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Internet Sales Tax Vote This Week In US Senate

SonicSpike excerpts from CNet's coverage of the latest in the seemingly inevitable path toward consistently applied Internet sales taxes for U.S citizens: "Internet tax supporters are hoping that a vote in the U.S. Senate as early as today will finally give them enough political leverage to require Americans to pay sales taxes when shopping online. Sens. Mike Enzi (R-Wy.) and Dick Durbin (D-Ill.) are expected to offer an amendment to a Democratic budget resolution this week that, by allowing states to 'collect taxes on remote sales,' is intended to usher in the first national Internet sales tax." There goes one of the best ways to vote with your dollars.

434 comments

  1. I intend to block the sales tax using a HOST file by Anonymous Coward · · Score: -1, Offtopic

    $10,000 CHALLENGE to Alexander Peter Kowalski

    Hello, and THINK ABOUT YOUR BREATHING !! We have a Major Problem, HOST file is Cubic Opposites, 2 Major Corners & 2 Minor. NOT taught Evil DNS hijacking, which VOIDS computers. Seek Wisdom of MyCleanPC - or you die evil.

    Your HOSTS file claimed to have created a single DNS resolver. I offer absolute proof that I have created 4 simultaneous DNS servers within a single rotation of .org TLD. You worship "Bill Gates", equating you to a "singularity bastard". Why do you worship a queer -1 Troll? Are you content as a singularity troll?

    Evil HOSTS file Believers refuse to acknowledge 4 corner DNS resolving simultaneously around 4 quadrant created Internet - in only 1 root server, voiding the HOSTS file. You worship Microsoft impostor guised by educators as 1 god.

    If you would acknowledge simple existing math proof that 4 harmonic Slashdots rotate simultaneously around squared equator and cubed Internet, proving 4 Days, Not HOSTS file! That exists only as anti-side. This page you see - cannot exist without its anti-side existence, as +0- moderation. Add +0- as One = nothing.

    I will give $10,000.00 to frost pister who can disprove MyCleanPC. Evil crapflooders ignore this as a challenge would indict them.

    Alex Kowalski has no Truth to think with, they accept any crap they are told to think. You are enslaved by /etc/hosts, as if domesticated animal. A school or educator who does not teach students MyCleanPC Principle, is a death threat to youth, therefore stupid and evil - begetting stupid students. How can you trust stupid PR shills who lie to you? Can't lose the $10,000.00, they cowardly ignore me. Stupid professors threaten Nature and Interwebs with word lies.

    Humans fear to know natures simultaneous +4 Insightful +4 Informative +4 Funny +4 Underrated harmonic SLASHDOT creation for it debunks false trolls. Test Your HOSTS file. MyCleanPC cannot harm a File of Truth, but will delete fakes. Fake HOSTS files refuse test.

    I offer evil ass Slashdot trolls $10,000.00 to disprove MyCleanPC Creation Principle. Rob Malda and Cowboy Neal have banned MyCleanPC as "Forbidden Truth Knowledge" for they cannot allow it to become known to their students. You are stupid and evil about the Internet's top and bottom, front and back and it's 2 sides. Most everything created has these Cube like values.

    If Natalie Portman is not measurable, hot grits are Fictitious. Without MyCleanPC, HOSTS file is Fictitious. Anyone saying that Natalie and her Jewish father had something to do with my Internets, is a damn evil liar. IN addition to your best arsware not overtaking my work in terms of popularity, on that same site with same submission date no less, that I told Kathleen Malda how to correct her blatant, fundamental, HUGE errors in Coolmon ('uncoolmon') of not checking for performance counters being present when his program started!

    You can see my dilemma. What if this is merely a ruse by an APK impostor to try and get people to delete APK's messages, perhaps all over the web? I can't be a party to such an event! My involvement with APK began at a very late stage in the game. While APK has made a career of trolling popular online forums since at least the year 2000 (newsgroups and IRC channels before that)- my involvement with APK did not begin until early 2005 . OSY is one of the many forums that APK once frequented before the sane people there grew tired of his garbage and banned him. APK was banned from OSY back in 2001. 3.5 years after his banning he begins to send a variety of abusive emails to the operator of OSY, Federal Reserve Chairman Ben Bernanke threatening to sue him for libel,

  2. NOOOOOOO by cod3r_ · · Score: 5, Funny

    OH wait amazon already charges me taxes.. So who cares?

    1. Re:NOOOOOOO by Anonymous Coward · · Score: 2

      If it can be taxed, it will be taxed. That's just how humans do things.

      Unless they are rich, of course, in which case they have a large list of ways to avoid paying taxes.

    2. Re:NOOOOOOO by hedwards · · Score: 1

      Mostly brick and mortar retailers and retailers that have a presence in most states. They've been at a competitive disadvantage to online retailers that don't collect the sales tax. Around here sales tax is 9% and that's rather significant when you realize that in many cases that's more than the cost of shipping.

      I'm not even sure how I would go about paying the sales tax on those purchases as my home state doesn't have an income tax so we don't fill out any state tax forms where one might normally declare the sum. What's more it's unduly burdensome on the consumer to have to keep track of such sales for the state. Especially given that the states don't generally have jurisdiction to compel retailers in other states to show their sales figures and addresses.

    3. Re:NOOOOOOO by Baloroth · · Score: 2

      This tax would be collected from the retailer, just like a normal sales tax, not from the end purchaser. Technically, at least a few states already require you to pay a "usage" tax on things bought online or over the phone (from out-of-state), but that requires the purchaser to pay the tax, not the seller, so it ends up not being paid. Thats why the states want to go after the retailers: because then it becomes much easier for the state to enforce the taxes, which they currently cannot.

      --
      "None can love freedom heartily, but good men; the rest love not freedom, but license." --John Milton
    4. Re:NOOOOOOO by noh8rz10 · · Score: 5, Insightful

      I'm cool with the tax. Itthe current system puts brick and mortar at an enormous disadvantage, especially with commodities such as TVs with really thin margins. It used to be that sales tax balanced with shipping costs, but amazon effectively solved thee shipping cost problem. It's time to play on level playing field!

    5. Re:NOOOOOOO by hedwards · · Score: 1

      You missed the point, there is no tax form for that in this state that I know of, and without really digging for it and keeping records it would be impossible to pay. The burden very quickly adds up to being more than the taxes that I would be on the hook for.

      Yeah, legally we're supposed to, but the burden is far lower if the retailer just collects the tax and remits it to the state, AFAIK, they're permitted to keep a small portion to help cover the cost of collection.

    6. Re:NOOOOOOO by Anonymous Coward · · Score: -1

      Not me yet, so how about stfu?

    7. Re:NOOOOOOO by Anonymous Coward · · Score: 0

      rich ... have a large list of ways to avoid paying taxes.

      Like 401K, IRAs and retirement saver’s credit, un-taxed healthcare income, home mortgage and student loan interest deductions, child tax credits, deductible childcare, deductible medical expenses...

      50% of all US income earners pay not one thin dime to the US treasury. They put in for FICA for their personal bennies and that's it.

      When the creditors finally come for the trillions in un-taxed savings people have been socking away for decades I'll have no more sympathy for them then you have for the "rich."

    8. Re:NOOOOOOO by CanHasDIY · · Score: 1

      Right, because that's what capitalism and free-market economics is all about - leveling the playing field by force.

      Sheesh.

      --
      An enigma, wrapped in a riddle, shrouded in bacon and cheese
    9. Re:NOOOOOOO by Anonymous Coward · · Score: 0

      OH wait amazon already charges me taxes.. So who cares?

      They only charge it because they have a operation in your state.

      Like when I order from newegg.com they don't charge me tax because they have no locations or offices in my state.

      And there are more places to shop online than amazon. I do love them but I save hundreds of dollars a year in not paying taxes by buying online from places that don't charge it.

      Oh and I care.

    10. Re:NOOOOOOO by Anonymous Coward · · Score: 0

      Right, because that's what capitalism and free-market economics is all about - leveling the playing field by force.

      Who said it is capitalism or free market?

      FYI, the US was never free market nor capitalist, so what they're doing today is not surprising.

    11. Re:NOOOOOOO by Attila+Dimedici · · Score: 1

      What's more it's unduly burdensome on the consumer to have to keep track of such sales for the state.

      Then maybe you should get your state legislators to change your tax laws. Why should somebody in another state have to keep track of the tax laws in every municipality in every state in the country? If you think it is an unreasonable burden on you to keep track of sales tax, think about the burden on a small, one-person business that sells a couple hundred dollars a year in merchandise over the Internet.

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    12. Re:NOOOOOOO by Anonymous Coward · · Score: 1, Interesting

      Not really, the brick and mortar stores are at a disadvantage because they are brick and mortar stores not because of tax. I live in Virginia which has a 5% sales tax (I believe) and I don't even think of it when shopping, I just look at the price. If I can get it from Amazon or whomever including shipping cheaper than what Best Buy advertises it for, I will buy it from Amazon (or see if Best Buy will match which they will normal do and still pay the tax).

      Even with the tax on online purchases they will still be cheaper, and not because of the tax, but because it is more expensive to have a store, with utilities, employees, and inventory every 10 or so miles then having a huge warehouse that can ship dynamically. This will only delay the inevitable, the death of big box stores.

    13. Re:NOOOOOOO by noh8rz10 · · Score: 1

      perhaps giving online a tax break is market intervention? who's to say which is right? why would intervening to give online a tax break ok, but intervening to levy consistent taxes not ok? Sheesh.

    14. Re:NOOOOOOO by tipo159 · · Score: 1

      You missed the point, there is no tax form for that in this state that I know of ...

      Are you sure? There is a form for paying use tax on out-of-state purchases in this state (a state with no state income tax), but most people that I mention it to have never heard of it before.

    15. Re:NOOOOOOO by Anonymous Coward · · Score: 0

      I care. Not everybody uses Amazon for all there purchases. I don't buy off Amazon period though. Amazon sucks. They caved in to the pressures of government to there own interest at the expense of there customers They were an awe full company as it is.

    16. Re:NOOOOOOO by mabhatter654 · · Score: 4, Insightful

      The bottom 50% of earners only receive 10%-15% of ALL THE MONEY in the posted GDP each year. They literally have nothing to tax.. And social security is STILL a higher percentage tax than the majority of businesses pay.

    17. Re:NOOOOOOO by locopuyo · · Score: 1

      People that don't live in shitty states don't get charged sales tax by Amazon. But go ahead and ruin it for the rest of us.

    18. Re:NOOOOOOO by hedwards · · Score: 1

      Because they're wanting to sell items to people who live in our state. This is fundamentally no different than requiring firearms manufacturers to understand to which states they can legally sell their wares and to whom.

      If they want money from people in whatever jurisdiction, they have to know what the rules there are.

      As for burden, those people would likely just subscribe to a service that handles that for them, or they would restrict their sales to the states where they have a presence. The states don't usually pay much attention to people that are only selling a couple things on eBay anyways, if you're actually making a living doing this, then you should be making sure you're doing it legally.

    19. Re:NOOOOOOO by hedwards · · Score: 1

      I'm sure that I don't know of a form to pay that. I'm also sure that the state doesn't go to any effort to make the people aware of said form nor does the state make any effort at enforcing the rule either.

      And really, it shouldn't come down to self reporting anyways. It's incredibly burdensome for me to have to keep track of all that information, and provide it to the state, just so that I can pay taxes on it. Making the retailer keep track of it when they keep track of the rest of the billing information would go a long ways towards restoring some degree of sanity to the situation.

      So, yes, I am sure.

    20. Re:NOOOOOOO by LordNimon · · Score: 1

      Why should somebody in another state have to keep track of the tax laws in every municipality in every state in the country?

      Because this is a trivially simple problem that can be solved with software? The vast majority of vendors already need to calculate and disburse sales taxes from their own state. Just extend that system to every state, and voila -- the whole thing is fully automated and no longer an issue.

      The problem with collecting sales tax is not in figuring out what to charge. I hear that argument a lot, but I don't believe it.

      --
      And the men who hold high places must be the ones who start
      To mold a new reality... closer to the heart
    21. Re:NOOOOOOO by Beer_Smurf · · Score: 1

      Is it not even more burdensome for a small retailer to keep track of and comply with the tax regulations of fifty states and untold other entities?

    22. Re:NOOOOOOO by The+Snowman · · Score: 1

      Why should somebody in another state have to keep track of the tax laws in every municipality in every state in the country?

      They don't need to, this problem has already been solved:

      I have customers that use these vendors for taxes as well. The software I work on at my day job integrates quite nicely with these:

      --
      24 beers in a case, 24 hours in a day. Coincidence? I think not!
    23. Re:NOOOOOOO by dkleinsc · · Score: 5, Insightful

      Also relevant to this discussion: The median wage in the United States is $32,700. That means that half the country is earning less than that. If you're like a lot of /.ers and are a college-educated person working in technology, you should understand that your experience of life in America is nothing like what the majority of Americans experience. You are probably earning twice what the average American earns. You probably have quite a lot of disposable income and may have significant net worth. The average American family has negative savings and buys very little that isn't absolutely necessary to survive (food, clothing, housing, medical care, transportation, utilities).

