but after seeing all the headache my workplace goes through for taxes I think revenues would actually increase just because we'll make more to be taxed on without all the extra cruft in the business processes.

      I don't see why a business pays taxes. Just charge people on one end or the other. It also makes government forecasting vastly simpler and encourages wiser money management (I can do what's smart rather than what's non-taxable).

      --
      The government can't save you.
    7. Re:Wouldn't it be wonderful, by nEoN+nOoDlE · · Score: 1

      I'm annoyed with companies avoiding paying tax but then using the government system to seek protections or create laws for their benefit.

      But the government and big companies believe in the same thing - that is businesses are allowed to operate freely and without any restrictions, the money will trickle down to the working class. The government creates these loopholes so huge corporations can take advantage of them and then buy into the government to create more loopholes, ad infinitum.

      --
      Don't trust a bull's horn, a doberman's tooth, a runaway horse or me.
    8. Re:Wouldn't it be wonderful, by jdkchem · · Score: 1

      How is this even remotely interesting? Before rambling on like a moron again you might actually acquire some knowledge of taxation as well as some level of common sense.

    9. Re:Wouldn't it be wonderful, by AK+Marc · · Score: 1

      Businesses don't pay taxes, the consumer does.

      Yay, insightful. Except it's meaningless. The taxes are paid by the business. They write the check, and they make the money that is taxed. Even if they have no consumers in a year, they still are liable to the tax laws. It's a cost of doing business.

      Think of it this way. When a cop pulls you over and you yell "I pay your salary" belligerently at them, do they say "I'm sorry, you can go about your way"? Since all expenses of a business are "paid by the consumer" do you think that saying the same to a CEO would get a response? Then why do you think that the one check they write to the government is any different than the thousands of others they write to employees and suppliers and such?

    10. Re:Wouldn't it be wonderful, by forceman130 · · Score: 1

      if there were no tax heavens anywhere in the world and businesses just paid what they owed like the rest of us. Sure the prices will go up but if this happened from the get go, it wouldn't be an issue. I'm annoyed with companies avoiding paying tax but then using the government system to seek protections or create laws for their benefit.

      Except this isn't about companies not paying their taxes, it's about them not collecting taxes that you should pay.

      --
      Wow, a 7 digit ID - let that be a lesson in the perils of procrastination.
  12. Re:From the NYT article, they are following the la by julesh · · Score: 5, Insightful

    The letter of the law may allow someone with access to expensive lawyers to avoid paying taxes, but it is not in the spirit of the law?

    "Anyone may arrange his affairs so that his taxes shall be as low as possible; he is not bound to choose that pattern which best pays the treasury. There is not even a patriotic duty to increase one's taxes. Over and over again the Courts have said that there is nothing sinister in so arranging affairs as to keep taxes as low as possible. Everyone does it, rich and poor alike and all do right, for nobody owes any public duty to pay more than the law demands."

    (US Appeals Court Justice the Honourable Learned Hand)

  13. Can you see where this idea will lead? by Anonymous Coward · · Score: 0

    That's an excellent idea you've set down for all of us to read; I've never heard anyone else say it, so it must be your idea.

    I'm sure the IRS will be happy to accept a check. Oh, IOKIYAR?

  14. Re:Let the liberal media pay taxes for once. by RobVB · · Score: 1

    Did you really just say that Linus Torvalds should pay taxes for the billions of dollars that Linux is worth?

    On Slashdot?

    By the way, I don't think that code has that much monetary value, since he can't actually sell it. Sure, the net economic gain from using Linux could very well be in the billions, but that doesn't mean the guy is ever going to own the Moon.

    --
    I'd rather you rationally disagree than irrationally agree.
  15. Re:Let the liberal media pay taxes for once. by tjstork · · Score: 1

    By the way, I don't think that code has that much monetary value, since he can't actually sell it.

    That's not all that different from how cities calculate taxes on the assessed values of homes.

    --
    This is my sig.
  16. I like my tax heaven by tjstork · · Score: 1

    if there were no tax heavens anywhere in the world

    I live in Delaware USA. There's no sales taxes, and low incomes taxes. I think its awesome. Please, raise your taxes.

    --
    This is my sig.
    1. Re:I like my tax heaven by Anonymous Coward · · Score: 1, Insightful

      Yeah, a buddy of mine drives 3 hours to come in from Delaware to the People's Republic of MD.

      There is _nothing_ wrong with avoiding taxes. My God, if we have a right to an attorney to help us avoid jail time, we ought to have a right to avoid spending 1/3rd of our life working for the government.

    2. Re:I like my tax heaven by tjstork · · Score: 2, Interesting

      There is _nothing_ wrong with avoiding taxes. My God, if we have a right to an attorney to help us avoid jail time, we ought to have a right to avoid spending 1/3rd of our life working for the government.

      Well, like everything, to a point. But in Delaware's case, the roads are paved on time, traffic is manageable, public services are good, and things are rolling along. Like, I have to ask, what exactly does New Jersey or Maryland do with all of their dough, because, in both cases, services are worse and the roads are worse.

      I think what makes Delaware tick is that you have some genuine bipartisan centrist leadership. Democrats and Republicans alike are not the crazies that are in Washington DC.

      --
      This is my sig.
    3. Re:I like my tax heaven by ffoiii · · Score: 1

      Delaware is home to many, many, US corporations, because of their favorable corporate law. Because of this, many US companies choose to be Delaware based companies, and this creates a large tax base independent of the population of Delaware. It has nothing to do with "bipartisan centrist leadership".

    4. Re:I like my tax heaven by Anonymous Coward · · Score: 0

      >Delaware is home to many, many, US corporations, because of their favorable corporate law.
      >I live in Delaware USA. There's no sales taxes, and low incomes taxes.

      umm... Pro-business leadership I would say. Favorite corporate law. No sales and low income tax. Looks like conservative economics works.

    5. Re:I like my tax heaven by tjstork · · Score: 1

      like conservative economics works

      Well I wouldn't go that far. Conservative stances on free trade are a national disaster.

      --
      This is my sig.
    6. Re:I like my tax heaven by demonlapin · · Score: 1

      Did you just assert that free trade is bad for the economy?

    7. Re:I like my tax heaven by autophile · · Score: 1

      I think they make it up with property taxes. Anywhere from 1% to 6% or so.

      --
      Towards the Singularity.
    8. Re:I like my tax heaven by Anonymous Coward · · Score: 0

      Well, like everything, to a point. But in Delaware's case, the roads are paved on time, traffic is manageable, public services are good, and things are rolling along. Like, I have to ask, what exactly does New Jersey or Maryland do with all of their dough, because, in both cases, services are worse and the roads are worse.

      You must not ever drive on I-95, because Delaware is the only place I dread between DC and Philly (even moreso than the DC beltway!). The tollbooth backup in Delaware* is measured in miles, whereas the Baltimore tunnel and Maryland tolls are measured in single cars (usually just roll through the EZ-Pass lane). Delaware is also the only place that had lane closures during Thanksgiving travel days, backing up traffic even more.

      Also, it stinks! Why does Delaware smell like crap?

      * When I miss the exit to skip it. Screw you, Delaware!

    9. Re:I like my tax heaven by FooAtWFU · · Score: 1

      Yes. Which means he's almost certainly pulling stuff out of his rear end^W^Wbleeding heart instead of engaging in any serious study of the matter (cf. the 2006 survey of American economists which indicated of American economists that "87.5% agree that the U.S. should eliminate remaining tariffs and other barriers to trade" and "90.1% disagree with the suggestion that the U.S. should restrict employers from outsourcing work to foreign countries".)

      There is infinitely* more scientific consensus for the economic benefits of free trade than there is for the benefits of urgent action to avoid global warming, but somehow the latter is a national policy priority and the former is just uncool. Bah.

      (* not actually infinite)

      --
      The World Wide Web is dying. Soon, we shall have only the Internet.
    10. Re:I like my tax heaven by Anonymous Coward · · Score: 0

      I live in Delaware USA. There's no sales taxes, and low incomes taxes. I think its awesome. Please, raise your taxes.

      Delaware has Gross receipt taxes.

      Which essentially means you do have a sales tax but it is wrapped into the item's price and you don't notice it.

    11. Re:I like my tax heaven by MindlessAutomata · · Score: 1

      B-b-b-but poor coffee growers in South America...!

  17. No Way! by b4upoo · · Score: 3, Insightful

    This is an attempt to please brick and mortar stores who want to push electronic sales into the toilet. On line sales already carry a great burden in shipping costs. If you add taxes on top of shipping costs you kill online sales completely.

    1. Re:No Way! by AnotherUsername · · Score: 3, Insightful

      And brick and mortar carry a great burden in paying for their building(making it customer friendly, as opposed to being a warehouse), and all that comes with having a brick and mortar store. Guess what, it's part of having a business. They already have taxes on top of all of that. Many of the bigger stores have an online store as well, so they have both ends to deal with. Again, it's part of having a business.

      --
      I don't like Linux. This doesn't make me a troll.
    2. Re:No Way! by Anonymous Coward · · Score: 0

      Most of those companies don't own their building, they lease it that way they are able to write off the whole building as a business expense instead of including the building as an asset. All improvements made to the building are likewise written off as business expenses.

      The smart ones are doing just like amazon and minimizing their tax exposure.

    3. Re:No Way! by Eil · · Score: 1

      This is an attempt to please brick and mortar stores who want to push electronic sales into the toilet. On line sales already carry a great burden in shipping costs. If you add taxes on top of shipping costs you kill online sales completely.

      It's not even that, really. Lawmakers have been trying for years to get taxes on interstate Internet sales, but there are always roadblocks:

      1. Businesses claim it would be too burdensome. They're right, but small businesses would be the ones most heavily burdened and the last thing most politicians want is to make enemies with small businesses.

      2. No one can arrive at a consensus as to what as interstate sales tax would be for. Other than governments who just want more money and brick-and-mortar stores who perceive online sales as hurting their business and only want to strike a blow to the online retailers. (I could write a book on the inanity of that last point, by the way.)

      3. No one can arrive at a consensus as to how to split the money up.

      4. The Supreme Court has routinely ruled interstate sales taxes as unconstitutional because they restrict interstate commerce. States have tried to do all kinds of protectionist things including import/export tariffs, charging tolls on semi trucks that pass through a state without making deliveries, etc. All have failed and an interstate sales tax will fail for the same reason.

  18. Burden by Skapare · · Score: 5, Insightful

    Yes, there is a real burden here. A "brick" store only has to deal with exactly ONE tax rate, which is the rate for their physical location. A chain of stores would only need to deal with this on a per-store basis. However, the web retailer is expected to charge tax based not on their own physical location, but rather, the location of the customer ordering the merchandise. This means keeping a database, and keeping it updated, for each and every single tax jurisdiction in the country. In many states this varies by individual city and town. There are thousands of these. In some cases they are even split across zip codes. And it's not just rates to worry about. Different jurisdictions have different exemptions of what products don't require a tax (food in one place, only perishable food in another, bath products might be included in another, school supplies exempted in a few, etc).

    Then there is the issue of ensuring the taxes get paid to the proper government entity. That and making sure people are not subverting the system by sending packages to other locations.

    Some solutions to this are possible.

    I suggest that instead of the stores charging the tax, the credit/debit card processor charge the tax. The advantage of this is that they readily know the billing address of the account holder. Their payments to the government entities would be more in bulk, instead of these governments getting thousands of small payments from all the "mom and pop" web sites that would be compliant with tax law changes. The one change that would need to be made is each credit/debit charge would need to have split up according to product type classifications (a federal standard needed for that).

    Another alternative is for a federal law that simply requires each of the states to submit ONE tax rate for the whole state, and accept a set of exemptions designated by that federal law, to be part of the inter-state tax program. One other requirement is, to be a part of it, they treat in-state web retailers exactly the same as out-of-state (e.g. all or nothing).

    The burden on web retailers is NOT a myth. It is very real. Amazon can probably handle it. But you know the smaller retailers will be next, and eventually they will try to impose this on others. Taxes are essential, but it needs to be kept simple. Also, smaller retailers need to have a SINGLE (not 50) payment destinations (a central clearinghouse for this).

    --
    now we need to go OSS in diesel cars
    1. Re:Burden by winthrop · · Score: 1

      I know there's the problem of submitting the taxes to the jurisdiction, but if the problem of figuring out what the taxes are is so hard, they could just include the sales tax in their prices, and then submit taxes based on the maximum tax rate to each jurisdiction. So, if some state charges 9% sales tax, they could just charge everybody 109%, then send 9% to every state. That way, they'd be freed of the administrative burden.

      I'm willing to bet that if they were required to do that, they'd discover pretty quickly how easy it is to collect variable levels of sales tax across various districts.

    2. Re:Burden by damaki · · Score: 0

      You know, in France, small brick and mortar store have to deal with multiple taxes. We've got different taxes on books, alcoholic beverages, perfumes, DVDs, music, food, and even more that I do not know about. Some small stores sell multiple of these things and, guess, do not whine about it.
      Is it so hard to manage 50 different taxes matching the billing states? No, it's not.
      BTW, I am J2EE/PHP web developper who has already worked on an online store.

      --
      Stupidity is the root of all evil.
    3. Re:Burden by GeckoAddict · · Score: 1

      I suggest that instead of the stores charging the tax, the credit/debit card processor charge the tax.

      This would completely screw a lot of tourist/travel destinations. Mall of America, the Disney Areas, shopping on Chicago's Michigan St, etc is all affected and all incentive for those municipalities to bring people in is gone.

      Another alternative is for a federal law that simply requires each of the states to submit ONE tax rate for the whole state, and accept a set of exemptions designated by that federal law, to be part of the inter-state tax program.

      Sounds like a much better idea.

    4. Re:Burden by Felix+Da+Rat · · Score: 1

      Another alternative is for a federal law that simply requires each of the states to submit ONE tax rate for the whole state, and accept a set of exemptions designated by that federal law, to be part of the inter-state tax program. One other requirement is, to be a part of it, they treat in-state web retailers exactly the same as out-of-state (e.g. all or nothing).

      While it might be a good idea for states to decide on a flat rate tax for internet orders of any type, we are talking about State taxes here. Federal laws have no real weight on that topic, nor should they.

      As for who collects the taxes, well, if I recall correctly, most states do actually have a section where people are expected to list their out of state purchases on their tax forms. This sounds like a problem for NY and CA because people might not be as honest as they would like. Then again for the people, if they buy something on a trip, they've already paid taxes on it at the point of sale, so being dunned twice seems rather foolish as well. Yes, mail order and the internet do change people's ability to buy from out of state easily, but if any taxes are to be paid on a purchase (which annoys me almost as much as property taxes), then it should be the taxes charged at the point of sale. i.e. Those within whichever tax jurisdiction is making the sale.

    5. Re:Burden by BobMcD · · Score: 1

      Another alternative is for a federal law that simply requires each of the states to submit ONE tax rate for the whole state, and accept a set of exemptions designated by that federal law, to be part of the inter-state tax program.

      That's an interesting idea. What about an opt-in online tax system? We are talking about electronic transactions here, after all. The federal law could be something along the lines of:

      1) A common standard for taxable transactions is created to cover types of items purchased, address format, amounts, etc. EDI for sales tax.

      2) States will be provided a set of guidelines for establishing a series of servers to accept these transactions that will be uniform. E.g. http://salestax.state.gov/zipcode.

      3) The server will provide the appropriate tax rate via the established format to any retailer that requests it, electronically.

      4) The server will then also be ready to accept EFT from that same source.

      5) Any municipalities that are missing taxes can lobby their state government for inclusion in the system.

      6) Any retailer that can prove that the given state was not compliant with the transaction ruleset is exempt from paying taxes for that transaction. (Format should specify how the records are kept, who has audit power, etc.)

      It feels like I'm overlooking something here...

    6. Re:Burden by thisnamestoolong · · Score: 1

      And you would request that we do this why? In the interest of "fairness"? What sort of a warped definition of the word "fair" would place this burden on one business but not any other? Brick and mortar stores don't need to do this -- they deal with one particular set of tax codes. Other online retailers COULDN'T do this -- the cost would be too high and they would be forced to go under. Amazon is playing by the rules. We can't simply change the rules because they are out-competing other businesses.

