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Bipartisan Internet Sales Tax Bill Introduced

jfruhlinger writes "Four senators, including both Democrats and Republicans, have introduced a bill that would allow (but not require) states to collect sales tax on items purchased by residents online, even the seller has no physical presence in that state. Sellers would be able to pay through either the existing Streamlined Sales and Use Tax Agreement or a new alternative tax simplification plan. Battle lines are being drawn predictably: brick-and-mortar retailers love the idea, Internet-only sellers hate it."

15 of 548 comments (clear)

  1. Bipartisan support by Totenglocke · · Score: 5, Insightful

    Because the one thing all politicians can agree on is that they want more of your money.

    --
    "The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants." ~Thomas Jefferson
    1. Re:Bipartisan support by Kenja · · Score: 5, Insightful

      And citizens want police & fire departments, better schools, better public transportation, better water supplies, better sewers, better roads, better bridges, etc. What they dont want is to have to pay for any of it.

      --

      "Have you ever thought about just turning off the TV, sitting down with your kids, and hitting them?"
    2. Re:Bipartisan support by Kenja · · Score: 5, Insightful

      But we're talking about state taxes, not federal. For example, every election cycle here in CA we tend to vote YES on things like highway improvements but NO on taxes to fund them. Thats why CA is in the mess its in, because our state constitution requires a separate vote for funding and no one wants to pay for the stuff they want the government to do.

      --

      "Have you ever thought about just turning off the TV, sitting down with your kids, and hitting them?"
    3. Re:Bipartisan support by abhi_beckert · · Score: 5, Insightful

      Exactly how much tax is collected is a perfectly valid topic to discuss. But a successful nation needs to collect some kind of tax, and the tax being collected needs to be fair.

      Making a local business charge tax while their competitors on the other side of the country (or planet) don't charge tax is damaging to the local economy.

    4. Re:Bipartisan support by hedwards · · Score: 5, Insightful

      Or you have absolutely no clue how expensive things are. Services have been cut back pretty substantially over the last 3 decades or so to the point where infrastructure is beginning to literally fall down. It's not the spending that's the issue it's the refusal to collect the taxes necessary to maintain what we have.

      Around here the infrastructure has been crumbling since at least the late 70s and it's gotten to the point where the city is just working on the worst streets first and has a tremendous backlog. And this is a city in which the voters generally understand that we need to pay taxes to maintain and invest in the infrastructure.

    5. Re:Bipartisan support by riverat1 · · Score: 5, Insightful

      I have no objection to you buying from online retailers. I just don't think they deserve an advantage over other retailers by not having to collect the sales tax. I buy some things online but other things at brick and mortar stores. For some things I want to be able to touch and feel them before I buy and having a local place to go back to if you have problems, someone who has to look you the eye, is good for resolving them. In the end it doesn't really matter much to me because I live in Oregon. We don't have a sales tax.

    6. Re:Bipartisan support by Buelldozer · · Score: 5, Insightful

      "ervices have been cut back pretty substantially over the last 3 decades or so to the point where infrastructure is beginning to literally fall down. "

      Yes, and meanwhile there has been an explosion of six figure salaries in "administration."

  2. The USPS needs a job. by jackb_guppy · · Score: 5, Interesting

    Make the USPS the handler of the sales tax system. They are already in position to id your house, down to the City, County, State and whether it is actually city, county, state, federal or other jurisdiction.

    Since we already have laws that make the drive of the truck responsible for the items. Then make the carriers which include FedEx and UPS, be the collector, since they are persons handing the package to customer.

    This way the calculation of tax, is part of address validation that all these systems use along with freight charges.

  3. More money not always the solution by perpenso · · Score: 5, Insightful

    And citizens want police & fire departments, better schools, better public transportation, better water supplies, better sewers, better roads, better bridges, etc. What they dont want is to have to pay for any of it.

    Wrong. What they don't want is a vast gulf between the amount of taxes collected and the quality of the services and infrastructure provided. For example spending more money per student and getting some of the lowest test scores. Its not that people are unwilling to fund education, its that money is obviously not the problem with education. Something else is broken and perhaps we should fix that first before evaluating what an appropriate level of spending would be.

    Or if you prefer, a car analogy: They don't want to pay Cadillac prices and have a Chevy Aveo delivered. :-)

  4. About time by abhi_beckert · · Score: 5, Insightful

    I'm not sure if this bill is the answer, but it's about time you guys fixed this issue over on your side of the pond. It's just plain stupid that some businesses collect sales tax, while other businesses don't.

    All businesses should be paying the exact same tax, under the same laws. Anything else is extremely unfair.

  5. Re:I feel a disturbance in the force.... by Anonymous Coward · · Score: 5, Informative

    Most people already owe these taxes, they just aren't paying them. Some don't know it, some do, but the fact of the matter is that most states already have a "use tax" that matches their sales tax, and is applied only to out-of-state purchases. This is just a way making the online retailers collect the current taxes, instead of the current "Yeah, pay your taxes after the goods ship. Wink, wink." system we have right now. And since it is being done on the federal level, it is entirely legal and constitutional.

  6. Re:Too bad the law is unconstitutional by Derekloffin · · Score: 5, Informative

    This isn't the same. That was the state issuing the law. This is the Federal government. The problem before has always been a state attempting to tax interstate commerce, something they don't have the authority to do. The Federal government however does.

  7. TASERS! by TiggertheMad · · Score: 5, Funny

    Paying for some lard ass to taser everyone he sees

    I would pay for this. Is it like some sort of new reality tv show? "Chubby d00dz taser random people", tonight on Fox.

    --

    HA! I just wasted some of your bandwidth with a frivolous sig!
  8. Property taxes in California by tlambert · · Score: 5, Interesting

    Property tax increases have their growth rate capped by prop 13, they are not themselves capped.

    When a property is sold, the value is assessed, and the tax rate set, so change in property ownership tends to raise the taxes on the property being sold, well in excess of the normal growth rate cap.

    The failure in this scenario is that, as a corporate owner, like the Kaiser family, at the time prop 13 passed, they took all of their properties and incorporated a separate holding company for each one of them. When they want to sell the property, they instead sell the holding company, and the ownership on the property remains the same (the same holding company owns it), and therefore falls under the growth rate cap.

    Thus individual property taxes go up, and commercial property taxes do not.

    If you are buying a house in California, it's probably worth checking out zoning and corporate ownership over a period of several years compared to increases in the non-capped property assessment over the same period of time, and decide whether you will make more money off selling a property without a drastically increased property tax from a change of ownership, but with mortgage deductions, vs. selling a company which owns a property with a relatively low tax rate which will stay relatively low for the new owner of the corporation. You might be better off creating your own holding company, like the big players do.

    My personal take on this would be to have prop 13 not apply to commercial properties, which was a very late amendment to the proposition in order to enable exactly this kind of corporate ownership loophole for commercial properties.

    -- Terry

  9. Bipartisan fuckery by fyngyrz · · Score: 5, Insightful

    Yes, and meanwhile there has been an explosion of six figure salaries in "administration."

    This. And also, six and seven and eight figure salaries in corporations, yes, those same corporations who won't hire anyone, but are delighted to offshore production while at the same time offshoring income so they don't pay the amount of tax they were intended to, thus putting more of it (taxes) on the backs of the middle class.

    But, hey, keep electing rich fucks to political positions, and keep wondering why the tax laws/loopholes favor the rich, while your household budget shrinks every year. It's a frigging mystery, isn't it?

    --
    I've fallen off your lawn, and I can't get up.