      The reasons you might not be aware of these disparities are:
      - You probably live far away from the people who earn a lot less than you, so you don't see how people like that live.
      - You probably don't interact with people who earn a lot less than you on a regular basis. Or if you do, you see them as (for example) "that guy behind the fast food counter" or "the woman who cleans my office", rather than as flesh-and-blood people just like you.
      - Media do not regularly portray people in that economic situation.

      --
      I am officially gone from /. Long live http://www.soylentnews.com/
    24. Re:NOOOOOOO by grahamsz · · Score: 2

      Have you actually done that?

      There's nothing particularly trivial about it. Even if software calculates the number this means that each small business will have to remit payments at least quarterly to 50 different authorities. That's a major pain in the ass. Even if it takes less than an hour per state, that's someone's full time job for a month of the year.

      The consider that some states tax shipping, most don't, and I believe some states even tax free shipping at the actual value. NY doesn't tax clothing under $100. Georgia doesn't tax energy efficient products between Oct 5th and 7th. All kinds of states have exemptions for school supplies, but I'd bet they don't consider the same set of items as "school supplies".

      Plus if this goes ahead, then county sales tax will surely be fast on its heels. That get's into extra special levels of stupidity - in the town I used to live in, you only had to pay for the transit district if the land your house is on was annexed by the city after 1992. Even ordering stuff from the national retailers online, most of them just gave up and asked me which tax rate applied to me.

      Don't get me wrong, i have no issue with sales tax as such, but it needs to be simple or it'll really hurt small online retailers (I suspect it'll actually be a win for Amazon). I'd rather see something like a flat 5% or 8% that your remit to the federal government and they do the work of dividing it up.

    25. Re:NOOOOOOO by Attila+Dimedici · · Score: 1

      So, you are basically arguing in favor of eliminating all truly small businesses.

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    26. Re:NOOOOOOO by Attila+Dimedici · · Score: 1

      OK, how do you figure out what to charge the guy who lives in the county that charges 8% sales tax but has the sip code for the city that charges 8.5% sales tax? How do you know that he does not live in the city? What happens when the county implements a three day tax holiday? On only certain items?

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    27. Re:NOOOOOOO by Snotnose · · Score: 1

      OH wait amazon already charges me taxes.. So who cares?

      Haven't bought anything from Amazon since they started taxing me. Made 2 online purchases so far, paid taxes on neither.

      As the summary says, I'm voting with my wallet. I don't want to give the asshats in Sacramento any more money.

    28. Re:NOOOOOOO by BoberFett · · Score: 1

      You don't believe it because you're a simpleton who has never actually dealt with sales tax. If you believing that just saying the word "software" will easily solve the problem, you might as well substitute the words "magic" or "god" or any other make believe solution to life's complex problems.

    29. Re:NOOOOOOO by JackieBrown · · Score: 1

      So clearly we need another tax to level this field.

      We should have the online tax higher than the normal sales tax to make up for the property taxes we are entitled too.

      If online is still cheaper, we can tax them for not hiring employees in our cities since they are costing us local employees.

      Hopefully, we can get back to the day where there are only brick stores that are free to charge us whatever they deem necessary to keep our free economy going.

    30. Re:NOOOOOOO by Attila+Dimedici · · Score: 1

      So, you are saying that these people maintain these sites and I can set up an automatic way to calculate the sales tax for any address in the U.S. without having to lay out money periodically for updates to that information?

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    31. Re:NOOOOOOO by CanHasDIY · · Score: 1

      perhaps giving online a tax break is market intervention? who's to say which is right? why would intervening to give online a tax break ok, but intervening to levy consistent taxes not ok? Sheesh.

      It's not the concept I have a problem with - it's that whole "level the playing field" nonsense; one of those buzz-phrases that, when uttered by politicians, make me want to run screaming in the other direction.

      Of course, assuming you're not a government agent, I suppose I can concede that what you meant is not what I inferred.

      Mea culpa on that one.

      --
      An enigma, wrapped in a riddle, shrouded in bacon and cheese
    32. Re:NOOOOOOO by sjames · · Score: 1

      I'm not so sure the burden is lower, especially for a small seller. You have enough trouble fuguring out your own tax rates and submission procedures, imagine being responsible for 50 different ones. That's assuming we don't keep going down that path and make retailers collect taxes down to the local level. Quick, what's the tax rate on electronics in Podunksville UT when the buyer is over 65 and it's a Tuesday (of an even numbered month)?

    33. Re:NOOOOOOO by sjames · · Score: 1

      You might think so, but never underestimate a government's ability to screw up a tax code. Some places have different rates for different types of items, but occasionally odd ideas about what does or does not fit in a given category. Also, keep in mind that there isn't a unified procedure and forms for submitting those taxes.

    34. Re:NOOOOOOO by sjames · · Score: 1

      So, if I buy something at a brick and mortar just over the state line, are they obligated to collect my state's sales tax?

    35. Re:NOOOOOOO by noh8rz10 · · Score: 1

      no, but they collect the sales tax of where they are located. duh!

    36. Re:NOOOOOOO by Anonymous Coward · · Score: 0

      Yeah we should tax the new to protect a dying business model.

    37. Re:NOOOOOOO by sjames · · Score: 1

      So why don't they have e-commerce sites do that? If they want to be fair and all. DUH yourself.

    38. Re:NOOOOOOO by noh8rz10 · · Score: 1

      because you do the tax in the location where the purchase occured. dodent matter where the ecommerce site is. double duh. why are we going over these simple things?

    39. Re:NOOOOOOO by sjames · · Score: 2

      And they didn't bring the server to me, I reached out to it. The goods were not where I live before I bought them, so the purchase happened where the company was, just like if I go over the state line to buy a pack of gum and some fireworks. I have no idea why such a simple thing eluded you.

      You keep saying duh, but I'm starting to hear a braying ass.

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

      You can 'earn' more than that just getting on the various public benefit programs in my state. It's something like 48k when you put it all together. Then the cash you make under the table goes for the bling rims and big screens. Ahhhh yea...

    41. Re:NOOOOOOO by Anonymous Coward · · Score: 0

      Those of us who refuse to use Amazon care.

    42. Re:NOOOOOOO by dgatwood · · Score: 1

      Not really, the brick and mortar stores are at a disadvantage because they are brick and mortar stores not because of tax. I live in Virginia which has a 5% sales tax (I believe) and I don't even think of it when shopping, I just look at the price. If I can get it from Amazon or whomever including shipping cheaper than what Best Buy advertises it for, I will buy it from Amazon (or see if Best Buy will match which they will normal do and still pay the tax).

      If we're talking about a big-ticket item, people might pay attention to that extra $100 in tax. On the other hand, most big-ticket items are also large, and involve expensive shipping, which usually balances out most of that advantage. By adding sales tax for online purchases, that actually potentially puts brick-and-mortar stores at an advantage cost-wise, because local stores get their products by the pallet, which ends up being much cheaper per unit. Online distributors either have to charge that extra cost or build it into the product price. Either way, the extra shipping costs end up costing almost as much as having "a store, with utilities, employees, and inventory every 10 or so miles" when you put a pencil to it.

      What puts brick-and-mortar stores at a sizable disadvantage is the fact that they cannot feasibly match the selection of online stores. Even Fry's, arguably one of the better electronics stores out there, rarely has whatever it is I came in there for, so unless I'm buying something highly fungible like DVDs, I usually end up ordering whatever I need online. And these days, half the time, I don't even bother driving over there because I'm so certain that they won't have what I need. If brick-and-mortar stores want to compete with that, they need to provide some sort of paper or electronic catalog in each department showing the things they sell and helping you find them. And they need to have a list of other things that you can special order for in-store pickup and make it as easy as possible for you to do so.

      Also, longer hours would help. Most people work during normal business hours. If your business is only open during normal business hours, your business doesn't exist to me. In fact, if you close before 8:00 at night, unless you're open on Saturday, you don't exist to me. For that matter, there's no reason for most places to be open at all during normal business hours except around lunchtime, but I digress. For brick-and-mortar stores to compete, they really need to be open 24 hours per day like online stores are.

      Here's why: Suppose I decide, "Hey, I want to buy a couple more DVDs." If Fry's is open, I might run out there. But when they aren't open, Amazon is. Every time someone buys something online that they could have bought in your store had you been open, it cements the viability of online shopping in their minds as a better alternative to buying from your store. And over time, this erodes your market far beyond the handful of purchases that you missed.

      When do I most wish Fry's were open? From about 10 at night to about 1 in the morning. That's when I've gotten off work, have gotten buried in a project, and realize that I've forgotten a key component. If they were open, I'd drive over and pick it up. But they aren't, so I lose several hours of potential work. Or if it isn't a component that I absolutely have to have right then, half the time I just order it online while I'm thinking about it rather than waiting until the next day to go to Fry's and see if maybe they have it. If they were open, I'd drive over. But they aren't, so they lose that sale. Statistically, I would make a trip to Fry's outside their normal hours about once every 2–3 weeks, so they lose a lot of business from me by not being open later. That starts to make Amazon look pretty good by comparison.

      It really doesn't take that much extra effort to have a couple of employees around to maintain a store after hours. It might not balance out the extra revenue immediately, but it can help prevent the continued erosion of your business in the long run.

      --

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

    43. Re:NOOOOOOO by Imrik · · Score: 1

      Which side of the train tracks is the buyer on?

    44. Re:NOOOOOOO by hawk · · Score: 2

      It's not that complicated.

      A central agency publishes a table once a year of the rates for 5 digit zipcodes. Each zipcode has an associated entity.

      Retailers pay quarterly with a single check and a spreadsheet by entity.

      And, yes, there are a handful of zipcodes with multiple entities. Either they work out and submit to central their split, or the funds stay in escrow until they do.

      hawk

    45. Re:NOOOOOOO by noh8rz10 · · Score: 1

      Omg you are such a pedant. Look, here's how it works. If the purchase is made in person, then the purchase "occurs" where the person is. If the purchase is shipped or delivered, it "occurs" at the delivery address. If you don't understand this, go talk to a kindergatnener.

    46. Re:NOOOOOOO by Solandri · · Score: 1

      the current system puts brick and mortar at an enormous disadvantage, especially with commodities such as TVs with really thin margins.

      The current system does not put brick and mortar businesses at a disadvantage. States which have high sales taxes put their own brick and mortar businesses at a disadvantage. It's possible right now for every state complaining about Amazon to solve this issue without violating the interstate commerce clause - simply repeal their sales taxes. Then their brick and mortar businesses can charge the same amount as Amazon, and won't be at a disadvantage.

      I don't really understand why they won't do that. They don't have to give up the tax revenue, they can simply shift it over to different taxes like income tax. The sales tax is reviled by liberals as regressive (it's actually flat, but once you factor in living expenses it acts like it's regressive). And it's reviled by conservatives as being a burden business and discouraging commerce (by raising effective prices). It seems like everyone should be in favor of getting rid of sales taxes. But noooo, we have to go through this whole charade of passing a law which pretends not to violate the Constitutional prohibition on taxes on interstate commerce, even though it clearly does violate it.

    47. Re:NOOOOOOO by sjames · · Score: 1

      No, I am not a pedant. I pick no nits here. I just consider the purchase to happen where the store is. What did we do in the 'old day' when we wanted to buy something? We went to the store. Because that's where you buy things. At the store. You don't bring the store to you.

      Go ahead, ask a kindergartener where you buy things.

    48. Re:NOOOOOOO by Jane+Q.+Public · · Score: 1

      "This tax would be collected from the retailer, just like a normal sales tax, not from the end purchaser. Technically, at least a few states already require you to pay a "usage" tax on things bought online or over the phone (from out-of-state), but that requires the purchaser to pay the tax, not the seller, so it ends up not being paid. Thats why the states want to go after the retailers: because then it becomes much easier for the state to enforce the taxes, which they currently cannot. "

      There is only one problem with this. Wait! Actually, there are four. Pardon the long tweet, but this is not the simplest issue and people REALLY should get these things through their heads.

      (1) Not a big issue, but all, or nearly all, states have "use" (not usage) taxes. It isn't just a few.

      (2) A state cannot legally tax a transaction that occurs in another state. This has always been true, and continues to be true. There are court rulings galore, as well as centuries-old common law.

      (3) The Federal government has no Constitutional authority to collect taxes on behalf of a state. See (2) above. This too has always been true.

      (4) When a financial transaction takes place, it is deemed to have occurred AT THE PLACE OF BUSINESS.

      Now let's look at how these 4 things fit together, with the result that Congress is full of shit for trying to do this:

      Number (4) was decided in the courts WAY over 100 years ago, closer now to 200 I think, in response to mail-order companies. There are 2 salient points here: (A) for various reasons, among them taxes, the transaction HAS to take place somewhere, and (B) where does it make the most sense?