      --
      To the haters: You can't win. If you mod me down, I shall become more powerful than you could possibly imagine
    7. Re:Burden by donaggie03 · · Score: 1

      If a store started charging all of its customers the highest rate, I'm pretty sure that store would find itself in some sort of legal trouble. If the tax at a particular location is 8%, a company cannot charge 9% just to make it easier on themselves. That 1%, even if the company gave it to the government, is no longer a tax. It is an added cost of the item.

      --
      Three days from now?? Thats tomorrow!! ~Peter Griffin
    8. Re:Burden by dkleinsc · · Score: 1

      Here's a possible solution: An open-source project (possibly LGPL'd) with the end result being a database and code that can be called with an address and price, and returns the tax rate and who's supposed to get paid for that tax. It would be a PITA, but this is exactly the sort of thing a FOSS project can provide: it's a problem that everyone has, but the gains of solving it collectively far outweigh any competitive advantage that might exist.

      And given that my company, with a crew of about 50 developers, could figure it out for several states, I'm thinking it would be hard but not that hard.

      --
      I am officially gone from /. Long live http://www.soylentnews.com/
    9. Re:Burden by sribe · · Score: 1

      In many states this varies by individual city and town.

      No, it can vary within city and town by arbitrary boundaries set up for whatever purpose the city wants, right down to a handful of houses.

    10. Re:Burden by Anonymous Coward · · Score: 0

      I have to agree. I can think of this similar to the licensing cost of Software.
      As a Network Admin I didn't really mind buying software, but I couldn't stand having to "Manage" the licenses. It's a non productive task and doesn't give the business any advantages.

      The taxes are similar for Amazon, it's a non productive task that doesn't give them any values. They don't mind spending time and money improving their products database.

    11. Re:Burden by Anonymous Coward · · Score: 0

      I suggest that instead of the stores charging the tax, the credit/debit card processor charge the tax. The advantage of this is that they readily know the billing address of the account holder.

      Great!

      I'm going to go change my debit card address to somewhere in Delaware, so that I never get charged sales tax even when I'm buying in New York (where I actually live).

      Actually, I do this already for game/music downloads. Works great.

      Also, your proposal would never be supported by states that already have 0% sales tax, because they rely on out-of-state shoppers.

    12. Re:Burden by Anonymous Coward · · Score: 0

      You know, in France,

      Stop right there you fucking frog.. why are you on a thread specific to the US that has abso-fucking-lutely nothing to do with France or Europe?

      I'll tell you why, because you, like the rest of the EU, has no life and must live vicariously through us.

      Carry on.

    13. Re:Burden by mariox19 · · Score: 1

      I'm against businesses bearing the cost of collecting and administering sales taxes in the first place, but that's an entirely different argument; however, I think I have a better idea than the one you propose.

      Let each state develop and maintain a Web service based on open standards that calculates the sales tax. That way, each state is responsible for its byzantine sales tax program. An online retailer would need only consume the service.

      --

      quiquid id est, timeo puellas et oscula dantes.

    14. Re:Burden by Skapare · · Score: 1

      The states with 0% tax rates don't need to support it. They don't need to participate.

      As for having your address somewhere else to evade taxes ... that doesn't change. You can still break the law. But my proposal doesn't put the burden of catching you at this on the mom and pop web store.

      --
      now we need to go OSS in diesel cars
    15. Re:Burden by Skapare · · Score: 1

      What I think is essential to this is finding the happy median between NOT imposing high fixed burdens on smaller retailers, and keeping the TOTAL cost as low as possible. I could argue that the cost of collecting these taxes for the various governments should be deducted from the collected taxes themselves ... on the basis that this is technically a "use tax" charged to the consumers themselves, and that the stores are merely providing a convenience to the governments to ensure that the tax is actually collected. E.g. this shouldn't be an unfunded mandate. But I know that won't fly. And if there was a central agency through which all web orders were processed to figure the tax, privacy concerns would emerge. So I'm looking for low cost, nearly proportional to sales, solutions, that add no new privacy issues.

      --
      now we need to go OSS in diesel cars
    16. Re:Burden by Skapare · · Score: 1

      Yes, I know about these. And when I find a city that does this, I plan to call them up and ask them what their tax rate is, telling them I'm putting their zip codes in "the tax collection database", and that if they refuse to tell me the numbers, I won't collect tax for them and will keep a recording of this phone call as proof that they didn't care to have me collect tax for them ... just to harass them for making the world a mess.

      I say that when any government jurisdiction wants to impose tax collection on ANY business OUTSIDE their jurisdiction, they MUST do so on a strictly simple basis ... one percentage, with a list of product type code numbers for exemptions. If they don't want to work it that way, they should not be permitted to impose outside their boundaries. That's why I support a federal law (if someone will submit one) that sets up an interstate sales/use tax system and mandates that it be executed on a mandatory simplified basis. Jurisdictions not willing to join with that (and KISS) are then limited to collecting their use taxes directly from their own residents. To join, they must provide a rate percentage table per product class per zip code, with changes provided at least 3 months in advance of being in effect, with activation dates always on the 1st of a month, and direct deposit info for the clearing house to send the collected money each month.

      --
      now we need to go OSS in diesel cars
    17. Re:Burden by Skapare · · Score: 1

      It shouldn't be web based. But HTTPS based might work. One complication might be privacy. But I could go for that. We just create an XML schema for the data exchange. Connect online, provide customer address info, get tax list back for all product classes (need a standard set of product classes), and dates of validity (if changes are within 91 days, the data must include the changes, too). This should be operated by at most the individual states. The location to connect to should be findable by a DNS name, such as "X.statetax.gov", where X is the state code or maybe even the zip code. Then just connect to an IP address given with HTTPS, send the request with the XML data giving the address info, and get XML back with the tax data. Vendors would be allowed to cache the data for 91 days.

      --
      now we need to go OSS in diesel cars
    18. Re:Burden by Anonymous Coward · · Score: 0

      There are already software packages out there that do this quite nicely.

      Lookup Comverse for an example in telco.

    19. Re:Burden by Lil'wombat · · Score: 1

      The solution to this is even more insidious. Let Amazon and others be required to provide a list of product shipments, and sales amounts to addresses and let the various taxing entities collect the use tax/sales tax from the recipient. That way the governments get their money and our privacy is destroyed!

      --

      Truth: If it's not one thing, it's another

    20. Re:Burden by frankxcid · · Score: 1

      No, No, No, it is not a burden to keep track of the taxes. The burden is the paying and collecting of the taxes. The burden is on the customers. The Burden is we, the customers, have to pay more.

    21. Re:Burden by Kreplock · · Score: 1

      Some greedy capitalist will figure a way beyond this burden and make money from it at the same time.

      There are already corporations whose sole focus is to track tax rates of various government entities and issue an updated electronic catalog to their (corporate) subscribers. If the sales tax information offerings already available are not satisfactory Amazon could create their own in-house solution, then make it pay for itself by re-selling this service to other companies. That would be nice for Amazon, but consumers of all things online will end up paying not only these taxes but also for the services and infrastructure for companies to conform.

      The problem is the tax-drunken government entities tirelessly finding new ways to tax. Nothing makes me want to party French-Revolution style like taxes and bureaucrats. I don't want this tax, I want less spending. Governments at all levels have increased spending far beyond economic growth rates for decades now because it's really easy to spend someone else's money. I applaud Amazon's efforts to resist these taxes. It's not the government's money, it's ours. Even when they pass a law saying otherwise.

      It's not the government's money, it's ours.

    22. Re:Burden by Anonymous Coward · · Score: 0

      they could just charge everybody 109%, then send 9% to every state.

      Ummm... I live in a state where there is no sales tax. Doesn't sound like a very good deal to me.

    23. Re:Burden by eht · · Score: 1

      This is not strictly true that a brick and mortar store only has to deal with one tax rate. When I lived in New York state, the county I lived in had a lower tax rate than the county I bought my car from, I was charged the tax rate for the county I lived in.

    24. Re:Burden by winwar · · Score: 1

      "If a store started charging all of its customers the highest rate, I'm pretty sure that store would find itself in some sort of legal trouble."

      Why? Or they could just call it a cost recovery tax or something like you would find on your cable or phone bill...

      "That 1%, even if the company gave it to the government, is no longer a tax. It is an added cost of the item."

      Precisely. Do you think those places that advertise "pay no tax" on your purchases really pay no tax?

    25. Re:Burden by nEoN+nOoDlE · · Score: 1

      Also, smaller retailers need to have a SINGLE (not 50) payment destinations (a central clearinghouse for this)

      Someone could make a pretty penny starting a company that does such a thing...

      --
      Don't trust a bull's horn, a doberman's tooth, a runaway horse or me.
    26. Re:Burden by Anonymous Coward · · Score: 0

      >> BTW, I am J2EE/PHP web developper who has already worked on an online store.
      Then, even if this store was in the US, you still know nothing. The law hasn't changed here yet, so present-day internet tax calculations are minimal state-level-only, and most online businesses don't have to calculate any taxes at all.

      Your physical French store example is exactly the same as a physical US store. It works in both because even the most naive implementation of the tax codes would only need a 1-to-1 product-to-tax mapping. The store has a distinct, stationary location and therefore only has to know one full set of rules.

      If an online store in the US only had to collect top-level state taxes, that would not be impossible for even a small business. And in a best-case scenario, every state would be required to follow the same standard classification system and push its changes to a federally maintained database system that all online stores could query, and which would therefore absolve the online stores from being crushed to death by fines when the inevitable errors occur. (Actually, an even better-case scenario would be that there's a single internet sales tax rate, paid to a federal office which then passes it to the states proportionally to their local base sales tax... but that would be far too sane.)

      But in realistic practice, there would be fifty state databases, each following a different format. Some third party software would exist that aggregates and translates this, but it would be expensive enough that some businesses wouldn't be able to afford it. And, with or without the third party software, there'd be no safety from fines when the inevitable mistakes happen, so businesses would need to pay for tax mistake insurance, which would again be expensive enough that some wouldn't be able to afford it.

      If online business were subject to lower-level taxes - county, city/town/village, and so on - then online business would become outright impossible for anyone but giants like Amazon, and difficult even for the physical-store giants like WalMart. Seriously, those tax regions are nested/overlapping, their classifications of items are unique and subject to change at any time, and their very existence/boundaries are also subject to change at any time; there would be something on the order of 50000 distinct tax regions, not 50. Possibly even worse, since zoning laws for business/industry/residential areas would apply, meaning every street would have a different tax codes. It'd take an army of lawyer-programmers to translate legalese into software, working non-stop to keep it all up to date. It'd be like comparing the easy task of "tracking the average temperature at a single location" to the damn-near-impossible task of tracking the average daily temperature of the surface of the entire nation at one-square-meter resolution.

    27. Re:Burden by sribe · · Score: 1

      I say that when any government jurisdiction wants to impose tax collection on ANY business OUTSIDE their jurisdiction...

      All excellent ideas...

    28. Re:Burden by dissy · · Score: 1

      Yes, there is a real burden here. A "brick" store only has to deal with exactly ONE tax rate, which is the rate for their physical location.

      So to compare the two, it would be more like the government requiring all brick and mortar stores in the USA to collect sales tax not on where the item was SOLD, but for where the customer lived.

      The comparable burden that the store would be required to ask all customers where they live, have tax tables for the entire country to charge accordingly, and also be responsible for the money when the customer lies.

      Only then would it be 'fair' and comparable to forcing an online store to do the same* thing.

      * Admittedly Amazon probably does sell items out of more than one state, but most small online shops only SELL physical items out of one warehouse.

      Why do brick and mortar stores only have to collect sales tax for the place the sale happened, but online stores must collect sales tax for the state the customer was physically in when making the sale with you in your state/city/county?

    29. Re:Burden by Skapare · · Score: 1

      The problem is these greedy capitalist solutions are not proportional to sales. While Mom and Pop can probably pay less than Jeff Bezos would have to pay, it certainly won't be at the same rate per dollar of sales. There will be some big fixed price component to this service, like a $10,000 up front access fee. To make this work, government needs to ensure that all retailers of all sizes have a properly proportional and affordable way to comply.

      --
      now we need to go OSS in diesel cars
    30. Re:Burden by mariox19 · · Score: 1

      Oh, my proposal was still within the context of merchants collecting the tax. I just meant that they shouldn't be responsible for calculating the myriad varieties of sales tax. No private information would have to be transmitted.

      --

      quiquid id est, timeo puellas et oscula dantes.

  19. The dangers of stupid taxes by Targon · · Score: 1

    When you think about it, the problem with most of the taxes imposed by states is that the idea is to pay for government provided services. Now, for out of state businesses, shouldn't the ONLY real burden be on the transit systems(roads and rails)? The postal system already charges money for delivering things, so really, it is just about transit systems. Sales taxes, such as they are, are a bit foolish to impose on out of state entities since the equipment that handles the actual exchange of money is generally not in the state demanding that sales taxes are collected. Basically, if a financial transaction takes place outside of a state, I don't feel that state has the right to demand money for the transaction.

    Now, a national sales tax would eliminate this issue, or some other system.

    The real problem that many states are running into is that they are run like governments, spending money they don't have and will NEVER have to provide services that will never end up with a net profit. Paying employees too much money, giving too much PAID time off(including the dozens of government holidays where other businesses stay open), and really, just spending too much for the tax income they bring in. If a private business were to try operating like that, they would be bankrupt within a year. So, the states are all crying that they are broke while paying assistants to government employees upwards of $80,000 per year.

    1. Re:The dangers of stupid taxes by drinkypoo · · Score: 2, Insightful

      Now, for out of state businesses, shouldn't the ONLY real burden be on the transit systems(roads and rails)?

      No. Sales taxes go into general coffers are are used to pay for all types of services. Rails are private, we have no nationalized rail in the USA. That leaves roads, and heavy trucks do almost all the damage done to roads by vehicles (the majority of the remainder being done by weather.) Amazon also receives the benefit of police protection; without police, anyone would be free to loot their warehouse. They receive fire protection in that the FD will show up and try to put a fire out if their building is burning. Need I go on?

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    2. Re:The dangers of stupid taxes by Anonymous Coward · · Score: 1, Insightful

      >Amazon also receives the benefit of police protection; without police, anyone would be free to loot their warehouse. They receive fire protection in that the FD will show up and try to put a fire out if their building is burning. Need I go on?

      Which their warehouse has property taxes, the employees pay income tax on, also the fed-ex and ups charges include fuel costs and taxes.
      They pay taxes on their water bill, power bill and heating bills for those facilities. As well. Oh and the fire protection is usually a part of your water bill.

      This is about brick and mortar retailers using the tax system to destroy someone they can't compete with. And states that can't control their spending trying to tax Amazon rather than enforce their own use taxes. Oh yeah Amazon can't vote you out, but your voters sure can.

    3. Re:The dangers of stupid taxes by drinkypoo · · Score: 2, Informative

      Which their warehouse has property taxes, the employees pay income tax on, also the fed-ex and ups charges include fuel costs and taxes.

      The fuel costs and taxes are insufficient to cover the cost of the damage done by shipping. On average a semi-tractor with a reefer unit will get about 6-7 mpg, which is a third to a quarter (say) of the mileage of an auto, yet it does more than three or four times the damage that the car would do; The relative damaging effect of an axle is considered to be approximately proportional to the fourth power of the load. In other words, a 40 ton truck can easily cause as much damage to a typical road as 60,000 one-ton cars. Yet they pay only a few times as much in fuel taxes (since that is tied to fuel consumption) and only a few times as much in registration fees. There are several orders of magnitude unaccounted for here. Where do you propose the difference should come from? The pockets of those who live in the same tax region?

