Slate: Amazon's Tax Stance Unfair and Unethical

theodp writes "We've talked before about Amazon's reluctance to collect sales tax, with Jeff Bezos going so far as to say it's unconstitutional. So it's not too surprising to see Amazon support a California referendum to repeal sales tax for online retailers. Slate's Farhad Manjoo loves buying from Amazon and would hate to pay higher prices, but says the e-tailer 'has no intellectually sound arguments against collecting taxes from residents — by all ethical and civic standards, its position is unsound.'"

Comments

Just that pesky Constitution

[Anonymous Coward]

Damn those federal rights over interstate commerce.

Re:Just that pesky Constitution

[Seumas]

We've amended the constitution, where necessary. You know, for things like eradicating slavery and allowing women to vote. I don't really see where confusion is over the constitution. People always talk about how it is the job of the SCOTUS to "interpret the constitution", but last time I read the document, it began with "WE HOLD THESE TRUTHS TO BE SELF-EVIDENT". *Self-evident*...

The document seems pretty clear on things like free speech, the right to bear arms, the right to due process, and the right to be protected against unlawful search and seizure. The only reason to "go back and clarify" these things if if people actually mean "re-write to fit my political viewpoint which contradicts what the constitution says" instead of "clarify".

Yes, the constitution was written by imperfect men, but it's disingenuous for us to say things like "they were just farmers and slave-owners and have no relevance to today's society". The document aims to protect us against many things that went wrong in other societies. Things that *WE* seem to often fail to comprehend, today. Things that may seem irrelevant to us *because* of the protections the document has laid out for so long that we might be all too willing to fuck up, under the premise that "life is really different today".

I don't see a single thing in the constitution which does not belong there, for all of time and we're always free to add amendments if we agree that they are absolutely vital and valuable.

Re:Just that pesky Constitution

[Scareduck]

Oh, nonsense. Article I, Section 10:

No State shall, without the Consent of the Congress, lay any Imposts or Duties on Imports or Exports, except what may be absolutely necessary for executing it's inspection Laws: and the net Produce of all Duties and Imposts, laid by any State on Imports or Exports, shall be for the Use of the Treasury of the United States; and all such Laws shall be subject to the Revision and Controul of the Congress.

In other words, what California and New York and all the whiners who are trying to install sales taxes on material from other states is a straightforward violation of the Constitution.

if he's so concerned

[jaymz666]

He should pay the use tax and be done with it, like a law abiding citizen

Re:Perfectly sound legal arguments

[Bill_the_Engineer]

Someone please tell me how a corporation based in Washington State and legally incorporated in Delaware suddenly becomes a tax collector for states in which it does not have a physical presence?

I think the problem Amazon is having is that they had associates that were based in California. These associates have a physical presence in California and forces Amazon to abide by state law. Amazon wants to continue to have an associate program, yet not have to keep track of sales tax for each state that an associate exists. This is why Amazon is lobbying for this referendum in California.

You work and toil and earn bread, and I'll eat it

[Kohath]

It is the eternal struggle between these two principles -- right and wrong -- throughout the world. They are the two principles that have stood face to face from the beginning of time, and will ever continue to struggle. The one is the common right of humanity and the other the divine right of kings. It is the same principle in whatever shape it develops itself. It is the same spirit that says, 'You work and toil and earn bread, and I'll eat it.' No matter in what shape it comes, whether from the mouth of a king who seeks to bestride the people of his own nation and live by the fruit of their labor, or from one race of men as an apology for enslaving another race, it is the same tyrannical principle.

-- Abraham Lincoln, October 15, 1858 Debate at Alton

Unethical? Fix the Law Then.

[salesgeek]

Here's what California has done:

They changed the definition of having a location in California such that if you have a 1099 contractor doing advertising for you, you have a location in California, and therefore have to collect sales tax.

This is unconstitutional and irrational at the same time. If I hire an ad agency in your state, that does not mean I have moved there. It's no different than hiring an accountant, lawyer, or for that matter, a shipping company with a location in your state to define location (nexus). There's a reason why our constitution gives sole power to regulate and levy duties (tax) interstate commerce in a *uniform way*. This prohibition is to prevent trade wars between the states and to prevent large states from using taxation to force businesses to relocate there.

OK, so what about the poor, local businesses being put under by ______________.com?

Well, if you are a small local business, and sell mail order, you don't have to collect sales tax for shipments to anywhere other than your home state. That gives you an advantage in 49 states.

Re:A question for slashdot

[BCoates]

NH is mostly a mixture of exurbs and retirement/vacation homes for Boston, so it's economic model is "leech of the city" and it's social safety net is "move to Massachusetts". California has nowhere to beggar-thy-neighbor to.

New Hampshire has the lowest birth rate in the nation, California's is above-average. Children are expensive but necessary.

Small states tend to do a better job getting their money's worth from the federal government. California is a massive wealth exporter to the rest of the country. The California federal tax/spending shortfall is about the same size as the California budget shortfall.