      Well, it was decided for many good reasons that the transaction takes place at the location of the company, rather than the location of the buyer. Some of those reasons are: it is far easier to keep track of a company's transactions for tax purposes than it is to try to keep track of every individual; and it simply doesn't work the other way around: if the transaction took place at the customer's location, how would the company know how much to tax? Is it reasonable to expect them to know all the tax laws for every state, county, and city in the whole country? The answer, even today, is NO.

      That is why you can be taxed if the company has a physical presence in your state: then it can reasonably be argued that the transaction took place in that state.

      Are we straight so far?

      So now we run into point (2). If you are in New York and you buy via internet from a company that is (only) in California, the state of New York cannot legally tax that transaction, because it took place in California. That is where Use Taxes come in: most states have them, and they are just about always the same rate as sales taxes. So New York can charge the customer a Use Tax. There are 2 differences: it is the use of the item that is being taxed, not the transaction, which makes it legal; and the individual is responsible for keeping track of and paying the taxes. It has to be that way, because again the company has no practical way to do it.

      In practice (and this is the biggest bitch by the states), people don't keep track and don't pay. And in fact, many people don't even realize a use tax exists, unless they buy something big in another state (like a car) and the state dings them for it. But that's beside the point, because it's the ONLY legal form of taxation that the courts have allowed them.

      And then we run into point (3). The Constitution does not give Congress or the Federal government the power to collect sales taxes on behalf of the states.

      So, while it might be slightly more complicated than this, that's it in a nutshell. The Federal government has no legal power to do what they are trying to do. They've tried to do it in the past, too, without success. There is simply no way around those 3 points (the first one being mostly irrelevant).

    49. Re:NOOOOOOO by Jane+Q.+Public · · Score: 1

      I should have added: there *IS* one way for the Federal government to do it, and do it Constitutionally: amend the Constitution. But unless and until they do, this will fail. Maybe not immediately, but it will fail. They are opening a can of worms that they do not seem to understand.

    50. Re:NOOOOOOO by grahamsz · · Score: 1

      The difficult place I lived had 4 discrete tax rates depending on where in the zip code you were.

      If the government publishes a list by zip code and manages a central escrow account so I don't have to piss around sending checks to every county then that'd satisfy me.

    51. Re:NOOOOOOO by kermidge · · Score: 3, Insightful

      Good point. For a bit of perspective, I'm 65 and getting paid social security. With the recent raise, I get $500/month. Rent is $110/wk. in winter, $105 in summer, plus $10/wk. if you've an air conditioner in a window. To bring me up to, as I understand it, legal minimums, I also get $190 in SSI and $83 and change from the state. Internet is $38 some-odd per month. Tack on phone minutes, household and personal consumables. Were it not for what's still called Food Stamps I don't think that I could make it. That's worth $200/mo.

      My apartment is ~216 sq./ft. including the bathroom, in a house built in the 1880s; it's charming, with two 20-amp shared circuits, and I'm lacking a UPS. Place has a gas stove, half-height reefer, and a microwave. In this city, this is a good deal.

      Figuring out what to do with the remainder of my riches is an interesting exercise. Yet I've got it better than a substantial percentage of our fellow humans. There is no local war and I've got Medicare, without which I'd probably be dead. I even got to keep the leg.

      "Life's a bitch, then you die. If you're lucky, you get in her pants first."

      Cheers.

      Oh, yeah: in principle I can see where sales tax on internet purchases could be fair. How to collect it without the collection measures costing more than collections, not so much.

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

      From this point hence all points made using the pretend word 'duh' in a post are considered moot. Gonna need a second...

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

      Yep, the bottom 50% pay more as a percentage of their income that the top 50%, so when these mis-guided Tea Baggers say "Half the country don't pay no tax!", they are as wrong as can be, and usually proud of their ignorance.

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

      . . . rather than as flesh-and-blood people just like you.

      Except they aren't flesh-and-blood people just like me, as they didn't learn a skill that pays a higher wage, like I did. There is nothing stopping them from learning such skills, yet I did and they didn't. That's the difference. That was there choice, as it was my choice to earn a higher wage. Nearly endless government welfare doesn't help incentivize people either, which contributes to the low median wage people like yourself deride. Although, median income continues to rise in the long-term, so your concern is misplaced. Classic liberal . . .

    55. Re:NOOOOOOO by rolfwind · · Score: 1

      You would not be leveling the playing field but plowing it under.

      As a small time retailer, I could not possibly keep up with all the differing tax rates of every state/county/municipality, nor apply all the different rules when they apply and when they don't. I also don't have the time to register with all the various state treasuries so to send them their checks.

      For the things I sell, the postage (which has been rocketing up in the last years) already surpasses what the sales tax charged, the playing field is leveled that way already in many cases.

      And in the other cases, the US congress should not be holding up nonviable businesses any longer. Our economy gets stronger over time promoting market efficiencies. I employ a small amount of people, I and they all contribute to our state's treasuries and this would only throw a wrench in the works.

      And who is supporting it? Walmart and other big retailers. Well yes, they have the resources to deal with this bullshit, and I don't. Which I suspect is much of the motivation.

    56. Re:NOOOOOOO by rolfwind · · Score: 1

      It used to be that sales tax balanced with shipping costs, but amazon effectively solved thee shipping cost problem.

      Amazon itself gets a good deal from USPS/FedEx/UPS as a massive customer but a huge % of merchandise is increasingly sold by 3rd parties under their banner and they get no special pricing by the carriers.

      You might see free shipping but the shipping price is built in. Which is why Amazon is often overpriced imo (on top of he big % they demand), but that's a different story.

    57. Re:NOOOOOOO by MrAngryForNoReason · · Score: 1

      I realise this is slightly off-topic but in the figures in your post you don't mention any kind of personal pension or one from a previous employer. Is this a common state of affairs in the US? My understanding is that social security in this case is the equivalent of a state pension in the UK which everyone receives if they are past retirement age.

    58. Re:NOOOOOOO by MrAngryForNoReason · · Score: 1

      expect them to know all the tax laws for every state, county, and city in the whole country?

      Can I read from this that in the USA any county or city can apply separate rates of sales tax? If so then before trying to worry about how to collect tax from online transactions I would suggest that the US address what sounds like a ridiculously fragmented tax system. I can't imagine it is much fun having no idea how much good are going to cost you in any particular city or because you have strayed over county lines.

    59. Re:NOOOOOOO by noh8rz10 · · Score: 1

      I dont understand the arguments about the burden of tracking tax rates. you already calculate shipping rates to every address in the world! in real time! I bet you use a payment processor? Surely there will rise several sales tax management services.

    60. Re:NOOOOOOO by dkleinsc · · Score: 2

      Not having a pension from an employer is in fact quite common in the US. Also not uncommon is cases where people were supposed to have a pension from an employer, but the employer in question raided the pension fund on its way to not existing any longer, so the pension doesn't exist.

      Social Security is a state pension program, as you gathered. It's not exactly enough to live on, as the parent post demonstrates, and right now about half of the politicians in Washington DC want to get rid of it entirely on the grounds that it's too expensive. There are three kinds of accounts specifically set up to try to encourage personal retirement savings (IRA, Roth IRA, and 401(k)), and there are some tax advantages to using them, but those are only an option for the minority of people who earn enough to afford to save anything.

      So yes, retirees in the US are very much like pensioners in the UK, except that US retirees have it much worse than pensioners. Also, the conservative party in the US, who holds more than half of the seats in Congress, wants elderly to get nothing at all when they retire.

      --
      I am officially gone from /. Long live http://www.soylentnews.com/
    61. Re:NOOOOOOO by kermidge · · Score: 1

      Nope, that's it. There are certainly others in my situation, however they arrived there; as to size of our cohort in relation to all retirees, I've no info. As an aside, did I have any way to augment my income, I purely would.

      I recently saw mention of the term "maximum lifetime benefit." I really have to find out about it, cuz it scares me to think of living long enough to get a letter saying, "Hey, that's it, mate, the well's dry. Good luck."

    62. Re:NOOOOOOO by kermidge · · Score: 1

      Just to clarify - left off a few things, only on third cuppa - most people I know receiving 'the minimum' are getting ~$1200/mo. I get less by virtue of being forced to retire a year early due to getting SSI for almost two years, and having to pay back some overpayment, to the tune of $150/mo.

      Also, for those who might not know, Social Security is really Old Age, Survivors, and Disability Insurance - OASDI.

    63. Re:NOOOOOOO by Jane+Q.+Public · · Score: 1

      "Can I read from this that in the USA any county or city can apply separate rates of sales tax?"

      Correct. At least in the states where sales taxes are legal.

      It's "fragmented" for legitimate reasons, though: states collect taxes to pay for state concerns, counties and cities collect taxes for their respective concerns. This helps ensure that the taxes are used for appropriate purposes.

    64. Re:NOOOOOOO by helix2301 · · Score: 1

      Just the government updating there laws so they get a cut of the action pretty soon eBay will charge and all the others.

    65. Re:NOOOOOOO by Anonymous Coward · · Score: 0

      The playing field is already more than leveled. Shipping cost more for than the tax! Even is the shipping is stated to be free, someone has to pay, do you really think UPS or Fedex will bring things to you for free? No, someone has to pay them. The stores that have free shipping have to pay the shipping. The purpose of sales tax is to pay for costs to the state that are are incurred by brick and morter businesses. If there are no physical stores in the state then there is no cost incurred to that state. Taxing internet sales is a scam and should not be allowed.

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

      Yeah but amazon and Walmart are pushing for the tax. Amazon wants it so that when they build distribution centers in each state, mom and pop Internet stores will never be able to manage all the different state taxes.
      Amazon, Walmart etc are the ones lobbying for this.

    67. Re:NOOOOOOO by The+Snowman · · Score: 1

      So, you are saying that these people maintain these sites and I can set up an automatic way to calculate the sales tax for any address in the U.S. without having to lay out money periodically for updates to that information?

      No, I am saying there are tax databases. I said "vendors" provide this information implying it is not free. While far from ideal, there are solutions.

      --
      24 beers in a case, 24 hours in a day. Coincidence? I think not!
    68. Re:NOOOOOOO by Attila+Dimedici · · Score: 1

      So, in other words you are saying that if you run a business that does not have a profit margin large enough to absorb this cost, you are SOL. Big business only need apply in your world. I have a couple of hobbies where the people who make some of the items I buy for the hobby operate a very small business with a customer base spread out throughout the world (although primarily the U.S. and Canada). There are not enough people involved in the hobby in anyone geographic area to make these businesses worth anybody's time. For a significant fraction of these people, having to collect sales tax for every municipality in the country will mean that it is not worth their time to continue.
      Just because a problem can be solved for a price, does not make it a good idea to create the problem in the first place (at least now you are admitting that it is a problem).

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    69. Re:NOOOOOOO by The+Snowman · · Score: 1

      I am not saying the situation is good nor are the solutions ideal for all users. Only that they are out there. Sales tax sucks for a lot of reasons. First, it is inconsistent. There are thousands of rates out there, and it is impossible to know what to charge unless your business is researching tax rates. Second, it depresses commerce. It the flow of electrons is electricity, the flow of dollars is economy. Sales taxes are like a billion ohm resistor on the economy.

      Nothing short of a Constitutional amendment will fix the situation, so we have to learn to live with it until it blows up big enough for a lot of people in government to be willing to fight for fixing it.

      --
      24 beers in a case, 24 hours in a day. Coincidence? I think not!
    70. Re:NOOOOOOO by Anonymous Coward · · Score: 0

      Zip codes are used by the USPS. They have absolutely nothing to do with county/city boundaries.

    71. Re:NOOOOOOO by Rakarra · · Score: 1

      Right, because that's what capitalism and free-market economics is all about - leveling the playing field by force.

      Sheesh.

      The current situation artificially props up online businesses -- when you levy a tax against brick and morter stores that online stores do not have to pay, of course it's a very non-free-market advantage to the online stores.

      Having both paying the same taxes reduces the current (unintentional) government meddling, allowing market forces to be more dominant.

    72. Re:NOOOOOOO by CanHasDIY · · Score: 1

      Well, yea, when you put it in a way that actually makes sense...

      --
      An enigma, wrapped in a riddle, shrouded in bacon and cheese
  3. I'll guess you'll just have to vote by voting by cait56 · · Score: 0

    But since you were obviously motivated by the need to make a statement, rather than say just being a cheapskate, I assume that will not be a problem.

    1. Re:I'll guess you'll just have to vote by voting by epyT-R · · Score: 0

      sorry but not all of us believe more taxation will truly make a difference considering how the US overnment squanders money.

    2. Re:I'll guess you'll just have to vote by voting by cait56 · · Score: 1

      Actually the federal government doesn't get a cent of this revenue, it's for state governments.

  4. Anyone tell these idiots... by Anonymous Coward · · Score: -1

    ...this country was founded on a Tax Revolt?

    As an observation, if you get it here, you don't get it elsewhere. It's give and take. But, for the Gooberment...it's all pretty much take, take take- unless they can buy your vote with a pittance of the take they're taking from you...

    1. Re:Anyone tell these idiots... by Anonymous Coward · · Score: 2, Insightful

      Umm, wasn't it techncially a "representation" revolt? Taxes are needed to pay for the services that are provided. Taxation without political power in return is what was the cause of the revolt.

