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Amazon To Collect Indiana Sales Tax In 2014

An anonymous reader writes with this quote from an Associated Press report: "Amazon.com will begin collecting Indiana's 7 percent sales tax from customers in the state in 2014, under an agreement announced Monday. ... Gov. Mitch Daniels' office said Indiana will become the fourth state with such a tax collection agreement with Seattle-based Amazon. It follows a lawsuit by Indianapolis-based shopping mall owner Simon Property Group against the state over the issue and a lobbying push on state legislators by traditional retailers to end what they call an unfair price advantage for online retailers. The deal doesn’t include any other companies, but Daniels said the state is asking Congress to require all online businesses to collect state sales taxes."

413 comments

  1. Taxes by cyachallenge · · Score: 4, Insightful

    Well good for them. I don't really see a problem with this.

    1. Re:Taxes by ClaraBow · · Score: 4, Insightful

      Speak for yourself! I live in Indiana! Simon Property Group is a greedy company that have taken over many Malls across Indiana! I"m still going to shop online -- price and selection can not be beat!

    2. Re:Taxes by Tenebrousedge · · Score: 5, Insightful

      Sales taxes of all kinds can be considered 'double dipping' as your income is already taxed. Additionally, they are regressive taxes.

      When doing business with amazon, you are entering into a private transaction that is (probably) not within the state's borders or jurisdiction, unless Amazon is incorporated in that state. Congress is granted the right to regulate interstate commerce, they have not done so in this case. They're also required to make such duties equal across all 50 states, which is probably not going to be a popular move.

      So in general I think this is a bad thing, and the only thing worse would be for brick-and-mortar retailers to lobby congress and make it legal.

      --
      Those who advocate genocide deserve every protection afforded by law, and none afforded by common human decency.
    3. Re:Taxes by Anonymous Coward · · Score: 4, Interesting

      The power to tax is the power to destroy. The 14th Amendment specifically prevents laws from applying to different people in different ways. It was passed to prevent Jim Crow laws. This is just a 100% attack against a targeted business that is unconstitutional and bordering on the laws that prevented blacks from voting and serving on juries after the Civil War.

    4. Re:Taxes by Desler · · Score: 5, Insightful

      Except that the purchasers still owe sales/use taxes to the state. Your transaction with Amazon is no more "private" than with a local grocery store.

    5. Re:Taxes by icebraining · · Score: 3

      Amazon agreeing voluntarily to something is an attack?

    6. Re:Taxes by 246o1 · · Score: 5, Insightful

      Speak for yourself! I live in Indiana! Simon Property Group is a greedy company that have taken over many Malls across Indiana! I"m still going to shop online -- price and selection can not be beat!

      And now you will be paying to have police and roads and schools while you shop online, yay!

      --
      Although the moon is smaller than the earth, it is farther away.
    7. Re:Taxes by Obfuscant · · Score: 5, Insightful

      And now you will be paying to have police and roads and schools while you shop online, yay!

      I already pay for police and roads and schools while I shop online, because I shop online from the comfort of my own home, upon which I pay outrageous property taxes.

    8. Re:Taxes by Ichijo · · Score: 3, Interesting

      The brick-and-mortar retailers should explain to Indiana voters how replacing the regressive state sales tax with a higher progressive income tax would benefit the 99%.

      --
      Any sufficiently unpopular but cohesive argument is indistinguishable from trolling.
    9. Re:Taxes by MichaelSmith · · Score: 3, Funny

      Speak for yourself! I live in Indiana! Simon Property Group is a greedy company that have taken over many Malls across Indiana! I"m still going to shop online -- price and selection can not be beat!

      And now you will be paying to have police and roads and schools while you shop online, yay!

      He doesn't use those things. He lives in his basement ;)

    10. Re:Taxes by shutdown+-p+now · · Score: 3, Insightful

      Not all states have income taxes.

      And it's not double dipping if the state income tax would have been higher if sales tax weren't there to keep the budget balanced.

    11. Re:Taxes by Trax3001BBS · · Score: 1

      Neither do I.

      Sig: A Washington State, Amazon.com tax payer.

    12. Re:Taxes by Anonymous Coward · · Score: 5, Interesting

      *some* of the malls? Almost all of them. Of course the Simon family is FROM indiana and the National headquarters is in Indy ( despite them having more properties in other states). The thing that's most annoying is that they have consistently been greedy when it comes to major decisions. Rather than invest heavily in Malls that were struggling to combat the economic down turn of the area ( i.e. Lafayette Square Mall ) they decided to put all their money into the northside malls, Castleton, Keystone, Carmel's Clay Terrace and Hamilton Town Center.

      All of the latter malls would have kept on going fine without Simon beefing them up, and now Lafayette Square mall is defunct and they whole surrounding area has gone to hell in the last 10 years. Thankfully there's been the relocation of Best Buy and the new superwallmart to help breathe some life back in there, but that Simon abandoned that area completely should have been discouraged by the city.

      it never used to be this way however... Simon changed to its greedy ways slowly as the founder Melvin Simon retired from the company in the 1990's and died a couple of years ago. They used to be a huge charitable organization and really helped the community. What a shame

      Amazon has 3 distribution centers in Indiana and just announced a fourth one, and HAD AN EXISTING DEAL WITH INDIANA NOT TO CHARGE SALES TAX.
      The only reason the state is pursing this now is to appease the Simon Family which is buddy buddy with many key legislators.

    13. Re:Taxes by Oxford_Comma_Lover · · Score: 1

      It's not an attack; it's a response to an attack. It's a settlement in response to the threat of an unfavorable legal action.

      --
      -- IANAL, this isn't legal advice, and definitely isn't legal advice for you. Also, Squee!
    14. Re:Taxes by Dahamma · · Score: 2

      Sales taxes of all kinds can be considered 'double dipping' as your income is already taxed. Additionally, they are regressive taxes.

      They are regressive, definitely, but not necessarily double dipping, as they are collected by different government entities. Some states have no or very low income tax, and for many of those that do the state income tax revenue barely makes it down to the local level - property and sales taxes generate most of the local city and county government revenue.

    15. Re:Taxes by postbigbang · · Score: 4, Informative

      Yes. There was Simon Malls instigated litgation, and three Amazon warehouses in Indiana (legal nexus under the US Constitution Commerce Clause) and Simon would win. In this case, Amazon got a two year abatement; otherwise they'd have to close up shop, move their distribution, and eventually have to charge an online sales tax that's being instigated in the US Congress. Amazon wins, temporarily.

      --
      ---- Teach Peace. It's Cheaper Than War.
    16. Re:Taxes by Anonymous Coward · · Score: 1

      Sales taxes of all kinds can be considered 'double dipping' as your income is already taxed.

      Or income tax is double dipping on the sales tax. Or any tax grater than zero is double dipping on the "first half" of the tax with the "second half". Or you can come up with a reason why this double dipping won't provide a net return to Indiana of at least the value of taxes raised and stop using the lame "double dipping" lazy, whiny, fallacious argument.

      Additionally, they are regressive taxes.

      But are easily offset by exclusions or rebates to make them as progressive as desired.

    17. Re:Taxes by davester666 · · Score: 5, Funny

      Correction:

      He doesn't use those things. He lives in his parent's basement.

      --
      Sleep your way to a whiter smile...date a dentist!
    18. Re:Taxes by Anonymous Coward · · Score: 0

      And now you will be paying to have police and roads and schools while you shop online, yay!

      Those things are totally paid off. Mitch Daniels got Indiana back in the black. And you know what they say about that...

    19. Re:Taxes by bjwest · · Score: 1

      I don't see a problem either, if I can get the item locally. And by locally, I mean in the city I'm currently residing in, not the next city over (32 miles to the next largest city).

      I order from Amazon, the things I can't get in my local stores, and yes, that include Wal-Mart. If my local stores complain about me shopping online, then they had better be offering me the same products.

      --

      --- Keep the choice with the user..
    20. Re:Taxes by Fuzzums · · Score: 2

      a private transaction.

      LMAO!!! You just made my day.

      --
      Privacy is terrorism.
    21. Re:Taxes by Nom+du+Keyboard · · Score: 3, Insightful

      Well good for them. I don't really see a problem with this.

      Well then you need a new set of glasses. The sales tax you don't pay (because the online retailer isn't using state and local services such as police/fire protection, roads (UPS and USPS pay for those on Amazon deliveries), utilities, or any other service is rather offset by the delivery charge that you do pay. That makes it pretty much a wash. For local retailers to whine that It's Just Not Fair is simply whining that they don't have a monopoly over your purchases any longer. They have to compete in a more modern world for your dollars, or find a new way to flog their buggy whips.

      --
      "It's the height of ridiculousness to say for those 9 lines you get hundreds of millions."
    22. Re:Taxes by Trepidity · · Score: 4, Informative

      You must not live in Indiana then, because the maximum residential property-tax rate in the state is capped at 1%.

    23. Re:Taxes by Anonymous Coward · · Score: 0

      Sales taxes of all kinds can be considered 'double dipping' as your income is already taxed. Additionally, they are regressive taxes.

      Indeed, but the alternative would be rich people paying more income taxes, and we can't have that. :)

    24. Re:Taxes by Arancaytar · · Score: 0

      That's low. Are you seriously saying that preventing black people from voting is as bad as making business owners pay taxes? One of them is an affront to the very essence of American freedom, and the other is merely racism.

    25. Re:Taxes by Restil · · Score: 4, Informative

      Well, I don't know about Indiana, but here where I live my local central appraisal district has appraised my house for about 3 times what I purchased it for (a foreclosure that sat on the market for 9 months before I found it, and despite all the talk about home values plummeting madly during the most recent recession, apparently someone forgot to tell the taxing authority, since my value certainly didn't drop any, and I'm guessing it didn't for anyone else either. So don't let that 1% fool you. There are other ways around THAT particular roadblock.

      -Restil

      --
      Play with my webcams and lights here
    26. Re:Taxes by zazzel · · Score: 1

      You failed to mention the myriad wastes of taxpayer money that will now find even better funding thanks to this smart move.

    27. Re:Taxes by Anonymous Coward · · Score: 0

      I love how Simon bitched over getting undercut by better pricing.. That is classy.. I believe that is why they call it free market..

    28. Re:Taxes by merlinokos · · Score: 1

      The power to tax is the power to destroy. The 14th Amendment specifically prevents laws from applying to different people in different ways. It was passed to prevent Jim Crow laws. This is just a 100% attack against a targeted business that is unconstitutional and bordering on the laws that prevented blacks from voting and serving on juries after the Civil War.

      Amazon isn't protected by the 14th Amendment.

      "No State shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States; nor shall any State deprive any person of life, liberty, or property, without due process of law; nor deny to any person within its jurisdiction the equal protection of the laws."

      Amazon is not a citizen, or a person (despite Citizen's United).

    29. Re:Taxes by Confusador · · Score: 1

      And yet he is still outraged. Funny the way people work.

    30. Re:Taxes by Anonymous Coward · · Score: 0

      Gotta love the fucktarded logic in play here.

      Lets go to tortilla chips. If you dip them into salsa twice, that's double dipping. Doesn't matter if, to avoid it, any singular dip would take more salsa, doesn't matter if the moon is out or new, or if Santa is late delivering toys, stll a double dip.

      Terms with negative connotations don't suddenly stop applying because you happen to agree with what they are labeling.

    31. Re:Taxes by Lisias · · Score: 1

      I think I do.

      Government is forcing private business to do his job: competes to the government collect taxes, instead of crying "not fair" over his borders.

      Collect the tax on the end point, and take the heat for his own decisions.

      Sometimes, Brazil do the right thing. Last time I buy something from overseas, FEDEX gave me, also, a tax bill emitted by the government and explained that they only could deliver the package if I pay the tax (money, checks or credit card accepted).

      I hate that tax, but Brazilian taxes are MY problem, not vendor's.

      --
      Lisias@Earth.SolarSystem.OrionArm.MilkyWay.Local.Virgo.Universe.org
    32. Re:Taxes by Anonymous Coward · · Score: 0

      Why? If the retailer is not in the state in question, what claim does the state have on the purchase? As has been pointed out above, the purchaser is already paying local income and other taxes. Adding a sales tax onto something that isn't even in the state's jurisdiction sure looks like sticking your finger in someone elses' pie.

      Captcha: Fobbing. One letter wrong.

    33. Re:Taxes by Bob+the+Super+Hamste · · Score: 4, Informative

      Sounds similar to my area. Every year my property taxes go up even without increases in the tax levied. All through the recession my taxes have gone up while hearing about how property values have fallen through the floor. I even tried to get my property reassessed by the city for tax purposes but they came out with a similar overvalued amount, i.e. more than I purchased it for. Yet when I want to refinance to get a better rate and shorter term I can't because the appraisers say it is underwater which is probably is. Man it sucks being responsible.

      --
      Time to offend someone
    34. Re:Taxes by Anonymous Coward · · Score: 0

      supposedly my house is worth $150,000 even though I paid less than $100,000; I appealed, no luck. as far as I'm concerned, this is BS along with the 1% increase in sales tax to build a stadium for the Colts (I live closer to Chicago, why should I have to pay for that stadium that I will never see any benefit from?)

    35. Re:Taxes by Bob+the+Super+Hamste · · Score: 1

      This is where things like the interstate commerce clause should be used. Technically the state can't force Amazon or any other out of state retailer to pay the tax if they don't have a presence in the state. They can however force you the individual to pay a use tax which is a state's way around the interstate commerce clause. This area is one where the federal government could step in and create a law that clarifies things as constitutionally they have that right.

      --
      Time to offend someone
    36. Re:Taxes by Viewsonic · · Score: 1

      Be glad your property taxes wont go up as much next year because of this.

    37. Re:Taxes by tmosley · · Score: 2

      You know, they got along just fine without that revenue before. Why do they need it now? Police, roads, and schools aren't really THAT expensive.

      But of course, that money isn't really for those types of things. It goes to fund bureaucracy. And the bureaucrats always threaten to axe those essential services LONG before they would ever THINK about cutting down on their own workforce.

      The bureaucracy is expanding to meet the needs of the expanding bureaucracy.

    38. Re:Taxes by Anonymous Coward · · Score: 0

      Property Tax in Indiana is capped by state law / constitutional amendment so they can't go up unless they are falsely assessed. (1% for Residential excluding any "initiative based" tax )

    39. Re:Taxes by tmosley · · Score: 2, Insightful

      What "use" taxes? The use tax for the roads is paid for by the shipping company. The seller has nothing to do with the buyer's state, unless they are in the same state. Further, these types of businesses use much MUCH less infrastructure than a brick and mortar business. Warehouses don't need nearly as much police protection as B&M.

      Face it, there is no justification for these taxes, except "I'm the state, gimme gimme gimme".

    40. Re:Taxes by Anonymous Coward · · Score: 0

      You should be able to dispute it with that info. Also look up information about similar houses in your area, others may have successfully disputed their property values and be reflected there. I successfully disputed my assessed value using the sale prices of houses nearby (a realtor can also help with this info).

      That said, there should be an option where if the county assesses the house at some value they should be forced to purchase (at the homeowners discretion) the house at their stated value * .9 (or something) to keep them honest.

      "Oh yeah, you say this house is worth 300k? Well 270k and it's yours! What a deal!"

    41. Re:Taxes by Chaos+Incarnate · · Score: 1

      That may hold true for some states, but not Michigan - there's no local sales taxes at all, and the income tax certainly isn't what I'd consider "very low".

      --
      Benford's Corollary to Clarke's Law: "Any technology distinguishable from magic is insufficiently advanced."
    42. Re:Taxes by tompaulco · · Score: 1

      I love how Simon bitched over getting undercut by better pricing.. That is classy.. I believe that is why they call it free market.
      Sales tax has nothing to do with it. The consumer is already required to pay Use Tax. So the only difference is that Amazon is somehow able to sell the same product including shipping for less than the retailer can. But Simon is making it about sales tax, trying to force Amazon to do the state's job for them.

      --
      If you are not allowed to question your government then the government has answered your question.
    43. Re:Taxes by Anonymous Coward · · Score: 0

      I do live in Indiana and the county has appraised my house for far more than I could ever hope to sell it for, thus effectively circumventing the cap. And the city of Bloomington also requires a $2 tag on each can of trash for pickup. Even 2 cans a weeks is another $200 a year in what should be covered by the already exorbitant property taxes.

    44. Re:Taxes by Kelbear · · Score: 1

      There's a budget to pay for. Ultimately the people in each state will pay for Amazon's tax break. They will pay through service cuts in the state budget, or they will pay through increased taxes (far more likely).

      Whatever your thoughts are on the Amazon sales tax are, or sales taxes in general, the reality is that shortfalls due to purchases shifting to Amazon will just be charged to consumers elsewhere.

    45. Re:Taxes by asylumx · · Score: 1

      So should Indiana charge me an additional sales tax if I drive 1 mile across the border to the local grocery store in Michigan?

    46. Re:Taxes by AthanasiusKircher · · Score: 1

      The sales tax you don't pay (because the online retailer isn't using state and local services such as police/fire protection, roads (UPS and USPS pay for those on Amazon deliveries), utilities, or any other service is rather offset by the delivery charge that you do pay.

      I'm not going to take a position about the validity of this tax, but the last part of this argument is stupid. Do you really pay delivery charges from Amazon? I can't recall the last time I bought something from Amazon itself (not a 3rd-party seller on Amazon) and paid a delivery charge. Why would you, given how easy it usually is to get free shipping from them (and has been for years)?

      And besides, how do you think the merchandise gets to your brick and mortar store? Magic?? They pay suppliers too, who obviously factor in cost of delivery into their pricing scheme. Granted, stores obviously pay less for shipping in bulk, but then again, Amazon has deals with the shipping companies to get discounts too...

      There may be other reasons to oppose this tax, but the idea that it is made up for in delivery charges is not one of them -- at least in the case of Amazon. Perhaps for other (smaller) online retailers to some extent...

    47. Re:Taxes by Anonymous Coward · · Score: 0

      You must not live in Indiana then, because the maximum residential property-tax rate in the state is capped at 1%.

      You are partially correct. There can be exceptions made via voter referendums for schools funding, etc. Also, there is no cap on assessments, so a cap on the tax is moot.

    48. Re:Taxes by Trepidity · · Score: 1

      Lol, "even" 2 cans a week. What kind of trash factory do you operate?!

    49. Re:Taxes by hiryuu · · Score: 1

      Speaking of use taxes, I can't be the only one who actually keeps tabs of annual out-of-state purchases and then pays the appropriate amount of use tax when filing his state taxes, can I? Setting aside any issue or argument about whether or not the tax is justified, or whether there's a moral imperative to pay taxes owed even when there's no direct consequence for avoiding them - it seems there's typically little mention on discussions here from people who do what I do.

      I'll grant that it's not nearly as efficient or effective as collecting at point-of-sale, nor is it even realistic to expect people to pay a tax they're not immediately forced to pay; it just always feels a bit lonesome when no one else says "I pay, why don't you?" :)

      --
      Karma: Excellent, but still won't get you laid.
    50. Re:Taxes by Dinghy · · Score: 1

      A use tax isn't a tax for using a public service, it's a consumption tax for goods that are bought out of state. You may not like it but when you buy goods off the internet, you are required to pay the in-state sales tax for those purchases to the state. You aren't paying it though. This is tax evasion. By requiring the seller to collect it, you can close that loophole. Last I heard, the majority of people were in favor of closing tax loopholes.

    51. Re:Taxes by Dan667 · · Score: 1

      the problem is politicians think that corporate welfare is good, but anything that helps regular people is not.

    52. Re:Taxes by Anonymous Coward · · Score: 0

      Sales tax on goods most likely purchased from Amazon is not a regressive tax, it is a proportional tax. A sales tax is only a regressive tax if it is on food or other essential items. Very little of what the average internet consumer spends money on is essential.

    53. Re:Taxes by Anonymous Coward · · Score: 0

      Police are for criminals. I'm just shopping. You can keep your roads and schools.

    54. Re:Taxes by Anonymous Coward · · Score: 0

      Amazon has 3 distribution centers...

      That's a useful bit of information, and explains why they fought tooth and nail in California and other states, yet seemed to be rolling over here. Because they DO have a physical presence in the state; the non-collection was actually a special case in this state that was coming to an end.

    55. Re:Taxes by Anonymous Coward · · Score: 0

      That's socialist talk. You ain't from Indiana, is you?

    56. Re:Taxes by Anonymous Coward · · Score: 0

      I live in the Atlanta Georgia Metro area. I purchased my home in 1994 for $115,000. Last year the tax man valued my house at $230,000 and I paid property taxes on that amount. I went to refinance my house last year and the property value came to $110,000. Less than the value of the house 16 years ago.

      It does suck to be responsible.

      Nathan

    57. Re:Taxes by Anonymous Coward · · Score: 0

      If they could have their way and enforce that, then I bet they would try. Illinois expects you to pay the difference in taxes for stuff bought in other states, especially cigs.

    58. Re:Taxes by mattack2 · · Score: 1

      apparently someone forgot to tell the taxing authority

      Yeah, YOU forgot to tell them. Your area presumably has a "get them to re-appraise it for tax purposes" dispute mechanism. I've definitely read news articles about this sort of thing.

      Yeah, sure, this should all be automatic and everything, but with the problems governments are having with funding, you really think they have enough people to re-appraise every building every year?

    59. Re:Taxes by SillyHamster · · Score: 1

      Do you think the UPS/USPS/FedEx guy dropping goods off at your home is doing it for free? They're providing a service that is paid for - Amazon may be giving you "free shipping" but it's really just rolled into your purchase price. Customers are paying for the delivery charges, unless Amazon is selling a particular item at a loss when shipping charges are factored in. I also daresay that it costs more to deliver packages to individual addresses throughout a city, rather than just driving a truck full of goods to a retailer to unload. That Amazon can use a costlier method of delivery and *still* provides goods at a cheaper price reflects that their business is *more efficient* than the brick and mortar store. (for that particular customer, on that particular product) To what extent that efficiency needs to be penalized through taxes is a question for the US federal gov't.

    60. Re:Taxes by mattack2 · · Score: 1

      The 14th Amendment specifically prevents laws from applying to different people in different ways.

      But wait, people seem to be complaining about how businesses are treated like 'people' (i.e. I think the complaints about the Citizens United decision are complaining at least partially about businesses being treated like people)... and you're calling Amazon a person.

      Plus, as others have mentioned, this was a voluntary agreement by Amazon. Are you claiming that the original mall owner isn't going against ALL OTHER online retailers too? If so, then it seems like Amazon would have a valid complaint about targeted prosecution (up until they voluntarily gave in).

    61. Re:Taxes by Anonymous Coward · · Score: 0

      Internet retailers in Indiana have to pay Indiana sales tax. Internet retailers "in" California don't. I use quotes because Amazon apparently has shipping and processing centers in Indiana, so it's hard to argue that they're still just a little ol' California company.

      Isn't this unfair to the businesses that are in Indiana? Should they all incorporate in New Hampshire or something to get out of paying taxes to Indiana? I'm asking honestly.

      I think the best thing would be for Congress to come up with a flat interstate sales tax - all goods ordered and shipped between states gets this tax. Taxes are remitted back to the state that the item was shipped to. Done.