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    4. Re:The dangers of stupid taxes by daveime · · Score: 1

      The fuel costs and taxes are insufficient to cover the cost of the damage done by shipping

      Erm, WTF ? How is shipping from a central warehouse ANY different from distributing goods to individual stores scattered all over the damn country (i.e. in the traditional retail model) ?

      So trucks do more damage on the roads than cars, but don't pay the proportionate amount of road taxes ? That's an issue to take up with the Department of Transport or whatever the local government equivalent is in your state.

      It's nothing to do with online businesses having "an advantage" over retail outlets.

    5. Re:The dangers of stupid taxes by Anonymous Coward · · Score: 0

      Amazon also receives the benefit of police protection; without police, anyone would be free to loot their warehouse.

      Really, so the Bumfuck, IA police department is protecting Amazon warehouses in Washington? I think you missed the point about out of state businesses!

    6. Re:The dangers of stupid taxes by Anonymous Coward · · Score: 1, Insightful

      I agree with you on the first point, I would liken a state/local municipality trying to get sales taxes from a non local business to someone putting a toll booth on a road they don't own or maintain and demanding money from every one that passes by. That business doesn't use any local resources, any damage done to the roads by shipping vehicles is paid for by the shipping company in the form of vehicle registrations, gas tax, property tax, and business tax (well, except for USPS I believe). Even the business itself pays plenty of taxes, Property tax, business tax, Employee taxes; at their business location. To say that they "cheat taxes" is disingenuous to say the least.

      On the second point, while I will agree that some municipality's definitely do gouge their citizens, there are at least a few that are pretty fiscally responsible (well, for the most part). I think the highest paid individual in our county gets around $45,000, the average being around $35,000 to $39,000. I was proud of our county (In southerly Michigan) when instead of trying to hike taxes all county government departments were asked to cut their budgets (~5.25%). I believe all but one did it too, the police department complained theirs down to about 2-2.5%, of an over 8 Million budget for a county of only ~95,000 including several sizable cities they don't patrol.

      Disclaimer, I'm a county employee.

    7. Re:The dangers of stupid taxes by Anonymous Coward · · Score: 0

      Any sales taxes on an Amazon purchase are paid by the consumer. Amazon simply collects them.

      The retail sales tax is a consumption tax levied on a states' residents. This is why the sales tax would be based on the destination state -- the people paying the tax are the people benefiting from the services of the government they're paying tax to.

    8. Re:The dangers of stupid taxes by drinkypoo · · Score: 1

      It's nothing to do with online businesses having "an advantage" over retail outlets.

      Words in quotes are supposed to appear somewhere in the comment you're replying to, or you are supposed to explain yourself. Sales taxes are a fabrication intended to provide money to the state to cover the cost of business. Not collecting them on sales out of the state defeats the whole purpose. If these retailers are not expected to collect sales taxes, they will simply end up being forced to collect some other taxes to cover the cost of business. The real issue is that there is no basis whatsoever upon which taxes should be collected in the purchaser's state, only in the seller's. It's not like I can take you to court in California if I buy something from you in Ohio, and THAT is why I don't feel like paying sales tax to MY state on out-of-state purchases. They don't have to hold up their part of the deal? I'll go out of my way.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    9. Re:The dangers of stupid taxes by SydShamino · · Score: 1

      How about we open some of those weight stations that I rarely, if ever, see open, and start charging truckers directly for the damage they do to the roads? Charge enough and we'll build an incentive to increase and expand rail routes and cargo.

      How about we start charging for auto registration proportional to the vehicles weight? While I was driving a Miata for 7+ years, it pissed me off that a Hummer did 10+ times more damage to a road than my car but they only paid 3x more in fuel taxes (and identical rates on the toll roads around here).

      --
      It doesn't hurt to be nice.
    10. Re:The dangers of stupid taxes by jdkchem · · Score: 1

      No. Sales taxes go into general coffers are are used to pay for all types of services. Rails are private, we have no nationalized rail in the USA. That leaves roads, and heavy trucks do almost all the damage done to roads by vehicles (the majority of the remainder being done by weather.) Amazon also receives the benefit of police protection; without police, anyone would be free to loot their warehouse. They receive fire protection in that the FD will show up and try to put a fire out if their building is burning. Need I go on?

      Amtrack is government subsidized, may as well call it nationalized. If Amazon operates in a particular state they will collect sales taxes in that state.

      “You have to charge sales tax to customers who live in any state where you have a business presence,”

      In addition to its home in Washington State, Amazon has facilities in North Dakota, Kentucky and Kansas, and collects sales taxes in these states.

      Furthermore the people they employ to work at that warehouse most probably live in or around that area, which means they pay sales taxes on the goods and services they use. So not only does Amazon collect taxes in the states they operate but the employees pay taxes in those same states which pays for police and fire protection. The exception being New York which is looking for any way possible to dig itself out of a self inflicted economic disaster. To answer your question, no you don't need to go on. You've successfully proven you have no clue what you're talking about.

    11. Re:The dangers of stupid taxes by AK+Marc · · Score: 1

      You are arguing that the tax system is broken and that Amazon is following it. Rather than creating more new taxes that didn't exist before in order to plug a hole with an existing system, why not identify and prevent the arbitrage? We already hate diesel in the US, so charge enough on that to take care of the damage the big trucks do, they are all diesel anyway. Sure, the VW TDI will hate it, but it will work a whole lot better than charging a percentage of the goods cost to cover damage to the road, since things like an iPod cost more and do less damage than a couple books.

      One reason we have so much delivered by long-distance truck and so little by rail is that the trucks get away with being grossly undertaxed. And your fix to that is sales taxes? That will only further get income from a source other than the vehicles causing the damage. That makes no sense at all. Raise the registration, raise the per-mile, and make them pay for what they do. Otherwise, abandon the "it's not fair" argument, because you can't win it with an even less-fair fix.

  20. You misunderstood something by dreamchaser · · Score: 2, Insightful

    It's not Amazon that would be paying sales tax. The buyer pays the tax. Amazon just doesn't want to a) deal with administering separate tax rates and payments to multiple States and b) have it's perceived prices increase with the addition of tax.

    The funny thing is in general I agree with your view on taxation; it's just that in this instance your argument doesn't fit the issue.

    1. Re:You misunderstood something by ucblockhead · · Score: 1

      Amazon's objection has little or nothing to do with the "undo burden", though the burden is certainly high. The reason Amazon will fight this tooth-and-nail is that because they don't charge sales tax while their brick-and-mortar competition does, they can compete on price. Right now, a book from Amazon with shipping costs about what a book at the physical Borders does with tax included. If Amazon has to pay taxes, they are no longer roughly equal in price, and their sales will likely go done.

      It's more than "perceived price". It means the actual cost to the customer goes up. That will certainly translate into lost sales.

      --
      The cake is a pie
  21. Re:Let the liberal media pay taxes for once. by Anonymous Coward · · Score: 0

    Wow. You are pretty much a dumb douche.

    Imagine every piece of intellectual property being taxed... Own the copy right to a song that isnt making any money? TOO BAD, pay up!

    Seriously... You are an idiot.

  22. Once again, it's the government's fault by MikeRT · · Score: 2, Insightful

    All it would take is for California and New York to each pass a law creating a standardized tax rate for their entire state. No local sales taxes, etc. Just a single state sales tax which is redistributed by the state tax authority to municipal governments. It would then be as easy for Amazon as "cut a check every month and mail it to Sacramento or Albany."

    1. Re:Once again, it's the government's fault by Anonymous Coward · · Score: 0

      As a one-person self publishing software author, I would prefer a national sales tax. If I had to account for each municipality then I'd probably go out of business just from the paperwork overhead.

    2. Re:Once again, it's the government's fault by AnotherUsername · · Score: 1

      Because it is now the United States of California and New York? I always thought that there were more than 2 states in the country...And to think that I thought I was born in Illinois. Is that on the California side or the New York side?

      --
      I don't like Linux. This doesn't make me a troll.
    3. Re:Once again, it's the government's fault by Joe+U · · Score: 1

      I for one welcome our new 15% state tax rate overlords.

      Seriously, a statewide sales tax in NY would either shortchange and ruin NYC services or overcharge and ruin the always-failing upstate economy.

    4. Re:Once again, it's the government's fault by nametaken · · Score: 1

      That simplicity in taxation would last about 12 minutes. After which it will be so horribly convoluted that nobody will sell to New York over the web.

    5. Re:Once again, it's the government's fault by Blakey+Rat · · Score: 1

      Online retailers in Washington only charge the minimum Washington tax rate (6.5%) instead of calculating the actual rate based on your address. (For example, I'd normally pay 8.2% tax if I bought the same item at a brick-and-mortar store, but online I pay 6.5%.)

      It still means that online business has an advantage, but it's not nearly so burdensome. If all other 49 states agreed to a similar method of simply calculating a tax-proxy, that would be ideal. But there's no way that would happen realistically.

    6. Re:Once again, it's the government's fault by Anonymous Coward · · Score: 0

      ...and thereby making local government irrelevant.

      A one-size-fits-all is great if you want to centralize government; otherwise, this is an overly broad solution for solving a relatively narrow issue.

    7. Re:Once again, it's the government's fault by ucblockhead · · Score: 1

      That looks exactly like an import duty between states, which is unconstitutional.

      --
      The cake is a pie
    8. Re:Once again, it's the government's fault by winwar · · Score: 1

      "Online retailers in Washington only charge the minimum Washington tax rate (6.5%) instead of calculating the actual rate based on your address. (For example, I'd normally pay 8.2% tax if I bought the same item at a brick-and-mortar store, but online I pay 6.5%.)"

      That is not correct. I routinely order online with some vendors and am charged my local tax rate (above 8%).

      Why do some charge the State tax rate and others charge the entire rate? I am unsure, although it probably has to do with their software and any agreements they have made with the State of Washington.

    9. Re:Once again, it's the government's fault by Anonymous Coward · · Score: 0

      That isn't a good idea. State government here in California has proven that. They regularly take money from every locale in the state, and rarely, if ever, does it get redistributed back to the localities in full. Lately, they have been trying to paper over their huge deficit by basically just stealing money from local cities and counties, which would destroy important emergency services. All of this so they can keep giving huge raises and pensions to public employee unions in the middle of a recession.

      Money is best spent closest to where it is taxed, because people have the ability to walk into City Council meetings and scream when the money is wasted. The further away the money gets, the more likely it will end up in the pockets of a lobbyist and the special interest they represent.

  23. Well to be fair by NotSoHeavyD3 · · Score: 1

    I say that intellectual property should be property taxed. Shouldn't the New York Times and the LA Times be charged a property tax for every back article they have ever written?

    So shouldn't they pay nothing then? I mean you said they should be taxed on intellectual property but there's nothing intellectual about being a couple left-wing shill like those 2 rags.(And the Boston Globe Democrat who is pretty blatant about it.)

    --
    Did you know 80 to 90% of the moderators on slashdot wouldn't recognize a troll even if one dragged them under a bridge.
  24. They are already doing it! by Katchu · · Score: 1

    Target is operating from within the Amazon world. All taxes are appropriately computed and assessed there.

    --
    Keep Doing Good.
  25. Re:Let the liberal media pay taxes for once. by Cwix · · Score: 1
    Yes but that still makes you an idiot for trying to tax something, i assume yearly, that can never be sold (Linux). Are you going to have Program assessors look at your source code and tell you to pay money? If I write a program for personal use, and then release it should I be taxed?

    Did the builders have their blueprints taxed?

    --
    You are entitled to your own opinions, not your own facts.
  26. I wonder if they would like an opt-in program? by MMC+Monster · · Score: 1

    When you buy something, amazon brings up a page that states:

        We understand that your state, and possibly city and local, governments levy taxes that may include taxes on the things that you purchased. Click here to send a report at the end of the month to the state, city, and local authorities regarding your purchases.

    It's then up to the individual to determine if they want the state to take care of the accounting or if they want to do it themselves.

    --
    Help! I'm a slashdot refugee.
  27. Re:From the NYT article, they are following the la by value_added · · Score: 1

    Everyone does it, rich and poor alike and all do right, for nobody owes any public duty to pay more than the law demands.

    There's a certain truthiness to that, but the perspective is a bit narrow, doncha think? How, for example, would you explain the following Wiki entry:

    One of the world's wealthiest men, Warren Buffett, CEO of Berkshire Hathaway, and the father of another of the world's wealthiest men (Microsoft founder Bill Gates), William H. Gates, Sr., favor the estate tax.

    Rich men trying to give their hard earned money to the government? Blasphemy.

    If you really hold that the general principle that "Nobody owes anybody anything" is valid, then I suppose "sharing" is delusional and childish, "sacrifice for others" is delayed gratification, "charity" a clever misdirection or an attempt at ego agggrandisement, and "community service" is an atonement for misplaced guilt.

    The problem is that even animals don't subscribe to that kind of thinking, or behaviour. Your justifications no doubt seem correct to you, but I suspect in the end you'll wind up recognising them as nothing other than sophistry. I'd also suspect visiting a school bake sale or a community food bank and talking to the locals might accelerate the process.

  28. I'm glad everybody's discussing the article... by Blakey+Rat · · Score: 1

    I'm glad everybody's discussing the article... but I have another concern.

    What the holy hell is a "horselaugh?"

    1. Re:I'm glad everybody's discussing the article... by Hecatonchires · · Score: 1

      It's like coleslaugh, but with less cole and more horse. Still plenty of cabbage and mayo.

      --

      Yay me!

    2. Re:I'm glad everybody's discussing the article... by Blakey+Rat · · Score: 1

      Nice.

      I'm actually seriously curious about the term though. When something is "worth a horselaugh" what does that mean, exactly? Is that a common slang term I just haven't happened to come across before?

  29. Welcome to the future. by jonpublic · · Score: 2, Insightful

    Where every single tiny loop hole in the law is exploited to the fullest by the large cooperations and everyone else has to obey the spirit of the law because they can't setup the giant shell game that is required to avoid paying taxes. How many fully owned separate legal entities comprise Amazon? It's all one giant cooperation for all intents but they break it up into a ton of little pieces to get around the spirit of the law. Leaving everyone else to have to make up for Amazon skips out on paying. It's not a level playing field.

    It reminds me of the ownership structure of Ikea, which is extremely complex, but ultimately results in almost no taxes. Which is great for Ikea, but horrible for everyone else who has to pick up Ikea's share.

    http://en.wikipedia.org/wiki/IKEA

    Look it up under corporate structure.

    1. Re:Welcome to the future. by jonpublic · · Score: 1

      Ikea is worse than I remember. The nonprofit ownership gave away 1.7 million dollars in 2004 and has a net worth of 36 billion.

      That's .005%

      You probably give a larger % to charity by just walking by a Salvation Army ringer once or twice during the holidays.

    2. Re:Welcome to the future. by Anonymous Coward · · Score: 0

      Guys Corporations don't pay taxes, EVER, consumers do. Amazon is following the law, states don't like the law. Funny how it comes from two state which can't manage their budgets looking for handouts though.

    3. Re:Welcome to the future. by Anonymous Coward · · Score: 0

      If Ikea had to pay taxes, it wouldn't be "Ikea's share" -- Ikea wouldn't pay a single red cent. It's customers would. So before you go spouting off that this or that "company" isn't paying its share, realize that you're saying that it's Ikea's potential customers, nearly 20% of which are unemployed or underemployed (not to mention those on a fixed income), who would be paying the bill. Besides, most states have a "use tax" which is intended to garner the equivalent of a sales tax for any item a resident purchases that they don't pay sales tax on -- so each and every purcahaser of material from Ikea and Amazon already has a mechanism to pay their how state -- their income tax. The fact that most people don't pay that "use tax" (which is a barely legal convention to begin with) speaks volumes to the greed of the states.

    4. Re:Welcome to the future. by stdarg · · Score: 1

      I think it's the opposite in this case. The spirit of the sales tax law is that businesses help their communities by helping to collect sales tax.

      If Amazon has an R&D department in California, but they don't sell anything, why do they need to collect sales tax? But they get screwed by the letter of the law since they have a business presence, even though it's unrelated to sales. So they have to resort to legal shenanigans to get back to what common sense says. They're not selling anything, so they don't collect sales tax.