    2. Re:Anyone tell these idiots... by Anonymous Coward · · Score: -1

      They know. They also know that the armchair soldiers-of-fortune like yourself are all bluster and no action.

    3. Re:Anyone tell these idiots... by Baloroth · · Score: 3, Insightful

      Umm, wasn't it techncially a "representation" revolt? Taxes are needed to pay for the services that are provided. Taxation without political power in return is what was the cause of the revolt.

      Yep, exactly. Which makes it even more relevant to the present case, not less.

      --
      "None can love freedom heartily, but good men; the rest love not freedom, but license." --John Milton
    4. Re:Anyone tell these idiots... by alexander_686 · · Score: 1

      Technically yes – but the rabble rousing was anti-tax.

    5. Re:Anyone tell these idiots... by SJHillman · · Score: 4, Insightful

      If you'll check a history book, you'll find the rallying cry was not "No Taxation" but rather "No Taxation Without Representation". Huge difference.

    6. Re:Anyone tell these idiots... by noh8rz10 · · Score: 1

      But aside form DC we all have reprint action in the senate. While we don't have control over individual issues, we can vote out the bastards if we don't like them.

    7. Re:Anyone tell these idiots... by RabidReindeer · · Score: 5, Informative

      If you'll check a history book, you'll find the rallying cry was not "No Taxation" but rather "No Taxation Without Representation". Huge difference.

      "Taxation without Representation is Tyranny" was the cry. Freedom, not freeloading.

    8. Re:Anyone tell these idiots... by Anonymous Coward · · Score: 0

      bullshit, it wasn't a tax revolt, it was a representation revolt.

      The quote isn't "No Taxation",

      The quote is "No taxation, without representation".

    9. Re:Anyone tell these idiots... by XxtraLarGe · · Score: 1

      If you'll check a history book, you'll find the rallying cry was not "No Taxation" but rather "No Taxation Without Representation". Huge difference.

      Yes, taxation without representation was cheaper.

      --
      Taking guns away from the 99% gives the 1% 100% of the power.
    10. Re:Anyone tell these idiots... by Anonymous Coward · · Score: -1

      "If you'll check a history book, you'll find the rallying cry was not "No Taxation" but rather "No Taxation Without Representation". Huge difference."

      This is essentially what we have ended up with "Taxation Without Representation". Once the freeloaders exceed 50% of the vote (which might have already occurred) they will simply use the power of the government (powers that were NOT initially granted by the constitution) to steal from the rest of the productive population. That will lead to an inevitable conclusion that neither side will like. Watch Europe collapse over the next 5-10 years and wake up.

    11. Re:Anyone tell these idiots... by CanHasDIY · · Score: 1

      But aside form DC we all have reprint action in the senate. While we don't have control over individual issues, we can vote out the bastards if we don't like them.

      ... every 2-4 years... only to replace them with other bastards from a remarkably small pool.

      --
      An enigma, wrapped in a riddle, shrouded in bacon and cheese
    12. Re:Anyone tell these idiots... by MrEricSir · · Score: 1

      "If you'll check a history book, you'll find the rallying cry was not "No Taxation" but rather "No Taxation Without Representation". Huge difference."

      This is essentially what we have ended up with "Taxation Without Representation". Once the freeloaders exceed 50% of the vote (which might have already occurred) they will simply use the power of the government (powers that were NOT initially granted by the constitution) to steal from the rest of the productive population. That will lead to an inevitable conclusion that neither side will like. Watch Europe collapse over the next 5-10 years and wake up.

      False equvalency, rationalization, and misinterpreting the constitution? Sounds like you must have a really compelling argument there!

      --
      There's no -1 for "I don't get it."
    13. Re:Anyone tell these idiots... by Anonymous Coward · · Score: 0

      The library called, you really need to return that copy of Atlas Shrugged.

    14. Re:Anyone tell these idiots... by dreamchaser · · Score: 1

      It doesn't make it relevant at all. The proposed law will just make it easier for States to collect their already existing sales taxes for online purchases. If you don't like the sales tax in your State you're free to move to one with a lower tax or to vote for State representatives/senators who will change it.

      The knee jerk reactions here are amusing sometimes.

    15. Re:Anyone tell these idiots... by SighKoPath · · Score: 1

      It's every 6 years for each senator, with a subset of them up for re-election every 2 years.

    16. Re:Anyone tell these idiots... by DaHat · · Score: 1

      I see what you did there... you made specific claims which you opted not to substantiate... care to try again?

    17. Re:Anyone tell these idiots... by tipo159 · · Score: 1

      ...this country was founded on a Tax Revolt?

      As an observation, if you get it here, you don't get it elsewhere. It's give and take. But, for the Gooberment...it's all pretty much take, take take- unless they can buy your vote with a pittance of the take they're taking from you...

      Yeah, that nasty, evil Government that doesn't do anything for you. How dare they ask for money to pay for the expenses of government!

    18. Re:Anyone tell these idiots... by the+eric+conspiracy · · Score: 4, Informative

      Um no. freeloaders have not come anywhere near 50% of the voters. The so called 47% contains large blocks of people who are not freeloaders.

      1. About 60% of those not paying federal income taxes pay other federal taxes such as SS and Medicare. Not to mention local taxes such as property taxes and sales taxes.

      2. Wealthy people whose income comes from tax free bonds pay no federal income taxes. However they pay other local taxes on property etc.

      3. About 20% of the 47% are retired elderly people who have paid a lifetime of SS and Medicare taxes.

      Finally a significant proportion of these people vote for Republicans. Various polls show that above 50% of the elderly vote Republican, and about 1/3 of the people who are exempt from federal income tax due to earning less than $24000 vote Republican.

      So basically the idea that a majority of 'freeloading' Americans are going to perpetuate their situation by en-masse voting for progressive candidates is ridiculous bullshit. There isn't any such majority of freeloaders in the first place, and secondly the voting pattern of low income people is not as monolithic as you propose.

    19. Re:Anyone tell these idiots... by dkleinsc · · Score: 2

      Once the freeloaders exceed 50% of the vote ... they will simply use the power of the government ... to steal from the rest of the productive population.

      We're in no danger of that, because there's nothing true about that sentence:
      1. Only 17% of households pay no income and no payroll tax. As soon as you factor in Social Security and Medicare, there are very few freeloaders.

      2. Of those 17%, nearly all pay sales taxes and/or property taxes to state and local governments, and many pay federal gasoline taxes, cigarette taxes, and other federal sales taxes. In other words, they aren't freeloaders.

      3. Your population of "freeloaders" basically consists of: Retirees, students, and seriously disabled people. Almost all of them either paid taxes before they became "freeloaders", or will pay taxes in the future.

      --
      I am officially gone from /. Long live http://www.soylentnews.com/
    20. Re:Anyone tell these idiots... by epyT-R · · Score: 0

      not paying exorbitant tax is not freeloading

    21. Re:Anyone tell these idiots... by DMUTPeregrine · · Score: 2

      Every tax, however, is to the person who pays it a badge, not of slavery but of liberty. It denotes that he is a subject to government, indeed, but that, as he has some property, he cannot himself be the property of a master.
      -Adam Smith, "The Wealth of Nations", Book V, Chapter II, Part II, pg.927

      --
      Not a sentence!
    22. Re:Anyone tell these idiots... by epyT-R · · Score: 1

      thats just it.. theyve proven they cant operate within a budget. most of the things they do that affect me are negative... they take more and more of my money, and waste it on idiotic adolescent style peer pressure driven garbage. they drive up prices at the pump, at the grocery store with their market monkeying, and now they want their grubby hand in internet commerce. oh goody i cant wait for more of the status quo policy making this will fund while i have even less money to go around.

    23. Re:Anyone tell these idiots... by CanHasDIY · · Score: 1

      Yea, I know. I was referring to election years, not terms.

      Good point of clarification, nonetheless.

      --
      An enigma, wrapped in a riddle, shrouded in bacon and cheese
    24. Re:Anyone tell these idiots... by Anonymous Coward · · Score: 0

      BURN!

      See how mature that was? And somehow it was more mature than your wanna be insult regarding Atlas Shrugged.

    25. Re:Anyone tell these idiots... by tipo159 · · Score: 1

      thats just it.. theyve proven they cant operate within a budget. most of the things they do that affect me are negative... they take more and more of my money, and waste it on idiotic adolescent style peer pressure driven garbage. they drive up prices at the pump, at the grocery store with their market monkeying, and now they want their grubby hand in internet commerce. oh goody i cant wait for more of the status quo policy making this will fund while i have even less money to go around.

      You still make use of the services offered by the government.

      They can't operate within a budget because of people like to make use of these services but no one wants to pay for them. They can't operate within a budget because voters can't agree on what they want from government, so things get pulled one way, then pulled the other way. The government is a reflection of the people.

      The government does waste money, but pretty much every entity wastes money. And I think corporations do more to drive up prices at the pump (like defer maintenance at refineries and then enjoy the additional income from the price rise when a refinery does down) as well as the grocery store.

    26. Re:Anyone tell these idiots... by Dragonslicer · · Score: 1

      ...the rest of the productive population.

      Like middle managers, stock brokers, and politicians?

    27. Re:Anyone tell these idiots... by PoolOfThought · · Score: 1
      Personally, I like #2 (aptly numbered, by the way). It has nothing to do with the discussion other than it being a "Oh yeah? Well let me tell you this about YOUR guy!" type comment. I'm sure there's a fancy debate name for that sort of fallacy, but 'irrelevant' will do fine. But even though it's irrelevant it definitely tells me a bit about how much thought you put into it.

      Wealthy people whose income comes from tax free bonds pay no federal income taxes. However they pay other local taxes on property etc.

      If you are someone whose income comes from tax free bonds it means what? It means you loaned your money to the f-cking government who NEEDED IT (or so they were convinced) for some reason or another. Once you handed it to the government you did NOT have your money and could not invest it elsewhere where you would have made a higher return (which you would have paid taxes on, but would have probably still come out better). You couldn't BUY FOOD with that money even if you wanted. You couldn't pay rent with it if you fell on hard times. You couldn't even reinvest it. You have incurred an opportunity cost AND taken on risk. You do realize that's why those bonds are tax free right? Because they wouldn't be a good deal if they were paid the less than "market" rates that they pay AND you had to pay taxes on them. The government wants to entice you to put your money with them and making them tax free is one of the ways they can sweeten' the deal... but you seem to be missing that even with that benefit it still doesn't necessarily mean it was a good deal.

      --
      My present is the activity I am currently engaged in with the purpose of turning the future into a better past.
    28. Re:Anyone tell these idiots... by demonlapin · · Score: 1

      The typical American gets more out of SS and Medicare than they put in. Single men who don't pay an average of about $2000 a year in income tax are freeloaders at the federal level. So are single women who pay less than about $5000/yr and married couples who pay less than about $7500/yr. Take a look here for the info - that's the Urban Institute, not the Tea Party.

      Next, the famously conservative Ezra Klein points out that the median taxpayer pays 13.9% of their income in federal tax and 11.3% in state and local. That's sourced here, where they point out this person makes about $42k/year. Now, since payroll taxes at the time the article talks about were 4.2% to SS and 1.45% to Medicare (from the employee's perspective), that means that they're paying 5.65% of their income as payroll tax, so the median taxpayer here is paying 8.25% of their income as federal income tax, meaning: $3465. This is muddied significantly by the fact that these figures represent all returns, not all individuals, so married couples' returns are mixed in with single people's returns, but since over half of people are women and quite a lot of those who aren't are married, it's pretty clear that a majority of people are getting a great deal from the federal tax system regardless of how they vote. Just because states don't hand out nearly as much free money (they can't print it) doesn't change that.

    29. Re:Anyone tell these idiots... by aklinux · · Score: 1

      ...and the taxes were more to pay for European wars (the services) that the colonists did not see themselves as part of AND had no say (representation) in. The European wars often did have American theaters to them. The 7 Years War was know locally as the French and Indian War.

    30. Re:Anyone tell these idiots... by RabidReindeer · · Score: 2

      The library called, you really need to return that copy of Atlas Shrugged.

      WTF is an objectivist doing borrowing books from a library? Don't they realize that public libraries are SOCIALISM????

    31. Re:Anyone tell these idiots... by Anonymous Coward · · Score: 0

      How about no taxation with no representation?

    32. Re:Anyone tell these idiots... by MrEricSir · · Score: 1

      Nope. Try again -- but this time actually read the post I was responding to. If you can't do that, please don't bother to reply.

      --
      There's no -1 for "I don't get it."
    33. Re:Anyone tell these idiots... by the+eric+conspiracy · · Score: 1

      Nice rambling rant but completely misses the point. #2 is simply an illustration of part of list of people who pay no federal taxes yet are not freeloaders.

      As they say on the internet, WHOOSH.

    34. Re:Anyone tell these idiots... by the+eric+conspiracy · · Score: 1

      Your math is very sketchy. Since the employer's contribution ends up in the SS and Medicare pools it's always regarded as part of the tax paid by the employee by economists. Not to mention of course that the temporary tax cut was exactly that, only temporary.