    62. Re:Taxes by Blakwing · · Score: 0

      No.. No their aren't. It's in the Indiana state constitution. 1% for primary residences. Not only have they adjusted my taxes down for the last 5 years they also proactively adjusted my home value down. And Indiana has some of the fewest barriers to getting your home value adjusted. Try that in Illinois. After you hire your lawyer, fight for a year, get a hearing, have it appealed, drag that out for another year.. all the while paying the attorney.. In the end you Win!! $200 off your bi-annual tax bill. Until next year when they revalue your home and raise it again. And you may be fooling yourself about valuation. It's never coincided with purchase price and you should have known that going into purchasing a foreclosed property. It doesn't matter what you pay for a house. The property is appraised at whatever they deem it to be worth. What? You think they're going to let you open a LLC, buy a property, sell it to yourself for 20% and value your property tax on that? Still.. Being a transplant from Illinois I'm currently paying 1/3 the taxes on 3 times the house and 7 times the property as I was in Cook county Illinois. So whenever I see complaints about Indiana taxes I chuckle quietly to myself. It's all a matter of perspective.

    63. Re:Taxes by BobPaul · · Score: 1

      What "use" taxes?

      There's a form you're supposed to fill out each year to account for all the spending you made and didn't pay local sales tax on. Corporations are policed pretty well, so they fill it out; talk to your purchasing dept or accounting dept if you are skeptical... everything they buy online is taxed, and if the tax isn't already taken out by the seller, then your company fills out the paperwork and pays it on their own.

      As a private citizen, you're supposed to do the same. You obviously don't. It's ok, I don't either.

    64. Re:Taxes by BobPaul · · Score: 1

      Do you think the UPS/USPS/FedEx guy dropping goods off at your home is doing it for free? They're providing a service that is paid for - Amazon may be giving you "free shipping" but it's really just rolled into your purchase price.

      He already addressed this when he said

      And besides, how do you think the merchandise gets to your brick and mortar store? Magic?? They pay suppliers too, who obviously factor in cost of delivery into their pricing scheme. Granted, stores obviously pay less for shipping in bulk, but then again, Amazon has deals with the shipping companies to get discounts too...

      The shipping cost Amazon pays to get individual items to your home is probably more than the cost the brick and motor store pays, but since Amazon has fewer employees, they have more room to cut prices and still have the same or higher profit margins.

    65. Re:Taxes by SillyHamster · · Score: 1

      He already addressed this when he said

      I was answering this rhetorical question:

      Do you really pay delivery charges from Amazon? I can't recall the last time I bought something from Amazon itself (not a 3rd-party seller on Amazon) and paid a delivery charge. Why would you, given how easy it usually is to get free shipping from them (and has been for years)?"

      Yes we do. Even if it's not itemized separately from the item's cost, the customer is paying Amazon's delivery charges. Because UPS/USPS/FedEx are not charities, and Amazon pays them because the customer is paying Amazon for that delivery.

      The shipping cost Amazon pays to get individual items to your home is probably more than the cost the brick and motor store pays, but since Amazon has fewer employees, they have more room to cut prices and still have the same or higher profit margins.

      And I noted that this reflects Amazon's higher efficiency - they're able to deliver you the same goods at less cost!

      This is a great thing for their customers. Unfair to brick and mortars? Sure - but they have their own advantages over online shopping.

    66. Re:Taxes by Anonymous Coward · · Score: 0

      Some states don't have income tax AND sales tax. When I lived in New Hampshire I had a job in good ole Taxachussettes. Got a new job a couple of miles from my house with only about a 5% bump in pay, but I no longer had to pay Mass income tax, so there was an additional 5.6% in my pocket. Plus when I went to the liquor store to buy a bottle of Jim Beam advertised for $19.99, I gave them a twenty dollar bill and still got a penny back!

    67. Re:Taxes by shutdown+-p+now · · Score: 1

      Either way it's up to the states to decide how they fill their budget. A combo of income tax and sales tax is not really any more unreasonable than just sales tax or just income tax.

      (Personally, being a leftie, I prefer income taxes because they are easier to social engineer by setting progression according to the desired result. But that is a different matter.)

    68. Re:Taxes by asylumx · · Score: 1

      Yikes, that's nuts.

  2. But not in VA by OzPeter · · Score: 4, Informative

    Amazon are about to open a new distribution center near Richmond VA, and local retailers are a bit pissed that Amazon will not be collecting sales tax from VA residents.

    Amazon purchases to remain free of Va. sales taxes

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    I am Slashdot. Are you Slashdot as well?
    1. Re:But not in VA by mr100percent · · Score: 2

      Well this puts Amazon on a more even footing with Barnes and Noble, since they are stuck paying local taxes and are having trouble competing with Amazon.

    2. Re:But not in VA by 0100010001010011 · · Score: 1

      It sounds like the state should have written its laws a bit different. Lexington, KY has a big distribution center and KY collects sales tax from those sales.

    3. Re:But not in VA by OzPeter · · Score: 1

      It sounds like the state should have written its laws a bit different. Lexington, KY has a big distribution center and KY collects sales tax from those sales.

      Well from the article I quoted

      Amazon has exploited a loophole by structuring its business operations in a way that its fulfillment centers are not legally considered the entity that makes the sale, and thus do not have to collect and remit sales taxes

      So I am not sure how VA has structured its laws differently from other states that are collecting sales tax

      --
      I am Slashdot. Are you Slashdot as well?
    4. Re:But not in VA by 0100010001010011 · · Score: 1

      That loophole probably only exists in VA. Most states it's "Has any presence what so ever". So even if they just have a distribution center they still collect taxes.

    5. Re:But not in VA by OnlineAlias · · Score: 1

      So does Indiana. Amazon got a special exception because of this, but no longer....

    6. Re:But not in VA by Obfuscant · · Score: 4, Interesting

      Well this puts Amazon on a more even footing with Barnes and Noble, since they are stuck paying local taxes and are having trouble competing with Amazon.

      Hmm, I sense the possibility of a science fiction story here. Some alternate future where "even footing" is not accomplished by removing impediments from those who are limited, but by adding impediments to those who are unfairly gifted.

      All Hail the God of "Even Footing".

    7. Re:But not in VA by CastrTroy · · Score: 1

      Just do what us Canadians do. Find somewhere just over the border and open up a PO box. Have things shipped there. Pick it up to avoid sales tax. Should be even easier since you don't have to go through customs when crossing the border. If they don't deliver to PO boxes, then there's other ways around it. There are businesses where you can set up an account, and will sign for your delivery. Things are shipped to a regular, not PO Box address, and you can pick up your items PO Box style. Walmart site to store works nicely too. Plan a trip to the US. Order something to the Walmart just over the border. Pick it up when you are there. Even with duty fees, you can still save quite a bit.

      --

      Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
    8. Re:But not in VA by medlefsen · · Score: 1

      The law is giving one company a competitive advantage over another for no good reason. Now, under this agreement, they are treated the same. Where's the problem? Why exactly does Amazon deserve to have artificially lower prices than B&N? This has nothing to do with the Man holding down the productive class (or whatever).

      Are you just suggesting that there shouldn't be sales tax? If that's the case you should just say it because what you did say was melodramatic and silly.

    9. Re:But not in VA by Anonymous Coward · · Score: 0

      http://en.wikipedia.org/wiki/Harrison_Bergeron

    10. Re:But not in VA by Anonymous Coward · · Score: 0

      We'll build that handicap up real quick, Unk.

    11. Re:But not in VA by Anonymous Coward · · Score: 0

      One of Vonnegut's short stories uses this exact concept. "They were not only equal before God and the law. They were equal every which way."

      http://en.wikipedia.org/wiki/Harrison_Bergeron

    12. Re:But not in VA by IICV · · Score: 1

      Hmm, I sense the possibility of a science fiction story here. Some alternate future where "even footing" is not accomplished by removing impediments from those who are limited, but by adding impediments to those who are unfairly gifted.

      I'm not sure if you realize it, but that science fiction story already exists. It's a short story named Harrison Bergeron, by Kurt Vonnegut. The full text is pretty easy to find if you google for it.

    13. Re:But not in VA by IICV · · Score: 1

      Wow, like three people had already posted it. Damn birdshot bags must be slowing me down :(

    14. Re:But not in VA by Anonymous Coward · · Score: 0

      It's already a short story by Kurt Vonnegut. Strong people are loaded down with chains and weights, while intelligent people have an ear implant that screeches in their ear every so often to keep them from concentrating. I don't remember the name and I'm too lazy to even log in correctly.

    15. Re:But not in VA by Anonymous Coward · · Score: 0

      Hmm, I sense the possibility of a science fiction story here. Some alternate future where "even footing" is not accomplished by removing impediments from those who are limited, but by adding impediments to those who are unfairly gifted.

      You are too late. It has already been written. Kurt Vonnegut's "Harrison Bergeron"

      http://en.wikipedia.org/wiki/Harrison_Bergeron

    16. Re:But not in VA by Anonymous Coward · · Score: 0

      Welcome to Finland. We've had that for some 20 years now

    17. Re:But not in VA by RubberChainsaw · · Score: 1

      No. The sounds you're hearing are the whooshes over the heads of everyone who replied with Harrison Bergeron.

      --
      I welcome our new 99% overlords.
    18. Re:But not in VA by Anonymous Coward · · Score: 0

      Philip K Dick had a short story (maybe several) on this very theme.

    19. Re:But not in VA by Bob+the+Super+Hamste · · Score: 1

      The correct solution would then be to pressure law makers to correct the loophole that caused this. I don't begrudge Amazon for seeking out any competitive advantage but at the same time the playing field should be level when there is a presence in the state.

      --
      Time to offend someone
    20. Re:But not in VA by tompaulco · · Score: 1

      People who buy from Amazon are required to pay Use Tax in the same amount that they would have to pay Sales Tax at a Brick and Mortar. The only difference is that at a Brick and Mortar, the state government unfairly requires the business to collect the sales tax, whereas if the company has no presence in the state, then the government must collect the tax from the individual.

      --
      If you are not allowed to question your government then the government has answered your question.
    21. Re:But not in VA by TemporalBeing · · Score: 1

      The correct solution would then be to pressure law makers to correct the loophole that caused this. I don't begrudge Amazon for seeking out any competitive advantage but at the same time the playing field should be level when there is a presence in the state.

      You do realize that Northern Virginia is the "Silicon Valley" of the East Coast, don't you? Even Research Triangle (in North Carolina) doesn't add up to as much (beind the third "Silicon Valley").

      --
      Truth is like the sun. You can shut it out for a time, but it ain't goin' away. - Elvis Presley (source: imdb.com)
    22. Re:But not in VA by Obfuscant · · Score: 1

      The law is giving one company a competitive advantage over another for no good reason.

      You are not, then, one of the people who regularly rants about how the Constitution is being trashed by this law or that law or the police putting a GPS on a car or whatever?

      Otherwise, the Constitution would be a rather good reason, I think. The federal government has been granted, by the States, the sole authority to regulate interstate commerce. Applying a state tax to interstate commerce is a clear violation of that authority, and the authority of the US government to levy excises.

      Are you just suggesting that there shouldn't be sales tax?

      I'm suggesting that the High Mighty God of Fair isn't sufficient reason to start interfering with interstate commerce when everyone involved was aware of the rules when they started playing the game. You want to be a brick and mortar, fine, you accept the rules brick and mortars play under. You want to be online only? Fine, too. You get those rules.

      If that's the case you should just say it because what you did say was melodramatic and silly.

      Far be it for me to say that Kurt Vonnegut is melodramatic and silly. And for all those who posted that name, yes, I was aware of that story already, and IIRC at least one Twilight Zone adaptation thereof.

    23. Re:But not in VA by BobPaul · · Score: 1

      Applying a state tax to interstate commerce is a clear violation of that authority, and the authority of the US government to levy excises.

      Good thing it's a Sales and Use Tax, and not just a Sales Tax so that it's not technically a tax on interstate trade.

  3. The Little Guy by ThomasLB · · Score: 3, Informative

    The state I live in, Texas, doesn't just have a state sales tax, we've also got county and city sales taxes- and each city and county sets their own, within guidelines set by the state. This is going to be a nightmare for retailers to keep up with, especially the little guys.

    1. Re:The Little Guy by Anonymous Coward · · Score: 0

      I think if they can keep track of 200k+ items they can figure out taxes...

    2. Re:The Little Guy by olsmeister · · Score: 1

      And maybe that's Amazon's master plan ... all the little guys just set up Amazon Webstores, and let Amazon handle all the details (for a fee, of course).

    3. Re:The Little Guy by WilliamGeorge · · Score: 1

      Sure, Amazon can probably handle it with minimal impact (though you can be sure that added costs will get passed along to consumers) - but what of the small businesses this begins to set a standard for? Mom & pop shops suddenly having to deal with orders of magnitudes more on the financial side... it *would* drive a lot of companies to either restrict sales by regions or go out of business entirely.

      --
      William George
    4. Re:The Little Guy by Panaflex · · Score: 1

      There's COTS software you can buy to do this - no worries. I've written point of sale software in the past and it wasn't too difficult. For Texas, as I remember, the tax is figured at the place of business, so wherever those servers are performing the sale is where the tax will be set.

      --
      I said no... but I missed and it came out yes.
    5. Re:The Little Guy by Anonymous Coward · · Score: 0

      If only there were some automated system we could use to retrieve the tax % breakdown given a zipcode.

    6. Re:The Little Guy by WilliamGeorge · · Score: 3, Insightful

      Hmm, can that same system automatically write the appropriate checks to the dozens (or hundreds, in states with county / city level taxes) of different government entities on the right time schedule for each one, keeping track of all of it in case of an audit, and not costing enough to drive a small business into debt? Yeah, didn't think so...

      --
      William George
    7. Re:The Little Guy by markana · · Score: 1

      Tax rates don't follow zip codes at all. A given taxing area may span multiple zip codes, and a zip code may (and probably does) cover multiple different tax areas. Furthermore, each taxing district may have it's own special rules and exemptions - it's never a simple percentage.

      Got the tax code for every little county/town/tax district in the entire country handy? As a very small app seller, it's going to be a nightmare.

    8. Re:The Little Guy by schwep · · Score: 2

      The only reason Indiana is collecting is because Amazon has 3 (soon to be 4) distribution plants in the state. They have a physical local presense & are 'part of the community' therefore they must pay the state taxes. If they want to be tax free for Indiana folks, close the plants, lay the workers off & stay in Washington.

    9. Re:The Little Guy by icebraining · · Score: 1

      Checks, really? Can't you just transfer money?

    10. Re:The Little Guy by WilliamGeorge · · Score: 1

      And what do you do when the server isn't in Texas? That is the issue at hand here, if brick & mortar retailers get their way and Congress changes laws to require all online sales to remit state and local sales taxes. Suddenly things are much, much more complex. It needs to be either left alone (as it is now) or overhauled completely and made much simpler. I've got a top-level thread going below about that idea, and it is something I have written about elsewhere in the past. Kind of a close-to-home issue, as I work for a small business that sells all over the US.

      --
      William George
    11. Re:The Little Guy by Dynedain · · Score: 3, Interesting

      Zip code's not enough. The item type itself will cause different tax rates. For example, clothes vs. housewares may have different sales tax rates. Carbonated beverages often have additional taxes that other products don't.

      Furthermore, how the item will be used can vary how it is taxed. An example being Canada, where clothes bought for dependent children are tax exempt, but not clothes bought for oneself. You have to declare at the register how the tax will be applied. While this may seem extraordinary, it does happen in the US as well. Off the top of my head, I know that the sales tax for California is different for food sold as groceries vs. food sold for immediate consumption (on or off premises). Ordering a sandwich at Subway's "toasted" (aka heated) triggers a different tax rate at the register.

      These arbitrary taxation systems exist at all levels of government (Federal, State, County, Municipality) and often there are further breakdowns for special economic zones or redevelopment areas.

      Oh, and zip code lookup isn't enough. Zip codes are defined by the Postal Service and do not necessarily respect county and city borders. I have family members living within the city limits of one of the 10 largest cities in the US, yet their official zip code and street address belong to a neighboring suburb city (pop ~200,000). I guarantee a zip code lookup would result in the wrong tax rate.

      Finally, in a zip-code lookup, which tax rate applies? Where the seller has their headquarters, where the distribution facility is, the purchaser's billing address, or the delivery address? They could all be in the state and easily still have different tax rates.

      --
      I'm out of my mind right now, but feel free to leave a message.....
    12. Re:The Little Guy by fnj · · Score: 1, Flamebait

      The first objection, that a taxing area may span multiple zip codes, is no objection at all. Knowledge of customer zip code would still tell you all you need to know about how much to tax a customer.

      The second objection, that one zip code may cover multiple taxing areas, is more serious. However, I tend to doubt that there is any example of it. Can you cite one? It just wouldn't make sense, since it would basically make all mail order impossible to conduct.

      In any case, as you point out, every individual small business cannot be expected to have access to the tax code for every tax code for the country. I don't think they would have to. A business or businesses would spring up to take care of this for them. A subscription web site, where you just enter a zip code and a product price and category, and it will spit out the tax for you, and in fact take your tax payment information on the spot and arrange tax payments from your account to all the appropriate jurisdictions at the prescribed intervals. I don't want to minimize the complexity, but a subscription service can certainly handle this with minimum hassle to the subscribing businesses.

    13. Re:The Little Guy by Panaflex · · Score: 1

      Just an assumption - but in this case I think the Texas state comptroller issues sales tax certificates - so they will set the rates.

      I think that every state will eventually start issuing sales and use certificates for companies that want to sell into their state. That still won't be entirely fair, but it's the only simple solution I can imagine.

      --
      I said no... but I missed and it came out yes.
    14. Re:The Little Guy by similar_name · · Score: 1

      Tax rates don't follow zip codes at all. A given taxing area may span multiple zip codes, and a zip code may (and probably does) cover multiple different tax areas.

      I'm sure there may be a tax area that spans multiple zip codes but that's not really an issue. But do you have an example of a zip code that covers multiple different tax areas? If so, how is the area and jurisdiction defined? Are these guys full of it?

    15. Re:The Little Guy by man_of_mr_e · · Score: 2

      Zipcodes can and do span counties, much less cities. Some cities and counties have their own taxes (ie if you're in the county you pay an extra .5% and if you're in the city you pay the .5 and an additional .5 percent).

      There are even zipcodes that span states. That's even more of a nightmare.

      For example, some northern parts of Arkansas have the Protem Missouri Zip Code.

    16. Re:The Little Guy by Archangel+Michael · · Score: 1

      I live in a city, which surrounds some unincorporated bits here and there. If my city had a city Sales tax, how would you distinguish between the the two sides of the street (literally) differently? Zip Code won't do it.

      Granted this is hypothetical, since my city doesn't have a sales tax, but it easily could.

      --
      Agent K: A *person* is smart. People are dumb, stupid, panicky animals, and you know it.
    17. Re:The Little Guy by aardvarkjoe · · Score: 2

      The second objection, that one zip code may cover multiple taxing areas, is more serious. However, I tend to doubt that there is any example of it. Can you cite one?

      Uh, this is easy. The zip code where I live covers areas both inside and outside of the limits of the city. The tax rate inside the city is different than the tax rate outside it.

      Zip codes are set by the postal service, and don't generally follow boundaries set by the local government (which frequently change, unlike zip codes.) He's right, you can't assume anything based on zip code.

      --

      How can we continue to believe in a just universe and freedom to eat crackers if we have no ale?
    18. Re:The Little Guy by man_of_mr_e · · Score: 1

      According to Wikipedia, there are several locations in which the location is in one state, but it's serviced from another (thus having the others zipcode). See the link below (towads the bottom of the section)

      http://en.wikipedia.org/wiki/ZIP_code#By_geography

      You could likely differentiate by extended 4 to get the right tax amount, but you may not have the extended 4.. that would mean subscribing to a service that can locate it.

    19. Re:The Little Guy by kidgenius · · Score: 3, Informative

      Ok, heres a good starting point. These zipcodes are shared between two states. I can guarantee that the taxing for these zipcodes would be different depending on what side of the state line you live on. http://maps.huge.info/zips_in_multiple_states.htm

    20. Re:The Little Guy by damiangerous · · Score: 2

      Are these guys [zip2tax.com] full of it?

      No, but they actually support the person you are replying to. If you read their FAQ, it says:

      Do tax jurisdictions match up with ZIP codes?

      Sometimes tax districts are based on factors other than ZIP code. There are a few locations within certain states that have more than one tax jurisdiction for a single ZIP code. This can make it tricky to determine which rate to use based solely upon the 5 digit ZIP code.

      We’ve made it possible for you determine which rate to use by providing multiple results for these locations. Zip2Tax default result is the municipality that is home to the U.S. Post Office – in the Tax Tables, this location is denoted with a "1" in the Primary Record column. The other rows for that ZIP code show all of the other communities sharing the same ZIP code.

      You can manually select the row with the closest city and special district match, or, if you are a Database Interface or Tax Tables subscriber, you may be able to program your systems to automatically make the match.

    21. Re:The Little Guy by damiangerous · · Score: 4, Informative

      I think that every state will eventually start issuing sales and use certificates for companies that want to sell into their state.

      States cannot regulate interstate commerce, that's explicitly reserved to Congress. Any solution will have to come from Congress.

    22. Re:The Little Guy by corsec67 · · Score: 1

      You can't use just the 5-digit zip code, the full Zip+4 has to be used. For example, the Oklahoma tax calculator needs the Zip+4. http://oktax.csa.ou.edu/Rate_Locator/index.jsf

      For example, the zip code I live in, 80234, covers more than one county (Adams, and Broomfield), and about 7 different cities.

      http://www.zipareacode.net/zip-code-80234.htm

      --
      If I have nothing to hide, don't search me
    23. Re:The Little Guy by Anonymous Coward · · Score: 1

      Sure, Amazon can probably handle it with minimal impact ... but what of the small businesses this begins to set a standard for? Mom & pop shops suddenly having to deal with orders of magnitudes more on the financial side.

      Ding-ding-ding! that's why Amazon has been voicing support for a federal action on Internet taxation; Amazon has already made it to the top, now they need to make sure no more upstarts can knock them off.

    24. Re:The Little Guy by Solandri · · Score: 2

      The state I live in, Texas, doesn't just have a state sales tax, we've also got county and city sales taxes- and each city and county sets their own, within guidelines set by the state. This is going to be a nightmare for retailers to keep up with, especially the little guys.

      I'm a pretty free-market type guy, but this is really something the government should be handling. Currently, it's up to businesses to figure out all the different tax rates (or hire someone to do it) and apply them to their sales. For the small business, the only way they can realistically comply is to hire a company which collects and updates the tax rates and puts it into a database for them. The problem is these companies always indemnify themselves against errors. So a small business could be doing its best to comply with the tax laws, but if they failed to collect $5000 because company making the databae screwed up and entered an incorrect tax rate, they are on the hook for the $5k, not the company making the tax database. There's a disconnect between the party responsible for the error and the party that has to pay for it.

      This really needs a Federal government program handling this. All the tax jurisdictions in the country should be required to submit and update their tax rates to a Federal web site in order for the tax to be considered effective. Business can then go to this Federal web site and download the latest tax rate table every day. If a business fails to do so and doesn't collect the right sales tax, they are liable for any shortfall. If a city or state fails to update their tax info on the web site, then they are liable and lose out on any shortfall. And if the web site goes down, the Federal government is liable for erroneous sales tax collections that day. Each party in the process is responsible for their own errors, none for the errors of others.

