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Senators Vow To Renew Bid For State Taxes On Remote Internet Sales

Posted by timothy on from the coming-and-going dept.

jfruh writes "A bipartisan group of U.S. Senators are working hard to make it legal for U.S. states to collect sales tax on any sales made to their residents, even if the sellers live elsewhere. They tried to add an amendment making the change to an unrelated defense appropriations bill, but the attempt was defeated. They have vowed to try again."

11 of 268 comments (clear)

  1. Um... by jasper160 · · Score: 5, Insightful

    We don't have a revenue problem, we have a spending problem.

    --
    No good deed goes unpunished.
    1. Re:Um... by Anonymous Coward · · Score: 5, Insightful

      Right. Instead of spending locally

      I live in the capital of California. A few months ago, I spent an entire day looking for an alarm clock. Note: Not a limited class Mercedes. Note: Not a one of a kind Van Gogh. A fucking alarm clock. The only alarm clocks to be found were shoddy, cheap pieces of crap without a brand name. The majority of them were ridiculous 'phone docks'.

      Amazon? Ten minutes of searching, done.

      Instead of spending locally? You know why we're not spending locally? Because brick and mortar stores are fucking clueless.

      Aww, is da widdle Best Buy gonna close?

      Fuck off. We live in a global economy. I've no duty to support your failed business.

    2. Re:Um... by ducomputergeek · · Score: 4, Insightful

      I keep looking at all these projections of if we increase taxes on the wealthy how it will generate at most 20% of the revenue we need to close the fiscal gap. That tells me we aren't taxing our way out of this mess and while the increased taxes may help some, it's not going to be nearly enough. Spending needs an across the board massive cut on everything from defense to social spending. That's the ugly truth nobody wants to discuss.

      If I didn't know better I'd think both sides wants this fiscal cliff to happen. It's the only way I think they can actually enact the needed cuts and tax increases while both sides blame each other...

      --
      "The problem with socialism is eventually you run out of other people's money" - Thatcher.
    3. Re:Um... by Anonymous Coward · · Score: 0, Insightful

      It's also significantly more than our deficit. If we only paid our share to the federal government and kept that $60b for the state government, we'd be running a $40b+ surplus.

  2. should be illegal by wbr1 · · Score: 5, Insightful

    Unrelated riders on politically hot button bills and earmarks on important budget issues are how the most heinous of legislation is often passed. Should be illegal, but it will never be.

    --
    Silence is a state of mime.
  3. Creates a near monopoly by CloneRanger · · Score: 5, Insightful

    By forcing web sites to collect sales tax for all 50 states and the territories will create an accounting nightmare. The only companies that can afford to hire the people to do it would be the dominant players like Amazon. So, all the small start ups would be stifled right out of the gate. The end result will be a near monopoly and very few start ups bringing new ideas to market.

    1. Re:Creates a near monopoly by Attila+Dimedici · · Score: 3, Insightful

      So, in place of the many thousands of startups that will not get started because one more regulatory and financial hurdle has been put in their path, you are proposing that we settle for a single startup and call it a win?

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    2. Re:Creates a near monopoly by cob666 · · Score: 4, Insightful

      It's not JUST calculating the tax. Every business would have to have a Sales Tax ID for every state that collects sales tax, those aren't free and some states require you to pay a yearly renewal for said privilege. Also, many states require you to file quarterly, but not calendar quarterly, quarterly based on the state's fiscal year.

      --
      Do what thou wilt shall be the whole of the Law - Aleister Crowley
  4. Why is this a states issue?... by artfulshrapnel · · Score: 2, Insightful

    Seems to me that the states shouldn't be trying to deal with the taxes on this, and instead congress should be doing it under the mantle of "Regulating Interstate Commerce". Pass a law that says all sellers must collect and report both federal and state income tax on sales as if the sale were occurring at the buyer's physical location, or the location to which the product is delivered. (Whichever is easier to make into an enforceable law).

    Simple, clean, unambiguous, very few loopholes, and understandable to customers.

  5. Re:Where's Grover Norquist when you need him? by Anonymous Coward · · Score: 4, Insightful

    Or they could just not spend without restraint in exchange for votes. I know, that's not an obvious solution nowadays.

  6. Re:Where's Grover Norquist when you need him? by spiffmastercow · · Score: 3, Insightful

    Allowing the states to collect a tax isn't the same thing as imposing a tax. Not quite. Besides it's either that or the states will have to raise income and property taxes.

    Then they should raise income or property taxes. Sales tax is about the worst tax there is -- it's regressive, so it hurts poor people disproportionally, and it depresses retail sales and services. If states really want their businesses to compete with amazon, they should abolish sales tax so that purchasing locally becomes more attractive.