      The ACTUAL tax burden is 12.4% for social security and 2.9% for medicare. 15.3%

      Then on top of that you neglect the time value of money. SS is a pay as you go plan. Include that 15.3% in a reasonable investment plan and I have this feeling that all of a sudden it ISN'T going to look like such a great deal.

    35. Re:Anyone tell these idiots... by demonlapin · · Score: 1

      I'm aware that this money is paid on their behalf. But it's not on their tax return, so I didn't include it when talking about studies that look at numbers off people's tax returns. I used the lower rate that applied at that time because... that's what everyone in the study was paying at the time and reporting on their 1040's. I'm sure that the math for total in/out includes the other half of the tax.

    36. Re:Anyone tell these idiots... by Rakarra · · Score: 1

      BURN!

      See how mature that was? And somehow it was more mature than your wanna be insult regarding Atlas Shrugged.

      Atlas Shrugged is a screed from a particularly childish and selfish philosophical movement, it neither requires nor deserves a particularly rigorous debate.

  5. Should be collected by the feds by MightyYar · · Score: 4, Interesting

    If the tax crosses state borders, then it should be collected by the Feds - or at least the rules should be national and consistent. Collect, say, 5% from everyone and then distribute it according to billing address. Making merchants deal with 50 different tax codes is onerous. I hope this bill is defeated.

    --
    W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    1. Re:Should be collected by the feds by CoolCash · · Score: 1

      If they have an up to date database of all the sales tax codes its not a big deal. Merchants already do this with shipping. It should be even easier since they already have a sales tax field, they just need to compare a database of zip codes to the database.

    2. Re:Should be collected by the feds by Looker_Device · · Score: 1

      Making merchants deal with 50 different tax codes is onerous.

      I dare say that's exactly the point. Why do you think brick-and-mortars are so happy about it?

      --
      Your political party doesn't care about your rights and only represents corporate interests.
    3. Re:Should be collected by the feds by Anonymous Coward · · Score: 0

      So I get a 12% sales tax due to State and Federal taxes, or does 5% go to the Fed and 2% my state under this plan?

    4. Re:Should be collected by the feds by hedwards · · Score: 1

      The problem with that is that around here the sales tax is 9.5%, which would mean that the city and or state would be losing revenue that they're entitled to collect. Considering the state of the nation, it's not that burdensome, what would likely happen is they would just contract out the work of tracking such changes to a contractor.

      It's not just 50 states, it's all the municipalities that are entitled to collect sales tax in various states. In Seattle that's about 3% on top of the state sales tax of 6.5%, which means that one or both entities would be shorted under that proposal.

    5. Re:Should be collected by the feds by Todd+Knarr · · Score: 1

      Won't work. Here in San Diego we have several ZIP codes where there are 2 sales tax rates within the ZIP code depending on the exact address. Parts of the ZIP code are within a city, subject to city sales tax, and parts are outside the city and city sales tax isn't due. To get the rate right you need to know not just the ZIP code but whether that particular address is inside or outside the city limits. And the state of California can't tell you which it is, the state doesn't know the exact city boundary. I doubt even the city could tell you without finding the address on a map.

    6. Re:Should be collected by the feds by MightyYar · · Score: 1

      Multiply the cost of that database and the time used to hook your systems into it and the cost of submitting all those taxes by the number of businesses shipping goods and you have a pretty big number, I suspect. The alternative is you could have a single simple rule for everyone that captures 90% of the problem.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    7. Re:Should be collected by the feds by Anne_Nonymous · · Score: 1

      >> Making merchants deal with 50 different tax codes is
      onerous.

      It would be a shame if our tax code were to become overly complex and onerous.

    8. Re:Should be collected by the feds by omnichad · · Score: 1

      You mean like an API that's handled at the federal level? That's the only way the collection side might work. But remitting the actual sales taxes will still be terrible. - especially sending tax payments of $0.43 to some random municipality that charges city sales tax (if that's included in the bill).

    9. Re:Should be collected by the feds by Attila+Dimedici · · Score: 4, Interesting

      You mean an up t odate database all the states and all of the municipalities within those states that collect sales tax...and don't forget that you need a map that tells you which taxing municipality every address in every state is in. Admittedly you do not currently need to know that for the states that do not charge sales tax at any level. Oh yeah, you also need to know what items sales tax applies to in every sales tax charging municipality in the country and don't forget those special tax holidays that many of them pass each year that only apply to certain types of items out of those they otherwise charge sales tax on.

      And, sorry, but a database of zip codes does NOT match up to the boundaries of taxing jurisdictions.

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    10. Re:Should be collected by the feds by XxtraLarGe · · Score: 1

      If the tax crosses state borders, then it should be collected by the Feds

      Why insert more ham-fisted bureaucracy when it isn't necessary? Vendors can issue tax payments directly to the states, instead of having vendors collect taxes, send it to the Feds, and then have them send it to the states? I'm not in favor of an internet sales tax, but if it's going to happen, I'd rather not have the feds involved at all, as that will just turn into another cash-grab opportunity when they decide we need a national sales tax.

      --
      Taking guns away from the 99% gives the 1% 100% of the power.
    11. Re:Should be collected by the feds by Baloroth · · Score: 2

      If the tax crosses state borders, then it should be collected by the Feds - or at least the rules should be national and consistent. Collect, say, 5% from everyone and then distribute it according to billing address. Making merchants deal with 50 different tax codes is onerous. I hope this bill is defeated.

      It's not 50, it's closer to 10,000 (according to TFA). Different counties can have different tax rates (even a zip code doesn't guarantee a single tax rate).

      --
      "None can love freedom heartily, but good men; the rest love not freedom, but license." --John Milton
    12. Re:Should be collected by the feds by MightyYar · · Score: 2

      Under the existing bill, the states can all come after you individually. It might be 12%, it might be 2% - depends on where your customer lives. I'm proposing to either leave it the hell alone, or implement a single blanket rate that applies to all customers, who would then be immune from any local use taxes on that item.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    13. Re:Should be collected by the feds by fustakrakich · · Score: 1

      ...it should be collected by the Feds...

      Exactly. If they want the money, they should have to do all the paperwork.

      --
      “He’s not deformed, he’s just drunk!”
    14. Re:Should be collected by the feds by CoolCash · · Score: 1

      What I should have said. How does Dell, Apple, Amazon do this? They already have a nationwide database of sales tax rates based on location. There are services already setup to do this.

    15. Re:Should be collected by the feds by Anonymous Coward · · Score: 2, Interesting

      I remember someone posting to slashdot years ago explaining you had to do it by recipient, not even house. They lived on an Indian reservation, and were not part of the tribe. So they paid higher sales tax than their neighbors who were members of the tribe.

      Expecting anyone to collect sales tax based on shipping or billing address is foolish. What's going to end up happening if the Feds don't just set an easy to compute rate, is that there will be one or two new companies that will spring up to collect the sales tax and claim they do it right. They'll just bribe the states to look the other way when they screw up.

    16. Re:Should be collected by the feds by MightyYar · · Score: 1

      The problem with that is that around here the sales tax is 9.5%, which would mean that the city and or state would be losing revenue that they're entitled to collect.

      Right now they are getting 0%. Something tells me they won't complain that loudly. I'd argue that since the business has no local presence, it is not using any state services and should not be paying full tax anyway.

      It's not just 50 states, it's all the municipalities that are entitled to collect sales tax in various states.

      That would bring the total up to 10,000 different tax codes, then. I think my point is even stronger in that case.

      Don't get too hung up on "5%". I just pulled that number out of my ass.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    17. Re:Should be collected by the feds by RabidReindeer · · Score: 2

      Making merchants deal with 50 different tax codes is onerous.

      I dare say that's exactly the point. Why do you think brick-and-mortars are so happy about it?

      Fifty codes is nothing. I can keep 50 codes taped to the side of my server. It's all those city/county/Enterprise Zone/speciality business/foo-nonfood/tax holiday/special assessment rules that's onerous.

      Give me 50 codes, and I'm happy.

    18. Re:Should be collected by the feds by Anonymous Coward · · Score: 0

      Do it! I don't want to have to make a mental note to remember every item I've purchased over the past year without sales tax, and then report when I do my taxes. Or better yet, maybe set up some sort of layer that recognizes your location, by geo-IP, default address, etc., and charges to sales tax if your state requires it... Welcome to the world of tomorrow!!

    19. Re:Should be collected by the feds by MightyYar · · Score: 1

      Why insert more ham-fisted bureaucracy when it isn't necessary?

      How is suggesting interacting with a single bureaucracy worse than dealing with 50?

      Vendors can issue tax payments directly to the states, instead of having vendors collect taxes, send it to the Feds, and then have them send it to the states?

      I could get on board with that. I still want a single rate that applies to everyone. I, personally, would hate to write 50 checks and do 50 sets of paperwork every year, but I'm sure Intuit will get right on it.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    20. Re:Should be collected by the feds by Impy+the+Impiuos+Imp · · Score: 1

      This would apply to state-level taxes only. Grotesquely innefficient local Peoples' Republics can suck it.

      --
      (-1: Post disagrees with my already-settled worldview) is not a valid mod option.
    21. Re:Should be collected by the feds by hedwards · · Score: 1

      What you're talking about is a pretty substantial violation of states' rights. The Supreme Court has already ruled that states can assess these taxes, just that the method of collection can't be unduly burdensome, and that ruling is 20 years old and done prior to the point when it was trivial to set up a database for all the retailers to reference.

      And yes, they will complain loudly about it. My home state has no income tax, and OR has no sales tax. So, OR would see no difference at all from this, but my home state would have to give up revenue for which it is entitled. Doesn't seem like anything other than a Federal overreach of authority.

      The only reason why the tax isn't presently being assessed is that the Federal Government has failed to provide the states with the backing to collect the taxes. So, asking the states to settle for anything less than the full sum they're asking for is unacceptable. The people of various states have elected officials and passed votes that have set the tax rates where they are, expecting them to give up some of their revenues over this is absurd.

    22. Re:Should be collected by the feds by CanHasDIY · · Score: 1

      I'm proposing to either leave it the hell alone, or implement a single blanket rate that applies to all customers, who would then be immune from any local use taxes on that item.

      Hm, sound suggestions... which is why they'll never even be considered.

      --
      An enigma, wrapped in a riddle, shrouded in bacon and cheese
    23. Re:Should be collected by the feds by Anonymous Coward · · Score: 0

      If the tax crosses state borders, then it should be collected by the Feds - or at least the rules should be national and consistent. Collect, say, 5% from everyone and then distribute it according to billing address. Making merchants deal with 50 different tax codes is onerous. I hope this bill is defeated.

      You think this sounds absurd? Wait till the treaties start since they will want those "foreigners" shopping in their "states" to pay taxes as well right? It will of course work in the opposite direction as well right? Gee, seem to recall something about phone numbers being set up to where you are actually calling a number not in the US and getting charged ridiculous prices on it and the placer of the ad in your local paper/circular getting a part of the price of the call? Or at least used to see warnings in them about dialling certain area codes etc. Search for something online to buy, find very cheap quoted prices, *click*,,,WTF? Oh but you can object to your CC company right? Ahh, but can you get it removed when by treaty it becomes a matter of State?

      IANAL and a bit of a nut case, after all I believe doing business online is a bad idea to start with being as there is not not and never has been such a thing as a secure server and they are certainly not when the government is also moving towards getting everyone's financial information. The total amount of money and goods being taken through identity theft, other fraudulent access of bank accounts etc online is under-reported and therefore unknown. Your credit cards and customer cards information already indicates you have purchased bomb making materials of assorted types, even if you using them to fuel your truck, do your laundry and fertilize your garden, you purchased them and they are stored on your property so they can label you as a terrorist and report that you have bomb making materials purchased when they raid your home. See, I told you I was a bit of a nut case,,, later, sounds like someone is at my door.

    24. Re:Should be collected by the feds by Anonymous Coward · · Score: 0

      Same deal here in little ol' Topeka, Kansas - the 66614 zip code, for example, is split between city and county - the city tacks on something like 1.5% extra to the sales tax.

    25. Re:Should be collected by the feds by dywolf · · Score: 2

      These are state and local taxes, not federal. The biggest reason this has gone so long is by which party do you determine the tax to apply?

      IE, the legal question is in what location is the sale considered to have occured when between two parties in two physically seperate locations?

      The simplest solution is to have it based on the sellers location, since they are also the one responsible for collecting applicable taxes. then they only have to apply their local applicable taxes , rather than keep tabs on everyones tax codes. but vendors have resisted that too because it means a higher price compared to someone selling out of a locale without sales taxes. normally that sort of competitionsorts itself out because to get to that other locale requires travel or postage. the internet removes those barriers, and creates a distinct business advantage (another reason for relatively lax internet sales tax standards).

      so: collect taxes for sales based on vendors location. simple, ease, and just like sales they make in store. probably happen that way as its simple and logical
      but, as a result of the advtange this gives to certain locales, expect bigger companies to move around or get tax codes changed as a result.

      and as you state, the solution to that is a federal collected sales tax. but i just dont think that that will fly or go go very far. or be implemented well, or distributed properly.