    25. Re:The Little Guy by Local+ID10T · · Score: 2

      If only there were some automated system we could use to retrieve the tax % breakdown given a zipcode.

      The problem is zip code is not fine-grained enough to cover the different tax jurisdictions.

      For example: California has multiple overlapping tax rates ranging from state, to county, to city, to school district, to water district, etc. The tax rate can literally be different from one side of the street to the other. Also the changes in the tax rates do not occur on a single date. Many of these taxes were created through special ballot initiatives to pay for specific public works, and run for a period of time calculated to pay off the specific debt, meaning one can end today, and another next week and another in 6 months... and new ones can be added any time.

      As a brick and mortar store, this isn't too difficult to deal with -when you get your business license you get a sheet of paper that tells you what tax rates apply to your location and to whom you must submit your payments. You (usually) get a piece of paper in the mail telling you when something is about to change.

      For an online business it is incredibly difficult to determine what taxes apply to each and every individual purchaser everywhere in the USA.

      --
      "You want to know how to help your kids? Leave them the fuck alone." -George Carlin
    26. Re:The Little Guy by Maxo-Texas · · Score: 1

      You buy one of several packages.

      They calculate sales tax and maintain the tables to keep it correct in all states.

      It really should be the federal and state govt job tho.

      They should have a site your computer system can access to get the sales tax.

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
    27. Re:The Little Guy by Fjandr · · Score: 1

      Each taxing authority has different requirements for payments and different systems set up to accept them, so no, in hundreds or thousands of different taxation districts you cannot "just transfer money."

    28. Re:The Little Guy by Anonymous Coward · · Score: 0

      The second objection, that one zip code may cover multiple taxing areas, is more serious. However, I tend to doubt that there is any example of it. Can you cite one? It just wouldn't make sense, since it would basically make all mail order impossible to conduct.

      Here's just one example. There are many, many more. In this example, note the city has boundaries that don't even remotely match the zip code boundaries. The city has one tax rate, the county has another, and the adjoining cites have their own tax rate. Oh, and for added bonus, many addresses have the city's name in them, but they're not in the city, they're unincorporated, only using the name of the city for historical reasons in the addresses. I live here, and I barely know what to expect to pay in taxes. Oh yeah, it changes over time, because the county is trying to get the city to incorporate the unincorporated areas it borders.

      I can imagine big companies are weary of getting this right, and smaller companies are scared to death. My father worked as a CPA for a large company that had a presence in many states. He was part of a department of CPAs working to ensure they paid taxes to the right people. It's not a small problem.

    29. Re:The Little Guy by DogDude · · Score: 1

      This is going to be a nightmare for retailers to keep up with, especially the little guys.

      A bit of history... in the mid 20th century, adding machines called "computers" were created specifically to do large quantities of arithmetic calculations quickly and cheaply. Today, these "computers" still exist, but are much more advanced. Most wrist watches have the computing power to maintain a list of municipalities and tax rates. It ain't rocket science. Oh, and I'm willing to go out on a limb and say that every online vendor has one of these fancy "computers".

      --
      I don't respond to AC's.
    30. Re:The Little Guy by DogDude · · Score: 0

      What you're describing is called "bookkeeping". Any company that doesn't keep books is going to be audited out of existence by the IRS, and the owners will likely go to jail.

      --
      I don't respond to AC's.
    31. Re:The Little Guy by DogDude · · Score: 1

      Currently, it's up to businesses to figure out all the different tax rates (or hire someone to do it) and apply them to their sales. For the small business, the only way they can realistically comply is to hire a company which collects and updates the tax rates and puts it into a database for them.

      I would guess 75% of all US businesses use Quickbooks to do payroll because trying to deduct payroll taxes correctly is nearly impossible for the lay person. It's really not a big deal. Which reminds me....

      --
      I don't respond to AC's.
    32. Re:The Little Guy by adolf · · Score: 2

      It's not a nightmare.

      ZIP codes are only intended to improve the efficiency of mail delivery. Using them for any other purpose is at one's own peril.

    33. Re:The Little Guy by Anonymous Coward · · Score: 0

      77581!!

      In this one zipcode: it spans Pearland, plus a non-incorporated MUD, and a piece of Houston. 97% of it is in Brazoria County. Next to Friendswood, however, two neighborhoods are in Galveston County. My parents' neighborhood is part of Pearland, also in 77581, but became part of Harris County in 1998. In 2008, a new section got added to the neighborhood that is not part of Houston or Pearland, it is part of Harris County but it's non-incorporated.

      The tax rates go as follows:

      Harris County 77581: 8.25%
      Pearland proper 77581: 8.00%
      Galveston County 77581: 7.50%
      Unincorporated 77581: 6.25%

      At one point, right outside my parents' neighborhood, you can drive less than 1 mile any direction and end up in a different tax district.

      I built a tax system for Texas for a major ecommerce platform, and believe me, you **have** to use latitude and longitudinal points based on address to calculate taxes accurately. It is no laughing matter.

    34. Re:The Little Guy by Anonymous Coward · · Score: 0

      In California, they charge separate taxes and levies on anything with an LCD (but NOT LED) screen... It's calculated based on both the dimensions and cost of the device.

    35. Re:The Little Guy by belo+abismo · · Score: 1

      They should leave it up to the buyer to pay any sales tax. My state allows you to claim any online purchases when doing your income tax for the year. I don't see how a small business could keep up with every sales tax percentage nationwide.

    36. Re:The Little Guy by CrimsonAvenger · · Score: 1

      Zip code's not enough. The item type itself will cause different tax rates. For example, clothes vs. housewares may have different sales tax rates. Carbonated beverages often have additional taxes that other products don't.

      Where I live, this applies.

      In addition, there are Sales Tax holidays - certain days of the year, certain items are tax-free, other days, they're at full (and occasionally non-zero but reduced) tax-rates.

      So, does the tax rate apply as of the date of the order, the date it ships, or the date it arrives at its destination?

      Or some other day?

      --

      "I do not agree with what you say, but I will defend to the death your right to say it"
    37. Re:The Little Guy by Fjandr · · Score: 1

      This is what people just don't seem to grok. The jurisdiction is absolutely crystal clear. States that have a physical presence can tax in-state transactions. States that do not, cannot, unless and until Congress explicitly gives them the authority to do so.

    38. Re:The Little Guy by fnj · · Score: 1

      Thanks to all who replied with the information. I guess norms vary around the country. I think ZIP+4 plus a database run by a clearinghouse would cover it, but possibly not. Hopefully all would agree that there ought to be a clearinghouse to serve small businesses. I really don't think this has to be a major problem *IF* it is organized right.

    39. Re:The Little Guy by Talderas · · Score: 1

      Zip+4 is mostly used to designate high volume regions of mail delivery. Let's say you have a commercial business business park. That entire park will probably be in the same zip code and have the same Zip+4. But if that development park is halfway in a city and halfway in the county you will have two different tax rates for that Zip+4.

      --
      "Lack of speed can be overcome. In the worst case by patience." --Znork
    40. Re:The Little Guy by Attila+Dimedici · · Score: 1

      That would be great, except for the fact that zip codes do not break down according to what taxing jurisdiction you live in. There are places in New York with the same zip code but different sales tax rates. The Post Office does not assign zip codes according to municipal and/or township lines.

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    41. Re:The Little Guy by Talderas · · Score: 1

      Zip+4 is used by the post office to designate high volume mail delivery regions and does not respect taxing districts. Additionally each PO box in the zip often has its own Zip+4 but tax rates are supposed to be structured off shipping address and PO boxes don't accept shipments.

      Let's say you have an industrial park in a city but part of that industrial park sits in the county. For the purpose of mail delivery, that industrial park would get its own Zip+4 designation. However since the park lies partially in the city and partially in the county the tax rate for the park as a whole is not the same.

      Zipcode is used to optimize mail delivery. Using it for any purpose outside of its designed purpose is at your own peril. The only way to correctly identify the proper taxing rates is to generate the longitude and latitude of the address and cross reference that against a database. That isn't the tough part. The tough part is maintaining the rates on these districts. You need staff to track and update all these districts. Amazon isn't going to arse themselves with creating a system to calculate tax rates AND paying the salaries of the people who are constantly collection this information by watching all the laws being passed by law-making bodies.

      --
      "Lack of speed can be overcome. In the worst case by patience." --Znork
    42. Re:The Little Guy by Attila+Dimedici · · Score: 1

      So a small business could be doing its best to comply with the tax laws, but if they failed to collect $5000 because company making the databae screwed up and entered an incorrect tax rate, they are on the hook for the $5k,...

      It's worse than that, they are also on the hook for a significant penalty. Additionally, if they collect $5000 that they weren't supposed to (and remit it to the government) they are still on the hook for a significant penalty. Some years back Pennsylvania changed its rules of what was tax exempt and what was subject to sales tax. Before the new law the rule was, if you wore it or you ate/drank it, there was no sales tax on it. After the new rule was passed it became much more complicated. Carbonated beverages were taxed, fruit drinks with more than 20% fruit juice in them weren't. Water wasn't, but flavored water was. Tea wasn't. There is more and the clothing exemption was made more complicated as well. A guy who ran a small convenience store could not figure out what was taxable and what wasn't under the new law so he charged sales tax on everything and paid the amount he collected to the state. They fined him a large amount for doing so putting him out of business.

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    43. Re:The Little Guy by Bob+the+Super+Hamste · · Score: 1

      It gets even more complex as there may be different tax districts within a the same city that is within the same county. If I remember correctly Minneapolis has this where things are taxed differently if you are in down town or not in down town.

      --
      Time to offend someone
    44. Re:The Little Guy by Pope · · Score: 1

      "In Canada."

      Seriously? We have 10 Provinces and 3 Territories, each with their own sales tax codes (AB has no Provincial sales tax for example). That's about as dumb as saying "In America, there is no sales tax." (for all values where America = New Hampshire).

      --
      It doesn't mean much now, it's built for the future.
    45. Re:The Little Guy by Dynedain · · Score: 1

      The children's clothing exemption from sales tax applies at least to Ontario and British Columbia. Considering I live relatively close to the other US border, is it surprising that I don't know the details of your tax laws? I was merely providing an example of an existing tax law that is almost impossible to enforce or monitor from a technology standpoint using a simple location lookup database.

      --
      I'm out of my mind right now, but feel free to leave a message.....
    46. Re:The Little Guy by idontgno · · Score: 1

      Most wrist watches have the computing power to maintain a list of municipalities and tax rates.

      "Maintain. Maintain."

      "You keep using that word. I do not think it means what you think it means."

      You mean "store". Tax tables are not self-maintaining, and maintenance (particularly, tax law situational awareness) is a sufficiently challenging task, given hundreds of possible jurisdictions, that it definitely is somewhat more complicated than rocket science.

      But I like your approach. Hand-wave away the actual difficult part and everything is easy.

      --
      Welcome to the Panopticon. Used to be a prison, now it's your home.
    47. Re:The Little Guy by fnj · · Score: 1

      PO boxes don't accept shipments.

      Incorrect.

    48. Re:The Little Guy by Talderas · · Score: 1

      If you use USPS, sure, but most online retailers aren't shipping product to you via USPS and it probably would be considered some sort of tax evasion to establish a PO Box just to avoid unfavorable sales taxes.

      --
      "Lack of speed can be overcome. In the worst case by patience." --Znork
  4. Stock up while you can by stevegee58 · · Score: 2

    Oh well. It couldn't last forever. Stock up while you can before the feds step in.
    I actually agree it's an unfair advantage over brick and mortar stores but I'll still miss nontax purchasing anyway.

    1. Re:Stock up while you can by stms · · Score: 1, Insightful

      Wow you know this country's in the toilet when you see comments expecting the government to ruin a good thing. 200 years ago we fought for lower taxes with representation. The irony is that now we don't have proper representation and we have some of the highest taxes in the world.

    2. Re:Stock up while you can by Black+Parrot · · Score: 5, Insightful

      The irony is that now we don't have proper representation and we have some of the highest taxes in the world.

      Our taxes aren't particularly high for a developed country, and if we aren't properly represented it's because we got what we voted for, or didn't vote.

      --
      Sheesh, evil *and* a jerk. -- Jade
    3. Re:Stock up while you can by 246o1 · · Score: 1

      Wow you know this country's in the toilet when you see comments expecting the government to ruin a good thing. 200 years ago we fought for lower taxes with representation. The irony is that now we don't have proper representation and we have some of the highest taxes in the world.

      I didn't do anything 200 years ago. And your second (most wrong) part needs a citation, perhaps something from Wikipedia: http://en.wikipedia.org/wiki/List_of_countries_by_tax_revenue_as_percentage_of_GDP

      --
      Although the moon is smaller than the earth, it is farther away.
    4. Re:Stock up while you can by crontabminusell · · Score: 1

      You forgot about that other class of people: "I voted and the retarded majority won again."

    5. Re:Stock up while you can by Black+Parrot · · Score: 2

      You forgot about that other class of people: "I voted and the retarded majority won again."

      Representative government doesn't mean that you're entitled to have your candidate win.

      --
      Sheesh, evil *and* a jerk. -- Jade
    6. Re:Stock up while you can by crdotson · · Score: 3, Insightful

      Our taxes aren't particularly high, but if you raised taxation to the level needed to support the current spending levels (about 40% of GDP at all levels I think) they would be amazingly high.

      Yes, we probably need to raise taxes, but what we really really really have to do is cut spending.

    7. Re:Stock up while you can by Anonymous Coward · · Score: 0

      if we aren't properly represented it's because we got what we voted for, or didn't vote.

      You forgot about that other class of people: "I voted and the retarded majority won again."

      Representative government doesn't mean that you're entitled to have your candidate win.

      ...but it is the correct response to the OP.

    8. Re:Stock up while you can by Slavik81 · · Score: 2

      Or, keep your budget balanced during the good times so you can easily afford to take on debt in a crisis. If the US didn't do into this recession with debt already shaping up to be a serious long-term problem, there'd be a lot less to worry about.

    9. Re:Stock up while you can by Anonymous Coward · · Score: 0

      No, but I retain the right to bitch about the head idiot that the other idiots elected.

      You don't get to blame me for the idiots I didn't vote for. You may of course blame me for the ones I did vote for. My voting strategy will be different this year.

    10. Re:Stock up while you can by Anonymous Coward · · Score: 0

      What brick and mortar stores? Walmart kicked most of them out of business a few years ago. Only the small towns have any of those left.

      But, I agree, stock up while you can. New ways to tax will always win in the long run.

    11. Re:Stock up while you can by Anonymous Coward · · Score: 0

      Sorry our taxes are high compared to other developed countries. Get some sense and do your homework before you post bullshit.

    12. Re:Stock up while you can by Anonymous Coward · · Score: 0

      if "Our taxes aren't particularly high for a developed country", then what should the tax rate be? If you add up federal, state and local taxes, many places in the US are over 50%

    13. Re:Stock up while you can by stms · · Score: 1

      The problem is that voting gives you the illusion of choice. If you vote for a party candidate you're just choosing which hole you want to get fucked in. If you choose a third party candidate you're throwimg your vote in the garbage.

    14. Re:Stock up while you can by stms · · Score: 1

      The reason why were only in the %50 right now is because Obama contrary to popular belief lowered them to a 20 year low. For the full article its attached to see here it's a pretty interesting read.

    15. Re:Stock up while you can by Dan667 · · Score: 1

      if they are going to end any help for regular people then they need to end corporate tax breaks.

    16. Re:Stock up while you can by JesseMcDonald · · Score: 1

      You forgot about that other class of people: "I voted and the retarded majority won again."

      Representative government doesn't mean that you're entitled to have your candidate win.

      Perhaps not, but it does mean that—however well the government may represent the population as a whole—it doesn't actually represent you. From the point of view of a minority, there is little difference between a representative government and a dictatorship. So long as they remain in the minority, what matters most is not proportional representation, but the preservation of their natural rights, often against the majority's wishes. The important part of the American system is not majority rule, but rather minority rights. When natural rights are supreme, voluntary democracies arise spontaneously wherever they are needed. Where majority rule dominates, however, minorities must always remain second-class citizens.

      --
      "The state is that great fiction by which everyone tries to live at the expense of everyone else." - Bastiat
    17. Re:Stock up while you can by Anonymous Coward · · Score: 0

      Our taxes aren't particularly high for a developed country, and if we aren't properly represented it's because we got what we voted for, or didn't vote.

      Or because you live in D.C.

  5. Added burden for small businesses :( by WilliamGeorge · · Score: 1

    The problem I have with this is not that it is necessarily wrong from any ethical standpoint, but that it would be a *massive* additional burden on small businesses. Any online company selling outside of its state would have to keep track of potentially 50 times as many different sales taxes (not all states have sales tax, I am aware), and then the rules each state has for remitting sales tax (when, where, etc). As someone who works at a small business (a couple dozen employees) I can tell you this would be a huge extra load for our financial department.

    Long-term I would love to see a national sales tax replace many (all?) of the existing taxes, as it would be much cleaner and I think more fair as well. Then a central agency, maybe the IRS, could take in all sales tax revenue and split it up according to the feds + state of sale origin + state of company + local municipalities... and that, if done correctly, could lower the overall manpower burden of the tax system, freeing up more of the taxes for doing what they are actually for.

    --
    William George
    1. Re:Added burden for small businesses :( by Panaflex · · Score: 1

      ...could lower the overall manpower burden of the tax system, freeing up more of the taxes for doing what they are actually for.

      I'm pretty sure the tax system today is used as a competitive advantage by large companies to squash small competitors. Large entities get breaks, grants and use foreign loopholes to funnel cash and avoid some legitimate taxes all together.

      --
      I said no... but I missed and it came out yes.
    2. Re:Added burden for small businesses :( by dlgeek · · Score: 1

      Any online company selling outside of its state would have to keep track of potentially 50 times as many different sales taxes (not all states have sales tax, I am aware)

      50? Ha! Try 5000+! Not only can sales tax be imposed by the state, it can be imposed by:

      • Counties
      • Towns
      • Municipal Areas (think a city and it's suburbs)
      • Local/Regional Transit Districts
      • Fire Districts
      • Water Conservation Districts
      • Etc.

      There are places where different tax rates depend not only on which side of the street you're on, but whether you're on the north side of the street to the east or west of the intersection with another major street, except for the 5000 block. I'm not kidding, although I wish I was.

      Then, you have to figure out what rate to charge various items at, for every state. Food is taxed at different rates in many states, but what qualifies as food? In Washington, up until recently, a Kit-Kat bar was taxed at a different rate than a Snickers bar (apparently one was candy, and one was somehow a baked desert). Now you have to figure out and track different tax rates for every jurisdiction for every item you carry.

      Not only that, but in some states, companies have to file separate tax paperwork with every county, detailing all their sales broken down by district. For a small internet retailer, this means that almost EVERY new customer means an extra tax filing and the fees to the accountants and lawyers that go with it.

      A requirement to collect local sales tax for internet retailers is COMPLETELY unfair and a huge burden for companies, regardless of whether they are small mom-and-pops or the size of Amazon.com.

    3. Re:Added burden for small businesses :( by DogDude · · Score: 1

      5000+?!?! Oh Jesus!! Stop the presses!!! Where, oh were would online retailers get a device that could hold thousands(!) of numbers?!?! It would take some sort of mainframe computer to store and calculate all of those numbers!!!

      --
      I don't respond to AC's.
    4. Re:Added burden for small businesses :( by dlgeek · · Score: 1

      Sorry - that should have been 50,000+ in terms of rate jurisdictions. 5000 is filing jurisdictions (counties)

      Storing a number is fine. Keeping current about what products are taxed at what rates in all 50,000 is hard, especially given hundreds of thousands of items sold (Amazon). Filing quarterly tax returns in 5000 different jurisdictions, each of which has to be prepared and reviewed by accountants and lawyers is very, very expensive.

    5. Re:Added burden for small businesses :( by DogDude · · Score: 1

      I hate to break it to you, but the amount of storage space to store every zip+4 in the entire United States along with a tax rate is less than the size of this web page in your cache right now. If you've ever used a database, you'd understand that what you're saying about the difficulty and expense of such a tiny amount of data and calculations is pretty silly. You obviously have never run a business either, so I'll tell you this... tax returns are calculated and remitted electronically. You may be thinking of the Mad Men era, with accountants working with pencils and calculators, filling out forms. I don't think that I can even mail in a check for sales tax in my area, anymore. It's a one button procedure that anybody with functioning frontal lobe could accomplish. Calculations are done in the bookkeeping software. Every business that is larger than a lemonade stand uses bookkeeping software.

      --
      I don't respond to AC's.
    6. Re:Added burden for small businesses :( by markana · · Score: 1

      And *you* obviously have never run a tiny Internet-only business. I sell a couple of apps. Kind of the "in" thing to do these days, and it brings in just enough to pay for an occasional new device to write new apps for. I do my bookkeeping by hand with spreadsheets and a small database, because that's all it really needs.

      I pay my state's business taxes, and sales tax on in-state purchases. By check, once a year. Manually. Last year, I remitted $.41 (that's 41 *cents*) spread across 5 different tax zones to cover the in-state sales taxes. It probably cost the State and those taxing areas hundreds if not *thousands* of times more than that just to process the payment. But, the law's the law.

      Now say I have to track and pay sales taxes in *all* of the States. Not every state has an online lookup for all local taxes. A subscription to one of the commercial services would wipe out most of my profit for the year. Then there's the cost of mailing checks for a few cents to at least 50 taxing authorities (assuming that all of them even *take* checks).

      If Apple, Google, Amazon, and all the other app stores don't pick up the burden of collecting the exact sales tax on each paid download, then most of the U.S. app developers are probably going to be forced out of business by the overhead.

    7. Re:Added burden for small businesses :( by Kelbear · · Score: 1

      Your tiny "internet-only" lacks a physical presence in "all" of the States, so you wouldn't be asked to pay taxes in them anyway.

      By the time that your company has grown to the size that qualifies as a physical presence in "all" of the states under tax law, then your company can easily afford to pay taxes.

      App developers would not be affected by the Amazon taxation issue which pivots around the fact that Amazon has gigantic warehouses spanning the country, for example, shipping physical goods from a warehouse in NJ to a doorstop within NJ, and yet it claims to have no physical presence in NJ.

    8. Re:Added burden for small businesses :( by DogDude · · Score: 1

      So then, because you don't make enough money, you're saying you should be exempted from doing what every other business does?

      --
      I don't respond to AC's.
  6. Bad precedent by mr100percent · · Score: 2, Insightful

    This, along with the other states that already got in on this, sets a really bad precedent. Taxing companies that don't exist in that state is really overstepping the bounds of the U.S. Constitution. Can each state start setting their own tariffs next?

    1. Re:Bad precedent by Anonymous Coward · · Score: 0

      I like paying for stuff tax free, but I agree if you owned a normal business the online retailer does have a leg up in the pure price advantage.

      However it is a huge disincentive to do interstate commerce when you have to go over every state & likely county (dare we go on a per-city basis too?) to keep track of every sales tax law there may be to make sure everything is fair.

    2. Re:Bad precedent by icebraining · · Score: 1

      They aren't taxing the company, they're taxing the buyer. Amazon just agreed (without being forced to, at least from what I can tell) to collect the money right at the time of sale.