      I think to point out this foolishness, Amazon should lobby for the equivalent letter-of-the-law enforcement for brick and mortar stores. Barnes and Noble has presences in every state, so they need to ask every customer for their address so that they can collect the sales tax for that particular customer's home state. And of course they still have to collect the sales tax for the local state where the transaction takes place, I don't believe there's a legal exemption from that. Everybody gets their fair share!

      I mean seriously, if my cousin Vinny is visiting me from New York, why can't Barnes and Noble go ahead and collect the necessary use tax/sales tax? The burden is exactly the same as for an online store, and it would preserve the online store's tax advantage since b&m stores would be double-taxed (unless the customer is from a state with no sales tax).

    5. Re:Welcome to the future. by Anonymous Coward · · Score: 0

      This is a direct consequence of the tax laws being so complicated that you can't get rid of the loopholes because there is no way to fully understand the law, including when you are writing it.

  30. Taxless by Plugh · · Score: 3, Interesting

    And then there are states like New Hampshire, with no state sales tax (and no state income tax, either)
    I guess these dying dinosaur newspapers will concentrate their efforts where governments are largest and extract the most wealth from the serfs.

    1. Re:Taxless by multiplexo · · Score: 1

      Yeah, except New Hampshire is a fucking shithole. It's frozen and chock full of stupid, inbred fucks. If low state taxes are what companies want then why isn't New Hampshire the tech center of the United States? Could it be because the weather sucks, the people are stupid and there are no educational institutions of note? Fuck, I wish we could get all of the libertards to move to New Hampshire for their "Free State Project". Then once they were there we could fortify the borders and let them starve and die, which wouldn't take very long because libertarians are lazy, stupid and incapable of co-operating with each other. Don't believe me? Just go look at the libertarian party's stunning lack of success at electing candidates at the local, state or national levels.

      --
      cheap labor conservatives - they want to keep you hungry enough to be thankful for minimum wage.
    2. Re:Taxless by Plugh · · Score: 1

      The libertarian party hasn't won much of anything in ANY state. Look at the number of libertarians and Free State Project members who have been elected in NH as State Representatives, Town Selectmen, Aldermen, Treasurer, School Board members, and so forth... and you get a very different picture.

    3. Re:Taxless by multiplexo · · Score: 1

      What different picture do I get? That libertarians are only able to elect candidates to local offices in one of the least significant states in the United States? Yeah, that's impressive.

      --
      cheap labor conservatives - they want to keep you hungry enough to be thankful for minimum wage.
    4. Re:Taxless by Plugh · · Score: 1

      Actually, NH is the only state in the US where libertarians have been elected to State Representative.

      I grok that you don't like NH -- that's fine. The above is merely information for those non-trolls (ie, unlike yourself) who may come across this thread.

      Have a nice day :)

  31. Totally agree Re:Smaller companies? by giladpn · · Score: 1

    Alzoron has it right! In fact, in any NEW project, even for a large company, trying to get the myriad payments right is extremely onerous.

    I happen to have experience with the topic from a project I did - even if you have a big budget and months of time its not easy.

    Remember that the internet is global. If the USA charges sales tax based on the location of the CUSTOMER, then all countries in the world can and would do the same.

    Imagine trying to get that right given millions of towns and counties all over the world.

  32. The press is self-interested on this topic by giladpn · · Score: 5, Insightful

    The NY Times and other paper publications are right now on a crusade to attack the low cost base of internet business.

    They are talking about de-indexing Google for similar reasons.

    We should understand the interests behind such attacks.

    1. Re:The press is self-interested on this topic by Anonymous Coward · · Score: 0

      Also note that, in most places, sales tax is not charged on the NY Times.

  33. As someone who purchased ... by d1on1x · · Score: 1

    I read quite a few (not all) comments on this page, but what I cannot understand is why people feel that Amazons defense ("it's too complicated") is valid, when you consider that we are talking about the company who can do magic with their recommendations on a sale-level; people who bought this also bought that, 57% people on this page bought this item, the others went here, combo deals with books you viewed before, etc. You'd think they would be able to come up with a system for the taxes ... wanting to is something completely different.

    I can perfectly understand that it's not as simple as the EU system (e.g. I pay 19% VAT), however, it's not fair to claim that on a $9.99 book they have to pay 0.12 here and 0.53 there instantly, since that is most probably not the case in the first place. Amazon has to collect the amounts and send them off every X (month/quarter), same as they do with VAT they collect.

    1. Re:As someone who purchased ... by nero4wolfe · · Score: 1

      It's not just the many, many separate tax rates in this country. You also have to deal with different reporting systems (you can't just blindly send checks out); different monthly/quarterly/annual reporting systems, some localities may not be interested in checks that are "too small", etc. Amazon of course could do it. If you're an individual that wants to start a business, you have no hope. The only choice would be finding some service to do it for you; raising your prices so that you could pay the extra fees to that business on top of the taxes. What I would do is reverse the argument; e.g. say that a business in state X must pay taxes to that state even if the product is shipped out of state. Then you would know if the mail order company depended on not paying sales taxes; e.g. if the company then moved to a state with no sales tax like Oregon.

    2. Re:As someone who purchased ... by Brad+Mace · · Score: 1

      recommendations on a sale-level; people who bought this also bought that, 57% people on this page bought this item, the others went here, combo deals with books you viewed before, etc. You'd think they would be able to come up with a system for the taxes

      Not the same thing at all. There's no legal repercussions for bad recommendations, and the other features are only mildly clever algorithms. Paying taxes requires understanding and then keeping up to date with tax codes in what must be 10s or 100s of thousands of jurisdictions then filing the appropriate paperwork and submitting the payments. There's state, county and city level and even other entities like levy districts which can overlap the boundaries of the other levels. If anyone can, Amazon can probably manage it, but you can't just target Amazon with a rule like this. You'd be sinking a lot of smaller online retailers who can't manage all the insane complexity.

    3. Re:As someone who purchased ... by d1on1x · · Score: 1

      Very true words, however, other companies doing business in these regions also have to comply to the (tax)laws. Do you think that due to the fact that since Amazon chooses to ship worldwide and therefor making their own order process far more complex than "Joe's Books" who only serves his own state and maybe the ones next to it they should be exempt? My example of their recommendation systems was merely to indicate that they are capable of doing very complex things with the techniques available. I understand it would be a lot of work, but the rules they would have to comply to are available (there are just many).

  34. Surprised no one sees the opportunity. by Anonymous Coward · · Score: 0

    There are lots of comments here about how difficult it would be to charge tax based upon a persons physical location.

    At first glance it doesn't seem to difficult. We've had these laws in place in Canada for a long, long time and so I'm used to them. That said, there are a lot of convincing reasons I've read in other posts about how much more complicated it is to tax people in the US than pretty much everywhere else in the world. Not only do you have Federal tax and State tax, but also country and municipal sales taxes, and varying taxes based upon item type (liquor vs tobacco vs books, etc).

    So, I can understand someone saying that this is complicated for the smaller retailler.

    What I don't understand is why no one is seeing the business opportunity here. It should be relatively simple (data intensive, but programatically simple) to code up some library of tax rates based upon zip code and the nature of the item purchased.

    Once you've done the work once, it would be a matter of updating it quarterly with updates from each area's taxation department. Again, programatically simple, but data heavy.

    I realize it sounds boring, but keep in mind that companies like Quicken have to do this every year for their taxation software.

    It's software that could be very useful, simple to make, but tedious to update. Basically, no one will *want* to do this (so FOSS alternatives will be slim), but everyone has to have it. From what I've seen in the market, this basically translates to "buckets of money in my pockets".

    1. Re:Surprised no one sees the opportunity. by larry+bagina · · Score: 1

      So why are you turning down these buckets of money?

      --
      Do you even lift?

      These aren't the 'roids you're looking for.

  35. Yes. taxes are a problem more because of their by unity100 · · Score: 1

    cost to implement and track. they are accounting nightmares to keep up with.

  36. Death, whores and taxes by MrKaos · · Score: 1

    Well that's two down, one to go.

    --
    My ism, it's full of beliefs.
  37. Nothing to see here, move along by Lost+Found · · Score: 1

    So the papers for two jurisdictions who have astronomically fucked themselves with their rampant fiscal incompetence want to steal more money from the private sector.

    *Shocker*

  38. "tax" problem was solved in mid-1990s by peter303 · · Score: 1

    Several start-ups developed zip-code based tax collection systems at the dawn of the web era. They were little-used, but exist. The US Congress prohibited "taxing the internet" for most of the 1990s and 2000s to the chargrin of states. Problably would hurt the dot.com bubbles they were speculating in.
    Customers hate paying sales taxes too. So many use the internet for that reason.
    After two major recessions this decade, governments are re-examining the tax issue.

    1. Re:"tax" problem was solved in mid-1990s by cpt+kangarooski · · Score: 1

      zip-code based tax collection systems

      Well, that's not a great idea, of course. Zip codes merely relate to postal delivery areas, and are subject to change as the Post Office sees fit for its own purposes. The borders of different zip codes do not relate to the borders of areas with different amounts of taxes, or different authorities collecting them.

      Street addresses seem like a better system, provided that the various bodies collecting their taxes have a list of addresses that fall within their jurisdiction. Otherwise, I see a lot of tedious work with maps being needed, especially if someone has land that straddles a relevant border.

      For example, my parents live in an unincorporated area of the county, but one of our neighbors (with the same zip code) had his property annexed into the city. Down in the southern part of the county, there is a second incorporated city, which shares a zip code with part of the much larger city in the county, as well as with some unincorporated land in between them.

      --
      -- This and all my posts are in the public domain. I am a lawyer. I am not your lawyer, and this is not legal advice.
    2. Re:"tax" problem was solved in mid-1990s by aztracker1 · · Score: 1

      They didn't prohibit taxing the internet, they let internet sales operate under existing mail order laws. Unless you really want to get into all those taxes the like of Sears owes for over a century?

      --
      Michael J. Ryan - tracker1.info
  39. Re:From the NYT article, they are following the la by ZorbaTHut · · Score: 2, Insightful

    Nobody owes anybody anything. Some choose to donate out of their own free will. Others don't. The freely-chosen donations of one person do not, in any way, imply that another person should be required to "give" in order to "match up".

    If you disagree, then, well, my mom gave me a really nice roasting pan for Christmas. To match a small part of her generosity, I'll be expecting a measuring cup set from you.

    --
    Breaking Into the Industry - A development log about starting a game studio.
  40. Part of the problem by Alarindris · · Score: 1, Insightful

    The special laws and money reservations get is beyond stupid. I know a few native american's (another stupid term) in my area that get monthly checks for a couple grand.

    Fuck. That. Shit.

    I could understand the whole sovereign nation within a nation thing if they actually lived the way they did in the 17th century. But they don't. If they want free money and their own set of laws they shouldn't be able to use the technology that the white man gave them. It's not like there's any shortage of wilderness in the US either.

    Laws like this only fuel racism, if we are all equal, then why the fuck do we have different laws for different races?

    Sorry, /end possibly offtopic rant.

    1. Re:Part of the problem by Anonymous Coward · · Score: 0

      Whoa there, what? That didn't even make sense.

      It's all about competition, y'know. If your neighbor makes more than you do, chances are he's doing something right and you're not.

      Sucks to be you, eh?

      And just imagine the cheek those injuns have, too, doing their own thing after we generously gave them the gift of technology. All we got in return was all the land, after all, but nowadays, they really have it so much better. We should just take away the rights we generously granted again.

      Ass.

    2. Re:Part of the problem by Princeofcups · · Score: 1

      Laws like this only fuel racism, if we are all equal, then why the fuck do we have different laws for different races?
       

      Sorry, we'll just give them back their land. You have to give up your home and move back to Europe now.

      --
      The only thing worse than a Democrat is a Republican.
  41. Re:From the NYT article, they are following the la by Anonymous Coward · · Score: 0

    Buffet and Gates Sr. are entitled to their beliefs, I have mixed feelings on it myself, but to say that they are trying to give their hard earned money to the government is a mischaracterization of their beliefs. If that was all that they wanted, they could leave the same proportion of their wealth to the government in their will. Instead they are advocating the forcible confiscation of a portion of all wealthy (defined here as those subject to the estate tax) individuals' assets at their death.

    Just because nobody owes anybody anything in a legal sense does not mean that they have no moral/ethical obligation. Similarly, just because I am not obligated to do something does not mean that I should not or will not do so. In fact, this is analogous to many arguments about free will - without the potential to do evil, it is impossible to actively do good. The intent matters in actions, not just the outcomes.

  42. Re:Let the liberal media pay taxes for once. by EastCoastSurfer · · Score: 3, Insightful

    Guess what else the two newspaper articles failed to make completely clear...that the 'someone' is you and me. This isn't about Amazon paying more corporate tax, but Amazon collecting sales taxes from sales to everyday people. The internet has given the average person a small but noticeable tax cut. We obviously can't have the populace spending their money how they would want to, so we have to stop this right now.

  43. Doesn't invalidate their point, though by cheros · · Score: 1

    They do have a point, though. Why should a newspaper (and their online equivalent) pay tax when other companies can avoid it on the basis of what is basically BS?

    --
    Insert .sig here. Send no money now. Owner may sue, contents will settle. Batteries not included.
    1. Re:Doesn't invalidate their point, though by Anonymous Coward · · Score: 0

      Amazon already pays business taxes. This is different. The newspapers want Amazon to have to collect state and local sales taxes from people who purchase from Amazon even if Amazon doesn't have a business presence in that state. This may result in Amazon's prices being no cheaper than local businesses where the newspapers operate. This would make it more likely that people would shop locally in cases where they'd not save much money by purchasing from Amazon. This would increase revenues for local businesses which would in turn give local businesses more incentive to advertise in the newspapers which would them allow the newspapers to derive more income from their advertising fees.

      So this is simply a way for the newspapers to hopefully end up with more money in their pockets. That's all they are really interested in. They're scrambling to survive and they don't really give a damn if citizens in their areas end up paying more for goods as a result.

    2. Re:Doesn't invalidate their point, though by AK+Marc · · Score: 1

      Define "pay tax." In all cases I know of, the tax is added after the cost of the item and solely borne by the buyer. If you have a brick-and-mortar store in the location listed, then you collect the tax paid by the buyer and pass it on to the state. This isn't onerous because there is a single rate for everyone that walks into that physical store, and you collect from everyone automatically and send one check for a pile of taxes all at one time. For a business with hundreds of transactions a day (some will have fewer, places like movie theaters have up to tens of thousands per day), that means one more check per month to send out, for a 0.03% increase in transactions, something very easy to handle.

      But for mail-order businesses, if you don't have a presence there, you aren't required to collect on behalf of the buyer. As far as I know, all of them are required to pay for that tax directly at that point. So it isn't an issue of tax owed, it's that the states are full of tax cheats, and would rather someone else collect for them, rather than them enforcing their existing laws.

      They want to do so by forcing entities outside their jurisdiction to abide by their laws. I don't have to get a MI license to drive in MO, and if I'm driving unlicensed in MO, MI can't mail me a ticket and expect me to pay them. The taxes are owed in all cases, and in all cases the person responsible for paying it lives in the jurisdiction levying it. That's how it is now, and that's how it should be. If the states asked nicely (and followed it with a court order), I'm sure they could get a list of who ordered how much from their state, and compare that to the declared use taxes and prosecute cheats. I bet that if they started enforcing use taxes and asked Amazon, Amazon might actually put in a field for "send taxes to my state" and the buyer selects the rate for where they are.

      But to force an entity not under your jurisdiction at all to collect taxes on your behalf is (and should be) illegal. And the issue is the states are too lazy to enforce their own laws against their cheating residents, and has nothing to do with Amazon.

  44. Re:From the NYT article, they are following the la by temcat · · Score: 1

    If you really hold that the general principle that "Nobody owes anybody anything" is valid, then I suppose "sharing" is delusional and childish, "sacrifice for others" is delayed gratification, "charity" a clever misdirection or an attempt at ego agggrandisement, and "community service" is an atonement for misplaced guilt.