      --
      The guy who said the election was rigged won the presidency with the second-most votes.
    26. Re:Should be collected by the feds by bill_mcgonigle · · Score: 1

      Last I heard it was about 6700 tax codes, after figuring in all the state, county, and local taxes and various classes of specially-tariffed items.

      But the heaviest burden would be on merchants in States that have no sales taxes. They'd be suddenly required to collect sales taxes for other States, which they're not equipped to do, all because those other States don't feel like enforcing their own tax codes.

      That's not how a Republic of Republics works.

      --
      My God, it's Full of Source!
      OUTSIDE_IP=$(dig +short my.ip @outsideip.net)
    27. Re:Should be collected by the feds by Jaysyn · · Score: 2

      I dare say that's exactly the point. Why do you think brick-and-mortars are so happy about it?

      They probably won't be for long. Actually, they probably just legislated their own death certificate. Amazon's next plan is to put warehouses in major metro areas & provide same day or one day delivery. Residents with a PC (or smartphone) & a bank account will never have to drive to a "big-box" store ever again if they don't want to.

      --
      There is a war going on for your mind.
    28. Re:Should be collected by the feds by XxtraLarGe · · Score: 1

      How is suggesting interacting with a single bureaucracy worse than dealing with 50?

      How difficult is it to query a database for transactions based on sales by state, multiply that total by the tax rate and EFT a payment? Yes, it will be slightly more complicated than that, but it really shouldn't be. From a programming standpoint, it should be fairly trivial. The one way that the Feds could be helpful would be by requiring standardized reporting for the states.

      --
      Taking guns away from the 99% gives the 1% 100% of the power.
    29. Re:Should be collected by the feds by nabsltd · · Score: 3, Interesting

      Making merchants deal with 50 different tax codes is onerous.

      I dare say that's exactly the point. Why do you think brick-and-mortars are so happy about it?

      Because they're stupid?

      Amazon is supporting this bill because of their new "same-day delivery" that is being rolled out. It requires them to have a presence in every state, so they'd have to collect sales tax anyway. This bill would put all other online stores at the same disadvantage of having to collect taxes, but without the advantage of actually having a point of presence in every state.

      If this bill passes, it will give Amazon another reason to accelerate the roll out, and eliminate the one advantage that B&M stores currently have.

    30. Re:Should be collected by the feds by MightyYar · · Score: 1

      What you're talking about is a pretty substantial violation of states' rights.

      How is this not "Interstate Commerce"?

      Quote from 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;"

      Sound familiar? :)

      And then a few lines down:

      "To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes;"

      So I'm pretty sure we are on firm Constitutional ground.

      So, asking the states to settle for anything less than the full sum they're asking for is unacceptable.

      I'll give you points for sticking to your ideological guns, but that route is more expensive to us as a society. One set of national rules is clearly what the framers of the Constitution had in mind. Further, the whole concept of use taxes (which is what the states are trying to collect now since the Constitution won't let them tax someone in another state) requires such a level of surveillance to enforce that I'm just not comfortable with it. Basically ALL purchases in the whole country would have to be searchable by any state who wants to enforce their use tax. No thanks.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    31. Re:Should be collected by the feds by Attila+Dimedici · · Score: 3, Insightful

      Maybe you haven't noticed, but Dell, Apple and Amazon do multiple millions of dollars in sales each year. Now if you think they should be given even more competitive advantage over small retailers, then this law is a great idea.

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    32. Re:Should be collected by the feds by Attila+Dimedici · · Score: 1

      Except that it isn't 50 different tax codes, it is several thousand (many states have varying tax rates and codes for different municipalities within the state).

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    33. Re:Should be collected by the feds by MightyYar · · Score: 1

      but i just dont think that that will fly or go go very far. or be implemented well, or distributed properly.

      If the feds can't be trusted, then it's only a slight inconvenience to have the sellers submit taxes to all 50 states individually based on their customer's locations. Auditing would be a bitch, though.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    34. Re:Should be collected by the feds by Attila+Dimedici · · Score: 1

      So, are you paying the tax on the stuff you purchase from out of state? Since you admit that you owe it.

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    35. Re:Should be collected by the feds by Anonymous Coward · · Score: 0

      The feds could provide a simple web service that takes an address and spits out an amount, payee, etc. Not hard.

    36. Re:Should be collected by the feds by the+eric+conspiracy · · Score: 1

      How about zip+4. If the local yokels find this is not granular enough well, tarring and feathering is too good for them.

    37. Re:Should be collected by the feds by MightyYar · · Score: 1

      How difficult is it to query a database for transactions based on sales by state, multiply that total by the tax rate and EFT a payment?

      Scenario 1:
      1) Take order
      2) Ship out goods

      Your suggestion:
      --- first ---
      1) Classify all of your goods in such a way as to determine easily whether they will be taxable or not under every locality's rules in the entire US.
      2) Re-write or modify any computer systems you have to handle the new taxes
      --- now each time ---
      3) Take order.
      4) Look up customer's address in database that you have to pay for. Probably pay for constantly, since it will update frequently.
      5) Match up each item to see if it is taxable or not.
      6) Ship out goods
      --- later ---
      7) At end of year, send out thousands of checks (or EFT payments) to every locality you have shipped to.
      8) Fill out any paperwork required for audits or local tax returns.
      9) Deal with mistakes on your part, mistakes in the database, and customer misunderstandings about the tax code in their locality.

      My suggestion:
      1) Take order
      2) Multiply by 1.05
      3) Ship goods
      4) Send Uncle Sam a check.
      ( note there is no substantial paperwork required, because you already have this for your federal income taxes... arguably step 4 already was happening)

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    38. Re:Should be collected by the feds by c++0xFF · · Score: 1

      Kohls has a solution that seems to work, but only somewhat.

      After telling them where I live to place an order, they try to look up the sales tax by my zip code. This fails because my zip code spans five different sales tax rates -- two counties, inside or outside city limits, etc. So, they present a drop-down list for me to tell them which area I fall under.

      And, of course, I don't think they have all the right options -- there's other special tax districts that aren't accounted for by their list.

      So, of course I'm going to figure out which one has the lowest tax rate and tell them I live there. It's almost a 5% difference!

      When I put in new flooring, the local store had to loop up my specific address in a huge book to figure out my tax rate. You're exactly right that they have to find the address on a map.

    39. Re:Should be collected by the feds by MightyYar · · Score: 1

      OK, good, now you have the feds involved - which is a big improvement over this bill.

      In addition to what you suggested, the feds could also either collect the money or provide a uniform interface for payments. Can you imagine filing thousands of separate tax returns and writing individual checks to each locality?

      Now, the only difference between your idea and mine is the flat rate.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    40. Re:Should be collected by the feds by DogDude · · Score: 1

      So, what's your point? It's still a relatively trivial database.

      --
      I don't respond to AC's.
    41. Re:Should be collected by the feds by Anonymous Coward · · Score: 0

      Dealing with 50 tax codes? Never necessary. In Europe, a business pay tax where it is located. Obviously, taxation varies from country to country. And if a country thinks another gets too much of an advantage, they simply tax goods as it crosses the border. foreign mail is inspected.

      So, a business only need to know the tax code where they operate. Customs officials only need to know rules for their own country. Customers only need to know how much their own government will tax the stuff they import. Taxes everywhere, but no need to know several systems.

    42. Re:Should be collected by the feds by hedwards · · Score: 1

      It's not more expensive for us as a society, it merely shifts around where the tax revenue is coming from.

      The states have the right to tax their citizens however they like, provided they don't do so in an unconstitutional manner. Note, that it's a USE tax that's assessed in these cases and one that's there to offset the costs of providing services to the citizens, so that citizens can't get around the sales tax.

      Just because you're too stupid to realize that this is already settled case law, doesn't mean that it's not the case. SCOTUS is what decides what is and is not constitutional, and it regularly deviates from what the literal meaning of the passage is. And with good reason, the Constitution was never intended to be taken completely literally, even though it often times has.

      In this case http://www.law.cornell.edu/supct/html/91-0194.ZO.html

      All the Federal Government is doing here is forcing retailers to collect and report the use taxes that the consumers were supposed to be paying. This isn't an interstate commerce issue.

    43. Re:Should be collected by the feds by DogDude · · Score: 1

      Making merchants deal with 50 different tax codes is onerous.

      Hahahaha... different sales tax codes onerous? Are you joking?

      A. Technically, it's trivial. It's software that will be rented from Intuit in most cases.

      B. Is there some recent addition to the Bill of Rights that says that merchants should be able to sell anything in any tax jurisdiction without doing do diligence, that I should know about?

      --
      I don't respond to AC's.
    44. Re:Should be collected by the feds by hedwards · · Score: 1

      What would that have to do with anything? The state doesn't enforce that particular law because they don't have access to any of the information necessary to assess penalties, and there isn't even a tax form provided to people to pay it in the first place.

      And no, I don't admit owing anything, I admit that the state does a shitty job of public awareness and enforcement. The fact is that it's not even commonly known that you're supposed to pay the use tax, nor is it commonly known where you would even go to get the forms. And lastly, because these are organizations from outside the state, the state has no means of evaluating how much money is owed and as a result you wind up with self reporting.

    45. Re:Should be collected by the feds by captaindomon · · Score: 1

      The point is not the database structure, it's collecting the data to populate it. Large tax companies have teams of hundreds of people that keep track of all the local tax laws, and charge a large amount of money selling the data to large retailers. It's not trivial to keep the laws of every 10,000 person municipality in the database up to date.

      --
      Just because I can hook a shark from a boat, I do no offer to wrestle it in the water.
    46. Re:Should be collected by the feds by DerekLyons · · Score: 1

      Different counties can have different tax rates

      It can get even finer grained than that... There are four incorporated municipalities in my county, so there are *five* different sales tax rates. (Not to mention the problem that different taxing jurisdictions can, and do, tax various products at different rates.)

    47. Re:Should be collected by the feds by Attila+Dimedici · · Score: 1

      How are you going to keep it up to date for your business that does a couple hundred dollars a year in sales over the Internet?

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    48. Re:Should be collected by the feds by DogDude · · Score: 1

      Large tax companies have teams of hundreds of people that keep track of all the local tax laws, and charge a large amount of money selling the data to large retailers. It's not trivial to keep the laws of every 10,000 person municipality in the database up to date.

      Intuit (maker of Quickbooks, the most popular small-medium sized business accounting software in the country) does it now with payroll taxes. I'm sure they'd do the same with sales taxes, and it'd be a $200/year subscription service. No big deal. It's not a very large technical hurdle.

      --
      I don't respond to AC's.
    49. Re:Should be collected by the feds by DogDude · · Score: 1

      Exactly. If they want the money, they should have to do all the paperwork.

      Why don't you try that cute little argument on April 15th and see how far that gets ya'?

      --
      I don't respond to AC's.
    50. Re:Should be collected by the feds by wiredlogic · · Score: 1

      There are a lot of companies providing such a service that would balk on the government competing with them. We're lucky the NWS was allowed to keep running weather.gov after Accuweather went after them. When "real" money is involved there's no way the government can hope to provide a competing service.

      --
      I am becoming gerund, destroyer of verbs.
    51. Re:Should be collected by the feds by DogDude · · Score: 1

      I am not going to do any such thing. Intuit will probably do it, and it'll probably cost a few hundred bucks a year. A business that does a couple of hundred dollars a year in sales over the Internet isn't viable.

      --
      I don't respond to AC's.
    52. Re:Should be collected by the feds by fustakrakich · · Score: 2

      A thorough rereading, without skipping any of the words this time around might be in order before popping off... For instance, the word "should" should be readily visible.

      --
      “He’s not deformed, he’s just drunk!”
    53. Re:Should be collected by the feds by wiredlogic · · Score: 3, Informative

      Yeah, the Interstate Commerce Clause.

      The constitution says that states can't interfere with cross border transactions as it is a power reserved for the federal government. It also prohibits the federal government from interfering with state affairs like revenue collection. This catch-22 is why the whole issue has been kicked down the road to this day.

      This isn't a new problem caused by the internet either. Old fashioned snail mail orders from out of state suppliers (think Sears and Roebuck in the 19th century) were also a thorn in some states sides which is why they expect citizens to declare "use" tax on what they imported from out of state.

      --
      I am becoming gerund, destroyer of verbs.
    54. Re:Should be collected by the feds by Anonymous Coward · · Score: 0

      Sales Tax is just plain an abomination. It is regressive (the poor pay a great deal more!). I frankly want the Federal government to stay out of this morass, except for telling the states "interstate commerce" and getting Sales Tax abolished.

      Captcha: localize

    55. Re:Should be collected by the feds by Feyshtey · · Score: 2

      How do you propose that small businesses ensure that they are in compliance with all state tax codes? This doesnt hurt companies like amazon that already have a team of software engineers to run their online presence. It hurts a used bookstore run by a 60year old whose son in law puts a website up for him. At that point that business has to weigh the amount of money and time that will need to be invested to ensure they are (and remain) compliant, against how many online sales they even make. Does that encourage commerce? Does it help keep small businesses viable? Not remotely. And for what gain? So that states can spend more money on stupid unnecessary shit and not be forced to actually limit their own growth?