    3. Re:Bad precedent by Anonymous Coward · · Score: 0

      Pretty much the only person besides me and you that gives two shits about the 10th amendment is the unfortunately racist loon Ron Paul. At this point everybody else is comfortable with the interstate commerce clause meaning anything they want it to mean, and with the idea that all of us should have to live under the exact same laws determined by a central government* even though we vehemently disagree on what those laws should be -- and the disagreeing parties can largely be separated by geographic region.

      *No republican or libertarian I know of considers less national government to mean that states could then become ultra-liberal, which is unfortunate.

    4. Re:Bad precedent by Darinbob · · Score: 2, Insightful

      Amazon can keep track of the laws in every square mile of the US without causing any discernible dip in their revenues. Granted this may be a headache for a small winery trying to sell online perhaps but Amazon isn't in that category.

      Normally states do not care about the small guys. It is up to the individual citizens to report and pay their sales tax often. The states are going after the big online retailers because they are seriously disrupting brick-and-mortar retail operations. Maybe some technophiles may wish these small retailers to go out of business and die so that everything can be online only (saves the hassle of leaving mom's basement) but it is a major economic burden. Business go under, jobs get lost, tax revenue for small towns shrink even more, etc. You can't just excuse this by just applauding Amazon for gaming the system better than anyone else.

    5. Re:Bad precedent by Solandri · · Score: 1

      That's irrelevant though. Interstate commerce is by definition a transaction in which one party (Amazon in this case) resides outside the state. The residency of the other party is irrelevant, as long as it's a different state. The correct resolution to this problem is Federal legislation or a constitutional amendment which modifies the Commerce Clause. Not for states to file lawsuit after lawsuit against individual companies until they kowtow to the state's (currently unconstitutional) desires.

    6. Re:Bad precedent by Osgeld · · Score: 1

      please point out where in the constitution does it guarantee tax free interstate commerce

    7. Re:Bad precedent by Anonymous Coward · · Score: 0

      I wouldn't call Ron Paul a racist. He may have racist staff who wrote something in his newsletters, but he distanced himself from it.

    8. Re:Bad precedent by Anonymous Coward · · Score: 0

      Actually, Amazon has at least 4 distribution centers in Indiana. The state repealed a sales-tax collection law in 2007 to lure Amazon to the state - http://www.ibj.com/study-state-loses-millions-annually-in-online-sales-taxes/PARAMS/article/30922

      From what I can interpret, you're already supposed to pay sales tax on Internet purchases in Indiana. See Schedule 4 and the related section in the instruction booklet at the Indiana Department of Revenue - http://www.in.gov/dor/4546.htm

      As an Indiana resident, I'm still not sure how I feel about this. It does make the big guys pay the same taxes local businesses would have to, but I think it would be a huge burden on an Internet seller to keep up with the individual tax laws in each state.

    9. Re:Bad precedent by icebraining · · Score: 2

      The state didn't file any lawsuit, though. Amazon itself agrees there should be legislation and that they should collect the tax.

    10. Re:Bad precedent by 0123456 · · Score: 1

      Amazon can keep track of the laws in every square mile of the US without causing any discernible dip in their revenues. Granted this may be a headache for a small winery trying to sell online perhaps but Amazon isn't in that category.

      Bingo. Expecting Internet retailers to collect your sales tax is another case of fscking over the little guy who can't afford to waste their time collecting dozens of taxes for different states.

    11. Re:Bad precedent by Obfuscant · · Score: 3, Informative
      Article 1, Section 8: The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States; To borrow Money on the credit of the United States; To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes;

      Since congress has not levied an excise or impost upon interstate transactions, and the states do not have the power to do such, then we are guaranteed, via the US Constitution, of tax-free interstate commerce, with respect to any sales tax.

    12. Re:Bad precedent by Anonymous Coward · · Score: 0

      Can you retards please stop responding to constitutionality questions with: "but I really want it to be this way". It either fits in with the guidelines of the constitution or it's illegal. If you don't like it, pass an amendment.

    13. Re:Bad precedent by Anonymous Coward · · Score: 0

      Amazon does actually exist in Indiana; they have a huge distribution center here. I'm no expert, but I understand that Amazon uses all kinds of creative accounting maneuvers to make them technically not exist in the state.

    14. Re:Bad precedent by mr100percent · · Score: 1

      Amazon fought the legislation when it was first proposed in other states. By this point, it's like they threw in the towel.

    15. Re:Bad precedent by garyoa1 · · Score: 1

      Well that's how the state gets them. Big on line companies offer affiliate programs.

      That is, a way for folks to sign up with them and put ads on theire web page for their products. Amazon pays them a commission when they push a sale to them.

      Look at the bottom of virtually any big name web page. You'll see affiliates, partners, whatever the wording. That's not other companies. Amazon does it, walmart, kmart, new egg, best buy and on and on.

      So, if even one person lives in that state, the state says the company has a presence there. And that's how they're gettin away with charging tax in that state.

      And the company will generally cut commissions to anyone in that state so the little guy essentially goes out of business.

      --
      Wuddooeyeno? IITYWYBMAD? Like nuts? eclecticallyincorrect.com
    16. Re:Bad precedent by Anonymous Coward · · Score: 0

      I'll gladly pay taxes to a out-of-state retailer IF and ONLY IF I can also vote in their local- and state- wide elections. Without representation, it could be far too easy for a state to say "fuck you" to anyone buying out of state, so much that it drives away commerce.

      So, for those who are okay with taxation without representation, GFY.

    17. Re:Bad precedent by DogDude · · Score: 1

      Bingo. Expecting Internet retailers to collect your sales tax is another case of fscking over the little guy who can't afford to waste their time collecting dozens of taxes for different states.

      Uh huh. Yeah. Every heard of "computers"? They're really good at storing and crunching numbers. I bet there are a few online retailers that own "computers".

      --
      I don't respond to AC's.
    18. Re:Bad precedent by the+eric+conspiracy · · Score: 1

      Amazon has physical facilities in Indiana. They were operating under a previous exemption which was recently negotiated away.

      As usual the summary is pants because it doesn't clearly identify the important issues.

    19. Re:Bad precedent by the+eric+conspiracy · · Score: 2

      Amazon has a physical presence in Indiana. They have been operating a distribution center there. This is not interstate commerce.

    20. Re:Bad precedent by Pecisk · · Score: 1

      So in nutshell we again are against progress because some politician are afraid to loose job or say his peers to get into something else. You can't hope to stay on just trading forever.

      --
      user@ubuntubox:~$ stfu This server is going down for shutdown NOW!
    21. Re:Bad precedent by xero314 · · Score: 1

      I wouldn't call Ron Paul a racist. He may have racist staff who wrote something in his newsletters, but he distanced himself from it.

      At least your not disputing that he is a "loon," he's just not racist. Bat shit fucking crazy, sure, but not a racist.

    22. Re:Bad precedent by Anonymous Coward · · Score: 0

      Is it looney to want to abolish all those entities the constitution did not grant the government? Is it also looney to abandon all initiatives not granted by the constitution?

    23. Re:Bad precedent by Anonymous Coward · · Score: 0

      Are you retarded?

      If an out-of-state online retailer charges sales tax, it is the rate where you live and they send that money to the state/county/city/whatever where you live. The state the online retailer is operating in doesn't get that sales tax.

      Why are so many ./ers so fucking retarded?

    24. Re:Bad precedent by rossdee · · Score: 1

      But Amazon is in Indiana - I get packages shipped from there a lot.

      At least the Indianians (or whatever they are called) have 2 years to move to another state.

    25. Re:Bad precedent by salesgeek · · Score: 1

      That is how California and New York tried to force Amazon to collect sales tax and it had devastating results for those states as in the affiliates went out of business or moved. Claiming independent contractors are a nexus is legally dubious, but expensive for the contractor to fight. In Indiana they have a big building with their name on it, so the situation is very, very different.

      --
      -- $G
    26. Re:Bad precedent by lwriemen · · Score: 1

      No huge burden on the internet seller. They probably have computers, which should be able to read the value of buyer's billing address' state and look up the tax rate in a table. The hardest part is maintaining the tax rate table, which the internet seller should shift the burden of updating back to the states. Again this could be automated, as the states probably have computers as well. This is why the daylight savings argument concerning business dealings with Indiana was such bullshit. Most businesses that do interstate commerce have computers that can tell them what time it is in another state. They also don't seem to have any problems dealing with India, Japan, China, and other companies that don't observe DST.

    27. Re:Bad precedent by compro01 · · Score: 1

      They didn't fight it in this case because there's no way in hell they'd win. Amazon has several major distribution centers in Indiana, so they have the "physical presence in the state" required by Quill Corp. v. North Dakota.

      --
      upon the advice of my lawyer, i have no sig at this time
    28. Re:Bad precedent by Kalriath · · Score: 1

      Quit being disingenuous. Calculating the taxes probably isn't the problem. Keeping track of changes when someone makes a last minute change for a natural disaster or a budget deficit, not so easy. Filling in the forms, one for each jurisdiction, also not so easy. Remitting the taxes to all of the jurisdictions, also not so easy. And then there's the problem that overseas retailers instantly get a leg up over local or even out of state retailers because they wont have to pay taxes.

      Oh wait, you're the same guy I had this argument with last time. Hell if I'm bothering this time, your mind is as made up as a brick house.

      --
      For a site about things like basic rights, Slashdot users sure do like to censor "dissent".
    29. Re:Bad precedent by Kalriath · · Score: 1

      Yes, yes it is. Your constitution was not written in a time with things like Nuclear Energy, Mobile Telephones, Television, Radios, etc. Some regulation is needed, and it's much more efficient to regulate at the national level.

      --
      For a site about things like basic rights, Slashdot users sure do like to censor "dissent".
  7. Another reason not to move to Indiana by ShavedOrangutan · · Score: 1, Insightful

    As if I needed another.

    What I remember most about the state are the tolls on I80. They must like their taxes!

    --
    Godaddy is a scam and a ripoff.
    1. Re:Another reason not to move to Indiana by Anonymous Coward · · Score: 0

      huh? I80 isn't a toll road here... you must be thinking of illinois.

    2. Re:Another reason not to move to Indiana by Ichijo · · Score: 1

      Tolls aren't taxes because they're "imposed for a specific benefit...to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the State of conferring the benefit or granting the privilege to the payor." (source)

      Every dollar collected in tolls is a dollar that doesn't need to be taxed. So if you oppose taxes, you must be in favor of tolls.

      --
      Any sufficiently unpopular but cohesive argument is indistinguishable from trolling.
    3. Re:Another reason not to move to Indiana by witherstaff · · Score: 1

      At least you were going east west.If you're trying to go from North to South, driving down the 55 MPH US 31 route of Indiana makes corn go by very very slowly. They're the crossroads of America because they are not enough Interstates around and literally have crossroads on major highways.

    4. Re:Another reason not to move to Indiana by Mashiki · · Score: 1

      Ah you could always move to various parts of Canada. I remember people whining that they'd do that. Well here's a breakdown of taxes up here:
      Federal sales tax
      Provincial sales taxes(and territory taxes)
      Income tax
      Local taxes(property and again provincial taxes on income) -- though these don't come off your pay)
      User taxes if you live in some cities.
      Triple to quadruple taxes at the pump(Fuel surcharge+HST+excise tax+HST again -- you may only see a PST tax or GST)
      Oh I can't forget CPP and UI either.

      Last paycheck I brought home was 3200 in gross, with 1100 in income tax, with another 600 and change gone in various provincial taxes and 300 or so in UI and CPP, I know I'm missing a lot. Though there was a lot of overtime involved because of christmas/new years. My net was around $1300 for the week.

      I'm in the middleclass bracket 52-74k/yr. But that's a lot of money to lose in one week.

      --
      Om, nomnomnom...
    5. Re:Another reason not to move to Indiana by mrmeval · · Score: 1

      Our illustrious prince of darkness Governor Daniels sold the toll roads to foreign interests because Governor Daniels and every administration since it was made a toll road was too incompetent to make a profit at it.

      GD is called the prince of darkness because he implemented daylight savings time to save electric costs money and suck up to shicago businesses yet a study showed it cost us 12 million a year in wasted electricity costs.

      GD has been trying to sell of other functions of government. There is now a stiff resistance to such chicanery.

      GD however is better than Goldstein who never saw a bribe he didn't like and had sold off about every public service in Indianapolis to crooks. Goldstein's corruption offended his party across the state so much he couldn't win nomination for governor even with 3 million dollars which was vastly larger campaign fund than any other candidate. I recall seeing signs for the democrat governor candidate in yards festooned with signs for republican candidates.

      --
      I'd go on a Vegan diet but the delivery time from Vega is too long. --brownkitty
    6. Re:Another reason not to move to Indiana by drsmithy · · Score: 1

      Last paycheck I brought home was 3200 in gross, with 1100 in income tax, with another 600 and change gone in various provincial taxes and 300 or so in UI and CPP, I know I'm missing a lot. Though there was a lot of overtime involved because of christmas/new years. My net was around $1300 for the week.

      $3200/wk gross puts you at ca. $166k/yr.

      This on $166k/yr, your overall federal income tax should be $28,020 + (166,000 - 132,406)*0.29 = $37,762.26. Or $726/wk, not $1100.

      I'm in the middleclass bracket 52-74k/yr. But that's a lot of money to lose in one week.

      So let's use the same table at $74k/yr. That means your federal income tax should be 6,406 + (74,000 - 42,707)*0.22 = $13,290.46, or $256/wk.

      Something here doesn't add up.

    7. Re:Another reason not to move to Indiana by Pope · · Score: 1

      $3200/wk gross puts you at ca. $166k/yr.

      That's not what he said. He said paycheck, which is every 2 weeks.
      $3200 x 24 = $76,800.

      --
      It doesn't mean much now, it's built for the future.
    8. Re:Another reason not to move to Indiana by compro01 · · Score: 1

      I think you need to double-check your TD1 forms. Your withholding numbers do not add up.

      --
      upon the advice of my lawyer, i have no sig at this time
    9. Re:Another reason not to move to Indiana by Anonymous Coward · · Score: 0

      yes it is..i-80 is a toll road across the entire state after 80/94 split east of 65

    10. Re:Another reason not to move to Indiana by drsmithy · · Score: 1

      That's not what he said. He said paycheck, which is every 2 weeks.

      Protip: not everyone is paid on the same schedule. So just saying "I get $X" is rather ambiguous.

      When he wrapped up the paragraph with "my net was around $1300 for the week", the assumption of a weekly pay seemed reasonable.

      Just in case, though, and because of the "I'm in the middleclass bracket 52-74k/yr", I put in the numbers for a $74k income as well - and it still doesn't add up. At $76,800, with a fortnightly pay, he should be losing about $535 in federal income tax.

  8. Online Retailers Will Still Win by Jhyrryl · · Score: 1

    They can claim that online retailers have an unfair advantage and pass this legislation. What they will discover is that the online retailers will still win customers' money.

    --
    Jhyrryl
    1. Re:Online Retailers Will Still Win by icebraining · · Score: 1

      It's Amazon themselves saying that the legislation should be passed.

    2. Re:Online Retailers Will Still Win by reboot246 · · Score: 1

      That's probably right. The selection online is simply better and comparison shopping is easier. Sure, I might find what I want locally if I look hard enough, pay higher prices, drive to enough stores, and spend oodles of $$ on gasoline. But most of the time I can't find what I want or need in a brick & mortar store locally.

      If I have to pay a little bit in taxes to shop online, I'm still saving money.

      My feelings on taxing online sales is this: If nobody in my state sells an item, then don't make me pay taxes on it because I had to buy it somewhere else.

    3. Re:Online Retailers Will Still Win by Jhyrryl · · Score: 1

      Amazon made an agreement; that doesn't mean that they were actively asking to be taxed. From the article:

      "[The agreement] follows a lawsuit by Indianapolis-based shopping mall owner Simon Property Group against the state over the issue and a lobbying push on state legislators by traditional retailers to end what they call an unfair price advantage for online retailers."

      --
      Jhyrryl
    4. Re:Online Retailers Will Still Win by Jhyrryl · · Score: 1

      To be fair, the article does state that Amazon supports such legislation. But again, they aren't being pro-active in collecting said tax and providing it to appropriate states; they are only responding to pressure from states on a case-by-case basis.

      --
      Jhyrryl
    5. Re:Online Retailers Will Still Win by DogDude · · Score: 1

      I hate to say it, but you're right. Most people are lazy and selfish. If they can save $0.05 on the latest trinket, they'll buy online instead of supporting their neighbors or lifting their extra large butt off the couch.

      --
      I don't respond to AC's.
  9. physical remailers? by Anonymous Coward · · Score: 0

    Sounds like some enterprising person could establish a business with an address in another state that would act as your shipping address (which I'm sure is how they figure out whether to collect the tax) and then forward packages on to residents of Indiana. It would only be viable for expensive items, but it'd probably be worthwhile enough of the time.

    1. Re:physical remailers? by fnj · · Score: 1

      Sounds like some enterprising person could establish a business with an address in another state that would act as your shipping address (which I'm sure is how they figure out whether to collect the tax) and then forward packages on to residents of Indiana. It would only be viable for expensive items, but it'd probably be worthwhile enough of the time.

      It's a great idea, but I'm afraid this business would immediately get shut down as a fraud. Somebody who is not the buyer effectively posing as the buyer would be frowned upon.

    2. Re:physical remailers? by Obfuscant · · Score: 1

      It's a great idea, but I'm afraid this business would immediately get shut down as a fraud. Somebody who is not the buyer effectively posing as the buyer would be frowned upon.

      And yet, they exist today. Google "remailing services". Top of the sponsored links:USA2ME.

      Nobody is "effectively posing" as anyone. You're using a ship-to address that shows up one place, and you are paying someone there to reship it. Who cares if it is "frowned upon" as long as it is legal?

  10. Filed Under "W" For "Whatever" by konohitowa · · Score: 4, Insightful

    The only beneficiary of this will be the state of Indiana. Amazon's prices are already (typically) lower than what I can get them for in a store and I don't have to put up with parking lots, shitty cashiers, nor someone trying to pressure me into getting the "extended warranty". I don't have to wander around the store trying to find it, and I don't have to deal with my items either not being carried by them or else out of stock. And now Amazon has the right to demand the same level of government services that the brick-and-mortar retailers are getting. So 3 years from now, when the anachronistic "main street" retailers finally figure out that sales tax wasn't the issue, it will likely be too late for them to do anything about it.

    1. Re:Filed Under "W" For "Whatever" by DogDude · · Score: 1

      You get what you pay for. Why are you bitching about crappy service at big box stores?

      --
      I don't respond to AC's.
    2. Re:Filed Under "W" For "Whatever" by Anonymous Coward · · Score: 0

      So 3 years from now, when the anachronistic "main street" retailers finally figure out that sales tax wasn't the issue, it will likely be too late for them to do anything about it.

      Very well made point. In fact, the same idea was covered in this recent article: Why Best Buy is Going Out of Business...Gradually

    3. Re:Filed Under "W" For "Whatever" by konohitowa · · Score: 1

      I pay the same or less at Amazon and don't have to deal with it. I'm not bitching, I'm shopping elsewhere and pointing out why; it's not sales tax.

  11. Fair's fair. by purplie · · Score: 5, Insightful

    Retailers gripe about people using their shop for browsing, then buying on Amazon --- but nobody mentions the people (I'm one) who use Amazon for reading reviews, while they're shopping and buying in the retail store.

    As far as the tax goes --- I don't buy it. Local taxes help pay for local services. The fireman will come if there's a fire in their shop. Amazon already pays taxes in the location where they do business, and the fireman will come if there's a fire in their warehouse. And UPS and other shippers pay taxes where they operate, too.

    1. Re:Fair's fair. by David+Greene · · Score: 1

      Retailers gripe about people using their shop for browsing, then buying on Amazon --- but nobody mentions the people (I'm one) who use Amazon for reading reviews, while they're shopping and buying in the retail store.

      I do this all the time. I always buy as locally as I can both to support local businesses and to ensure that the public interest is served with the tax money I owe. Amazon does provide a nice review service, though I usually look other places first. That said, I will buy from an online retailer if I can't find the item anywhere else, which is distressingly more and more common.

      I don't buy the "Amazon has no presence and thus no responsibility" argument. Amazon benefits hugely from local investments, from schools to roads (not fully paid for by the shippers, BTW), to public internet infrastructure. They have a responsibility to collect the taxes that contribute to upkeep of local infrastructure.

      --

    2. Re:Fair's fair. by Anonymous Coward · · Score: 0

      "HOW DARE THEY GET AWAY WITH NOT BEING STOLEN FROM!"

      I'm glad I never fell prey to this particular form of Stockholm syndrome. I'll never blame the victim in place of the aggressor if I can help it.

    3. Re:Fair's fair. by silverhalide · · Score: 1

      Uhh, Amazon is operating one or more facilities in Indiana now: http://www.theindychannel.com/money/27824383/detail.html ..so good on Indiana for holding them to the same rules to which they hold other mail-order operations.

      Amazon tried and got away with this shit in South Carolina - they scored a sales tax exemption despite setting up operations in the state:
      http://www.huffingtonpost.com/2011/12/09/amazon-warehouse-spartanburg-county_n_1140145.html

      Now, why does Amazon get sales tax exemption with their nexus in the state, yet other mail order operations do not get sales tax exemptions? This is pure and simple government-corporate corruption, and only the small guy loses.

    4. Re:Fair's fair. by Ichijo · · Score: 1

      Amazon benefits hugely from local investments, from schools to roads (not fully paid for by the shippers, BTW), to public internet infrastructure. They have a responsibility to collect the taxes that contribute to upkeep of local infrastructure.

      It isn't Amazon's fault if the state doesn't charge the shippers enough to pay for the roads.

      --
      Any sufficiently unpopular but cohesive argument is indistinguishable from trolling.
    5. Re:Fair's fair. by gatkinso · · Score: 1

      This American fascination with fairness is killing us.

      Life is not fair. Life is about competition. This who compete best prevail.

      We used to be capitalists. Now we are fair.

      --
      I am very small, utmostly microscopic.
    6. Re:Fair's fair. by Anonymous Coward · · Score: 0

      customer reviews will be a thing of the past with SOPA anyway. Maybe with amazon and newegg where they can and do afford to pay moderators, but most other sites are probably doomed.

    7. Re:Fair's fair. by glodime · · Score: 1

      Yeah laws are stupid. Why are we paying for police? I should be able to kill anyone I want in the name of competition and capitalism.

      Seriously. Do some more thinking before you type.

    8. Re:Fair's fair. by glodime · · Score: 1

      I think you forgot about half of the participants of the buying on Amazon transaction, namely the customers. The purchasers living in Indiana still benefit from local services hence the tax on their transactions. Amazon benefits by having customers (some of which are in Indiana).

    9. Re:Fair's fair. by Anonymous Coward · · Score: 0

      Law of the jungle, is it? Then I suppose you have no problem with shoplifters, burglars, pick-pockets, embezzlers, con-artists, blackmailers, counterfeiters, and other competitive folks, right?

    10. Re:Fair's fair. by Anonymous Coward · · Score: 0

      This American fascination with fairness is killing us. Life is not fair. Life is about competition. This who compete best prevail. We used to be capitalists. Now we are fair.

      Are you serious? Capitalism needs free and open markets. Free as in fair. The basic tenets of capitalism is that everyone has an equal chance to compete, so the most efficient player wins. If you tax one group and not another, that's not free competition. That's the government putting it's finger on the scales.

