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Internet Sales Tax Gets a New Champion

Archness1 writes with an excerpt from Declan McCullagh's piece at CNET about the recently renewed push for a sales tax on Internet purchases, led by Massachusetts Representative Bill Delahunt. "At the moment, Americans who shop over the Internet from out-of-state vendors usually aren't required to pay sales taxes. Californians buying books from Amazon.com or cameras from Manhattan's B&H Photo, for example, won't be required to cough up the sales taxes that they would if shopping at a local mall." That could all change, though.

14 of 276 comments (clear)

  1. Legalize pot... by pinkj · · Score: 5, Insightful

    Legalize pot and tax that instead please.

    1. Re:Legalize pot... by Shadow+of+Eternity · · Score: 4, Funny

      If we make tobacco illegal and legalize pot I promise to stop bitching about second-hand smoke...

      --
      A bullet may have your name on it but splash damage is addressed "To whom it may concern."
  2. Taxation is the power to destroy - Marshall, John by unixarcade · · Score: 4, Insightful

    Yeah another hurdle for business where the cost will be given to the consumer as it always is. That's what I find to be most funny. Give the business's any sort of tax and the tax goes upon the heads of the people. So in the end the consumer is taxed the most. Which means the majority is taxed the most. Would it not be better to let the people decide where their money should go. So that maybe people could have money to make a hobby a business or even to have a hobby.

    Taxation is the power to destroy which means they constantly want to destroy us the people, on capital hill.

    Stop killing us with theft and extortion.

    --
    http://luminosity.livejournal.com http://www.zazzle.com/unixarcade*
  3. I have never understood this. by bmo · · Score: 5, Interesting

    What is the difference between mail/fax/phone order and purchases made through "teh intertubes"?

    Mail order has never had to collect sales tax except for in-state customers. Why are web based businesses any different? Why were states not clamoring for sales tax collection in the heyday of mail order? Politicians act as if web based businesses are getting special treatment.

    They aren't. They never did get special treatment.

    So what's going to happen now? Internet sales are going to be taxed but mail order won't be? Because I certainly don't hear about mail order sales being slapped with a tax in any of these discussions. It's all about skimming off of internet sales.

    Fine.

    I'll just slap a stamp on it or fire up the fax machine and send orders that way, like I did 15 years ago.

    It was nice knowin' ya, Internet commerce.

    --
    BMO

    1. Re:I have never understood this. by Mortaegus · · Score: 5, Insightful

      The reason why this is stupid is because the tax would be going to the wrong place!

      If I purchase something online, then the tax, if I am required to pay it, should go to that small city in Pennsylvania where their warehouse is located, not my local municipal. That's the place I am buying from, anyhow. The internet is like a magical doorway that teleports me into their store, all the way across the country, where I browse around and make a purchase. Then the internet teleports me back and I wait for them to ship it.

      If the states wanted to argue that they needed to tax goods coming in from other states that would be one thing, but that isn't within their constitutional powers. Interstate commerce is governed by the federal level of government. Which makes the whole argument even more ridiculous.

      --
      The essence of time is transient. Always be sure to make haste slowly.
    2. Re:I have never understood this. by dgatwood · · Score: 5, Insightful

      I mind it a lot for several reasons:

      • The purpose of sales tax is to pay the cost of police, fire, and other local services that a business requires. A business in another state does not have those requirements, gains no benefits from the taxes it pays to the city where I live, and thus should not pay those taxes.
      • Sales tax is inherently regressive. The poor spend a high percentage of their income on taxable goods. This is still true even if you eliminate taxes on food. The rich spend very little as a percentage of their income, and thus are impacted far less by sales tax. This is exactly the opposite of what a proper tax scheme should be.
      • The states need to be weened off of sales taxes anyway. Sales taxes are a notoriously unreliable way of bringing in revenue. When times get tough, people stop buying things, and sales tax revenue dries up. States that depend heavily on sales tax revenue (Tennessee and California come immediately to mind) end up with massive budget shortfalls. The only way to fix that is to continue to deny them the sales tax and force them to find a more robust way to bring in revenue.

      Sales tax shouldn't be expanded. Sales tax should be reduced and possibly eliminated. It is pretty much the worst kind of tax you can create because it discourages spending that is necessary for a healthy economy, is hardest on the people who can least afford it, and has a tendency to drop off steeply when the states need the money the most. Pushing for expanding sales tax betrays a lack of even a basic understanding of economics. It's the sort of thing politicians like because it "closes loopholes" instead of "raising taxes", but in the long run, it will only harm the U.S. economy and drive sales tax revenue down.

      --

      Check out my sci-fi/humor trilogy at PatriotsBooks.

  4. Tax religion... by fyngyrz · · Score: 4, Interesting

    ...equally, of course. No more free rides for the superstitious. Tax the land they put their churches on just like they tax the land I put my home on. Etc. That'll tweak the bottom line a little.