    This is not true. From the general principle "Nobody owes anybody anything," which I happen to share, it only follows that others may not force one to share, sacrifice for others, do charity or perform community service. All of which is perfectly OK to do voluntarily, based on each own subjective values.

  45. Re:From the NYT article, they are following the la by stdarg · · Score: 2, Insightful

    Rich men trying to give their hard earned money to the government? Blasphemy.

    He favors an estate tax, which would force others to pay. It's not about trying to give his own money to the government. He has said he plans to give his money to charity, so the estate tax has no impact on him.

    How do you think Buffett feels about taxes that actually affect him? Hmm well check out this article if you're curious: http://online.wsj.com/article/SB125729682025626851.html

    If you really hold that the general principle that "Nobody owes anybody anything" is valid, then I suppose "sharing" is delusional and childish, "sacrifice for others" is delayed gratification, "charity" a clever misdirection or an attempt at ego agggrandisement, and "community service" is an atonement for misplaced guilt.

    Again those are all voluntary actions. Don't you think that's an important distinction from compulsory taxes?

  46. Re:From the NYT article, they are following the la by donaggie03 · · Score: 1

    If you really hold that the general principle that "Nobody owes anybody anything" is valid, then I suppose "sharing" is delusional and childish, "sacrifice for others" is delayed gratification, "charity" a clever misdirection or an attempt at ego agggrandisement, and "community service" is an atonement for misplaced guilt.

    The problem is that even animals don't subscribe to that kind of thinking, or behaviour. Your justifications no doubt seem correct to you, but I suspect in the end you'll wind up recognising them as nothing other than sophistry. I'd also suspect visiting a school bake sale or a community food bank and talking to the locals might accelerate the process.

    There is a difference between 1) someone taking your money and 2) you giving it away freely. Just because someone chooses to give to a charity does not mean they want to be taxed more, and just because someone wishes to keep their taxes low does not mean they wouldn't give to a charity. You are equating the idea of giving with the idea of having things taken from you forcibly. At no time did GP imply that this was the case. Basically, "Nobody owes anybody anything." does NOT imply "sharing is delusional and childish" or any of your other examples.

    --
    Three days from now?? Thats tomorrow!! ~Peter Griffin
  47. Re:From the NYT article, they are following the la by cptnapalm · · Score: 1

    I think you have some comprehension problems. A duty to pay what the law demands is not the same as "nobody owes anybody anything". Paying up under threat of imprisonment is not sharing, nor is it "sacrificing for others". It is not charity nor is it community service.

    Wanting others to have to pay more so you can get free stuff is not altruism. It is greed.

  48. Re:From the NYT article, they are following the la by Anonymous Coward · · Score: 0

    "nobody owes any public duty to pay MORE THAN THE LAW DEMANDS" is quite different from "nobody owes anybody anything"

  49. Re:From the NYT article, they are following the la by Anonymous Coward · · Score: 0

    There's a certain truthiness to that, but the perspective is a bit narrow, doncha think? How, for example, would you explain the following Wiki entry [wikipedia.org]:

            One of the world's wealthiest men, Warren Buffett, CEO of Berkshire Hathaway, and the father of another of the world's wealthiest men (Microsoft founder Bill Gates), William H. Gates, Sr., favor the estate tax.

    Rich men trying to give their hard earned money to the government? Blasphemy.

    They may "favor" the estate tax, but they're not going to pay it.

    That's what "foundations" and "trusts" are for. Buffett's late wife had most of her money estate squirreled away so estate taxes didn't apply and Buffett's money is the same way.

    Guess who's setup to "manage" the charitable foundations? The kids.

  50. How about a new 1099? by Clovis42 · · Score: 1

    As several commenters have mentioned above, collecting and submitting taxes for all the various state, city, and local taxes would be a huge burden on small business. It is also unnecessary since most states already have a "use tax". Of course, no one actually pays the use tax. Why? Because the state has no idea how much stuff you have bought on-line, so why would you pay it?

    So then, the solution is easy. Why not create a new Federal 1099-E form. A business dealing with another state does not have to collect any tax. At the end of the year they issue a Form 1099-E to each applicable state and to their customers. The customers now know the state knows how much they've bought so they will be compelled to pay the use tax. It will also be easy to do since they just have to add up all their 1099-Es. It shouldn't be difficult for a business to keep track of the total spending for a customer and issue a couple automated forms.

    --
    Clovis
    ^ Clovis, look! It's that guy you are!
  51. It's Not Tax Evasion by Adrian+Lopez · · Score: 2, Informative

    As with catalog sales in the days before the Internet, Amazon.com is not required to collect taxes in any jurisdiction where it doesn't have a business presence. There's no trickery involved. Amazon doesn't collect any taxes it isn't required by law to collect, just like you don't pay taxes in states that you've never set foot in.

    Since only the federal government can regulate interstate commerce, the ability of State X to force Amazon.com to collect its taxes when it doesn't have a presence in that state would require federal legislation to that effect. Also, for any such federal law to work it seems to me that tax rules and rates would have to be simplified across all 50 states. There's an effort to do so called the Streamlined Sales Tax Project, but despite its name it strikes me as ridiculously overcomplicated (as in "you need a certified computer program to handle the differences between each state's rules") due to the desire to please all the participating states.

    --
    "In prison you just have to shut your eyes and take it. Here you have to shut your eyes and give it."
  52. Why go after Amazon? by thetoadwarrior · · Score: 1

    Make the consumer pay use tax. They won't suggest that but Amazon isn't breaking the law where as the consumer is.

    1. Re:Why go after Amazon? by natehoy · · Score: 1

      Most states already do. Many of their citizens choose to ignore it, but many states that charge a sales tax require that you tally up all out-of-state purchases that you consumed or used within your home state and pay taxes on it. Maine (my home state) mentions it on their tax forms, and provides an alternative system where you can pay a small percentage of your income as an alternative method of calculating what you owe.

      Actually, the consumer is ALWAYS liable for sales/use taxes. Businesses never technically "charge" sales tax, they collect it on your behalf and remit it to the tax authority it should be paid to. That collection is a service they are required by law to offer, but only if they fall under the laws where the sales tax is due. Requiring a business to collect/remit sales tax in a state where they don't have a presence is a violation of interstate commerce laws. A business can only be subject to state and municipal laws if they have a division that falls under those laws.

      This concept is generally called the "Nexus Rule", and the concept protects ALL businesses from the tax laws of states they don't operate in.

      If this gets approved at the federal level, it's a very short step to say that all citizens should be taxed based on their residence, and all collected taxes remitted back to the tax authority governing that residence, no matter where the person happens to be at the time. That would mean that ALL business would have to actively verify where their customers lived, and charge sales/use taxes appropriate with their state/municipality of residence.

      --
      "This post contains words, known to the State of California to cause thought. Wash brain thoroughly after reading."
  53. Re:Let the liberal media pay taxes for once. by tjstork · · Score: 1

    Are you going to have Program assessors look at your source code and tell you to pay money

    That is what they do with physical property. Businesses have to justify their inventories, and everyone has to have their property assessed for property taxes. Tis how schools work. Tell me, is big media now anti-school!

    --
    This is my sig.
  54. Re:Let the liberal media pay taxes for once. by tjstork · · Score: 1

    Own the copy right to a song that isnt making any money? TOO BAD, pay up!

    They do it for property. In case of the song, failure to pay property taxes would cause it to revert to the taxpayer, aka, public domain.

    --
    This is my sig.
  55. Print is dead...nothing to see here ;) by Xenious · · Score: 1

    Well first thing there is no problem here since the people are obviously properly reporting the taxes and paying them quarterly or annually when they file their taxes for all of their online purchases where tax wasn't collected. That is the law, taxes are requested no problem. If people don't report them it isn't Amazon's problem.

    Secondly who cares what a bunch of pulp based aging news sources thinks. They should give up and move along with with Rupert.

    --
    -Xen
  56. Hey genius... by MikeRT · · Score: 1

    The headline of the article is "NY Times, LA Times..." and we've seen a number of articles on here about New York and California bitching 5x more than the rest of the states. Their political systems also tend to be two of the worst examples of the "waaaaaahhhh why can't we just tax, tax, tax and make it everyone else's responsibility" mentality in American politics.

  57. Re:From the NYT article, they are following the la by 10101001+10101001 · · Score: 1

    I think you have some comprehension problems. A duty to pay what the law demands is not the same as "nobody owes anybody anything".

    Granted. The law sets a minimum of what everyone owes society.

    Paying up under threat of imprisonment is not sharing, nor is it "sacrificing for others". It is not charity nor is it community service.

    True enough. Scrooge paid his prison and poor house taxes, yet clearly he was miserly because despite his great wealth he chose to shun others in his pursuit of greed. The possession of money became an end.

    Wanting others to have to pay more so you can get free stuff is not altruism. It is greed.

    Wanting others to pay more so others can become better off is altruism. Rallying against the abuse of tax law (ie, to use language loopholes to violate the intent of law) instead of fixing the tax law or to rally against the lobby for the introduction of new loopholes is not greed. It is a argument for the consideration of fairness of tax law. Of course, tax law should not be the end because, as noted, tax law is meant as a minimum of what people owe society. The bigger complaint, then, should not be that people or organizations have such low taxes but that they spend so little on charity. The New Deal, Welfare, etc has not changed the need for charity any more than the poor houses in England did, so obsession over taxes are not as relevant as the actual total spending towards society.

    --
    Eurohacker European paranoia, gun rights, and h
  58. Re: by Cwix · · Score: 1
    Just because they do property taxes one way, which I NEVER said I agreed with, doesnt mean all the sudden they can tax any and every thing this way.

    Should programs which no revenue is derived from be taxed? Unlike property source code does not appreciate it depreciates. How much does dos cost nowadays?

    When do you tax these programs youve written? They are automatically your intellectual property the second they are written, so do you have to imediately submit every line of code for your tax pourposes? DO you have to wait till you save and then submit, can you do it when the program is done being written? Or can you wait till after youve compiled the source code. When does programs become taxable? Who will decided they are taxable, and how will you enforce this?

    Admit it this is just a petty swipe at liberals and linux. Your still an idiot.

    --
    You are entitled to your own opinions, not your own facts.
  59. End-run around the issue by HikingStick · · Score: 1

    Online retailers best watch out before our legislative bodies make an end-run around the issue. It would not take much for legislation to be crafted that would require online retailers to report sales information to State revenue/taxation departments. These reports would then be used by those departments to calculate Use Tax in those jurisdictions where it is required. The requirement would not require online retailers to collect taxes, but would allow States to collect taxes where presently they collect none. If a consumer files a tax return without disclosing the purchases that are subject to Use Tax, the States would have the ability to handle it just as they would for taxpayers who do not disclose income that has been reported on a W2 form.

    The online retailers will need to decide whether it will look worse for them to collect the sales taxes or to be seen as turning over their purchase information to State goverments (even if compelled to do so under law).

    --
    I use irony whenever I can, but my shirts are still wrinkled...
    1. Re:End-run around the issue by natehoy · · Score: 1

      I suppose this is possible, but the "legislative bodies" would have to be Federal. If a business has no presence in a state, then laws passed in that state have no bearing on them. There would have to be a federal law to compel businesses to disclose this information.

      And, if this were the case, offline retailers should be FAR more concerned about this than online ones. Online retailers are used to getting customer name and address information from all of their customers, and though it would be a huge pain in the ass they could install GeoTax or some other commercial-grade tax calculation software and manage this. Offline retailers, by and large, aren't.

      After all, if I (a resident of Maine) crossed over into tax-free New Hampshire to buy some stuff, I'm technically as liable for that sales/use tax as I would be had I ordered it from Amazon or Newegg. Sure, you could exempt "cash and carry" sales and say that it's only for purchases shipped to a consumer's home (for example), but companies also ship a lot of product that is purchased in-person (particularly tourist shops, etc).

      If the purpose of this law is to get assistance from businesses in extracting every penny of legally-owed sales/use taxes by states (and counties, and other tax zones) from their own citizens, then offline businesses have a lot more to be concerned about than online.

      --
      "This post contains words, known to the State of California to cause thought. Wash brain thoroughly after reading."
  60. Re:From the NYT article, they are following the la by b96miata · · Score: 1

    Perhaps you were raised in a different culture than I. I was always taught that sharing and charity were voluntary, not owed, so I could certainly believe "Nobody owes anybody anything", give to charity and share with others, and still be morally consistent.

    In fact, there are those who believe those things being voluntary makes them more meaningful.

  61. Hush, you'll piss off the 'fly-over' states. by FatSean · · Score: 1

    By and large the coastal states are taxed at the Federal level so that up to 40% of those tax receipts can be gifted to the bootstrappy heartland states.

    No whingefest about mean old taxes is complete without a mention of this fact.

    My own state only gets 60 cents spent on it for every dollar we contribute. And that includes the sub bases!

    --
    Blar.
    1. Re:Hush, you'll piss off the 'fly-over' states. by jdkchem · · Score: 1

      Maybe California should stop supporting us dumb hicks so they can dig themselves out of debt. Are you really so stupid that you blame the "heartland" for the economic incompetence of the coastal states? So much for your facts.

    2. Re:Hush, you'll piss off the 'fly-over' states. by multiplexo · · Score: 1

      Maybe California should stop supporting us dumb hicks so they can dig themselves out of debt. Are you really so stupid that you blame the "heartland" for the economic incompetence of the coastal states? So much for your facts.

      Maybe they should, it sure would be fun to watch the heartland dry up and blow away without the massive taxpayer subsidies for farming and ethanol. The heartland states are goddamned worthless shitholes full of lazy, stupid, incompetent welfare queens who would die if it weren't for massive transfers of federal tax dollars from better states full of smarter people, like Washington, California, New York, New Jersey, etc.

      What's even worse is that the WATB (whiny ass titty babies) in these states are completely clueless as to how completely and totally worthless they really are. Go look at the Tax Foundation's table of Federal Taxes Paid vs. Federal Spending Received by State to see just how useless, lazy and good for nothing most of the red states are. Or you could Google the phrase "Red State Socialism" to find out how lazy and worthless most of the red states are.

      Hell, look at Alaska, the home of Sarah Palin, Alaska receives $1.84 in federal spending for every dollar in federal taxes they pay, and everyone in Alaska gets a 1,500 dollar welfare check from the Alaska Permanent Fund for being a lazy fuck who couldn't hack it down in the lower 48. But these are the states that are constantly bitching about how hard they work and how much they're paying in taxes, all while they suck on the federal tit.

      --
      cheap labor conservatives - they want to keep you hungry enough to be thankful for minimum wage.
    3. Re:Hush, you'll piss off the 'fly-over' states. by FatSean · · Score: 1

      LOL WUT?

      California can't stop this as the Federal government decides to redistribute their wealth to the fly-over areas. Cali only has their reps in the legislature to fight that.

      Are you so ignorant that you deny the fact that this wealth redistribution really is happening? Here's a nice conservative-biased site that supports my assertation:

      http://www.taxfoundation.org/research/show/266.html

      BTW, cool argument bro! But you might want to hang arround the debate club a bit longer before you bring your skills to bear upon Slashdot.

      --
      Blar.
  62. Re:From the NYT article, they are following the la by Anonymous Coward · · Score: 0

    Polarize much? Just because nobody owes others anything beyond what is strictly ethically required (which may amount to far less than others demand via government coercion) does not mean that nobody has any reason to give to others. GP is saying the former. You are putting the latter words in his mouth. Also, referencing Buffett's and Gates' opinion on the estate tax is an inappropriate appeal to authority. There is no reason why their opinion on the matter should be taken over anyone else's. And note that they aren't merely saying the wish they could give a bunch of their money to the government - they can do that any time they want. They're saying they think the government should take the money of lots of other rich people. That doesn't make them generous. It makes them graspy, unprincipled proto-socialists like the rest of the country.