  12. I live in Indiana by Cyberllama · · Score: 2

    And Amazon has been collecting taxes from me for ages. What the hell were those taxes?

    1. Re:I live in Indiana by Anonymous Coward · · Score: 0

      You've obviously been a special person. They don't collect taxes from me. I'd ask Amazon about refunding your paid amounts.

    2. Re:I live in Indiana by Anonymous Coward · · Score: 1, Funny

      Asshole Tax. :)

  13. Re:Fair's fair.... Fire fee by coppernicus · · Score: 1

    Unless they forget to pay their annual fee for fire dept. services.... http://www.rawstory.com/rs/2011/12/07/fire-dept-watches-home-burn-because-family-didnt/

  14. At least its not a "use" tax by ylleKnaD · · Score: 0

    I live in Indiana. I am not fond of sales taxes, but even less fond of "use" taxes.

    Indiana has attempted to tax internet and out-of-state purchases for years with a so-called "use" tax. There is a line on the income tax form where you are supposed to add up all out of state purchases where sales tax was not paid, and pay the equivalent sales tax rate for the right to use your purchased items in Indiana. The absurd thing about a "use" tax is it doesn't apply to purchases you paid other state's sales tax on.

    If you register a new car bought out of state, and you paid less sales tax on the car than Indiana would have charged, Indiana will charge you the difference in when you apply for title in Indiana. The only way around this is to title the car in the other state and transfer it to Indiana latter.

    1. Re:At least its not a "use" tax by Anonymous Coward · · Score: 0

      I avoid the USE tax by not using anything that I buy online. I just let it collect dust in my attic. Problem solved.

    2. Re:At least its not a "use" tax by shutdown+-p+now · · Score: 1

      Pretty much all states (and in Canada, provinces) that have sales tax also have use tax arranged as you describe above. What's absurd about it?

    3. Re:At least its not a "use" tax by Anonymous Coward · · Score: 0

      I use the stuff, but I use it entirely out of the state.

    4. Re:At least its not a "use" tax by Anonymous Coward · · Score: 0

      Just because we perceive something to be normal and routine doesn't make it not absurd. Heck, a good many Monty Python sketches revolved around hyperbolized normality, accentuating the absurdity of every-day situations.

    5. Re:At least its not a "use" tax by shutdown+-p+now · · Score: 1

      I don't see why use tax is any more absurd then sales tax in general.

    6. Re:At least its not a "use" tax by Kalriath · · Score: 1

      In New Zealand where I am, Customs will actually block and hold any package where the local Goods and Services Tax would exceed $50, and you have to go and pay the GST you would have paid if you bought it in a shop. Annoyingly, they include shipping in total value.

      --
      For a site about things like basic rights, Slashdot users sure do like to censor "dissent".
  15. Fair request by s.petry · · Score: 4, Insightful

    First off, none of us like paying taxes, including sales tax. This legislation in question won't do away with sales taxes, and the discussion here should not really be about the legality of sales taxes.

    With that disclaimer out of the way, I agree with the business owners. If I can buy something on line and not pay sales tax so get the good cheaper, how is that fair to a local store that must charge the sales tax? Simply put, it's not fair at all. Taxes should be based on the consumer's location, not the outlet's location. We do the same with insurance premiums, some interest rates, etc..

    The loophole for internet stores hurts smaller businesses. It favors large companies that can pack up and move to places with the lowest tax rates to attract consumers. Much the same way that interest rate premiums favor the state with the highest legal rates *caugh* Delaware *caugh*.

    As long as taxes are legal, I am all for making them as fair as possible.

    --

    -The wise argue that there are few absolutes, the fool argues that there are no probabilities.

    1. Re:Fair request by Obfuscant · · Score: 1

      If I can buy something on line and not pay sales tax so get the good cheaper, how is that fair to a local store that must charge the sales tax?

      That local store receives services from the local taxation district and Amazon does not. That local store chose to set up shop where they did, knowing that they had an additional cost to pass on to the customer. Mailorder isn't new. Sears and JCPenny were founded to deal with it, and their catalogs kept many rural residents warm and clean for decades.

      What other costs accepted by the local stores should be arbitrarily added to the mail order companies just to make things "fair"? Should Amazon be charged "property taxes" based on an estimated amount of property? Well, where they are located they have X amount of property, and they do Y% of business in this state, so we'll charge them property tax on 100*Y*X. Yes? It's only fair.

    2. Re:Fair request by misexistentialist · · Score: 1

      The loophole for internet stores hurts smaller businesses.

      More like it slightly reduced the competitiveness of stores in Amazon's league like Walmart. The internet was a refuge for some small businesses, but having their already high prices increase by 10% will kill sales.

    3. Re:Fair request by Jimbob+The+Mighty · · Score: 2

      I like paying taxes... they pay for things like health care... then again, I'm in Australia... what do taxes pay for in the US again?

    4. Re:Fair request by DogDude · · Score: 1

      Wars and corporate handouts.

      --
      I don't respond to AC's.
    5. Re:Fair request by Registered+Coward+v2 · · Score: 1

      If I can buy something on line and not pay sales tax so get the good cheaper, how is that fair to a local store that must charge the sales tax? Simply put, it's not fair at all. Taxes should be based on the consumer's location, not the outlet's location. We do the same with insurance premiums, some interest rates, etc..

      The loophole for internet stores hurts smaller businesses. It favors large companies that can pack up and move to places with the lowest tax rates to attract consumers. Much the same way that interest rate premiums favor the state with the highest legal rates *caugh* Delaware *caugh*.

      As long as taxes are legal, I am all for making them as fair as possible.

      This isn't about fairness - it's about using the tax system to maintain a competitive - in this case, Amazon's. Amazon has reached a point where it's economies of scale pretty much let it ensure it will be competitive with brick and mortar - even with tax and shipping. With it's size, small retailers can't compete even with tax; and the big guys such as Walmart already have pricing that is competitive. For example, I just ordered something from Walmart online and had it shipped to the store (for free) for less than it cost at Amazon, even with WM charging me sales tax. This does create a barrier to entry because a small company would not have the scope or clout to get the kind of deals Amazon does, and so would find it hard to compete online or in the B&M world. A small company that tried to go online would probably spend far greater a percentage, than amazon, of its revenue just collecting and remitting all the various taxes; making it less likely to create an online presence. As a result, the bigger players will prosper and as the smaller ones die out they'll be able to raise prices to increase their profitability. They will be the real winners as this plays out; and the politicians will be left scratching their heads wondering what happened.

      Of course, many stores that sell online, which often appear to be online operations of a local store, tout the lack of sales tax - it seems that have no trouble benefiting from the same loophole they decry. Phase two will probably be them trying to carve out a minimum sales volume exception so they can continue to sell online tax free while being protected from big bad Amazon; so they can continue to take business form someone else's B&M location.

      --
      I'm a consultant - I convert gibberish into cash-flow.
    6. Re:Fair request by kidgenius · · Score: 1

      This isn't the business paying taxes. This isn't the businesses receiving services from a local district. This is about you, as a citizen, receiving those services and being required to pay taxes on things you buy. There are two ways to do this. Either the business collects the tax from you on behalf of the district, or you have to file the taxes with the district. So, when you buy things out of state, the business doesn't collect for your district. Therefore, you are usually required to pay that tax through a "use" tax for the services that you "use" in your local district.

    7. Re:Fair request by Nethead · · Score: 1

      The invention of the Internet, so I can torrent episodes of Master Chef Australia and MKR,

      --
      -- I have a private email server in my basement.
    8. Re:Fair request by Anonymous Coward · · Score: 0

      Do you actually think the difference in price between Amazon and say B&N or Best Buy is because of taxes?

      ROFLCOPTER

    9. Re:Fair request by Anonymous Coward · · Score: 0

      Small business owners think that I will buy goods from their stores if the online versions are made to be the same price as what they offer.

      I buy online because I often can't afford local store prices.

      Moves to tax online shops are not going to get local businesses any more money from me. I will simply do without. Nobody wins.

    10. Re:Fair request by asylumx · · Score: 1

      Taxes should be based on the consumer's location, not the outlet's location.

      So if I drive to work in Michigan, order a product from Amazon (based in seattle) and have it shipped to my home in Indiana, who gets the sales tax?

    11. Re:Fair request by TobesWSU · · Score: 1

      Sales taxes aren't taxes on businesses, but rather taxes on the populace that are collected by businesses rather than trying to collect from every individual. Local brick and morter shops fall under the authority of local governments and thus have to collect the tax. Online stores don't fall under these governments' jurisdictions and thus don't have to collect it the tax that is still technically owed by residents. People are supposed to report mail-order and internet purchases to the state when filling out their taxes but enforcing this is rather difficult. Amazon has distribution centers in Indiana but until now has been able to legally say that Indiana residents are purchasing goods from their centers in other states. Either local governments have to move away from sales taxes or convince the federal government to enforce such taxes.

    12. Re:Fair request by s.petry · · Score: 1

      I love partial truths.

      That local store receives services from the local taxation district and Amazon does not.

      Which are covered under different taxes. Property tax, unemployment taxes, zoning taxes, service taxes, and income taxes for City, State and Federal for all employees including owners.

      That local store chose to set up shop where they did, knowing that they had an additional cost to pass on to the customer.

      And you believe that Amazon did not set up shop where they did for a reason also? So that they would be able to lure customers to them because of a tax loophole? Puhleeze

      Mailorder isn't new. Sears and JCPenny were founded to deal with it, and their catalogs kept many rural residents warm and clean for decades.

      Mail order always has sales tax associated with it. The same tax you pay if you purchase at the store applies to a mail order purchase from Sears.

      What other costs accepted by the local stores should be arbitrarily added to the mail order companies just to make things "fair"? Should Amazon be charged "property taxes" based on an estimated amount of property? Well, where they are located they have X amount of property, and they do Y% of business in this state, so we'll charge them property tax on 100*Y*X. Yes? It's only fair.

      They are assessed taxes for every location that they own. Those taxes have nothing to do with sales tax. Those are called property taxes, zoning taxes, and other special taxes that can be assessed to a business property.

      Like I said at the start, the question is not legality of income, sales or property tax. The question here is whether or not the taxes are being applied fairly. They are not being applied fairly. Local retailers must charge sales tax, where as a web front store has been able to circumvent sales tax, giving them a huge advantage on sales especially with high dollar value items.

      --

      -The wise argue that there are few absolutes, the fool argues that there are no probabilities.

    13. Re:Fair request by s.petry · · Score: 1

      As someone else mentioned, wars is a good one. Also if a rich person loses a dollar, the government will hand them 5 and apologize for the middle class stupidity that caused them to lose the dollar.

      --

      -The wise argue that there are few absolutes, the fool argues that there are no probabilities.

    14. Re:Fair request by s.petry · · Score: 1

      This isn't about fairness -

      Sorry, but fair application of sales tax is the basis for the request. It's written all over the place in a whole lot of ways to make sure people know that is the reason.

      A small company that tried to go online would probably spend far greater a percentage, than amazon, of its revenue just collecting and remitting all the various taxes

      Really? Sales tax is that complex? Sorry, but it really is not. Some items may have increased sales tax rates in some states, but I'd be willing to bet a donut that very few stores would carry more than 2 brackets worth. Even if you did, it's not that complex of a system and if you carry more (Wall Mart) I am sure you can afford the minor amount of programming it takes for each bracket.

      if(classofShippedGood == hazmat){Saletax == 12.5}else{Salestax == 8};

      Wholly crap! Wallmart may have to use a case instead of an if statement!

      As a result, the bigger players will prosper and as the smaller ones die out they'll be able to raise prices to increase their profitability. They will be the real winners as this plays out; and the politicians will be left scratching their heads wondering what happened.

      That is pretty much the point I started with. If a large player has an unfair advantage, it harms consumers. The playing field should be level. Long ago I would agree that the Internet was a level field, but not since Bush I, "Idea Patents", and so many other laws that distort the field in favor of big players.

      --

      -The wise argue that there are few absolutes, the fool argues that there are no probabilities.

    15. Re:Fair request by Registered+Coward+v2 · · Score: 1

      This isn't about fairness -

      Sorry, but fair application of sales tax is the basis for the request. It's written all over the place in a whole lot of ways to make sure people know that is the reason.

      I've found the more "fairness" is mentioned the less it is about that than preserving a company's competitive position.

      A small company that tried to go online would probably spend far greater a percentage, than amazon, of its revenue just collecting and remitting all the various taxes

      Really? Sales tax is that complex? Sorry, but it really is not. Some items may have increased sales tax rates in some states, but I'd be willing to bet a donut that very few stores would carry more than 2 brackets worth. Even if you did, it's not that complex of a system and if you carry more (Wall Mart) I am sure you can afford the minor amount of programming it takes for each bracket.

      if(classofShippedGood == hazmat){Saletax == 12.5}else{Salestax == 8};

      Wholly crap! Wallmart may have to use a case instead of an if statement!

      Well, it's more than just class of good it's also location. For example, for my zip code, the tax rate depends on the county you're in - and the zip code crosses county boundaries; plus what ever local option sales tax a county or city adds to the base rate. Multiply that by the number of tax authorities and it's a bit more complex than your example.

      As a result, the bigger players will prosper and as the smaller ones die out they'll be able to raise prices to increase their profitability. They will be the real winners as this plays out; and the politicians will be left scratching their heads wondering what happened.

      That is pretty much the point I started with. If a large player has an unfair advantage, it harms consumers. The playing field should be level. Long ago I would agree that the Internet was a level field, but not since Bush I, "Idea Patents", and so many other laws that distort the field in favor of big players.

      And this law will help strengthen the large player advantages, as I have pointed out. It's a classic example of regulatory capture and how incumbents use it to minimize competitive threats.

      --
      I'm a consultant - I convert gibberish into cash-flow.
  16. Just paid tax on an Amazon purchase today by izomiac · · Score: 2

    Amazon had a nice sell today on Kindle versions of several textbooks, and I noticed that I was charged my state's sales tax to download them (no Amazon datacenters are in my state). IMHO, Amazon should place the name/picture of the legislator responsible right next to that line item. Preferably holding money bags.

    1. Re:Just paid tax on an Amazon purchase today by Dynedain · · Score: 1

      no Amazon datacenters are in my state

      You sure about that? Are you sure that there isn't a distribution center? That would constitute a physical presence as well.

      --
      I'm out of my mind right now, but feel free to leave a message.....
  17. Good, More Progress! by David+Greene · · Score: 2, Insightful

    This is really overdue. Not only does sales tax exemption create an unfair advantage for out-of-state retailers (which is bad for the local and thus national economy), it depletes funding for civilization. And yes, Amazon does use public infrastructure to operate its business and no, shippers do not pay the Amazon's share of that infrastructure. Amazon uses all sorts of local services. Amazon operates as part of our civilization and thus should be contributing to its upkeep.

    --

    1. Re:Good, More Progress! by harvey+the+nerd · · Score: 1, Informative

      Taxes are a price we pay to distort and destroy civilization, sort of like bashing the pinata.

    2. Re:Good, More Progress! by Anonymous Coward · · Score: 1, Informative

      Funding for civilization? Oh please. Only if you equate big government with civilization. I think this is a be regressive step for Indiana. Instead of forcing Amazon to collect taxes, they should step up and stop forcing local retailers to collect taxes. That would be much healthier for the economy.

    3. Re:Good, More Progress! by Braino420 · · Score: 1
      Sales tax is a tax paid by the purchaser and not Amazon. It's not like Amazon is going to begin charging different rates based on your state's tax percent (which is the implication you make when you say Amazon pays the tax); the extra tax gets past on directly to the consumer.

      Not only does sales tax exemption create an unfair advantage for out-of-state retailers

      I don't buy this because the local brick and mortar stores have the same advantage; they just (seem to) choose not to exercise it. That's 49 other states they could be selling sales-tax free goods, which is actually more of an advantage than Amazon gets. That's the trade off: you own a brick and mortar store, you enjoy those benefits. I'm not entirely sure what those benefits are, and I'm not that interested because it was the B&M store's decision and tradeoff.

      Then there are the "main street fairness" groups, made up of stores such as wal-mart who get neither advantage - they are in most (every?) state so they must charge sales tax regardless, online or not. For them it makes sense to go up against Amazon. It's just that it's a bit harder to feel sorry for wal-mart, who has also enjoyed its own state tax-breaks (tax breaks directly for wal-mart, not being exempt from collecting sales tax from consumers). That's the reason alarm bells should be going off for these b&m stores - these are obvious trends that push for them to begin business online, but instead they choose to ignore those trends and ally with their historical worst enemy.

      However, the idea that a store should collect local sales tax regardless of nexus seems to exclusively hurt small online business owners who have no hope of paying for software to track the various state/city/county sales taxes. This would also close the advantage of a small b&m business to exploit the lack of nexuses in different states. I believe then that "fairest" sales tax would be an even nation-wide sales tax - and that's actually what Amazon wants.

      --
      They call me the wookie man, I guess that's what I am
    4. Re:Good, More Progress! by DogDude · · Score: 2

      However, the idea that a store should collect local sales tax regardless of nexus seems to exclusively hurt small online business owners who have no hope of paying for software to track the various state/city/county sales taxes

      Uh, no. It's already done with payroll subscriptions. It's not prohibitively expensive. It's $200/year for payroll updates. It'd be included in all accounting packages pretty quickly, I'm guessing.

      --
      I don't respond to AC's.
    5. Re:Good, More Progress! by Braino420 · · Score: 0

      I'm sorry, what does payroll subscriptions have to do with anything? Thanks for letting me know the price, I'll remember that if I'm in the market. If you had not quoted my post, I would have thought you accidentally replied to the wrong post.

      Now anyway, I'm actually in the online retail business, so I may have a better grip on the price of such things. These companies that keep track of this stuff already exist, and the price is considerable enough that you must negotiate with a sales person. As in, you aren't getting it for some flat rate costing merely hundreds of dollars. My employer must charge sales tax in only 2 states (our nexus and our parent companies' nexus), for which we must buy a ~$20k/year package. I'm not sure on whether this includes all states, but I doubt it. In my opinion, that's a bit much for a small online business.

      Sales tax is incredibly complex and must be specific down to the address, not only this but it is dynamic. I'm sure if we sold a wider range of products the taxes would change based on that as well. Some states/cities/counties charge taxes based on the type of product.

      Also, your comment reads like something I would see on youtube. Don't bother to reply, you add nothing of value.

      --
      They call me the wookie man, I guess that's what I am
    6. Re:Good, More Progress! by DogDude · · Score: 2

      It sounds like your employer is an idiot. Sorry.

      http://www.zip2tax.com/z2t_Services.asp

      --
      I don't respond to AC's.
    7. Re:Good, More Progress! by Braino420 · · Score: 1

      Please try to keep up. The link you give is for state sales tax only, do you remember any other taxes that may need to be collected that I mentioned? State sales tax only is a joke - most states are joined together to provide a consistent state sales tax. However, the ones that don't will also sometimes allow their cities and counties to have their own sales taxes.

      --
      They call me the wookie man, I guess that's what I am
    8. Re:Good, More Progress! by Braino420 · · Score: 1

      My apologies - the site does include other local taxes. My boss just said that we are currently maintaining sales tax info manually - and that the bigger companies such as veritax will charge 50K for such a service. He was highly skeptical of the site you linked to, but said he would look into it.

      --
      They call me the wookie man, I guess that's what I am
    9. Re:Good, More Progress! by Braino420 · · Score: 1

      Boss got back to me - the problem with the site you linked to is that it only takes zip code as a parameters. The issue is that about 20K zip codes cross county lines, which is why the full address is needed to get accurate sales tax info. Meaning, the site you linked to will give inaccurate results for some addresses.

      --
      They call me the wookie man, I guess that's what I am
  18. Haha tax by Anonymous Coward · · Score: 0

    Tax is for suckers who are too stupid to avoid paying it.

  19. Tripple dipping by Anonymous Coward · · Score: 2, Interesting

    They tax your money when you earn it. They tax it when you spend it. And they continue taxing you so long as you keep what you spent it on.

    Also, they tax you extra for living in specific regions and again for working in specific regions, sometimes.

    The only to escape taxes is to be very rich.

    Humans are awesome.

    1. Re:Tripple dipping by macson_g · · Score: 1

      It' not 'they'. It's your government, elected by you and/or another people living in the same country you choose to live in.

    2. Re:Tripple dipping by tmosley · · Score: 1

      Yeah, sure, we "chose" it, therefore we are obligated to do whatever our masters say without protest.

  20. expatriate ripoffs by harvey+the+nerd · · Score: 2

    Expatriate ripoff. The kids are living in the US receiving your mail including online bargain sales, or vice versa. With periodic pickups from travellers either way, state use/sales are a form of extortion, ripping off out of state residents. The "commercial license" or "refund application" bs just doesn't work. Guess we should buy direct from China or India, skip the middle (tax)man.

  21. Things end with a whine by Anonymous Coward · · Score: 1

    Isn't it funny as American consumption starts to dive, that suddenly we think collecting state taxes outside of the state boundaries will somehow help states remain competitive? By the same logic, we could tax imports from China to aid American industry... unfortunately, it would just cause more people to enter poverty, since incomes have declined (after accounting for inflation) and the only thing maintaining American quality of life is substitution of goods (i.e., cheaper goods trying to do the same thing, just not for as long).

    So, government should protect high-priced retailers from big-bad open market, since the retailers aren't competitive. Such an argument isn't capitalist and only represents the corruption within the American government (i.e., through lobbying and kickbacks).

  22. So if I travel to a Seattle bookstore... by jjoelc · · Score: 1

    Let me get his straight.. Just because the person BUYING the goods lives in a place with sales taxes, they should pay that same tax no matter where they are buying from?

    So.. let's say I live in Indiana, and I go visit family in Seattle. (Everyone with me so far?...) I go to a bookstore in Seattle, choose a book to buy and stand in line at the checkout counter. The cashier checks my ID and adds another x% to the price of my book because I live in Indiana.

    If they really want it to be fair, it should cut both ways. I propose that all brick and mortar stores in Indiana be required to collect any taxes required by the buyer's place of residence. (I'm not sure how much of an international destination anything in Indiana is.. but this should of course also include VAT for the UK, etc. as well....)

    1. Re:So if I travel to a Seattle bookstore... by Anonymous Coward · · Score: 0

      No you get to pay the 9.5% WA sales tax. Paying IN tax would be better.

    2. Re:So if I travel to a Seattle bookstore... by Anonymous Coward · · Score: 0

      You might have a point here. I mean, if it's OK for online retailers to have to figure out all the addressed based taxes, then yes, ALL stores, including brick and mortar ones should be required.

      F*K them all. Stop buying.

    3. Re:So if I travel to a Seattle bookstore... by jjoelc · · Score: 1

      No... You pay both. Because the store has to pay the local taxes.. and the buyer has to pay their local taxes. Plus a "convenience fee" of course, for the overhead of the store having to keep track of every tax in the world, and paying them accordingly.

    4. Re:So if I travel to a Seattle bookstore... by j_sp_r · · Score: 1

      If I take goods from the US to the Netherlands, I have to declare them and pay 19% VAT on them. I do get an exemption for E430,- in goods and they are pretty lenient (aka as long as the expensive items you brought don't add up to more than E430,- you're usually OK).

      I think I can subtract any sales tax I paid in the US from the 19% and only pay the difference, but I'm not sure.