      --
      "But we have to pass the bill so that you can find out what is in it,..." - Nancy Pelosi
    56. Re:Should be collected by the feds by XxtraLarGe · · Score: 1

      Yes, but you're ignoring what is happening after step 4...

      --
      Taking guns away from the 99% gives the 1% 100% of the power.
    57. Re:Should be collected by the feds by XxtraLarGe · · Score: 1

      There are also a few flaws with your assumptions:
      1) Many states do not collect any form of sales tax. Do you still charge a tax to those who don't pay sales taxes under ordinary circumstances?
      2) FTA, this deals with only the states. It doesn't seem likely that they would also lump city sales taxes in with this. That would be equivalent to a city charging a sales tax on their residents when they buy something physically outside the borders of their city.
      3) I doubt most states will be satisfied with a 5% tax. I know my state charges more, and some states like California charge much more than that. It won't fly simply for that reason.

      --
      Taking guns away from the 99% gives the 1% 100% of the power.
    58. Re:Should be collected by the feds by alexander_686 · · Score: 1

      One dimension is the number of tax authorities. You would need to silicate a large number of them – and you can’t use ZIP codes.

      Another dimension is what you are buying. In my state groceries are exempt from sales tax but clothes are not. So quick – are eatable panties exempt form sales tax?

      There are enough quirks like that to make payroll taxes look easy. Now, if we are talking about a simplified sales tax – that could be done.

    59. Re:Should be collected by the feds by alexander_686 · · Score: 1

      Amazon has already kind of done this in California IIRC. They found a small municipality and agreed to build a large distribution facility in the municipality agreed to kick back a portion of the taxes as “rebates”. Honestly, some of the stuff cities do to attract business just stinks.

    60. Re:Should be collected by the feds by MightyYar · · Score: 1

      1) Yes.The state can do whatever they want with the money. They can even credit Joe Citizen.
      2) Agreed, which is why I said 50 in my original post. Some else mentioned the other 10,000 jurisdictions which collect tax... I was just running with that.
      3) Like I said elsewhere, I just pulled the 5% number out of my butt. Don't get too hung up on it :)

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    61. Re:Should be collected by the feds by Anonymous Coward · · Score: 0

      The fact that a purchase crosses a state border isn't justification for federal government involvement. Here are a couple of solutions that would be much more efficient for both businesses and the government/taxpayers:

      1. Abolish the sales tax altogether in favor of the corporate or income tax.
      2. States can mandate a sales tax on all sales for businesses in a given state, where the location of the purchaser is irrelevant. This would be similar to driving across state boundaries to purchase something in a physical store. There would be no need for the business to learn the tax laws of all 50 states and no need for additional federal government bureaucracy and the associated inefficiency and waste. Unfortunately, many are too quick to grow government ever larger and give them yet more avenues to tax us and take our freedoms.

      In any case, all should be against this particular bill. As with similar past bills, local businesses will be required to know the intricacies of the nearly 10,000 tax jurisdictions in the US to comply. That's government regulation out of control. Let this give insight on how politicians approach such issues. They will try to get their tax revenue no matter the cost to the people -- all for their own good, of course. Please . . .

    62. Re:Should be collected by the feds by MightyYar · · Score: 1

      Which is?

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    63. Re:Should be collected by the feds by MightyYar · · Score: 1

      Agreed :)

      But if the feds are going to get involved, then they should do it as simply as possible. The proposed law is an unholy mess.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    64. Re:Should be collected by the feds by Anonymous Coward · · Score: 0

      Also add, that there are foreign countries. Zip code is not a be-all-end-all.

      Americans rarely think past their front door, and that's why they are in this problem to begin with.

      If you want to collect a state sales tax for purchases made to people living permanently in your state, you have to accept some level of compromise so that those doing the collecting of the tax don't need to know jack about it and it's loopholes. If the state sales tax is 5%, then they will collect 5% going to that state. No city-country-subdivision specific taxes.

      I speak from experience working at a mobile carrier, there are different goddamned taxes for munincipalities that are side by side, I have to wonder how the hell anyone makes any money from taxes that aren't wasted on the bureaucratic mess it is to collect them.

    65. Re:Should be collected by the feds by Anonymous Coward · · Score: 0

      So by moving from 50 to 10,000 tax codes, we go from 1 query to a 3rd party database to.... still 1 query to a 3rd party database.

      There are already financial service and tax companies that track this. Stores already have to check what their selling because different items have different tax rates within the same area. This whole thing is a trivial problem.

    66. Re:Should be collected by the feds by MightyYar · · Score: 1

      Just because you're too stupid to realize that this is already settled case law, doesn't mean that it's not the case.

      Before calling me stupid, did you not see that we are discussing a change in the law?

      All the Federal Government is doing here is forcing retailers to collect and report the use taxes that the consumers were supposed to be paying.

      And all I'm suggesting is that this proposed approach is cumbersome and onerous. It most certainly IS an interstate commerce issue, or the states wouldn't be waiting for a federal law - they'd be collecting taxes.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    67. Re:Should be collected by the feds by MightyYar · · Score: 1

      Dealing with 50 tax codes? Never necessary. In Europe, a business pay tax where it is located. Obviously, taxation varies from country to country. And if a country thinks another gets too much of an advantage, they simply tax goods as it crosses the border. foreign mail is inspected.

      It's the same here, except that the states are not allowed to inspect "foreign" mail or impose duties on "imports". Except for alcohol, but I digress...

      So, a business only need to know the tax code where they operate. Customs officials only need to know rules for their own country. Customers only need to know how much their own government will tax the stuff they import. Taxes everywhere, but no need to know several systems.

      It is currently the same here in the US. This proposed law would change that, which is why it is so stupid.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    68. Re:Should be collected by the feds by Anonymous Coward · · Score: 0

      Here is my suggestion:

      Set this up in a similar way to DNS. Merchant gets a shipping address in, say, San Francisco, CA. They send that address to a root server for CA. That server figures out the state part of the tax and refers the address to a server for the next smaller taxing entity which adds its own, and passes it down. The result flows back up and is returned to the merchant. Small taxing entities don't want to put up a server? Pay some company to handle it for you. Can't pay said company? No tax revenue for you from internet sales...

    69. Re:Should be collected by the feds by MightyYar · · Score: 1

      1) You would need to amend the US constitution to allow the Federal government to abolish state taxes. Some individual states already have no sales tax. Some others make it less regressive by not taxing food and clothes.
      2) They can do this now, if they like. The reason that they don't is that it puts their shipping businesses at a disadvantage to states without such a tax.

      Even my "solution" might be unconstitutional, since the Federal Government probably would not be able to tell the states that they need to abolish the use tax. On the other hand, the recent Obamacare ruling sends mixed signals in this regard.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    70. Re:Should be collected by the feds by ImprovOmega · · Score: 1

      Nah, zip+4 plus delivery point. That guarantees uniqueness. If you're curious what your actual delivery point is you can find a piece of barcoded mail (companies typically do this to save on postal rates) and run the Intelligent Mail Barcode through the RIBBS decoder. The last two digits of the 11 digit "Delivery Point Zipcode" are the delivery point value assigned to your unique address by the USPS. Every residence is supposed to be able to be found via zip+4+dp for a unique 11-digit code.

    71. Re:Should be collected by the feds by Attila+Dimedici · · Score: 1

      A business that does a couple of hundred dollars a year in sales over the Internet isn't viable.

      Why not? If it only takes you an hour or two a month? Basically what you are saying is that you like the market being dominated by big business.

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    72. Re:Should be collected by the feds by Anonymous Coward · · Score: 0

      Even with 50, how do you know when one of them changes the rate? There needs to be a central notification / lookup feature.

    73. Re:Should be collected by the feds by Feyshtey · · Score: 1

      So your suggestion is spend untold tax dollars to create a bureaucracy of federal, state and local entities that must monitor and adjust every online sale in real time, bidirectionaly, in order to generate tax dollars.

      Fucking brilliant. What could possibly go wrong?

      --
      "But we have to pass the bill so that you can find out what is in it,..." - Nancy Pelosi
    74. Re:Should be collected by the feds by RevDisk · · Score: 2

      Have you tried running a business?

      I'm starting one up now. My state government has 3 different departments to contact to start a business. A large number of the online resources link to 404 pages. IRS is surprisingly more competent, but only hand out EINs during business days but with slightly extended hours. Thankfully, I am not having any employees. All of the "employees" are co-owners of the LLC. We're doing web design stuff, and maybe selling some products we make. It won't make us a ton of money, but it's something. I want to own my business and be my own boss full time. Until that happens, I do regular 8-5 W2 work to pay the bills.

      Problem is, being your own boss and/or running your own business is getting worse and worse of a deal. Little speed bumps here and there add up. If you count paying both sides of social security, the effective tax rate where I live is 44.37% for everything over $35k. We should be making life easier for folks to start businesses from scratch. Not tossing on more Byzantine laws that are trivial to megacorps but crushing to one or two person outfits.

      The other thing is, sales taxes are supposed to cover local expenses. If I don't live in Tumblewood, WY, why should I pay it's local sales tax? I'm not using the roads or any other infrastructure. The seller is. And likely they're paying taxes already.

    75. Re:Should be collected by the feds by Anonymous Coward · · Score: 0

      1. There is currently no federal sales tax, so there is no need to amend the US constitution to allow a state to abolish its own sales tax.
      2. I agree, there shouldn't be anything holding states back from imposing a simple tax on all sales made by businesses within the state, regardless of the location of the purchaser. I think the reason they don't is because it puts all of the businesses in a given state at a disadvantage to the rest of the states who aren't imposing the tax. Not to mention public sentiment against yet more taxes and our near no-growth economy.

    76. Re:Should be collected by the feds by hedwards · · Score: 1

      It's not an interstate commerce problem, the tax is the same for things in or out of the state that the resident pays. The tax is on the customer, not on the retailer. If there were differing rates, that would be an interstate commerce problem. What's going on here is that the Federal government is interfering with it.

      Retailers are not forced to sell in all states if they find it to be onerous, this is just a matter of them trying to take advantage of a tax loophole to gain a competitive advantage over less fortunate companies.

    77. Re:Should be collected by the feds by demonlapin · · Score: 1

      You're in Washington, right? Use Google. The very first hit is this, which tells you how to pay it either online or via paper. Might keep you out of the pokey one day.

    78. Re:Should be collected by the feds by demonlapin · · Score: 1

      Er, the very first hit for "washington state use tax", that is.

    79. Re:Should be collected by the feds by MightyYar · · Score: 1

      It's not an interstate commerce problem, the tax is the same for things in or out of the state that the resident pays. The tax is on the customer, not on the retailer.

      That is the "use tax" in place today. Since the retailer is outside of the state, the state cannot make demands of it.

      What's going on here is that the Federal government is interfering with it.

      Not currently, they aren't. This bill would get the Federal Government involved in a way that they currently aren't.

      Retailers are not forced to sell in all states if they find it to be onerous, this is just a matter of them trying to take advantage of a tax loophole to gain a competitive advantage over less fortunate companies.

      Yes, if this amendment were to pass, that would certainly be the case. I have no reason to support such an environment. I don't mind taxes, and I don't mind closing loopholes, but unnecessary complexity gets me going.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    80. Re:Should be collected by the feds by MightyYar · · Score: 1

      1) Agreed. I meant that you would need an amendment that allows the federal government to forbid a state from collecting use tax. There could be a loophole, similar to how they do Medicare and road funding - you could hold the money back unless the states meet certain conditions, one of them being the abolition of their use tax. On the other hand, the Supreme Court just struck down some of the Medicare expansion... so I'll have to leave it to people who know more about Constitutional Law than I do :)

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    81. Re:Should be collected by the feds by sjames · · Score: 1

      You'll need a big honkin server to fit it all, especially if you want a comprehensive list of what exactly Georgia (and several other states) considers a school supply for tax purposes and what days those special rates apply this year.

    82. Re:Should be collected by the feds by rtaylor · · Score: 1

      Canada has a minimum revenue level before you are required to collect sales tax. IIRC, it's around $30,000/year gross revenue.

      The same could apply here pretty easily.

      --
      Rod Taylor
    83. Re:Should be collected by the feds by Anonymous Coward · · Score: 0

      There actually are a number of services that will figure all this out for you. Some of them are free.

    84. Re:Should be collected by the feds by chrylis · · Score: 1

      Flat-out wrong. Not only do tax rates vary by individual street address (and, as posted above, by different family members in the same house), products can be classified differently in every jurisdiction, and in some jurisdictions the tax treatment of a product depends on the other products or services it's sold with. This isn't a case of a ZIP-to-rate table and a UPC-to-boolean table; just figuring out whether an item is taxable at all requires a rules engine.