    --
    I've fallen off your lawn, and I can't get up.
  5. depends on what state you live in by bl8n8r · · Score: 4, Insightful

    To collect that revenue, some states require you to report sales tax due on out-of-state purchases when you file your income tax every year. Most people try to play ignorant when it's pointed out to them however.

    --
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  6. It's just to to make things "fair". by PieterBr · · Score: 4, Insightful

    Bookstore owners have to pay sales tax. Amazon doesn't have to. End result: said store owner goes bankrupt because Amazon has a competitive advantage because of tax differences. More unemployment and less tax-income for the state because of less sales-tax income AND because less people have a job. So actually this means a smaller amount of people have to cough up the taxes the state needs, while if you have regional businesses, all that is smeared out over more people. This is just plugging a loophole.

    1. Re:It's just to to make things "fair". by Lehk228 · · Score: 4, Insightful

      bullshit, amazon has to ship as well, and whether the cost is integrated into the product with "free" shipping (no such thing) or if it's an added cost. they usually balance out so online orders pay as much in shipping as they save in taxes.

      --
      Snowden and Manning are heroes.
  7. Taxation is the power to bankrupt by fyngyrz · · Score: 4, Interesting

    Give the business's any sort of tax and the tax goes upon the heads of the people. So in the end the consumer is taxed the most.

    This doesn't mean that the tax doesn't burden the business; eventually, the total spent for the product begins to edge into the "unreasonable" zone for the consumer, and they stop buying. You can't pass along a cost or a tax if the consumer won't pay it. And lets face it -- for most people, "must have" means food, medical needs, utilities, fuel/transport, basic clothing, and (for this group) Internet.

    Amazon and other Internet retailers have an edge (the tax and storefront things) but they also have a serious downside - your local folks can hand you the item. Amazon and crew have to ship it to you, generally speaking, and that's a counter-force working against pervasive "I want it now" mentality and the in-your-face shipping costs.

    Take away the tax benefits, and you'll see some Internet businesses fold, as their gains from advantages drop beneath their losses from disadvantages on the overall ledger. The smaller, niche businesses will go first, as they aren't doing enough volume to obtain deep discounts. I can think of quite a few I patronize that I would *really* hate to see go.

    The real problem here is the political concept of "we can always spend more for a 'good' idea." No. They can't. There is a limit, and when you're doing spending into the future based on credit, along with very high tax rates, as most states and the federal government are, you're well past that limit.

    Get people on board with a "spend LESS" platform, and elect them. Throw out the incumbents, they think *wrong*.

    --
    I've fallen off your lawn, and I can't get up.
  8. Taxation is necessary for government to run. by elucido · · Score: 4, Insightful

    You have to pay for cops, for firefighters, for medics, in some cases for healthcare and schools.

    The problems start when one state has to pay for another state. Why would people in one state want to help people who aren't even their neighbors, who don't contribute to their state at all, who don't benefit their state in any direct way?

    Libertarian socialism is the answer. Tax locally. Govern locally. Fight wars federally. Build infrastructure federally. Maximize individual liberty.

  9. Re:Everyone by NotBornYesterday · · Score: 5, Insightful
    What, exactly, are you talking about? Is all your "news" from the op-ed pages?

    Gov. Deval Patrick yesterday refused to rule out a tax hike [emphasis mine] next year - handing his opposition a hot campaign issue - as he signed a pared-back $27.6 billion budget and looked ahead to an estimated $2 billion deficit [emphasis mine] with a nearly dry rainy day fund.

    Those are the facts, no matter how you slice them. They have drained our state's savings, continue to overspend, and continue to raise taxes. Mind you, this is the same guy who got into office and immediately started spending money on himself (office, car, etc) way beyond what was appropriate. He (and his liberal tax-and-spend buddies in the MA houses of congress) has spent us to ruin.

    • The sales tax hike from a year ago raised taxes on existing items, and started taxing items that had been exempt before. It has directly hurt MA businesses by sending sales across the border.
    • This is the same state politicians who have kept increasing tolls on the Mass Pike despite the fact that the road has been paid off for years, because our corrupt pols can't bring themselves to give up a cash cow.
    • The "temporary" income tax hike is still in place, years after we were promised it would be gone. They even refused to act on the referendum the voters passed to reduce it to where it by all rights ought to be.

    Massachusetts has been abused by its corrupt politicians for decades. It is STILL Taxachusetts. Pick on Glenn Beck after you get your facts straight.

    --
    I prefer rogues to imbeciles because they sometimes take a rest.
  10. Re:Reduce federal spending, increase state spendin by xs650 · · Score: 4, Funny

    If you don't like high taxes then move to Texas.

    Thanks,but if that's the choice I will live with my high taxes.