    5. Re:So if I travel to a Seattle bookstore... by Anonymous Coward · · Score: 1

      NYC (or maybe the state of NY) tried to collect residency-based sales tax at some time in the past decade or so by having officials from NY cross the river into NJ to tax New Yorkers who shopped at IKEA/other mega-outlets on the NJ side of the Hudson. iirc, the NY officials would leave "threatening" letters on cars that had NY license plates, demanding that the car owner produce the receipt from the purchase made at that store on that day and pay the NY sales tax on that purchase. NY claimed that they were entitled to collect sales tax from New Yorkers who intentionally shopped in NJ just to avoid the higher NY city and/or state sales tax. I don't know how much NY collected, but I do recall that many people ignored NY's lame attempt at recouping tax revenue.

    6. Re:So if I travel to a Seattle bookstore... by ironjaw33 · · Score: 1

      No... You pay both. Because the store has to pay the local taxes.. and the buyer has to pay their local taxes. Plus a "convenience fee" of course, for the overhead of the store having to keep track of every tax in the world, and paying them accordingly.

      For awhile, I worked in one state while living in another, which got weird with income tax. In the case of income tax, most states have reciprocity agreements where wages earned in one state are exempt from taxation in the resident state. With sales taxes, there isn't any reciprocity agreement, but if there was, in the GP's example, he would pay Washington sales tax and be exempt from Indiana.

  23. WHY would there be sales taxes? by Oxford_Comma_Lover · · Score: 3, Informative

    What service does the state provide that justifies charging a sales tax rate to out-of-state-businesses comparable to those of in-state businesses? While there is some use--i.e. the roads--for the most part the out-of-state business requires fewer state resources, and the state is not justified in collecting that tax on the basis of the business presence. That being said, sales taxes are formally taxes on people, which makes them superior in certain ways to income taxes--because they're closer to taxing *consumption*. Thus the state taxes the consumption of things consumed within the state. The problem with this, of course, is that it isn't nearly so redistributive as the income tax; the advantage is that it actually taxes monies other than ordinary income.

    Meh. I'm not going to think about this now.

    --
    -- IANAL, this isn't legal advice, and definitely isn't legal advice for you. Also, Squee!
    1. Re:WHY would there be sales taxes? by RadioTV · · Score: 4, Informative

      Amazon has three distribution centers in Indiana and they are getting ready to open the fourth. I live in Indiana and I have to pay says tax to other online retailers that have a presence in Indiana, but not Amazon.

      --
      I have great faith in fools - self confidence my friends call it. - Edgar Allan Poe
    2. Re:WHY would there be sales taxes? by Dahamma · · Score: 5, Insightful

      It's not a tax on the business, it's a tax on the buyer. The difference here is not that the buyer is not still supposed to pay, it's that Amazon will now handle the collection, because that's 1000x times more efficient than trying to enforce it for every single person in the state(s) collecting it.

      And, the complaint from in-state businesses is not that the Amazon, etc is using resources of their state, it's that they are able to compete unfairly with a sometimes 9+% price break. Sure, it can hurt huge companies like Wal-mart with a physical presence in all states, but ironically it's even *worse* for the small, local businesses who are already being hurt by Wal-mart's physical presence...

    3. Re:WHY would there be sales taxes? by the+eric+conspiracy · · Score: 1

      Amazon is not an out of state business. They operate distribution centers in Indiana.

    4. Re:WHY would there be sales taxes? by Golddess · · Score: 2, Insightful

      Finally, a legitimate reason to require Amazon collect sales tax in Indiana. Real sick of all the "but the brick'n'morter stores have to" arguments. This isn't a new issue people. It's no different from a mail-order catalog.

      --
      "I'm not sure I like the fugnutish tone you used in your post!" -RogL (608926)-
    5. Re:WHY would there be sales taxes? by mysidia · · Score: 4, Insightful

      I live in Indiana and I have to pay says tax to other online retailers that have a presence in Indiana, but not Amazon.

      Because they aren't really "Amazon.com" distribution centers, perhaps?

      Because those "distribution centers" are most likely owned by a different company who just happens to have the name "Amazon" in their name, and just so happens to have an agreement with Amazon.Com that requires acquisition and shipment of materials on Amazon.com's instruction?

      Think of it this way... you can have a website named Amazon.com that has a large number of affiliates. The internet-based web site creates an illusion that you are dealing with one company, when you are actually dealing with a multi-level marketing scheme, and Amazon.COM is just the "image" and DBA you, the end user see.

      So, when you "order" an item, the order can transparently be sent to an "Affiliate" network member corporation that doesn't have any presence in the buyer's state, e.g. California if the buyer is in Indiana.

      Meanwhile... if someone in California buys something, their order could be sent to an Affiliate in Indiana whom will be the party they are legally buying the item from.

      And then the Amazon.com website's role is just a "Payment processor" and "Order aggregation" company, for the affiliate networks; they bring all the order to one place, and make the process of selecting the optimal affiliate invisible to the end-user.

    6. Re:WHY would there be sales taxes? by Anonymous Coward · · Score: 0

      And, the complaint from in-state businesses is not that the Amazon, etc is using resources of their state, it's that they are able to compete unfairly with a sometimes 9+% price break

      That old saw, once again. Here is my response, once again. Even with sales tax added, Amazon's prices are still less than brick and mortar, and they have a better selection too. This isn't going to fix anything, but will help finance pork barrel projects of the local government. It's Win-Win!!!

    7. Re:WHY would there be sales taxes? by Bob+the+Super+Hamste · · Score: 1

      And this is valid. If they didn't have a presence in the state then it is a different story as only the federal government could force them to pay sales taxes to a state under the interstate commerce clause but they would require congress passing a law to do so. As it currently stands with their presence it sounds like they got a sweetheart deal. I would be more pissed about that.

      --
      Time to offend someone
    8. Re:WHY would there be sales taxes? by asylumx · · Score: 1

      Kind of sounds like a franchise, doesn't it?

    9. Re:WHY would there be sales taxes? by Anonymous Coward · · Score: 0

      The difference here is not that the buyer is not still supposed to pay, it's that Amazon will now handle the collection, because that's 1000x times more efficient than trying to enforce it for every single person in the state(s) collecting it.

      ... and all it requires is forcing a private business into becoming a government tax collector in addition to running the business. Involuntary servitude isn't really involuntary if we've been forcing it on people for hundreds of years.

    10. Re:WHY would there be sales taxes? by ottothecow · · Score: 1
      But you can't walk into an Amazon store and buy anything. If you order online from best buy, you could just walk into a store instead. The state would have provided all sorts of things to make that possible--roads to get to the store, police and fire to make you safe while you shop there, a favorable business climate to make the store want to be open in that location, etc.

      Amazon may have a presence in the state (or some "employees" like the CA affiliate deal) but they don't exist as a location to do retail business which is all handled through their WA incorporated website. Sure, this distribution center benefits from similar things, but it does it like a warehouse. There should be sufficient taxes in its business income tax, the income and other taxes paid by its employees, the taxes paid by the delivery companies, etc.--just like a warehouse (when bestbuy gets new stock from a warehouse, it doesn't pay sales tax on the items...only the consumer does).

      When you pay sales tax in a store, you are saying "Thanks State, I was glad I could come here to buy this" (or "thanks state for making this store available to me but this time I decided to buy it online..but I will still be able to go return it to the store which is nice"). I am pretty sure Amazon would still sell to you without any state involvement...The state could actively dislike amazon and unless they shut down interstate shipping, they wouldn't be able to stop them from selling to you.

      Of course this is all moot since the real argument should be against sales tax in general. Horrible regressive taxes that hurt the poor far more than they hurt the rich (at least some states exempt food and clothing...)

      --
      Bottles.
  24. Just so long as.... by RobinEggs · · Score: 4, Insightful

    Yes, we probably need to raise taxes, but what we really really really have to do is cut spending.

    I disagree that spending cuts are the major priority; we could cut plenty of things plenty deeply, yes, but there's really no sustainable path on which we can continue to charge as little as we do in tax. It's basically impossible to charge the lowest rates in the developed world while simultaneously dominating the planet in military power AND science AND culture AND economic production, yet people seem to believe we can do just that if only we cut spending and lower taxes even further.

    But so long as you admit taxes should go up, I can agree with looking at spending first. It's certainly responsible to use what you have more carefully before you ask for more. Just so long as you're not one of those dumb fucks who thinks cutting spending alone can fix the problem we'll get along fine....

    I know that's inflammatory language, but seriously: who can be stupid enough to look at our federal budget and think we can even balance the deficit, much less pay off some debt, with spending cuts alone. It's a truly asinine notion, one which any fourth grade math assignment can easily refute, and yet it captivates (imprisons, at this point) a major political party.

    My brain almost refuses to believe that anyone could be so ignorant, so selfish and deluded, as to think fully 30% of our federal budget is waste and inexcusable handouts, all of which can be slashed without any remorse or negative consequences at all.

    And if you really want to have fun, look at the things Republicans want to cut out, and then look at the fraction of the budget they represent. The NIH, the NSF, foreign aid, the national endowment for the arts, public broadcasting money....all of that put together isn't even 0.5%, and yet they harp on each of those things, individually and extensively, like they're the pinnacle of waste and socialist excess.

    God dammit, I'm gonna need some heart medication soon.

    1. Re:Just so long as.... by glodime · · Score: 1

      Well expressed. You are not alone, but seemingly out maneuvered presently.

    2. Re:Just so long as.... by pyro_peter_911 · · Score: 1

      Just so long as you're not one of those dumb fucks who thinks cutting spending alone can fix the problem we'll get along fine....

      Hi. Dumbfuck here.

      Our spending would match our current tax revenue if we cut our spending levels back to the Dark Dark Days of... 2001. Surely you remember back then, there were no roads. The military was holding bake sales just to buy fuel for the B2 bombers. Senior citizens were starving in the ditches (they couldn't starve in the streets; there weren't any in 2001. Remember?) It was FUCKING ANARCHY!

      The federal budget needs to be gone through with an axe, not with a scalpel. DoD, DoE, the other DoE, HUD, Medicare, Medicaid, SS, DEA not a one of them should be off the budget cutting table. There is No federal agency that couldn't operate today at 2001 budget levels and still have plenty of fat that could be trimmed.

      If we go back into Ancient American History (the late 1990's) we even had a modest budget surplus (discounting the looming implicit debts of the soon to be retiring Baby Boomers).

      Why do you believe this is an undesirable goal?
      Was the Federal Government emaciated then?
      Were American citizens getting good value for their tax dollars then? Are they now?

      Peter

    3. Re:Just so long as.... by crdotson · · Score: 2

      Sure, but the flip side of that is the people screaming "make the rich pay their fair share!!!" as if that will fix the entire problem. That's not going to be even close to enough. Historically, federal receipts as a percentage of GDP have been between 15-20% for the last 50 years. You'd have to almost double that in order to support the current level of spending!

      Most people don't understand how BAD the spending is. Look at http://www.nytimes.com/interactive/2010/02/01/us/budget.html (that's a little old, but close enough for conversation). The 2012 budget is $1.1T in the red. You could cut the ENTIRE national defense budget -- every dime! -- and still only be about 2/3 of the way to a balanced budget. Admittedly, tax revenues will come up some (even without a rate increase) if the economy improves, but there is simply no way we can keep spending at this level.

      So, it's obviously going to require quite a bit of spending cuts and quite a bit more tax revenue (through growth and tax hikes) to get us back in the clear, but it's ridiculous to think that we can keep spending more than we take in, year after year, without someone eventually getting screwed. Life just doesn't work that way, not even with the 'magic' of macroeconomics -- the screwage either comes through inflation, or debt defaults, or something, but the government does not magically have a way to make goods and services appear. All the government can do is move things around and change some behaviors (and the law of unintended consequences is in full effect when it does so). And let's be clear -- this has been a problem under both Republican and Democratic administrations and legislatures, so let's not get wrapped around the partisan axle here. Everyone wants to buy votes by giving away 'free' money.

    4. Re:Just so long as.... by Slavik81 · · Score: 1

      As a percentage of GDP, federal tax revenue has been lower than 2001 spending for every year except 2006 and 2007. Expenses have, of course, been even higher. But this suggests that even sustainable spending at 2001 levels requires raising federal tax revenues.

      http://en.wikipedia.org/wiki/File:Revenue_and_Expense_to_GDP_Chart_1993_-_2008.png

    5. Re:Just so long as.... by Attila+Dimedici · · Score: 2

      Historically, federal revenue has never risen above 20% of GDP, yet current spending is around 25% of GDP. I am quite confident that if the federal government were to eliminate everything it currently does that is outside of its Constitutionally mandated powers it would come in well below that 20% of GDP figure. If you think the items thus eliminated are important government functions (and some of them are), get your state government to do them. That is how the system is designed to work. The Framers of the Constitution intended that many of the things now being done by the Federal Government would be done by the individual states and their understanding of the way they wrote the Constitution prohibited the Federal Government from doing so.

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    6. Re:Just so long as.... by Anonymous Coward · · Score: 0

      God dammit, I'm gonna need some heart medication soon.

      We can only hope you fail to get it and die.

    7. Re:Just so long as.... by Anonymous Coward · · Score: 0

      Hey idiot boy,
      Here in Oregon everyone who was in the state retirement system before 1996 retires at 30 years at 108% of their income. YES, MORE than they were making on the job.
      Any "money" credited to their account also makes 8% annually regardless of fund performance.
      Oregon's all funds state budget in 1995 was $10 billion, now it is $30 billion, 10% of which is just retirement of those folks mentioned above.
      Can't cut? You have doomed us all dude.
      I don't owe you a retirement or medical care or anything, sorry.
      If you disagree, pls send me the $1100 a month for my shittty private medical insurance I can afford.

    8. Re:Just so long as.... by pyro_peter_911 · · Score: 1

      As a percentage of GDP, federal tax revenue has been lower than 2001 spending for every year except 2006 and 2007. Expenses have, of course, been even higher. But this suggests that even sustainable spending at 2001 levels requires raising federal tax revenues.

      It suggests no such thing. If anything, it suggests the opposite. As the economy grows the percentage of GDP required to maintain 2001 levels of spending will drop.

      This graph also clearly indicates that the ratio of spending to revenue has been greater than 1 for a generation (with a few anomalous years during Clinton's term, which weren't really surpluses when Social Security accounting gimmicks are accounted for) . This is a systemic problem, and not limited to one party or the other. The only surprising thing to me is how each party seems to be committed to making the problem worse than the party that was in power immediately before.

      When I write my congressmen (may Sen. James Inhofe burn in Hell for 7,000 years) I like to make the following analogy.

      If I managed my finances the way Congress manages the Nation's then I would be in jail. It is literally criminal.
      I have been in situations where my expenses exceeded my current income. I understand the desire to raise my income to the point where I can buy everything that I want, without priorities, forever. However, my income is finite and always will be. I have to prioritize my spending and, most importantly, cut spending on the unessential things that break my budget. This is how responsible adults work.
      The only people who don't make spending priorities or care about maintaining a sustainable budget are young children and criminals.

      I will assert that if Congress magically managed to extract 50% of the GDP of the US in tax revenue that there would still be a budget shortfall. Congress has a huge spending problem that raising taxes will not fix. Look at that chart again. Look at a similar one that goes back to the Korean War. At no point in recent history has Congress ever thought "Times are good. We should save some for a rainy day." It is always "Put it on my Card. I'll be even fucking richer next year and then I'll pay all this shit off."

      Peter

    9. Re:Just so long as.... by CtownNighrider · · Score: 1

      I think one of the problems is the false dichotomy created. People either want a balanced budget or its not good enough so just spend more. We need politicians that are willing to make long term solutions. If we cut the federal budget in half it would create more problems than it solves. We need some engineers in Congress. http://www.youtube.com/watch?v=9kKuXgzXt5U

  25. Bullshit with the best by RobinEggs · · Score: 1

    we have some of the highest taxes in the world.

    What acid-dropping, Tea Party dipshit moderated this balls-out lie 'Insightful'?

    Seriously, there's just no more gentle way to say that. American taxes would have to almost exactly double to become the highest in the world; as it is we're barely in the top fifty highest taxing nations.

    1. Re:Bullshit with the best by Cimexus · · Score: 4, Informative

      Agreed. I have resided in and worked long-term in many countries including the US, Australia, several Asian and European countries. I definitely paid less tax in the US than I ever did in any other country (on a similar income).

      US income taxes are generally lower than other developed countries for most income brackets. This is especially true at the middle-high income level (the top US Federal income tax rate is 35%, compared to 50+% in most of Europe and 45% in Australia, and it kicks in at a higher income). The exception is low-income earners, who pay more in the US than in other countries (many countries have a 0% tax bracket for the first $x of income per year, but US income taxes kick in from the first dollar).

      US sales taxes are lowish too, compared with, say, 15-20% VAT seen in much of Europe, or 10% GST in Australia etc. (As an aside, they are also ridiculously complex, varying from State to State, county to county and even city to city - seems like a massive administrative burden compared to the single, flat rate seen almost everywhere else. In fact in most other places, the sales tax/VAT/GST is included in the advertised cost of the item, so if it says $20 on the shelf, it's actually $20 when you get to the counter ... not $20 + 5.75% or whatever random percentage the state/county applies. That always drives me nuts when I'm in the US)

    2. Re:Bullshit with the best by Anonymous Coward · · Score: 0

      I second this comment, having lived (and worked) in the US, Canada, Australia and the UK.

      Does anyone else find it ironic (amusing?) that the US, which seems to always desire lean-mean-thin Government has the most complex sales tax which *obviously* comes with so much administrative overhead? What is stopping the US from reforming their tax system? Is the Government really so impotent?

    3. Re:Bullshit with the best by Anonymous Coward · · Score: 1

      Europe VAT is 20% for the major markets, it's supposed to be a level playing field, Ireland has just upped theirs to 23% now that their country is going down thew shitter. On top of VAT, many crucial things such as petrol have massive "duty" rates too.

    4. Re:Bullshit with the best by Attila+Dimedici · · Score: 1

      US income taxes are generally lower than other developed countries for most income brackets.

      Really? What is the EU income tax rate?

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    5. Re:Bullshit with the best by dkf · · Score: 1

      Really? What is the EU income tax rate?

      None. The EU doesn't collect income taxes (though all its member states do). However, within the EU (insofar as you can say that) not all income is taxed; there's an allowance that is zero-rated. That means that the percentage figure quoted may seem high but real tax levels are lower than that. It's a little complex, but entirely possible to capture within a spreadsheet formula without much funky coding. Because of that, and the fact that different places have different mandatory items on pay-packets anyway, it makes much more sense to compare gross pay and net take-home pay after all deductions. After all, it's not too important whether the money is going to some government or a private organization (e.g., pension fund, healthcare insurer) when balanced against the fact that its not going to you directly. Oh, and remember to compare at different income levels too: proportions change.

      --
      "Little does he know, but there is no 'I' in 'Idiot'!"
    6. Re:Bullshit with the best by Attila+Dimedici · · Score: 1

      Yes, additionally when making that comparison one needs to do it based on the state (in the US) that one is talking about because the difference between gross and take home pay varies widely between states.

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    7. Re:Bullshit with the best by Pionar · · Score: 2

      You seem to be confusing federal sales tax with state and locality taxes.

      The US has no sales tax. At all.

      Individual states and localities do.

      Here in Indiana, the sales tax is 7% (except on food items), then in my county there's an additional 1% food-and-drink tax for restaurants. Thanks Colts!

    8. Re:Bullshit with the best by Pionar · · Score: 2

      The exception is low-income earners, who pay more in the US than in other countries (many countries have a 0% tax bracket for the first $x of income per year, but US income taxes kick in from the first dollar).

      That's kind of disingenuous. Low-income people have lots of deductions and credits. When I was a poor broke college student earning $15,000 a year in a part-time job, I actually had negative tax liabilities, one year to the tune of about $350.

      Not saying I'd rather be poor again, just saying, it's not as extreme as you make it out to be.

    9. Re:Bullshit with the best by Cimexus · · Score: 1

      A similar number of deductions and credits exist in other countries too, such that it's possible to have negative tax liabilities ... that isn't unique to the US. It's just administratively simple to have a tax-free threshold (0% tax bracket) at the low end. People who don't make more than this, and who don't qualify for any other credits/deductions might be relevant, need not file a tax return at all in some places.

    10. Re:Bullshit with the best by Anonymous Coward · · Score: 0

      U.S. Income Tax withholding starts with the first dollar of earned income, but the first $7250 for a single person is not taxed when they file their tax return.

    11. Re:Bullshit with the best by Mitreya · · Score: 1
      so if it says $20 on the shelf, it's actually $20 when you get to the counter ... not $20 + 5.75% or whatever random percentage the state/county applies.

      You may think this scheme was designed solely to drive you nuts, but there are legitimate reasons for this
      First, sales taxes are changed by individual states in US, so the rate can vary from 0% (NH and some others) to 10%+. Also, the city may charge additional sales taxes on top of the state tax. So trying to even out the price would mean that each item will have at least 20 or 30 different prices, state to state, city to city.
      Second, related to the previous point, hiding the tax in the total is considered bad form by some, because that creates an opportunity to raise taxes without most people noticing (as you don't know the tax rate with EU system). Now, in EU the VAT is shared, so that's a lesser issue. But if you live in state X in US, you would have to be proactive to even know that your particular state (or even city) decided to increase their tax rate.

    12. Re:Bullshit with the best by mdmkolbe · · Score: 1

      VAT is not the same as sales tax. Resold items get retaxed under sales tax but not VAT. So 8% sales tax with one middle man is equivalent to 16.64% VAT which no longer looks so low.

    13. Re:Bullshit with the best by Cimexus · · Score: 1

      I do understand why the system is the way it is. But it still drives me nuts. :)

      I'm Australian originally and in Australia our GST (sales tax equivalent) is administered and collected Federally, which allows it to be a flat national rate. The Federal government then redistributes that money among the states (based on some no-doubt ridiculously complex calculation). So the money is still 'for' the States, it's just not ~collected~ by them.

      Like in Europe, the GST is embedded in the cost of the item. But I don't agree that it allows the rate to be raised without people noticing, as it's specified very clearly on the receipt you get (i.e. the $20-stickered item will cost $20, but you'll see on the receipt that it's "$20, including $1.81 of GST". Plus the rate of GST has never actually changed - it's been 10% since its inception and any adjustment to this rate would make so much news that you'd have to be oblivious not to know.

      I think America would benefit from a similar system (sales tax collected Federally then distributed to States via some agreed and fair method). Not because the amount of tax revenue raised would be more/less, but simply because it's simpler. Reducing administrative burden saves a lot of money - some obvious, some not so. However I am a realist - I know that states' rights is a big thing over there (it is fairly important in Australia too, but not to the same extent), and it's pretty unlikely to happen. Especially when you have 50 states that can veto it, as opposed to the 6 we have here ;)

    14. Re:Bullshit with the best by Cimexus · · Score: 1

      Didn't know that ... and you're right, that would make a big difference to the amount of revenue raised from a sales tax cf. a VAT. However in this thread I think we are mostly talking about taxation burden on the end-consumer (ignoring what might have happened to an item before that point), not on middlemen businesses, in which case VAT and sales tax are at least vaguely comparable.