  63. darn taxes by WeeBit · · Score: 1

    If they are hell bent on collecting taxes on the Internet, then why don't they just create a I-tax just for the Internet, all across the board (all countries) everyone pays the same I-tax rate. That way there is no confusion.

    1. Re:darn taxes by natehoy · · Score: 1

      Who is "they"? It would be almost impossible to set a tax rate here in the US that would be uniform across all states, much less involving other sovereign nations. Sales/use tax rates vary considerably and in a lot of cases don't exist at all. Setting a percent would be a complete and utter no-starter. What do we use as a model? New Hampshire USA (no taxes), or Sweden (very high tax rate)?

      Then, who gets the proceeds?

      States are clamoring for this because their own citizens are skirting their obligations by purchasing stuff from companies that don't collect and remit the taxes they owe, then not paying sales/use taxes themselves like they are legally required to do. If you set an "Internet tax", individual states, counties, cities, and municipalities that currently collect sales and use taxes would still want their money. How do you determine how much goes where?

      And why single out Internet companies? Does that mean that anything I order from Wal-Mart's Internet site is subject, but if I call their sales line I'm not subject to it? Or would you include phone/catalog sales as well?

      How about businesses in tax-free states that intentionally place themselves directly on the border with a neighboring state that charges sales or use tax? They aren't breaking the laws of their own state, but they are setting themselves up to encourage the citizens of neighboring states to violate their own laws by avoiding their tax obligations.

      At the moment, if a Federal law is to be passed in the US, I'd say it should be the elimination of corporate liability for collecting and remitting sales tax. That way, the citizens who incur sales tax obligations in their own states are personally and directly liable for paying them. If a business chooses to offer this as a service to their customers, they may, but ultimately sales tax is the responsibility of the consumer, and falls under laws local to that consumer. Then the local citizenry can determine for themselves what their taxes should be, and not subject companies in the rest of the country to their ridiculously complex tax laws.

      I think you'd find that most states would rapidly simplify their tax laws so their citizens could actually UNDERSTAND them. In many states, it might result in the outright elimination of "sales and use" taxes entirely.

      --
      "This post contains words, known to the State of California to cause thought. Wash brain thoroughly after reading."
    2. Re:darn taxes by tacocat · · Score: 1

      Maybe they could just drop the sales tax entirely since they already have taxes on the money I make and the property I own. With Sales tax I'm taxed on money coming and going. Sounds almost like double taxation.

      I suspect this is largely because NY and CA have no money because they spent all their money on stupid programs of no discernible value and now that the economy has fallen apart they lost their income, just like everyone else. But they aren't willing to do what is normal, cut expenses.

      They've been making a stink like this for 10 years and it's always failed. Now the approach is to single out one company, make them look like the bad guy and put in a law that affects us all. Amazon isn't bad, they're just smart. They make money because they are smart, not evil. Evil doesn't gain repeat customers.

      The issue here isn't about taxation of internet companies. It's why the Liberal Media is trying to shape American policy. But I don't see anyone asking that question here. Which means even slashdotters can be sheeple.

  64. Need US law and exempt the first $5K/state by originalhack · · Score: 1


    If I have a small business in CA and sell less than $400/year retail, the state doesn't want to be bothered setting up to collect sales tax from me. Similarly, if I run a small candy store in Vermont and ship something to CA a few times a year, it isn't worth anyone's trouble to collect sales tax. That said, if I do sell within my state, I have to compete with businesses that pay no taxes.

    Here's a reasonable solution....

    1) If you ship less than $5K/year into a state and you aren't located there, don't worry about it.

    2) If you ship more than $5K/year into a state, then you must check with that state (in a nationally standardized way) to find out if they have opted to tax incoming items. If they have, you have to pay the same tax rate as their in-state businesses, but you get to send it to the state along with a standardized (probably CSV) file indicating the zip-codes and totals you have shipped to.

    3) If you ship from outside the US, you can either follow the procedure in (2) above, you can let ebay/paypal/Visa/MasterCard/Google handle that for you, or you can pay a standardized 10% fee by the same mechanisms that handle import duties now. Common Carriers (USPS, DHL, FedEx, UPS) would find it necessary to ensure that they either have confirmation that the duties have been paid or that they collect them from the shipper (just as they presumably do now if you try to ship something non-duty-free from abroad).

  65. There *are* services that calculate sales taxes by Roblimo · · Score: 1

    Here's the biggest existing one: https://thestc.com/

    The problem for small merchants isn't calculating sales taxes, but disbursing the right amounts to the various states, counties, and cities.

    Still, this is a problem that could easily be handled by PayPal (which I use to process online payments to my business), Yahoo, Google or any of the many other companies that handle merchant services online. In fact, I'm sure that about 30 days after we have federal legislation that requires online merchants to collect sales/use taxes, one of the payment processors will have a tax collection & payment system up and running, with the other services offering something similar within weeks, if not days.

    I suspect that Google and PayPal, at least, have such systems already developed and ready to go.

    - Robin
    http://internetvideopromotion.com/

  66. Re:Burden??? by jackb_guppy · · Score: 1

    Burden??? What Burden???

    It is database issue with GIS lookup.

    If Amazon is already doing this Washington State, then the hard part is over, since the tax districts in Washing State follow the Elementary School Districts as part of the boundaries.

    Personally, the USPS (or even FedEx and UPS) should step up and be the "tax experts". Since they validate the address (hence GIS) they can determine the correct rate from the over 160k districts in US.

    GIS is important since a given address maybe on City, County, State, Federal land and different rates apply.

    I did this software for a large bug company. Had to get the correct rate for almost 10 million addresses, since the "cash register" is at the service location. It is not hard, but once a month we had a service supply us new tables.

  67. Another obvious flaw in this idea... by aaronfaby · · Score: 1

    What about the cost to the governments to process all of these micro tax payments? They will need to hire more staff and implement new systems to manage the influx of tax payments and make sure they are properly cataloged and applied to the appropriate vendors. In essence, you would either be breaking even or operating at a loss with this kind of system. Then again, we are talking about government here. When they see dollars signs they worry about the details later.

  68. Re:Burden??? by Skapare · · Score: 1

    And how much will it cost a "mom and pop" web store to get these new tables every month? And for new address, how will the system deal with them between the time they come to exist, and when the monthly service adds them? How would you make sure that new addresses always work even if the table doesn't have them? And what about people that have stuff shipped to their PO box, PM box, or office address (a very legitimate thing to do)?

    How is this database accessed? What software does it? How much does the Linux version cost? Where is the open source version? Shouldn't public data be free? I'm not worried about Amazon solving this. Instead, I'm worried about the cost for mom and pop. Will it be under $150 a year?

    --
    now we need to go OSS in diesel cars
  69. But... by Trip6 · · Score: 1

    Web retailers charge close to or full retail prices for things without the overhead of brick and mortar storefronts or high priced commissioned salespeople. The tax payment is a lookup table and electronic transfer. Gee, they might have to hire a programmer or two to keep up. Your argument falls in the "whaaah" category because online retailers are cleaning up.

    --
    I hate being bipolar; it's awesome!
  70. So you're telling me that nothing gets sold... by sean.peters · · Score: 1

    ...in Chicago? I mean, how could it, with all those byzantine tax regulations? What? Both local and nationwide brick-and-mortar stores are still in operation in Chi-town? That's unpossible!

    Yes, I understand that tax laws are complicated when you have to deal with multiple, overlapping jurisdictions. I also understand that Amazon only differs from, say, Wal-Mart, in that it mostly ships goods to direct to people, rather than shipping them to stores first. I'm pretty sure this is a problem any large business not only could, but already has, figured out. Jeff B. just doesn't want to.

  71. Re:From the NYT article, they are following the la by Cytotoxic · · Score: 1

    Wanting others to have to pay more so you can get free stuff is not altruism. It is greed.

    Wanting others to pay more so others can become better off is altruism.

    I think you might want to look up the definition of altruism. You helping the group, perhaps to your own personal detriment, is altruism. Forcing somebody else to help the group out for you is stretching that definition beyond recognition.

    Of course, being altruistic doesn't necessarily equate to correct or moral. Even accepting your expanded definition, I could go out and axe-murder anyone with over a million bucks and give all their stuff to the poor and be altruistic without being moral or even "good". I could also go out and shoot everyone with a mental illness or physical disability that renders them unproductive - this could arguably benefit the overall group prosperity. Probably wouldn't be all that morally correct though.

    Conversely, I could selfishly go out and build a business so that I can become rich beyond your wildest imagination. In the process I create a product that enhances the lives of millions and my company employs hundreds of workers who are able to feed their families because of these jobs. I have done nothing altruistic at all, but I have accomplished the result of "helping others" with a much higher degree of success than if I had simply given my money to a charitable organization or government to redistribute.

    The New Deal, Welfare, etc has not changed the need for charity any more than the poor houses in England did, so obsession over taxes are not as relevant as the actual total spending towards society.

    Actually, I'd disagree with you on this. I'd say that the evidence is pretty solid that the new deal programs have had a much greater impact on the need for charity than the poor houses in England ever did. Remember the "permanent underclass" discussions of the 80's-90's? The perverse incentives of the welfare society increase the probability that someone will need aid for extended periods of time (because it is available). The equally perverse "justice" of the poor house definitely carries incentives that discourage long term dependence (although in a manner that defies all common sense and human decency). So post New Deal we have a much greater need for charity (due to the successes of the new deal), although the individual charitable needs are much less acute than in days gone by (also due in large part to the successes of the new deal).

  72. Re:I got your tax right here you greedy Jews by Anonymous Coward · · Score: 0

    Jews: Cancer of progress and plague of humanity.

    I'm not saying I agree with you but, I prefer Jews over you.

    Stupid greedy Jews, always fucking everything up.

    So long as it pisses you off, I'm happy.

    Now with my dick in your mouth . . . While you are at it, you can hoard my nuts in your mouth too.

    Faggot.

  73. Oh, right by sean.peters · · Score: 1

    ... it's terribly confusing for a company that ships everything it sells right to your front door to figure out where you actually live! Tell me another one.

    I'm actually in this situation myself: my zipcode corresponds to both an independent city and a county in Virginia. How do the shipping companies figure out which? When they see my zip code, they throw up another screen that asks: do you live in a) Independent City X or b) Y county?

    Seriously, this is not hard.

    1. Re:Oh, right by perlchild · · Score: 1

      Not to contradict your point, but it does add to Amazon's argument. We just record the choice the customer makes, if they lie about their tax rates, knowingly or not, there's nothing we can do.

      Customer: Amazon charged me that rate, it's an immensely powerful company, it had to be right.

    2. Re:Oh, right by natehoy · · Score: 1

      OK, so let's take Virginia as an example.

      Virginia has a State Sales Tax of 4%. Local municipalities charge varying rates, but it appears to average around 1%. Except on a list of specific food items, where the State tax may be 1.5% if it's sold by someone who is authorized to take food stamps, or if you are one of the following: bakeries, cafes, cafeterias, convenience stores, delicatessens, department stores, diners, doughnut and pastry shops, drug and sundry stores, farmer's markets, grocery stores, ice cream shops, lunch counters, mail order companies, supermarkets, sandwich shops, snack bars, specialty meat and produce stores, video stores, or a weight reduction establishments. But only if you derive less than 80% of your gross sales from prepared foods. Except when you're a cafe or bakery of course. ???

      Then let's look at drugstore products: Prescription drugs and the like are exempt. Nonprescription drugs are exempt as long as they aren't supplements or based on herbs, except when they are on a specific list of approved supplements or herbs. Shaving products are tax exempt as long as they are medicated, otherwise they are subject to tax. Talcum powder is nontaxable if sold as baby powder, but taxable if sold as talcum powder. Wart removal pads are nontaxable, while bunion pads are not.

      Except in some local municipalities where they've overridden the state lists of the above for the purposes of their own additional taxes.

      It's WAY, WAY more than "where you actually live", and your example itself is a perfect demonstration of why this is hard. Virginia has a zip code that means two things. They had to ask YOU where you lived, because they couldn't figure that out. Well, technically they probably could by having a database of street names in each zip code, but that's a lot of complexity to handle an exception case.

      Sales taxes, on the other hand, are almost completely an exception case...

      Now imagine similarly complex tax regulations for most of the 50 states, and for a good-sized chunk of states all the counties, and for a handful towns within the county, and for a few economic development zones within those towns, that can be found within each state. Add in taxes based on the total purchases you make in a given order, taxes based on your intended use of the product, taxes based on services as opposed to goods (and what kinds of services), and whether the State, City, or local municipality is having a sales tax holiday on specific items that day, and what limits may be placed on those holidays.

      Each municipality can potentially define each individual SKU Amazon sells differently. Is that bag of potato chips a snack food (full tax), or a food item (reduced or eliminated tax) when you buy it? Well, it depends. Is it a 16 ounce bag? Is it sold as an individual unit or in a case? Is it less than 20% of an order that included other items that are considered exempt food items? Were they fried in peanut oil or canola? Are they corn chips or potato chips? What brand are they (some municipalities give tax exemptions for products made by brands that have headquarters or manufacturing facilities nearby)?

      Obviously not all items are this complex, and not all municipalities have complex rules, but enough do to make the managing of taxes for one municipality a convoluted mess even if you live there. Keeping up with all of them is really, really hard.

      Maine, for example, is going to start taxing "Handling" but not "Shipping" in "Shipping and Handling", so you have to calculate the tax on "Handling" based on the difference between what you charged for "Shipping" and what you paid to ship the product. Which a company generally doesn't know for sure until after it's shipped. But tax must be disclosed to the customer at the time of ordering.

      Then remember that most municipalities require monthly or quarterly remittance of sales tax, often on different schedules and using their own unique and lovely forms.

      Sure there are companies that do thi

      --
      "This post contains words, known to the State of California to cause thought. Wash brain thoroughly after reading."
    3. Re:Oh, right by jmauro · · Score: 1

      Except if the consumer lies about their address the product will get shipped to someone else.

    4. Re:Oh, right by perlchild · · Score: 1

      The parent post had the customer supplying applicable tax info, on top of their address. Not the applicable tax info calculated from their address(which others in the thread have posited to tbe near-impossible). If you only lie about what taxes apply to you, you'll still get the package. And some taxes will be paid, but the audit, that comes later, will find someone fraudulent, might be you, might be the seller.

  74. Oh, please by sean.peters · · Score: 1

    Perhaps, I'm not familiar with the tax laws in the various EU countries. I do know that there are many states that have taxes that vary by county. Counties are not easily discernible by zip codes, which makes it very difficult to accurately determine the buyer's location.

    And yet, somehow, Amazon still manages to get packages to me, even though my zip code resolves to more than one jurisdiction. This problem is way, way overblown.

    1. Re:Oh, please by Anonymous Coward · · Score: 0

      Perhaps, I'm not familiar with the tax laws in the various EU countries. I do know that there are many states that have taxes that vary by county. Counties are not easily discernible by zip codes, which makes it very difficult to accurately determine the buyer's location.

      And yet, somehow, Amazon still manages to get packages to me, even though my zip code resolves to more than one jurisdiction. This problem is way, way overblown.

      And Amazon doesn't solve that problem. Because it's not solved by any central system.

      It's solved by your local USPS or UPS or FedEx office.

      If you think your local government needs more tax revenue, no one is stopping you from giving them more of YOUR money.

  75. Another rather ludicrous assertion by sean.peters · · Score: 1

    If they make their best effort to collect sales tax and some bureaucrat disagrees, the state can come down on Amazon with the full force of the law.

    Given that as of right now, they're not even TRYING to collect sales taxes (even though it appears that they legally should be), I doubt that Amazon execs are exactly quaking in their boots about what state governments will do if Amazon does try to collect them. This is purely in effort on Amazon's part to not have to deal with the trouble and expense involved.

    1. Re:Another rather ludicrous assertion by AK+Marc · · Score: 1

      Given that as of right now, they're not even TRYING to collect sales taxes (even though it appears that they legally should be),

      The laws are clear. Now, and since the beginning of mail order in the US, the taxes are collected only if you have a presence in that state. Otherwise, you do not collect. It doesn't matter if it's Sears and Roebuck from the 1800s or Amazon from the 2000's. The states passed laws where the residents receiving goods are required to pay a use tax. The states are too lazy to enforce the laws against their own residents, but more than happy to try to get Amazon to do it on their behalf.