    15. Re:Bullshit with the best by QuasiSteve · · Score: 1

      Weird... I'm currently in the U.S., and the Fry's, WalMart, etc. here seem to have no problem whatsoever taking out an A5 paper size for all sorts of crap about the product... how it's on sale no.. how you can get 2/$3.00 and 10/$12.00. Something tells me they could make space for:

      Product: $N
      State tax: S% = $S
      County tax: C% = $C
      City tax: Y% = $Y
      YOUR TOTAL: $T

      Where the first few could easily be in smaller type.

      I share OP's complaint - it even applies to airports.. you go to buy an already overpriced bottle of drink for $2.50 but when you get to the register with two $1 bills and two quarters in hand, you'll have to fumble with your wallet again because the actual price is what.. $2.84?

      The above suggestion would do away with that nonsense and re-assure people that taxes and tax increases aren't sneakily being hidden.

  26. bullcrap by Anonymous Coward · · Score: 0

    This crap is a head-ache for anyone who builds ecommerce sites.. each state has different taxes for each county, that is if you're lucky they didn't just draw imaginary borders like in NY. AND these rates must be arbitrary -- my client selling online goods in Colorado, for instance, has to charge different taxes for each county but when it comes time to pay up, they don't ask where your buyers are from, they just want a lump sum of money and the state decides what to do with it. We're just charging a flat rate and supposedly it evens out.

  27. All of Europe already does this. by Anonymous Coward · · Score: 1

    All of Europe already does this. If I buy books on amazon.co.uk for delivery to a UK address I pay no tax because books have no tax on them in th UK. If I deliver them to an Italy address then I pay 4% and so on because that is the tax on books in Italy. You pay the product specific tax depending on the delivery address as that is where the goods end up (same if you bought at a bricks+mortar store). Here is the Amazon list http://www.amazon.co.uk/gp/help/customer/display.html?nodeId=502578
    So states just need to publish the tax rates for each class of item ideally to a central site to make it simple for smaller companies to manage and ideally permit small businesses to only apply local tax rates irrespective of delivery address.

  28. re: we got what we voted for? by King_TJ · · Score: 2

    If you ask me, it's becoming more clear all the time that it's not as simple as the American public "getting what we voted for, or not voting at all" that's caused the mess we're in.

    The system has always been heavily biased towards only the wealthy succeeding in a political career, but that's evolved from a perfectly acceptable reality (where wealthy folks who actually cared about the future of the country could dedicate some of their time and resources towards steering it in what they felt was the right direction) to a playground for the uber-rich. Today's leaders feel like they're above the law, entitled to any self-serving deals they're able to strike, and are part of an elite who only care about success for their own political cohorts and connections.

    We're not really given realistic options to vote for, in most elections. It's very polarized, with candidates standing on the "right" or the "left" and pretending either of the two choices are the only sane/realistic ones a voter can make. All we get at the presidential level are lies and empty promises, about concepts as basic as caring about the "poor" or more recently, "the hard-working middle class". In reality, both sides only see the "poor" as a useful political tool and the "hard working middle class" as a group to sap resources from while it lasts. Heck, we've got numerous instances where a politician was a well-known Democrat yet he ran on a Republican ticket at some point, because nobody else was on the ticket for a given election. The political ideologies be dammed ... they're just treated as available slots.

    The claim that our taxes aren't really that high for a developed nation is VERY questionable. When I see that claim thrown around most of the time, someone's trying to do an "apples to apples" comparison of percentages of income paid out in Federal income tax, or something along those lines. It's much more difficult to determine what the average American really pays, total, in taxes - because we've gotten so creative at taxing in little chunks, all over the place. Gasoline tax, sales tax, property tax, inheritance tax, retirement tax, import or export taxes, tax on profits earned from investments, govt. licenses of various sorts, and even traffic tickets all play a role. Additionally, some of these taxes are increased by an order of magnitude depending on the situation. EG. Sales tax suddenly jumps up in some parts of my community, if you buy from stores in special "tax corridors" where the local community voted to take in extra funds for some project or other.

  29. Yay more theft! by Anonymous Coward · · Score: 0

    Yay for stealing money!

  30. Doesn't work w/ webservices by Anonymous Coward · · Score: 0

    Quickbooks doesn't work with webservices, dummy.

    1. Re:Doesn't work w/ webservices by DogDude · · Score: 1

      I don't know what "webservices" is or why that would matter. Online shopping carts already do sales tax calculations. Press a button and send data to Quickbooks. Press another button to pay everything. What part of this process are you not understanding?

      --
      I don't respond to AC's.
  31. It's not that fucking hard.... by RobinEggs · · Score: 2, Insightful

    I'm vigorously opposed to sales tax in general, and thus despise the idea of paying taxes on Amazon goods.

    That said, I'm getting very tired of the several dozen comments per Amazon-related thread about how hard it is to manage the different tax zones, what a massive unfair burden it is for online retailers, how even attempting to comply would obliterate any seller smaller than Amazon or eBay in a blinding flash of red-tape, etc.

    It's not that hard; not even at this moment is it anywhere near as difficult as you claim, but under any decently written law it would be a complete non-issue. The state could simply require the municipal party responsible for any layer of sales tax - mayors' offices, county commissioners, etc. - to enter their tax rules and proportions into a state database in a standard format. Then any moron could write code to parse that database, populate their sales system, and correctly tax a solid 95% of purchases with no further effort. In fact, it would be perfectly reasonable if the state required cities and counties to enter into my hypothetical database the correct tax jurisdictions for each and every property they contained. They already have to assess and charge those lands correctly for property and utility tax; it's just one more small step in a dance of surveying, assessment, and classification they already perform every year.

    So there's no good reason sales taxation couldn't become easier, for physical and online stores alike, under a properly written e-commerce law. Come up with some real arguments, please. I may agree with you on the underlying point, that sales tax and complex taxes in general both suck, but it makes me nauseated seeing supporters of my ideals hiding en masse behind such a piss-poor construct.

    1. Re:It's not that fucking hard.... by Anonymous Coward · · Score: 0

      This will cost the taxing authorities both time and money to administer and enforce - which means that they simply won't do it. Much easier to stick it to the evil businesses than try to saddle their taxpayers with the costs of running this database.

    2. Re:It's not that fucking hard.... by Anonymous Coward · · Score: 0

      You obviously live in a simple tax state. EVERY state is different and can have crazy setups all the way down to the local level. Look up tiered tax, modified origin, tax holidays.

      Just try to keep up with California and all the check would be sending when you collect tax and get back to me when a small web business in Somewheresmall,USA could keep up. Because the dirty secret is that collecting tax is half the significant battle. Remitting it to the proper entities is the second significant undertaking. It is not as simple as a couple checks. There is a mountain of paper work and schedules to keep up with.

      You have as much chance of it being simplified as the balancing the US budget

    3. Re:It's not that fucking hard.... by Anonymous Coward · · Score: 0

      but under any decently written law it would be a complete non-issue.

      Yes, it probably would. Too bad we don't have decent law authors.

    4. Re:It's not that fucking hard.... by colinnwn · · Score: 1

      I don't have a problem with sales tax, but I do have a problem with how most government entities write their code. You should look into it and read the actual code of your state, county, and city and some of their administrative determinatinons and private letter rulings sometime. I bet just the code will be over 1,000 pages of dense legalease, and the determinations and letters probably number in the hundreds of thousands of pages

      It is not very hard in theroy, if this magical database were already in existance, and it had a well defined and standardized schema that took into account all 50 states, 3,000 counties, 19,000 cities and towns, thousands of specal taxing districts, fed gov, and US protectorates tax pecularities. And same jurisdictions would probably need to rewrite at least some of their tax laws because almost every area has a few abserd special cases.

      I take it you haven't read some of the more highly rated posts in this story like Dynedain's. For example, your food item can be taxed differently based on whether it is a juice or a carbonated beverage (what if it is both!), whether it is for immediate consumption on or off premises or groceries (if you buy a bottled drink at Subway for takeout is it a grocery or "immediate consumption"), whether you get your sandwich toasted at Subway or not.

      My SO is a sales tax accountant and I hear her stories. Taxation must be one of the most byzantine productions our governments meddle in. I used to think like you, why there wasn't just a standardized database that this stuff could be looked up in and most of the regular auditing and procedural law decision requests could be ended. There are companies that try to do this, but it is a big ugly process requiring tens of millions of man hours to comply with yearly in the USA and failures happen all the time.

    5. Re:It's not that fucking hard.... by Anonymous Coward · · Score: 0

      No, actually, I don't live in a simple tax state. The state where I grew up was, and still is, one of the most complicated.

      So far all of the responses boil down to this: "No, no, it's really so complicated that if you don't completely and utterly agree with me it could only be that you don't understand how complicated it is!"

      I get it. Really. Many states sales tax laws are convoluted bullshit damn near on par with the federal tax code. I simply disagree that the answer to "It's really complicated" is "Well then, you're exempt. Have a glorious day, mister internet salesperson!".

      Seriously, retail stores - big and small, from multinational behemoths with locations in every state to single location family businesses - figure it out. There's no compelling reason internet retailers should get out of paying taxes simply because it's complicated. I disagree with the tax at question, but your arguments amount to nothing more than hand-wringing.

  32. Taxes per GDP is not meaningful! by Anonymous Coward · · Score: 0

    Look. The top 1% of Americans control how much of the GDP? 40%? and they take 24% of all the income.

    So that number is BS. 50% of Americans do not pay income tax, at all, and of those, more than 33% receive more money than they put in. The upper 51-95% are pinched, hard. We have some of the most regressive taxes in the world, but only for the middle to lower rich class.

  33. The little guy is screwed. by witherstaff · · Score: 3, Insightful

    The last version of quickbooks I have installed doesn't have the option to pay appropriate taxes for all government entities involved for a small scale E-merchant. I know my local bookkeeper can't handle that either. I imagine Quickbooks could start adding features for this but damn, sending checks to every city/state/town is gonna be annoying as hell. I know I have to pay my local township taxes in a check or money order and assume this will be the case for almost every entity. More expense, joy!

    Then you get to the harder issues. Forget writing your own ecommerce site. Forget using open source e-commerce software. To keep track of this data, which could end up making a company liable for large fines, means you'll have to hire a company since you can't trust to be indemnified otherwise. This is actually a huge win for amazon, you're going to have to use amazon or ebay or other large companies just to keep your small businesses e-commerce operating. That could up the cost significantly.

    1. Re:The little guy is screwed. by DogDude · · Score: 1

      "I imagine Quickbooks could start adding features for this but damn, sending checks to every city/state/town is gonna be annoying as hell."

      Check out EFTPS for federal taxes. It's built in to Quickbooks. I haven't written a check for any kind of taxes (payroll, sales tax withholding, federal withholding, etc.) in more than 5 years.

      " Forget writing your own ecommerce site. Forget using open source e-commerce software. To keep track of this data, which could end up making a company liable for large fines, means you'll have to hire a company since you can't trust to be indemnified otherwise."

      The same thing can be said of payroll taxes. Don't pay those, and you're going to jail. The way most small companies do it in Quickbooks is "Employees -> Payroll center -> Pay taxes". I think you may have to click "pay now" after that... maybe a "next". It's automated, simple, and a cost of doing business, albeit a relatively tiny one.

      The technical limitations argument is really hollow. It's a very very tiny technical hurdle that could generally be solved with a "SELECT decTaxRate from tSalesTax where strZipCode='" + strZipCode + "'".

      --
      I don't respond to AC's.
    2. Re:The little guy is screwed. by Leuf · · Score: 4, Insightful

      A zip code isn't enough to calculate a tax rate. There are county level taxes and country boundaries are not necessarily zip code boundaries. So you have to know what county the address is located in.

      Furthermore, certain items are tax exempt or taxed at different rates, and not every jurisdiction has the same exemptions and rates. So you may not only need a database of rates at every level of government, but also a database of what is taxable for every level of government of every jurisdiction in the country.

      Furthermore, certain jurisdictions have tax holidays so you somehow need to find these out for every jurisdiction in the country every day, while you check to see if anyone has changed their tax rate(s).

      So what makes more sense, having every individual find their own solution to this problem, or have the entity responsible for the problem and receiving the money come up with a single solution and indemnify the businesses that use it against any inaccuracies present in the database?

    3. Re:The little guy is screwed. by DogDude · · Score: 1

      I'm not saying it makes sense. I AM saying that it won't be an expensive or difficult hurdle for any online business. This idea that keeping track of a few tens of thousands of tax jurisdictions is some kind of technological impossibility that will require business owners everywhere to spend nights up with calculators and forms and checkbooks is just patently absurd. The services are already there, and they're about $200/year. Big deal.

      --
      I don't respond to AC's.
    4. Re:The little guy is screwed. by Roger+Lindsjo · · Score: 0

      Who has that service for about $200/year? And how does it work, do you send them the address, date and contents of each package. Say you send a package of diapers and toys to a resident in Texas the 3rd weekend of August, then diapers are tax free.

    5. Re:The little guy is screwed. by Anonymous Coward · · Score: 0

      The US Government (kind of) provides a free, cloud based service for doing just this. We use it in our e-commerce programming, and it works perfectly. It took some time at the beginning to classify all of our products, but each of our sites we run for our customers can have different Nexus settings, and the sales tax has yet to be incorrect.

      http://www.taxcloud.net

    6. Re:The little guy is screwed. by Attila+Dimedici · · Score: 1

      So, you are saying that an online business that has a profit of less than $1000 a year should just go away? That a small mom & pop retailer with a unique stock shouldn't bother to try and expand their business by selling it online because you are going to increase their cost of doing so by $200? I guess you like the fact that big corporations dominate our economy.

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    7. Re:The little guy is screwed. by Hodr · · Score: 1

      So, I see this argument a lot, that there are too many, changing, tax locations to keep track of.

      Then I remembered that when I buy something from a store, they don't usually ask me for my address and generate the tax rate on the fly. Why, because the tax rate I pay is based on where the transaction takes place.

      If they can make the argument that the online retailer has a physical presence in the state, then the tax rate is based on where that presence is.

      So, for Amazon in Indiana, it sounds like they may have to track up to 3 tax rates (for the 3 distribution centers).

    8. Re:The little guy is screwed. by Anonymous Coward · · Score: 0

      Not just counties, either. In many states more local districts, such as municipalities (but in some places, school districts, transit districts, tax districts, etc), can also impose sales taxes. It doesn't make much difference when you already have to do address lookup, but it's yet more data you need, and undoubtedly in some cases, yet more places you have to pay.

    9. Re:The little guy is screwed. by DogDude · · Score: 1

      It's just a cost of doing business. There are lots and lots of them. This is a relatively minor one.

      --
      I don't respond to AC's.
    10. Re:The little guy is screwed. by Attila+Dimedici · · Score: 1

      Every minor cost you add to doing business decreases the ability of small players to compete. Actually, it is worse than that, even without any competition, it reduces the incentive for even doing business in the first place. Increasing these small costs creates two, supposedly unintended, results. One, it discourages a significant number of people from attempting to start their own business. Two, it encourages a number of others to look for ways to evade these costs. The second creates and environment where "everybody" knows that the only way to get by is to flout the law.

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    11. Re:The little guy is screwed. by Anonymous Coward · · Score: 0

      Buy Vertex Sales and Use Tax Calculator

    12. Re:The little guy is screwed. by DogDude · · Score: 1

      The reality is that anybody who can't use the bevy of cheap and abundant software to manage their business' finances, including making tax payments, shouldn't be in business. Running any business is arguably, one of the most difficult "professions" due the the depth and breadth of knowledge required to run even a seemingly simple business. This nightmare scenario of a compliance nightmare coming from supposed techies is a joke. No business owner is worried about this, other than those who have built their business on avoiding collecting sales taxes. This isn't even on most business' radar because everybody knows it would be a few software tweaks from the existing software vendors, and it's done.

      --
      I don't respond to AC's.
    13. Re:The little guy is screwed. by Attila+Dimedici · · Score: 1

      Why should I have to pay an annual fee to someone to manage my business finances, on top of paying an accountant? This is not going to be once and done software.
      You seem to be saying that because the government already makes it hard for people to go into business for themselves, it's no big deal if it makes it just a little bit harder. You seem to be overlooking the fact that in addition to tens of thousands of different tax rates to keep track of, there are also a multitude of variations in what items sales tax applies to.

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    14. Re:The little guy is screwed. by tompaulco · · Score: 1

      EFTPS is only for federal payroll taxes. You cannot use it for sales tax, or even state withholding.

      --
      If you are not allowed to question your government then the government has answered your question.
    15. Re:The little guy is screwed. by tompaulco · · Score: 1

      So, for Amazon in Indiana, it sounds like they may have to track up to 3 tax rates (for the 3 distribution centers).
      Well, that is great if it goes through one of those three distribution centers, but what if it ships from somewhere else and doesn't go through an Indiana distribution center? Do they just pick one? Or do they withhold taxes based on the tax rate at whatever distribution center they use? And then how do they pay Indiana when whatever location that distribution center is in is probably going to want their part?
      No, the truth of the matter is that for internet or catalog sales, the POS is your house, and your state government is responsible for collecting that tax from you.

      --
      If you are not allowed to question your government then the government has answered your question.
    16. Re:The little guy is screwed. by ethan0 · · Score: 1

      The technical limitations argument is really hollow. It's a very very tiny technical hurdle that could generally be solved with a "SELECT decTaxRate from tSalesTax where strZipCode='" + strZipCode + "'".

      unfortunately, I live in 52318'; drop table 'tSalesTax'; --

    17. Re:The little guy is screwed. by DogDude · · Score: 1

      This is not going to be once and done software.

      Every piece of modern software out today does automatic updates. There is no technological hurdle to doing this.

      So you're saying is that brick and mortar stores, that contribute very directly to their community have to collect sales taxes, but people who contribute nothing to their local community and sell online *don't* have to collect taxes? That doesn't make any sense, unless you're saying that mail order is a societal good that needs to be heavily subsidized by brick and mortar retailers.

      --
      I don't respond to AC's.
    18. Re:The little guy is screwed. by Attila+Dimedici · · Score: 1

      A small brick and mortar store only needs to collect sales tax for one location. It is not terribly complicated to keep track of the correct sales tax for a single location (although sometimes the government makes even that much harder than it should). Keeping track of the sales tax of every taxing jurisdiction in the entire U.S. is extremely complicated.
      The issue is not getting the updates to the tax table. The issue is paying for those updates.

      --
      The truth is that all men having power ought to be mistrusted. James Madison
  34. In America, taxes pay for... by zidium · · Score: 1

    In America, here's how it goes: In Texas (no *state* income tax, thank my forefathers!): 1. Federal Income tax: 50% goes out in the form of welfare (50% in the form of the Earned Income Credit (EIC) given to moms who have way more kids than they can afford and make less than $15/hr; 30% to support foreign wars I do not wish or condone, etc.). 2. Property tax (on houses/apartments): Pays for the school districts, fire department, police department, etc. 3. Employer Tax: 6.5% of everyone's salary: Pays 1/2 of Social Security/medicare for old people w/o enough money and unemployment benefits for people who do not have in-demand job skills. 4. Gas Tax: Pays for the creation and maintenance of the roads and highways. 5. Glutton Tax (extra sales tax) on cigarettes, alcohol, etc. 6. Sales Tax: Pays for city and state upkeep, governance, and food stamps. Largely stuff I don't really care about.

    --
    Slashdot Valentines Beta Massacre: iT WORKED! The boycotts killed Beta!!
    1. Re:In America, taxes pay for... by xero314 · · Score: 1

      welfare... Credit (EIC) given to moms... school districts, fire department, police department... Social Security/medicare... unemployment benefits... roads and highways... state upkeep, governance, and food stamps...Largely stuff I don't really care about.

      Not sure you know what happens when the poor have no alternatives to get what they need to survive. Few people who are not working now, would take up jobs (if there were any) if the government cut welfare programs. Guess where those people will turn when they can't turn to government assistance. The will turn to those who have what they need, and they will take it. And if you think welfare is expensive, what till you see the cost of keeping all those people incarcerated. Of course that won't happen if you had your way since there would be no "police department".

      You may nor care about all these things while they are available, but you would surely miss them if they were gone.

  35. dumb fucking developer by Anonymous Coward · · Score: 0

    You built it stupid then. As another poster put it, use the full zip code with the +4 digits.

    1. Re:dumb fucking developer by Attila+Dimedici · · Score: 1

      That's great, where do I get your full zip code. If an online retailer were to require my full zip code wih the +4 digits, I would have to shop elsewhere, as I do not know it (and have no interest in learning it).

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    2. Re:dumb fucking developer by adolf · · Score: 1
    3. Re:dumb fucking developer by Attila+Dimedici · · Score: 1
      Well, that addresses that issue. However, since you provided that, I decided to see if zip code +4 would actually solve the problem and guess what, according to site, it isn't that simple.

      ZIP codes and postal data were developed for delivering mail and are not accurate for establishing a customer’s tax "situs," or taxable location.

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    4. Re:dumb fucking developer by adolf · · Score: 1

      Perhaps. 5-digit zip codes are certainly inappropriate.

      However, I once lived in an apartment complex with several building with 16 units each. The mailboxes were in groups of four. Each of these groups had a unique 9-digit ZIP code.

      To be sure, it seemed like overkill. I haven't made a study of things to see if such fine granularity is commonly available with zip codes, but it would not surprise me.

    5. Re:dumb fucking developer by Attila+Dimedici · · Score: 1

      The site I linked to was an article from a site dedicated to tax advice and it stated clearly that zip +4 was not an accurate way to determine taxable location and the article went into detail explaining why.

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    6. Re:dumb fucking developer by adolf · · Score: 1

      AFAICT, the root of the real problems discussed in the article is that zip code and municipal boundaries can (and do) change. (The article also has some non sequitur statements, presented as fact, which I'm ignoring.)

      Perhaps the fact that these things change may explain why the folks who package up such databases routinely offer updates.

  36. what by Anonymous Coward · · Score: 0

    we are in indiana. we sell online and i don't understand the governor on this one. making people submit to a sales tax is -- to me -- another SOPA cable, that is trying to do whatever it is. it's like the patriot act for the internet:

    shoved down your throat, no matter how much you DON'T WANT IT.

    THis is SH%T

  37. Guess I'll be selling off my Amazon stock... by Anonymous Coward · · Score: 0

    Shipping and 7% tax is just a start - they will be collecting county tax next and there will be no reason to buy from them. What ever happened to the law protecting inter-state commerce?

  38. Easy solution by NotQuiteReal · · Score: 1

    Just leave the sales tax box blank - "enter your sales tax rate here _____"

    --
    This issue is a bit more complicated than you think.
  39. Unfair by Roachie · · Score: 2

    It unfair to local businesses so we have two choices:

    1) Tax Amazon sales
    2) Lower/eliminate the Indiana tax ( hahahahahahahahahahaha! hoooo... shit thats funny .. ahhahhahahhhahahh! )

    --
    This sig is not paradoxical or ironic.
  40. I like amazon's discount... by TheGratefulNet · · Score: 1

    but I really wonder who the hell they pull such blatant behavior off.

    I like in the bay area (high calif. taxes) and yet a purchase I made via amazon came from almost literally across the street from me, was originated from there due to the return address, but I got it tax-free somehow. and it did take a long time to get here, more than 3 days iirc.

    the 'sparks nevada' hack they do is one thing (just outside the calif border but very close so that they can ship to cali quickly) but when they sell goods from a few miles away and ship them, its incredible that their lawyers and accountants have found ways to evade paying taxes on this.

    like I said, I have mixed feelings. I like the savings but it IS true that they are shirking the law big-time.

    --

    --
    "It is now safe to switch off your computer."
  41. Jump to .ca or .jp for Amazon by Anonymous Coward · · Score: 0

    Looks like "Abandon Ship, the Titanic is Sinking" is in order.

    Unless the USA State Depto aka Hillery C. (aka HillBilly) gets her way and criminalizes all USA citizenship and all USA online activity.

    Of course all Federal Employees of the Senior Executive Service will be exempt from taxes and home visits by the TSA.

    Lovely that Mommy Dearist.

  42. So Bezos, flexes his wrist, flashes his Rolex by Anonymous Coward · · Score: 0

    And it is done. Not to mention Rolex watches are pretty cheap on amazon compared to everywhere else :)

  43. Maybe someone... by Anonymous Coward · · Score: 0

    ...In Illinois should file a similar suit against Indiana, seeing as so many residents of Illinois purchase things in Indiana to avoid the higher Illinois taxes. Since we are talking about being fair.

  44. Why? by lightknight · · Score: 1

    Does Amazon have any warehouses in state? Aren't the taxes for sending and receiving goods already being handled in the shipping price? UPS, Fedex, and DHL are the ones actually using the existing infrastructure (roads, bridges, etc.).

    There is no logical reason for Amazon collecting sales tax on behalf of these people. It drives the price for goods up, making Amazon less competitive with other firms (who have the in-state advantage of a physical presence near the customer), and allows for a beach-head for increasing levels of bureaucracy in an otherwise healthy company.

    *Puts on funny hat* But of course, we need to continue to bow to our idiot overlords (whose brethren nationwide perpetuate a widespread belief that they have never sat through an accounting class nor know what one might look like, nor have a friend who has sat through an accounting class nor do they have a friend who might know what an accounting class looks like) and their omnipresent sycophants ("Dude, we need to collect the taxes, you know, to keep things 'fair'" -> I, like most people capable of basic reasoning and mathematical understanding, realize that the word 'fair' tends to be redefined on a case by case basis). I'm *this* (presses index finger to thumb) close to paying these people to have a backbone.

    --
    I am John Hurt.
    1. Re:Why? by lightknight · · Score: 1

      Ah, the power of double-posting (thought the original post didn't go through, rewrote a revised one). Anyone else having trouble reaching with /.'s servers?

      --
      I am John Hurt.
  45. Bye Bye Amazon by bnoel · · Score: 1

    great... yet another company that will migrate their business overseas...

  46. You're right, but those guys are full of shit, too by RobinEggs · · Score: 4, Insightful

    Sure, but the flip side of that is the people screaming "make the rich pay their fair share!!!" as if that will fix the entire problem. That's not going to be even close to enough.

    That's quite true. Making only the rich pay more will not be enough; not by most persons' definition of 'rich', anyway.

    What bothers me most about the 'rich paying more' debate, however, is the lying responses from the politicians and think-tanks paid to glorify the wealthy, justify flat-taxes, and vilify the bottom 2/3 as selfish profligates sucking at the socialist teat. You see bullshit statements like "even if we took the entire income of the top 1% every year we'd only solve 1/6 of the deficit" or "even if the marginal rate on the top quintile went up by 15% a that would only fix 1/2 of the deficit alone, much less the debt" or one Republican candidate's favorite "54% of Americans pay no tax at all.

    First, the top 1% generally have assets far in excess of their yearly 'Income', or even their real income. It's almost outright lying to look at a guy with assets in the billions and say that taking all of his Income every year wouldn't help because his income is only in the tens of millions. Not to mention that tons of that money - for many of the 1% virtually all of it- stays permanently in investment vehicles or goes through enough (technically legal) money laundering to make a Mafioso blush. It's either never technically income despite being economic power, solely controlled by an individual, which is equal to the lifetime output of dozens or hundreds or thousands of people working at the median national salary, or it was hidden from taxation outright. Either rewrite the tax code literally from scratch, or punish their decades of shirking by taxing the extremely wealthy on their assets (even as a one-time event), and the top 1% could indeed put a huge frickin dent in our budget problems.

    Second, quintile-based arguments conveniently ignore the fact that even the second quintile from the top bottoms out at $55,000. That's already an acceptable living in all but a handful of cities, and the numbers only go up from there. In most cities the top 40% can easily afford to pay another 1 or 5 or 10% in federal tax per year, to say nothing of what the top 20% and top 1% can afford. I am not saying it wouldn't hurt, but real taxes - the kind that can actually sustain a first-world nation with 350 million people, the world's best educational and scientific capabilities, and a military bigger than the entire planet put together ever had up until the first world war - might have to hurt a bit sometimes.

    But the worst of all is probably the argument that the bottom x% pay nothing at all (those greedy little parastic fuckers!). The truth is, the bottom x% pay no final income tax, after their deductions and refunds are processed; when you ask non-partisan analysts and think-tanks who specialize in tax they'll tell you that even the very bottom 1% pay at least 15% of their income in various taxes on property, utilities, retail sales, where even the top 1% pay only 30-35% across all types of tax.

    I just can't seem to feel bad that people with six, seven, eight, and fucking nine figure incomes pay twice as much tax as the dirt poor. Can you? A lot of people, from the filthy rich to the upper-middle-middle class who just wish they were, need to shut up and pay their damn share. Before hey find people with pitchforks at their doorsteps. I'm not some militant communist whacko, not in the least, but I'm also not kidding when I say that. Just because the standard of living is so high that only the destitute in America have any serious complaints to make versus any other nation or time in history doesn't mean people don't notice the looting and abuse going on. Just because they have TV and cell phones and generally have heat in the winter doesn't mean the bottom 40% are happy struggling to pay for their healthc

  47. the trickle down will hurt small businesses by ToasterTester · · Score: 1

    The Amazon's and other large companies can afford the extra development and work to collect taxes at all the various rates and get it to the states. States have been pushing for this a long time and well eventually get it. The will be a burdon on the small internet businesses and cut into the slim margins they have to compete with the large companies.

    What I would rather see is a ban on states collecting internet sales taxes, and a Federal internet sales tax. Not that I want to pay more, but have a single federal tax would make collection and payment for businesses of all sizes simpler. Then the Fed's could take the collected taxes and comes with some way to divide it up between all the states.

    1. Re:the trickle down will hurt small businesses by sumdumgai · · Score: 1

      Yeah, I am a small Internet business owner. I can't imagine the time it would take me to manage tax rates for all 50 states and to pay 50 states at the end of the quarter. That will bite.

      --
      âoeIn theory, theory and practice are the same. In practice, they are not." â Albert Einstein
  48. Why? by lightknight · · Score: 1

    Does Amazon have a physical presence in state (Indiana)? A warehouse, perhaps? If not, why are they collecting sales tax from in-state citizens on behalf of Indiana? Isn't the actual infrastructure being used, that of the roads, bridges, and so forth, being paid for out of the shipping costs from the various shipping companies, who have an actual physical presence in state, and are actually using said infrastructure?

    By virtue of taxing (effectively, functionally) an out of state company for infrastructure that it is not using, Indiana is favoring in-state competition. One argument, often repeated, is that the lower cost of not having a physical infrastructure in state is 'unfair' to competitors. I would counter that the spatial locality of the competitors with an in-state presence more than outweighs the cost advantage allowed by a company operating from out of state. It bothers me greatly that Indiana is introducing, for lack of a better phrase, a 'tariff system' inside the Union; now, I am not as up to date as others with the speed and change of politics, but I am fairly certain that that erstwhile commerce clause in an often cited document might forbid this kind of behavior.

    How much longer must we bow to these idiot overlords (whose brethren nationwide continue to perpetuate the widespread belief that they have never attended an accounting class, let alone seen the inside of one, nor do they keep the company of anyone who has attended an accounting class, nor do they keep the company of anyone who has seen the inside of an accounting class), and their omnipresent sycophants (who will put forth endless arguments about 'fairness of taxing' of which two things might be noted: 1.) that 'fairness' is redefined on a case by case basis, and 2.) they will always be arguing for someone else's taxes to be increased, never decreased)? I am *this* (presses index finger to thumb) close to paying these sycophants to have a backbone, if only to see what might happen.

    As for Amazon itself, the introduction of more bureaucracy into its inner workings should only decrease its competitiveness, decrease its earnings, increase the pain and sufferings of the programmers, lawyers, and business people alike as they are forced to spend bountiful amounts of time and good money to implement and maintain a system of questionable utility. Again, some will argue that "it takes but the wave of a magic wand" to devise and implement such a system, but as any programmer worth his or her salt will calmly explain, code does not write itself, and increasing complexity is rarely seen as a 'good thing.' From the lawyer's standpoint, yes, they are accruing billable hours, but they are also costing their client money for little to no benefit, which is not allow for a healthy relationship between company and firm. And finally, from a business perspective, they are going to lose customers over this change, profits will decrease, and the company may be faced with the unsavory task of having to collect sales tax for everyone else (this change creates a precedent that others will soon exploit).

    --
    I am John Hurt.
  49. Re:Fair's fair.... Fire fee by Anonymous Coward · · Score: 0

    The US would be much better off if we jettisoned those ignorant, illiterate hicks in the south. And those dumbfucks in the midwestern and northern states.

    As a moderate living in a "blue" state I am getting sick of subsidizing all these states full of the proudly stupid.

    It is funny how all but one "red" state receives more money from the feds than they pay out and I don't think any of those evil liberal states do the same.

    The US has simply too much redneck trailer-trash to be able to move easily.

    Time to carve away the dead-beat conservative states.

  50. No authority by Jane+Q.+Public · · Score: 1

    Despite a ruling to the contrary by the Supreme Court, I don't believe Congress actually has Constitutional authority to do that.

    Perhaps I am wrong, but I believe Amazon has a "physical presence" in the states that are now forcing it to pay sales taxes.

    But the whole reason that every (or nearly every) state has a "use" tax in the first place is that Congress has no authority to collect state taxes, nor does one state have the power to tax transactions that take place in another.

  51. Real zip codes arent 5 digits long by Anonymous Coward · · Score: 0

    Zip codes uniquely identify city blocks; if a city block is split across tax jurisdictions hen something is majorly effed up.

    http://en.wikipedia.org/wiki/ZIP_code#ZIP.2B4

    I think zip codes are sufficiently fine grained and you're just too lazy to type the complete zip code.

    1. Re:Real zip codes arent 5 digits long by Dynedain · · Score: 1

      I personally know of an example where two businesses (one owned by a family member) are on opposing sides of the same street. They have the same Zip+4, but one of the businesses is within city limits (population 1.3 million), the other is in the unincorporated county. They have different sales tax rates. For both of them, their mailing address is a 3rd suburb city located nearby (population 200k) .

      Postal mailing addresses (City + Zip) do NOT reflect actual municipality boundaries. The municipality that goes on your mailing address is the one that matches the post office the USPS has decided services your physical location. So, since their mail is routed through one of the suburb's post offices, the physical mailing address for both businesses is that suburb, even though neither of them is within that suburb.

      --
      I'm out of my mind right now, but feel free to leave a message.....
  52. Re:Simons Property Group by Anonymous Coward · · Score: 0

    Simons Property Group seems to be down right evil... I first heard about them when they tried to close down a small shoe store:

    http://www.kare11.com/news/article/952842/396/Ralphs-Shoe-Service-finds-new-life-new-home-in-Richfield

  53. Re:"even footing" by TaoPhoenix · · Score: 1

    "Hmm, I sense the possibility of a science fiction story here. Some alternate future where "even footing" is not accomplished by removing impediments from those who are limited, but by adding impediments to those who are unfairly gifted."

    Great Minds and all that! Kurt Vonnegut already covered that! It's a story called Harrison Bergeron. There's a couple of modern indie remakes on the web too.

    --
    My first Journal Entry ever, in 8 years! http://slashdot.org/journal/365947/aphelion-scifi-fantasy-horror-poetry-webzine
  54. Re:This a million times by Anonymous Coward · · Score: 0

    The thing you need to realize about Indiana property taxes is why they aren't as high as a lot of other places, for a lot of people they have quite literally doubled in the last 10 years.

  55. Re:You're right, but those guys are full of shit, by digitalsolo · · Score: 2

    As a person in the "second quintile" you noted above (though at the very bottom of it) I can tell you that a 10% increase in tax rates would essentially obliterate any ability for me to save for my retirement. I am intelligent and frugal about my spending and live in an area with a pretty low cost of living (and in Indiana, in fact, so I now get to pay this tax. This annoys me, but I don't have any deep seeded issues with it, aside from being a naturally cheap, err, frugal, person).

    I am in agreement that we need to review what happens with the most wealthy in this country, no doubt, but the very defining of wealthy is difficult. A high percentage of the people protesting AGAINST the wealthy have lived pretty easy lives in comparison to some of my friends.

    It's a difficult game to play, and no one can agree on the rules, which is why I don't see how this is going to get resolved anytime soon.

    --
    Just another ignorant American.
  56. Re:You're right, but those guys are full of shit, by Anonymous Coward · · Score: 0

    Republican candidate's favorite "54% of Americans pay no tax at all.

    Ah yes. This too is one of my favorite Republican talking points as well. I went out to lunch with a couple I work with, one of whom supports the Tea Party, and another who is certainly right leaning. During our lunch one of them did quote this, which to me just strikes a nerve, because you are right. They don't make enough money to be taxed by the feds. One person's retort was then that they shouldn't be allowed to vote. I just looked at him in amazement that he would say that. Actually speechless. I also brought up the fact, like you, that they still are paying taxes (state income tax, sales tax, etc.), but they just brushed it of because it was almost a cognitive dissonance from what they heard. I knew it was a pointless argument to make with them, but I would at least try to impart to them some wisdom as to why they paid no federal taxes instead of just blindly quoting the 54% as a given fact. Sigh...I can only do so much.

  57. Sales Tax rate went up for that cap! by Kamiza+Ikioi · · Score: 1

    I live in Indiana and property taxes only recently went down after a massive spike a few years back because of outrage. I was one of those outraged, having also lost an exemption. Also, I just sold my house in a short sale at 60% of the original value, but was taxed at 100%.

    Sales Tax History of Indiana

    Oct. 24, 1963* 2%
    May 1, 1973 4%
    Jan. 1, 1983 5%
    Dec. 1, 2002 thru March 31, 2008 6%
    April 1, 2008 thru present 7%

    http://www.in.gov/dor/4159.htm

    Yeah, we got a 1% cap, and 2% rental and 3% business property tax rate, but we got it at the cost of ever increasing sales taxes. It's just stealing from Peter to pay Paul, and makes it even harder on poorer Hoosiers.

    Simon Properties don't give a damn about residents here. They think they will somehow save their GAP and Sunglass Hut malls with this stunt, rolling back the clock to the 80's. Hoosiers are fiscal conservatives. We damn well remember who raises our taxes, and Simon is on that list.

    --
    I8-D
  58. Re:This a million times by Bob+the+Super+Hamste · · Score: 2

    I would argue that property taxes in many cases are too high when I can look at the waste that city governments have. Also you do realize that in the US we spend more per student than every other nation on education so I wouldn't say it is a lack of money. This is especially true when you look at charter schools. I don't know how they are in other states but in Minnesota they can't pick and choose students and made worse by the public schools. A favorite tactic by the regular public schools is to use them as a dumping ground for difficult students by suggesting to parents of difficult students that they enroll them at a charter school where they can get special attention. They also only get state and federal money, no local money, yet when run properly do show good results, Granted there are a number of them that are run very poorly which tarnishes their image and makes them more difficult to be accepted.

    --
    Time to offend someone
  59. No Nexus No Sales Tax by Anonymous Coward · · Score: 0

    It's that simple.

  60. Re:You're right, but those guys are full of shit, by Anonymous Coward · · Score: 0

    I really like it how you think it okay for you to decide that I can "afford" to pay more in taxes. Why is my share (yes, I almost make six figures.) bigger than yours? Why if I make more money (and spend more, and pay more of my money in taxes on those purchases) should I give more. And what is more? Do you mean a higher percentage of my income? Or a set dollar amount?

      After Federal, State, local income tax, sales tax, property tax, My family pays close to 45% of our income in taxes. I am paying for my daughter to go to college, (We make to much to get good scholarship money) my son goes to private school (I still pay taxes for public schools. How is that fair?)

    Maybe I should quit my job, go on welfare, and then my daughter could get her school paid for by you (assuming you work and pay taxes). She is Hispanic and bilingual. Maybe she could pose as an immigrant and get more money for that too?

  61. Re:This a million times by Trepidity · · Score: 1

    They're also quite low as percentage of income for well-off people, especially in Indiana, so I don't get the angst. If you make $80k and own a $300k house, the maximum property tax is $3k, i.e. equivalent to a 3.75% income tax.

  62. Property Taxes by Anonymous Coward · · Score: 0

    Where I live, the government looks at what it needs and the appraised property values and calculates how much to charge. Just because my property value hasn't gone up (or perhaps even decreased due to the recession) our property taxes could go up to meet the city's and county's needs.

  63. Top 1% by Anonymous Coward · · Score: 0

    http://www.taxfoundation.org/news/show/250.html

    I know this data is from 2009, but look at the abstract. The top 1% earned 16.9% adjusted gross income (AGI), yet paid 36.7% of all federal individual income taxes. That seems more than their fair share. We cannot penalize getting wealthy or people won't have the incentive to succeed. I'm not in the 1% (I earn less than $325k per year), but even $325k doesn't seem uber-rich.

    I am all for applying a standard deduction then collecting a flat tax. We just need someone with more data than I to calculate what that standard deduction is (x dollars for self, y dollars for each dependent) and what percent above that goes to the fed.

  64. OMW to legal programming hell by AaronLS · · Score: 1

    This sounds like a programming nightmare for an ecommerce site. Eventually we will need SDK's to manage the ever changing business rules of all the sales tax laws of all 50 states.

  65. Re:You're right, but those guys are full of shit, by Dynedain · · Score: 1

    when you ask non-partisan analysts and think-tanks who specialize in tax they'll tell you that even the very bottom 1% pay at least 15% of their income in various taxes on property, utilities, retail sales

    Property, Utilities, and Retail Sales are NOT taxed at the Federal level, and so have nothing to do with the Federal deficit. You can't argue that because people are paying sales tax to their local municipality and state that they're somehow making up for not paying their share of Federal taxes. The Federal and local governments don't share one big pot of tax money.

    --
    I'm out of my mind right now, but feel free to leave a message.....
  66. Try before buy by tepples · · Score: 1

    I don't have to put up with parking lots, shitty cashiers, nor someone trying to pressure me into getting the "extended warranty".

    Nor do you have the chance to try before you buy to make sure that a product won't be unusably unergonomic for you. In addition, the product descriptions on Amazon don't necessarily have all the information printed on the product's package due to the 2000 character description limit, so you're more likely to end up buying something incompatible with what you already own. Finally, returns cost shipping and handling as opposed to just returning the product next time you're already out to buy groceries.

    1. Re:Try before buy by konohitowa · · Score: 1

      It would be nice to physically look them over. I rely on the Amazon reviews for that as well as other review sites and go to the manufacturer's site for additional information when Amazon doesn't have it. These are the same things I would do before going to a physical store. I'm not much of an impulse buyer, so having the physical array of items in front of me doesn't make a lot of difference to me. As to returns, I'm trying to remember the last time I returned something; I think it was a container of dried mushrooms that had a cigarette butt in it. That was maybe 4 or 5 years ago and was from a local grocery chain.

  67. MPAA-controlled TV news by tepples · · Score: 1

    Or because the majority of the populace are so apathetic that they won't research the candidates on their own, instead believing what MPAA-controlled TV news tells them so that they end up voting in advertisers' interests.

  68. Re:This a million times by gorzek · · Score: 1

    Unless you are living in the midst of a large city, an $80K salary and $300K house is living pretty damn large in Indiana.

    Much more common would be a $40K salary and a ~$100K house.

  69. Re:You're right, but those guys are full of shit, by Anonymous Coward · · Score: 0

    A lot of people, from the filthy rich to the upper-middle-middle class who just wish they were, need to shut up and pay their damn share. Before they find people with pitchforks at their doorsteps.

    Pay the Danegeld!
    Pay the Danegeld!

  70. Portable electronic devices by tepples · · Score: 1

    I rely on the Amazon reviews for that as well as other review sites and go to the manufacturer's site for additional information when Amazon doesn't have it.

    Say you're planning to buy a a laptop, PDA, phone, tablet, or other portable electronic device. How do review sites help you figure out how big and heavy the item is and whether you'll find the display and the keyboard, trackpad, or touch screen acceptable to interact with for extended periods of time without cramping up?

    1. Re:Portable electronic devices by konohitowa · · Score: 1

      I've never bought any of those items from a physical store. Always online. That said, I don't see how having an item in the store with a cord attached to it on a moderately low table will tell me anything about interacting with it for long periods of time. Is there some store that I'm unaware of with lounge chairs, couches and desks where I can grab one of the items and sit down with it for a couple of hours? Or that will let take it home with me overnight to test drive it?

    2. Re:Portable electronic devices by tepples · · Score: 1

      Touching a product in the store at least gives you an idea of how big the product and its keys are compared to your hand and vaguely how responsive its touch screen will be. I've read reviews of cheap Chinese Android tablets that need so much pressure to register a touch that the reviewer feels like he's going to break the screen.

    3. Re:Portable electronic devices by konohitowa · · Score: 1

      Which really, for me at least, brings it back to letting someone else do the research and then seeing what they have to say. Fan sites don't do much for me but I like reading the first impressions from tech journalists and the tear down reports. It does prevent me from being an early adopter, but as I said earlier, I'm not much of an impulse buyer.

      In the case of my Galaxy Tab 10.1, one of the things that I didn't find out from reviews nor notice during my first usage of it was the "oddness" of its touch interface. It's difficult to quantify, but essentially the touch interface varies between being overly sensitive and underly sensitive. It has a laggy feel to it sometimes, but not always. I think the core of the problem is that Android doesn't give you positive feedback about whether it noticed your touch event or not. The feedback you get is the performance of the function, which doesn't happen in any guaranteed realtime fashion. iOS is far better tuned than Android in this area. Perhaps ICS is the magic panacea to fix this, but I don't foresee Samsung bothering to release it for the 10.1 given the huge gap between the release of 3.2 and Samsung's port of it to the 10.1. And the Android dev environment is so incredibly awful in the emulator area that there's no way to know without actual hardware. Not that Eclipse is a joy either, but that's a whole other topic.

  71. Amazon Set To Lose Indiana Sales by hanekhw · · Score: 1

    My only question is how much in sales is Amazon prepared to lose? Charging local sales tax is the kiss of death to online retailers. If I'm any example, just between the time I see the final bill and make payment if I see sales tax added I void the sale and seek the item elsewhere.

  72. you are full of shit, too by Anonymous Coward · · Score: 0

    Nice rant bro, but you lost me when you compare percentages as if they were absolute values. From 15% to 30% may be double the percentage, but it is certainly not "twice as much money", and suggesting it is smells of intellectual dishonesty.

    In the end, the budget spends actual dollars. And in dollars, the "damn share" that you want to extort from the ones you consider rich may very well be 10 times more that the ones you're comparing to.

  73. Whatever... by Anonymous Coward · · Score: 0

    I doubt this is going to make me shop locally since they charge much more for everything. The only places I shop at is Walmart locally.