      If they "legally should be" then they would be in court now with the states against them. They aren't required to, and legally should not have to collect taxes for jurisdictions they have no presence in (especially considering the "no taxation without representation" philosophy). After all, what if this passes and people collect taxes but don't remit them? Then you'll have people skimming taxes, and the states can't touch them because they don't fall under their jurisdiction. It'll be a massive opening to fraud.

      This is purely in effort on Amazon's part to not have to deal with the trouble and expense involved.

      Yes. And that's wrong? The states aren't enforcing their own laws against their residents now, and want to make more laws to force Amazon to do things for a location they have no presence in. You've stated why Amazon is wrong, but not why the states are right. Why do you think states should force taxes on those that have no presence there?

    2. Re:Another rather ludicrous assertion by Sigmon · · Score: 1

      Damn straight!... You speak as though that's a bad thing. I am personally in the same boat! I'm the I.T. geek for a relatively small company in Arkansas who ships most of its sales outside of the state. We have NO physical presence outside of Arkansas. Yet in recent years we have received letters from authorities in various other states advising us to begin collecting sales taxes for them.

      Because of the nature of our business it might be argued, however, that we DO have nexus in those other states. Ok... Fine... Tell me how much to charge, Oklahoma... Tell me how much to charge, Texas... Tell me how much to charge California... etc. etc. Oh, and be sure to notify me when your tax laws and jurisdiction boundaries change fortnightly... It snowballs to insanity REALLY quick. My wee bitty Arkansas corporation can't afford to hire several additional full-time employees to effectively serve as tax collection facilitators... researching to make sure we are charging the correct rates, filling out and remitting the hundreds (perhaps thousands) of tax forms and sending payments to each tax authority who is owed money.

      In the states defense, some have banded together to streamline and homogenize their tax laws [www.streamlinedsalestax.org]... and design a common API with which programmers may interface [www.avalara.com]. Unfortunately, as of this moment only *20* of the 43-ish or so states that have a sales tax are full members. LESS THAN HALF! It *would* be a good solution only if ALL the states in question were members of the group... AND if there was an API with which my custom-built e-commerce platform could interface.

  76. This is a really dumb argument by sean.peters · · Score: 1

    The music and video shops in your example have a presence in the local jurisdiction and benefit from its services such as roads, social programs, police/fire protection and so on. Amazon doesn't.

    No kidding. Which is why Amazon isn't actually PAYING the tax. It's COLLECTING the tax, which is actually paid by the person who lives in the jurisdiction... and who is presumably partaking of the services the tax is paying for. Better go back to the drawing board on this one.

    1. Re:This is a really dumb argument by b96miata · · Score: 1

      No kidding. Which is why Amazon isn't actually PAYING the tax. It's COLLECTING the tax, which is actually paid by the person who lives in the jurisdiction... and who is presumably partaking of the services the tax is paying for. Better go back to the drawing board on this one.

      Actually, it's doing neither. Which is how it should remain.

      A corporation in state X has no obligation to play tax collector for state Y.

      The government of state Y chose to pass an absurd, impractical to collect tax instead of biting the bullet and doing something practical but politically inconvenient like raising income tax rates, and they're paying the price. It's between them and their citizens, no one else.

  77. Problem: State sales tax armagedon by cenc · · Score: 1

    I can just see a whole business with freight forwarding or mail boxes developing for online purchases in the States in States that have the lowest tax for online purchase. Just like people buy in the U.S., consolidate their purchases at mail box in Miami or where ever, and ship them to destinations around the World. Well, they will start doing that between States also to avoid the online sales tax.

  78. I like the thinking... by sean.peters · · Score: 1

    ... but this is all beside the point. Amazon doesn't pay the tax, the customer does. And there is no question that a customer in jurisdiction X is receiving the benefits of the services provided by X. And that means they should pay. The debate is really about whether Amazon should be COLLECTING the tax, and this is pretty much settled law - if you have some kind of physical presence in a state, you collect that state's sales tax. The NYT/LAT articles are about the fact that Amazon is manipulating its business organization to obfuscate the fact that they have a physical presence in states including NY and CA.

    1. Re:I like the thinking... by jdkchem · · Score: 1

      Except that the states created the problem in the first place. Maryland tried the same thing with Wal-Mart. The geniuses decided only Wal-Mart should provide 100% paid for health insurance to all employees right when they finished a deal to put a distribution center in Maryland. All because they wanted to make things "fair". The entire "fair share" is nothing more than a lie perpetuated by so-called progressives. New York and California created the situation they get to live with it.

  79. There's a service for that by Anonymous Coward · · Score: 0

    Just 30 seconds using Google with the search "sales tax determination service" found numerous companies that do just what Amazon claims is too difficult. The first company listed, Sabrix, provides address verification and tax info down to the exact street.

    And with Amazon branching into all kinds of developer services, they could write their own and recoup the investment selling this service.

  80. You need to RTFA. by sean.peters · · Score: 1

    There's no trickery involved.

    The point of TFA is that there IS trickery involved - Amazon has apparently set up a bunch of shell organizations to make it appear as though they don't have a physical presence in certain states, even though they really do. It's not at all surprising that the states involved are trying to put a stop to this.

  81. Re:Let the liberal media pay taxes for once. by SydShamino · · Score: 1

    It's a good thing then that we aren't required to pay property taxes on things besides real estate, then (and perhaps on cars in some areas), since we all have stuff we "own" but couldn't sell for its perceived value.

    --
    It doesn't hurt to be nice.
  82. Re: by Lil'wombat · · Score: 1

    Admit it this is just a petty swipe at liberals and linux. Your still an idiot.

    You are still an idiot.

    Fixed that for you.

    --

    Truth: If it's not one thing, it's another

  83. Re: by Anonymous Coward · · Score: 0
    This is a pretty solid argument by extension. I'll add another example from a few years back. A prior US administration set up a task force to examine new taxation schemes, among other things. The plan they came back with promised to only tax "the wealthy" - millionaires, etc. As a part of this calculation of wealth, they included the value of your home. So if you owned a 4 bedroom house, they calculated that you would be able to rent your house out for $5,000 per month - adding $60k to your annual income. So if you and your wife each earn $80k per year, you were counted as a millionaire, because with your income and the added "imputed income" from owning a home you would "earn" over a million bucks over a five year period.

    it is against this backdrop that he makes semi-facetious comments about taxing intellectual property - which carries its own background and baggage. It is definitely a swipe, but I don't think Linux is included in the swipe, and I don't think it is anywhere near limited to liberals. However, judging by your response, I'd say it is definitely a swipe at people like you, so your outrage is probably justified.

  84. But Amazon collects sales tax in WA by Anonymous+Froward · · Score: 1

    I live in the state of Washington, and Amazon always collects sales tax from me. For example, the last item I've ordered costed 89.99 USD, but the total was 97.46 because Amazon took 7.47 as sales tax. I always thought that this is the way it operates for people in the US, but apparently I't totally confused.

  85. Simple solution by rlp · · Score: 1

    Developing a service (perhaps SaaS) to compute local taxes from an address would be possible but complex. As has been pointed out you cannot simply map a zip code to a sales tax. There are state, county, and local tax jurisdictions, sometimes more than one in a given zip code. Rules vary widely depending on what is being purchased. Some items like groceries may have lower tax rates or be tax free. Others like beer and wine have higher tax rates. Purchased items would have to be categorized based on their tax liability and compared to rates for that class of item.

    And assuming that such a service was available and it's underlying database was fully populated - it would have to be kept up to date. Every time a state, county, or city changed it's tax rates or rules, the database would have to be updated.

    There's the issue of who has legal responsibility if the database gets out of date. Is it the merchant or the service provider. Either way, it could prove expensive, and that expense will no doubt be passed to the consumer.

    Finally, there's the remittance issue - the merchant would have thousands of payment transactions ranging from millions of dollars to pennies to various taxing jurisdictions. Again, the overhead would be passed on to the consumer.

    Congress could simplify this by creating a national tax on on-line transactions. They could pick an arbitrary rate - 6%, 8%, 10% ... and charge that on all on-line transactions. The money could be collected by the federal government and distributed to the states. The states could re-distribute the money to counties and cities if they chose to.

    The current Congress is fairly "tax friendly", so it should be relatively simple to pass. States are almost uniformly in budget crisis, so such a measure would have considerable support by many state and local politicians.

    Whether such a solution is wise, or desirable by the citizens of the country - well I'll leave that to the reader.

    --
    [Insert pithy quote here]
  86. Ridiculous. Report the news, not opinions.. by moxley · · Score: 1

    I don't care what the NY Times or LA Times think about ecommerce sites collecting sales taxes. Obviously they're functioning as a mouthpiece for other interests.

    It seems that the US government and certain corporate interests aren't going to rest until everything that is great about the internet is destroyed; I am far more concerned about censorship/free speech/organizing potential online thanI am about taxes, but whether it's:

    country-wide filtering schemes,
    trying to expose bloggers to liability/loss of freedom for reporting news that powerful interests don't like,
    All sorts of plans to violate due process/4th amendment rights in the name of groups like the RIAA/MPAA (when "Hollywood" earned far more money this year than any other),
    talk of a unique digital online ID, (like an online social security card) that everyone would be required to use to go online so any activities can be traced back to a real name,
    network neutrality stuff...

    All of this stuff seems to me to have the same goal - taming the internet, turning it from something wonderful into an apparatus that collects information and money on behalf of the state while at the same time ending extremely important sites like Wikileaks, and stopping the free flow and dispersion of information (because the powers that be want to control what you know and learn about)....

  87. "Streamlined Sales Tax" - halfway there. by Animats · · Score: 1

    There's a plan to make interstate sales taxes work, from the Streamlined Sales Tax Governing Board, which is an organization set up by multiple states to coordinate interstate sales taxes. The problem is that it doesn't have enough clout to get the states to standardize.

    The basic idea is that the sales tax calculation software takes in the destination address and the commodity code, and comes up with the sales tax rate. But the organization doesn't have enough clout to make state legislatures standardize. Only about 25 states have signed up.

    They've made some progress, though. Those 25 states have agreed that sales tax rates can only change quarterly, they've agreed to use a standard dictionary of classes of items, and they have uploaded boundary files of taxable areas. For those states, rates and boundaries are available for FTP download. Some states have trouble with the concept of "one sales tax rate per zip code", and the organization is struggling with this.

    There are three "certified service providers" who can handle the sales tax payments for merchants. They plug into the shopping cart system, calculate the sales tax, and bill the merchant for total sales taxes collected. They then pay out sales taxes to all the states involved. So the merchant only has one bill.

    So the machinery is in place to make this work. Sort of.

  88. BEZOS is a whiny bitch by ckaminski · · Score: 1

    Bezos is a whiny bitch:

    Let me introduce you to

    www.adptaxware.com

    and the government program that's going to FORCE Amazon to charge sales taxes sooner or later

    http://www.streamlinedsalestax.org/

    This has been a solved problem since Amazon.com first opened it's doors (ADP's tax division, formerly Taxware, formerly AVP, has been in the sales/use tax business for around 30 years).

    And they have PLENTY of competition in the marketplace.

    Disclaimer: I worked for Taxware/ADPTaxware.

  89. Re:Burden??? by jackb_guppy · · Score: 1

    You need to do a little research...

    1) USPS is responsible for address validation. It is their system that will add a new address to the database. Right now about 98% of all addresses will validate correctly(unknown). Specially with 5 different types of postal codes that affects how an address is validated. When it validates incorrectly it is normally an error in the USPS system. Nothing can fix that expect them.

    2) GIS information normally runs 3-6 months behind USPS.

    3) Tax rates are currently gathered monthly and supplied to clients by multiple accounting companies just for this need. Must all tax changes occur 3-4 months before they go into effect. Even if you miss the date, there is normally a grace period in which you implement the change.

    YES all these services today you pay. If you use the USPS will be free, but do not over use it.

    That is why I would like USPS to be the tax expert, you validate an address for shipping and they supply you the tax rate. Since it is USPS, they would be "always right", and indemnify the user of service. If an address does not validate, that too will be reported *AND* a tax rate will returned to as a default. We used the closest spelling match, and if more than 1 was found, the lowest rate. This logic passed all states, since it was the best that could be used at the time.

    If the USPS steps up, the cost should be no more than what it costs today to validate an address. They are already passing back route information and other unneeded information for normal processing, the tax rate(s) that are in effect would be just a little more.

  90. Can you say Vertex? by raftpeople · · Score: 1

    Solutions to this problem have existed for a loooong time. I have developed consumer systems that used Vertex in the late 80's and 90's.

    Whether it's right or not is a different question, but it is not any more of a burden than any other service that businesses typically use.

  91. Services already exist by raftpeople · · Score: 1

    There are companies that perform this exact service (VertexInc.com is one) and have since the 80's.

  92. Internet taxation by Anonymous Coward · · Score: 0

    It seems to me that those who have pointed out how difficult it is to determine the level of sales taxation have conclusively made the case that none of the existing sales tax laws should apply to the internet. There's also the little detail that current federal law bars taxation of the internet. There is of course an obvious workaround -- just require states who want to tax internet commerce to create a separate simple tax rate for internet products.

  93. Dead Men Walking by Anonymous Coward · · Score: 0

    Re: the LA and NY Times op-eds:

    1. Is there ANY tax these scribbling fools don't like?

    2. Could we have expected any more (or less) from two newspapers that are now "circling down the bowl"?

    Prediction: In five years, Amazon will still be around. The NY Times and the LA Times won't be.

  94. What does a state do to deserve these taxes? by dirkdodgers · · Score: 1

    When I purchase from Amazon I am engaging in a private transaction with an out of state vendor. What exactly is my state contributing to that transaction that it deserves a cut? Sure, the state can take a cut, because it can cause injury to my property or to my person if I refuse, but so can the mafia. In a modern, democratic republic shouldn't we require a higher standard of our government? Let's give the state some credit here. Surely this isn't outright extortion. What is it that my state is doing to deserve this additional cut?

    Let's see. My state already collected taxes on the income I'll use to make the purchase, already collected taxes from the shipping company that will deliver my purchase, already collected taxes for the roads on which the purchase will be delivered, already collected taxes from me for the home in which I'll use my purchase, already collected taxes to pay for the police and fire that will aid me in protecting my purchase, and my state will be right there to collect taxes on the disposal of my purchase when I one day discard it.

    Now, what exactly is my state, or your state, doing to deserve an additional, direct cut of this private transaction?

    Other than the threat of force? Nothing. I have it, and it wants it. Nothing. The same thing it's doing when it tells me to buy health insurance for simply existing, for simply having been born into this world and having the audacity to be alive. This, my friends, is the audacity of hope.

  95. Bass Ackwards by Anonymous Coward · · Score: 0

    The Timeses have it backwards. It is time for the states to stop extorting sales tax for entities that are not doing business in their state. There is no burden on the state for a sale done mail order. If the government wants a national sales tax then enact one. Otherwise the states should only get sales tax for sales originating within their state.

  96. what crap by pigwiggle · · Score: 1

    "Rich men trying to give their hard earned money to the government? Blasphemy."

    They are entirely free to do so in the absence of an estate or any other sort of tax. The IRS has mechanisms to enable living people to donate money to the federal government, and newly deceased to leave their estate to the federal government as well. What Buffett and Gates are in favor of is the IRS confiscating a portion of *other* peoples estates from the would be heirs. Better to say "Rich men trying to give away other's hard earned money" - which is altogether typical. Far from unusual.

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    46 & 2
  97. Re:From the NYT article, they are following the la by mabhatter654 · · Score: 1

    Estate tax is only for people too poor to find a shelter like holding companies. A common thing for very rich is to create a holding company that "owns" all but one small house and one checking account. All the shares and property are owned by the holding company. Family members get "1099" wages with enough padding to cover the amount owed in taxes.

    When Dad dies, kids are already on the "board" of the holding company as "employees" so the whole thing skips estate taxes all together except for cash and valuables that are personal belongings. Kids elect a new boss and continue to get checks.

  98. Amazon will not collect sales taxes in US by WinPimp2K · · Score: 1

    They will be collecting "usage taxes" which are generally defined as equivalent to sales taxes in the amount owed to the taxing authority.

    But for those of you hung up on things that are exempt from sales taxes, this is where it will get murky. So Amazon sells you something that has a combined tax rate of 10% (just for example and it actually gets split between 4 different authorities in your state). Amazon will charge you that tax, collect it and pass it on to your state. They will do this regardless of the actual tax status of the item due to tax holidays, eccentric local tax exemptions and even special tax exempt status for various non-profits or items for resale.

    Now if you feel that you have paid a usage tax that you should not have because you or the items you purchase meets one of these tax exemption requirements, it will fall upom you to claim a usage tax refund from your state - just as it currently falls upon you to accurately pay the usage tax on all your online purchases that the seller has not already collected from you.

    --

    You either believe in rational thought or you don't
  99. point of sale by Anonymous Coward · · Score: 0

    where is the point of sale? thats what all the sales tax collection comes down to.

    its tricky since the point of sale is multiple physical locations.

    is it where the customer is physically sitting when ordering? is it the shipping address? the billing address? the location of the corporate hq? the location of the servers that process the order? the location where the items ship from? run your imagination wild for a few minutes and you can expand the list with all sorts of scenarios. collecting taxes and getting it occasionally wrong would lead to expensive problems.

  100. Report instead of collect by riverat1 · · Score: 1

    How about if Amazon simply reported their sales by address to the state in question? Then it would be up to the state to pursue the use tax if they care to. Kind of like financial institutions report interest income to the IRS without collecting any tax due.

  101. Re:From the NYT article, they are following the la by DustyShadow · · Score: 1

    He has said he plans to give his money to charity, so the estate tax has no impact on him.

    Warren Buffet makes a lot of money from life insurance. A huge portion of life insurance is purchased because of the estate tax. That is why he supports it.

  102. Amazon is already set up to pay all state taxes by Anonymous Coward · · Score: 0

    The key thing most respondants are ignoring is that Amazon already collects taxes in all 50 states for certain purchases. If you RTFA, you would find out that Amazon controls the "Toys R Us" online store which does have to pay tax on all its sales.

    So, while there may be other arguments against Amazon collecting taxes, the "burden" argument is nothing more than a load of horse puckey.

  103. Like California needs more tax revenue by Anonymous Coward · · Score: 0

    California can't figure out how to spend what it takes in now. Sane people spend about what they earn. California spends what it damn well pleases and then worries about paying later with no evidence that this spending pattern is going to change. Being progressive may be laudable; it is also very expensive. While we're chasing tax scofflaws, we should also ticket every single person driving faster than the speed limit on our highways. That way we can absolutely get every last dollar due to the state. Maybe we should start fining people for ripping the labels off mattresses too. Just a thought.

  104. Re:From the NYT article, they are following the la by 10101001+10101001 · · Score: 1

    Wanting others to have to pay more so you can get free stuff is not altruism. It is greed.

    Wanting others to pay more so others can become better off is altruism.

    I think you might want to look up the definition of altruism. You helping the group, perhaps to your own personal detriment, is altruism. Forcing somebody else to help the group out for you is stretching that definition beyond recognition.

    Of course, being altruistic doesn't necessarily equate to correct or moral.

    "altruism - Regard for others, both natural and moral; devotion to the interests of others; brotherly kindness; -- opposed to egoism or selfishness." Beyond that, neither I nor the post I responded to said "force". The word used was "want".

    Even accepting your expanded definition, I could go out and axe-murder anyone with over a million bucks and give all their stuff to the poor and be altruistic without being moral or even "good". I could also go out and shoot everyone with a mental illness or physical disability that renders them unproductive - this could arguably benefit the overall group prosperity. Probably wouldn't be all that morally correct though.

    Nor would it be altruistic. There isn't very much regard in axe-murdering millionaires; Robin Hood stole, not murdered. As for shooting the mentally or physically ill, such people are just as much brothers of mankind as those who are mentally or physically fit. Ie, there is just as much reason to show them brotherly kindness, and there's nothing kind about shooting them.

    Conversely, I could selfishly go out and build a business so that I can become rich beyond your wildest imagination. In the process I create a product that enhances the lives of millions and my company employs hundreds of workers who are able to feed their families because of these jobs. I have done nothing altruistic at all, but I have accomplished the result of "helping others" with a much higher degree of success than if I had simply given my money to a charitable organization or government to redistribute.

    Which says nothing against taking your new found wealth and giving it to charities. It is not an either/or to choose capitalism and charity.

    The New Deal, Welfare, etc has not changed the need for charity any more than the poor houses in England did, so obsession over taxes are not as relevant as the actual total spending towards society.

    Actually, I'd disagree with you on this. I'd say that the evidence is pretty solid that the new deal programs have had a much greater impact on the need for charity than the poor houses in England ever did. Remember the "permanent underclass" discussions of the 80's-90's? The perverse incentives of the welfare society increase the probability that someone will need aid for extended periods of time (because it is available). The equally perverse "justice" of the poor house definitely carries incentives that discourage long term dependence (although in a manner that defies all common sense and human decency). So post New Deal we have a much greater need for charity (due to the successes of the new deal), although the individual charitable needs are much less acute than in days gone by (also due in large part to the successes of the new deal).

    That's precisely the point. Poor houses failed because they chose to punish the poor. The New Deal has failed, in part, because it simply supports the poor. Because both England of old and modern America are capitalistic societies, governments are not the solution to the long-term prosperity of the poor; they don't make the jobs, after all. That void can be best filled by charity. This doesn't mean the charity of feeding the mouth (the New Deal fixed that, mostly). It does mean the charity organization and business that prov

    --
    Eurohacker European paranoia, gun rights, and h
  105. Possible solution by dave562 · · Score: 1

    A lot of posters have commented on the complexity of different tax regimes in different cities, counties and states. I think that the best way to solve the problem of collecting sales tax is to develop a meet in the middle approach.

    Amazon should be required to make detailed sales histories available on a yearly basis. They should be required to provide an API that allows any municipality with tax authority to receive a simple CSV list that includes the value of the sale, the date of the sale, the zip code it was sold to, and the category of the merchandise. Amazon should have to take an accounting charge against their estimated tax liability. It will then be the responsibility of each municipality to submit a tax bill to Amazon to collect their taxes. There should be a reasonable statue of limitations to do so. Perhaps three years is long enough?

    The API would have to have a way to tag transactions as paid so that Amazon doesn't get double or tripled billed. The most intensive part of the process would be coming up with the merchandise type field. I'm sure Amazon already has it, but there is a question of whether or not is compatible with the tax categories. It should be easy enough to harmonize them though.

  106. Re:hideously complicated by m1xram · · Score: 1

    In Colorado there is a county tax that is different in every county. In NJ they have enterprise zones where the tax is half unless your a business in NJ then you need to pay full tax. See, it is unbelievably simple.

    On taxes in general... they have already been paid. The manufacturer paid tax on the raw goods, tax was paid by the distributors, and income tax was collected from the people who work for these organizations. Have I left out anything? Please add it in if so. Do we get any more representation in Congress for the items that have been taxed three or more times? Please, if it is taxed in the EU, let's not do it here.

  107. Re:From the NYT article, they are following the la by julesh · · Score: 1

    Estate tax is only for people too poor to find a shelter like holding companies.

    A Panamanian foundation will cost you about $500 US per annum to run, and can hold properties in a structure such that no estate tax will ever be payable. You don't have to be super rich for that to be worth doing.

  108. It's easy for Amazon to do... by supersat · · Score: 1

    ... because they already do it. Amazon already collects sales tax for products sold by third-party merchants on their site. So, they already have the infrastructure in place to assess and collect sales tax for merchants located virtually anywhere.

    This is simply about keeping a competitive advantage they have over brick-and-mortar stores. Sure, you could say it's not moral for them to avoid paying their fair share, but you could also say it's immoral for them to NOT find ways to maximize profit for their shareholders (which might include you, depending on your retirement plan!).

  109. Re:hideously complicated by DrXym · · Score: 1
    In Colorado there is a county tax that is different in every county. In NJ they have enterprise zones where the tax is half unless your a business in NJ then you need to pay full tax. See, it is unbelievably simple.

    I would deeply surprised if there weren't multiple solutions to taxing goods in the US. It's not like its a new problem.

    On taxes in general... they have already been paid. The manufacturer paid tax on the raw goods, tax was paid by the distributors, and income tax was collected from the people who work for these organizations. Have I left out anything? Please add it in if so. Do we get any more representation in Congress for the items that have been taxed three or more times? Please, if it is taxed in the EU, let's not do it here.

    I expect (any) government's reasoning is that no single tax that can be fairly applied across the spectrum, so therefore multiple overlapping taxes. This is not exclusive to the US. Each government / region sets forth its tax code and its up to any entity which wishes to do business in that jurisdiction to adhere to it. Yes I'd rather not pay tax on goods shipped from internet sales, or failing that at least have a single tax everywhere, but I see no valid technical reason that it couldn't be done.

  110. Commerce clause by otis+wildflower · · Score: 1

    Commerce clause commerce clause commerce clause.

    If NY/CA/etc want to collect sales tax revenue from out-of-state retailers with no domestic presence, let them collect directly from their own citizens.

    Not that I care, my state doesn't collect retail sales tax. Meh.

  111. This could actually drive revenues DOWN. by Anonymous Coward · · Score: 0

    Any database that would allow Amazon to properly collect all the required appropriate taxes could also be employed by Amazon to display alternative tax rates, as well. Can't you just see it? "You total tax rate is $xx.xx. If you ordered in the nearby county of ------, your tax rate would only be $x.xx. In the state of --------, you would only pay $x.xx in tax. If you remove the -------- from your order, your tax rate goes down to xx cents. Under other conditions...." People would start comparison shopping tax rates, and have their orders sent to friends in other lower-tax jurisdictions, and tax revenues would go down even further!

  112. And taxes not linked to postal codes by Anonymous Coward · · Score: 0

    Also the local taxes aren't linked to postal/zip codes.
    So you can't just do a database look-up.

  113. Anonymous Coward by Anonymous Coward · · Score: 0

    The mailing address is the address of the post office that delivers the mail, not the civil location of the building. A small northern California city has its post office in Oregon, so the California residents have an Oregon address on their California driver's license.

    And what about post office boxes? Real USPS ones or FEDEX ones?

    I recently returned from Disney World in Florida. The sales tax varies depending on which store you happen to be in.

  114. Re:hideously complicated by m1xram · · Score: 1

    Yes I'd rather not pay tax on goods shipped from internet sales, or failing that at least have a single tax everywhere, ...

    I totally agree, let's elect people to do that.

  115. Helping getting Govt Small by Anonymous Coward · · Score: 0

    By buying from Amazon I help shrink Govt.

  116. Turning Progressive Upside Down by tjstork · · Score: 1

    When does programs become taxable? Who will decided they are taxable, and how will you enforce this?

    Tax the program when you file a copyright. If you want to keep the copyright, take it in to get it assessed by the property tax assessor for that software. You could do it like every couple of years, just like getting a driver's license, and even better, you could actually peg the amount you can sue for infringement to the taxes that you have paid. If you don't pay the taxes, then that copyright is reverted and the content is in the public domain. You could even cap the amount you can sue for damages for infringement - in total -, by the amount you claimed for your IP worth.

    Admit it this is just a petty swipe at liberals and linux. Your still an idiot.

    You only say I'm an idiot because I'm outlining a copyright scheme that can actually work, and I've figured out a way to shift the tax burden from center-right industries like manufacturing, mining and farming to liberal industries like intellectual property, and furthermore, use all of your social arguments against you.

    In fact, I'm going to run as a Republican Candidate for US Senate, offering Canadian Style Single Payer Health Care, all financed by levying a copyright and patent property tax on every invention ever made and every book every written. The end result will be a sharp reduction of submarine patents, a greater churn of software, patents and legal paperwork into the public domain, and finally, universal health care for all Americans with no strings attached.

    Seems to me, that your progressive self is simply being greedy, trying to avoid paying taxes so that people in need of medical care go starving. How could you do such a thing!

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    This is my sig.
    1. Re:Turning Progressive Upside Down by Cwix · · Score: 1

      You create a single payer medical system and ill pay any copyright tax you want.

      --
      You are entitled to your own opinions, not your own facts.
  117. Re:Let the liberal media pay taxes for once. by multiplexo · · Score: 0, Flamebait

    How about this? Let's have the liberal media pay its fair share. I say that intellectual property should be property taxed. Shouldn't the New York Times and the LA Times be charged a property tax for every back article they have ever written?

    Cool, let's charge the fuck out of Faux News too, and let's also charge the Fox Network, imagine how much money we could beat out of that evil old fuck Rupert Murdoch on taxes for all of the Fox Network IP in shows such as The Simpsons, Family Guy, American Dad, etc.

    While we're at it let's have a 100 percent income surtax on anyone who uses the phrase "liberal media". And anyone who uses the phrase "lieberal media" gets the 100 percent income surtax, two .45 slugs in the back of their head and we harvest their organs for sale.

    --
    cheap labor conservatives - they want to keep you hungry enough to be thankful for minimum wage.
  118. Re:Let the liberal media pay taxes for once. by Anonymous Coward · · Score: 0

    The bias of the lieberal media is well-documented. That you deny it exists means you are simply stupid, illiterate and willfully ignorant.

    In the meantime, for making threats against us conservatives and libertarians, you and your family have been put on the execution list. Properly equipped snipers will be dispatched to kill you and your family from a safe distance. Either that, or the justice squad will wait until you or your children are in a liberal-mandated "gun free zone" to slit your throats with rusty blades.

  119. Of course by TheABomb · · Score: 1

    ... these increasingly irrelevant olde mædia dinosaurs are going to take any tack they can to stick it to the interwebs and the customers who aren't suckling at their teats. The sad thing is that too many people in this country seem to think that increasing taxes during a recession is a good idea.

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    MSIE: The world's most standards-complaint web browser.
  120. attacked by the MSM again by damasterwc · · Score: 1

    agents of the foreign empire are declaring their intent to force more people to pay tax.

  121. I applaud Amazon by Retired+Replicant · · Score: 1

    Screw spendthrift state governments. Instead of controlling state spending by paring down ridiculous state and local employee pensions, the first thing the MA state legislature and governor did was increase sales taxes by 25%. Not a very bright move in the middle of a recession when your state is right next door to sales-tax-free NH. No wonder that's where Amazon located their regional distribution center. A great case example of how high state taxes kill off jobs and commerce, sending them to lower tax states instead.

  122. What's the News Media doing? by tacocat · · Score: 1

    This doesn't sound like News Media reporting the news. It sounds like News Media trying to shape national policy. And at who's bidding?

    I think the bigger question isn't if Amazon should or should not be allowed to conduct business without sales tax but why are the NY Times and LA Times making a political issue of one company when they (LA & NY) present themselves as mere reporters of the news. This doesn't look like news, it looks like coercion.

  123. Uniform rules by Anonymous Coward · · Score: 0

    Amazon has stated that if states make UNIFORM sales tax laws, then Amazon would have no problem collecting taxes.

    I agree. Taxes should be equal and fair across the country. For Everyone.

  124. Re:hideously complicated by DrXym · · Score: 1

    The problem here is that if you're buying out of state, or even out of country then you have no voice or vote on the matter. I order stuff from other countries all the time, and the reality is that if they started slapping a tax on my goods, then I have to like it or lump it. My opinion is that taxing stuff is going to have an obvious a chilling effect on internet sales but its up to legislators to realise the consequences.

  125. Re:Let the liberal media pay taxes for once. by Anonymous Coward · · Score: 0

    Speaking as a veteran, bring your shit on you pansy ass.