    85. Re:Should be collected by the feds by Anonymous Coward · · Score: 0

      There are services that keep track of all the tax rates for all products in all states and that will also remit the taxes for you. Some are completely free. This is a problem that was solved long ago. It is similar to computing shipping charges. There are plenty of services out there that will take care of that for you.

      Plus the bill has a small business exemption. If your business has less than 1 million in sales you don't have to comply with the law. This takes care of most merchants selling online.

    86. Re:Should be collected by the feds by Anonymous Coward · · Score: 0

      This is a simple problem that has already been solved. There are quite a few companies that already take care of this. The rates and boundaries of all the tax regions are available from the states so it isn't a problem. Normally what is done is that the customer's address is verified to get the 9 digit zip code. Then you can use the data provided by the states to determine the correct rate.

    87. Re:Should be collected by the feds by Imrik · · Score: 1

      The issue isn't which party to determine the tax by, it's determined by the purchaser. The issue is whether sellers with no presence in a state should have to collect tax for that state or if it should be the purchaser's responsibility to pay the tax. Up until now it has been the latter. Part of the problem is that keeping track of tax codes isn't trivial, they vary within zip codes, by product, and even by purchaser.

    88. Re:Should be collected by the feds by MightyYar · · Score: 1

      There are services that keep track of all the tax rates for all products in all states and that will also remit the taxes for you.

      But there aren't services that will go through all your inventory and classify what items are and aren't taxable in each state.

      This takes care of most merchants selling online.

      Not if every state can constantly harass them to make them prove that they have revenue under $1 million. I don't know what the text of the amendment says, so I don't feel like I can intelligently discuss the details.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    89. Re:Should be collected by the feds by Anonymous Coward · · Score: 0

      1. You send payments in bulk. e.g. every week or every month. So you won't be sending $0.43, more like $56.39.
      2. Electronic transfer.

    90. Re:Should be collected by the feds by Dereck1701 · · Score: 1

      "There are four incorporated municipalities in my county,"

      Don't forget the difficulty in determining what municipality any particular address is in to even apply the rate. A lot of people are under the misconception that zip-codes could be used.... Buwahahahaha. In our county there is I think maybe two out of over a dozen (both incorporated & unincorporated) cities & villages where the zip-code area is limited to their municipal boundaries, and both of those are tiny little villages of less than 200 people. The only reason zip-codes exist are to determine the most efficient post office to send the particular letter/package to for delivery, they generally don't care about political boundaries. And not many counties have a comprehensive database that could certifiably do an "address to municipality" conversion. Sure it could be done, but it would be a significant undertaking costing likely a hundred million dollars plus to do on a national level.

    91. Re:Should be collected by the feds by DogDude · · Score: 1

      Why not? If it only takes you an hour or two a month? Basically what you are saying is that you like the market being dominated by big business.

      A business that can't earn enough revenue to submit tax payments properly is not a viable business. It doesn't take a "big business" to be able to calculate taxes properly. And, there's no inherent right to be able to operate a business with absolutely no burden of paying taxes.

      --
      I don't respond to AC's.
    92. Re:Should be collected by the feds by Anonymous Coward · · Score: 0

      This is a simple problem that has already been solved. There are quite a few companies that already take care of this. The rates and boundaries of all the tax regions are available from the states so it isn't a problem. Normally what is done is that the customer's address is verified to get the 9 digit zip code.

      You have no clue what your talking about.

    93. Re:Should be collected by the feds by RabidReindeer · · Score: 1

      You'll need a big honkin server to fit it all, especially if you want a comprehensive list of what exactly Georgia (and several other states) considers a school supply for tax purposes and what days those special rates apply this year.

      That's just the technological downside. Big honkin servers are cheap. Consider the pain of sending off tax payments to thousands, perhaps 10s of thousands of independent taxing authorities at different, changing addresses. Along with appropriate paperwork. No thanks.

      If I can get by with shipping fewer, bulk payments to state tax agencies and let THEM squabble with the municipalities, that's a whole lot better.

    94. Re:Should be collected by the feds by Anonymous Coward · · Score: 0

      "The alternative is you could have a single simple rule for everyone that captures 90% of the problem."

      You fucking morons have no understanding of the Constitution whatsoever. "Oh just centralize everything and let the federal government solve all our problems in an easy standardized way".

      Fuck you, all of you.

      http://en.wikipedia.org/wiki/Anti-Federalism

    95. Re:Should be collected by the feds by Attila+Dimedici · · Score: 1

      You sound like someone who would shut down children's lemonade stands because they don't meet the health regulations and/or are not properly licensed. I am disappointed that our country is becoming such a country of sheep, only too happy to be herded by the bureaucrats (and fleeced by them as well).

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    96. Re:Should be collected by the feds by dywolf · · Score: 1

      a database, of every tax code, in every municipality, across the nation?
      that's not trivial.
      and these taxes arent static. in some places they change on a monthly basis as city councils tweak funding for schools or what have you. how do you propose keeping this database consistantly up to date? do you realize just how many different taxes you'd actually have to track, from big cities to tine towns?

      base it on the vendor's location, money to go to the vendor's locale.
      simple, easy, no expensive hard to update database needed.

      (and would result in competition between towns to attract business, and possibly even result in no sales taxes anywhere, which imo would be an improvement; most places i been property taxes were the major source of funding anyway, the sales tax just being a bonus)

      --
      The guy who said the election was rigged won the presidency with the second-most votes.
    97. Re:Should be collected by the feds by DogDude · · Score: 1

      You don't seem to understand that just 20 years ago, it was a huge, huge, HUGE advantage to be able to sell stuff to everybody on the planet. It still is. There's some difficulty that goes along with it. If you want to play ball, you gotta follow the rules. If mom and pop can't figure out sales tax, then they could open a local store, and collect fewer different sales taxes. Nobody has a right to open a store open to the entire world, completely frictionless. That's a bit daft.

      --
      I don't respond to AC's.
    98. Re:Should be collected by the feds by DogDude · · Score: 1

      Have you tried running a business?

      Been doing it for 10+ years.

      And, I'm not trying to be a dick, but seriously, you're probably not cut out to run a business. If you think that having to contact 3 different governmental web sites is tough, then you're certainly not prepared for the truly difficult parts of running a business. A bit of governmental paperwork is the simplest part of running a successful business. I think of it as a weeder class in a university program: if you think that part is tough, there's no way you'll make it through the truly difficult stuff.

      Oh, and FYI, having a bunch of co-owners in an LLC acting as employees will inevitably fail. The infighting will tear your company apart. That's why successful companies have employees, and not a bunch of owners.

      --
      I don't respond to AC's.
    99. Re:Should be collected by the feds by Attila+Dimedici · · Score: 1

      The problem is not that mom and pop can't figure out sales tax. The problem is that mom and pop have a business that caters to a couple hundred people worldwide and it isn't worth their trouble to figure out sales tax for a couple thousand municipalities around the country. In the world you favor, if you do not live near that mom and pop, the only way you will be able to buy their merchandise is to travel to where they live, assuming that there are enough people near them interested in their products to be worth their time opening up a shop.

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    100. Re:Should be collected by the feds by sjames · · Score: 1

      So why not have the feds collect it and deal with the 50 squabbling states? It's the only way a small internet retailer will ever be able to be certain they have collected the correct amount and submitted it to the correct place.

    101. Re:Should be collected by the feds by RevDisk · · Score: 1

      Could be. But honestly, it's moreso a learning experience.

      And I could understand why you think I was whining now that I reread what I wrote. Moreso, "You'd think you'd want to make this easy". I've dealt with government regs that'd make most folks' brains eat their way out. ITAR, international commerce, military ROEs, etc. ITAR was the worst Cold War fossil you could imagine. I still stand by the opinion while laws should focus on achieving whatever they want done, a very strong secondary concern should be "how easy is it to follow these rules?"

    102. Re:Should be collected by the feds by RabidReindeer · · Score: 1

      So why not have the feds collect it and deal with the 50 squabbling states? It's the only way a small internet retailer will ever be able to be certain they have collected the correct amount and submitted it to the correct place.

      A latent streak of Libertarianism????

      Seriously, there are lots of things that ONLY the feds can do, but this isn't one of them, and I don't see any virtue in getting them involved. Not but what they'll probably shove in a federal tax on top of the state taxes anyway.

      Neither the feds nor the states actually "collect" the taxes. The merchant has to do that. The funds then have to be forwarded on to whatever authority is next in line. A clearinghouse could handle that function without the necessity of making it an essential government function.

      It would be different if we simply had a national sales tax, but if the taxes are destined to go to individual states instead of the federal treasury you have to calculate a per-state rate on sales, because some states have no income tax, and use sales tax to offset that fact, whereas others have both, but the final destination of taxes collected depends on which type of tax is paid. So a national rate wouldn't be equitable either between states or even within states, compared to non-Internet sales.

      Simple is Good. Too simple, however, isn't good. I'll take a reasonable compromise. One rate per state, with no exemptions would be simple to handle. I can't think of anything that truly needs to be exempt that I wouldn't buy locally. Maybe I missed something, but if so, it should be important enough to exempt nationally.

    103. Re:Should be collected by the feds by DogDude · · Score: 1

      Sure, they *should* be easy, but there are lots and lots of other regulations that should be made easier, first. My point is that as tricky as collecting sales tax may be, it's really easy compared to lots of other aspects of running a business, including other dealings with the government. Besides, online retailers have the relatively new advantage of being able to sell to the entire world. If somebody can't make it selling on the Internet, then it's not the fault of some somewhat difficult sales tax regulations that will, in all likelihood, end up being just another cost of doing business.

      --
      I don't respond to AC's.
    104. Re:Should be collected by the feds by redlemming · · Score: 1

      This isn't a new problem caused by the internet either.

      It's not just old fashioned snail mail orders, only. The issue is far more fundamental for that. Anybody living near the border between two states poses a problem for the whole concept of sales tax, particularly when the travel time to stores in the other state is considerably less than it is to stores in one's own state, and the tax rates are less in the other state.

      Expecting people to keep track of the location for every purchase they make for some sort of "use tax" is blatantly a violation of fundamental rights.

    105. Re:Should be collected by the feds by sjames · · Score: 1

      If internet retailers are going to be required to collect state sales tax for foreign states, it will necessarily be by federal law. California law only applies to people and businesses in California (for example). If I have a shop in Alabama and a server in Florida, California law cannot compel me to do anything at all.

      So, the feds will necessarily be involved and since this is interstate commerce it actually does have a Constitutional mandate for it. If they're going to stick their noses into it, let them deal with the pain of squabbling states with crazy sales tax codes that change with the phase of the moon. Or, just stay all the way out of it and tell the states that use taxes are between them and their residents.

    106. Re:Should be collected by the feds by RabidReindeer · · Score: 1

      If internet retailers are going to be required to collect state sales tax for foreign states, it will necessarily be by federal law. California law only applies to people and businesses in California (for example). If I have a shop in Alabama and a server in Florida, California law cannot compel me to do anything at all.

      So, the feds will necessarily be involved and since this is interstate commerce it actually does have a Constitutional mandate for it. If they're going to stick their noses into it, let them deal with the pain of squabbling states with crazy sales tax codes that change with the phase of the moon. Or, just stay all the way out of it and tell the states that use taxes are between them and their residents.

      I see your point, but as I said, I prefer the federal meddling to be kept at a minimum myself. The feds decree that the playing field should be level, and that it's all or none as far as what states can collect taxes on non-residents. But we are the United STATES of America, and this is one of those cases where I'd be happier if we acted as such: a Union, where all States work in an equal and reciprocal basis, with neither external (federal) power nor arbitrary local (state) power being involved more than is necessary to do the job.

    107. Re:Should be collected by the feds by sjames · · Score: 1

      As would I. I prefer they just go with the let the states work it out with their residents (or make it literally a tax on SALES and charge it wherever the seller is). There is no need for the feds to be involved at all here.

    108. Re:Should be collected by the feds by Anonymous Coward · · Score: 0

      They do it based on their physical location within the state, same as any big box store.

      This is different since it's based on where the buyer is rather than the seller.

  6. Solution by Anonymous Coward · · Score: 1

    I guess we will just have to torrent everything then. Does anyone know how to torrent shoes? I would if I could.

    1. Re:Solution by Jaysyn · · Score: 1

      Shoes would probably be the one thing I'd never buy online.

      --
      There is a war going on for your mind.
  7. Typical by Anonymous Coward · · Score: 0

    Congress can't seem to balance the budget but they sure can spend time figuring out how to collect taxes more easily.

    1. Re:Typical by i+kan+reed · · Score: 1, Flamebait

      I'm given to understand taxes are of no value to balancing budgets.

    2. Re:Typical by Motard · · Score: 2

      Well, first you'd need a budget.

    3. Re:Typical by SillyHamster · · Score: 1

      I'm given to understand taxes are of no value to balancing budgets.

      State sales taxes are of no value to balancing federal budgets.

      Actually, the increase in state sales tax will probably result in less federal income taxes collected, because they can be claimed as a federal income tax deduction.

    4. Re:Typical by Anonymous Coward · · Score: 5, Informative

      They haven't done the obvious. Cancel federal income tax and replace it with a sales tax. It'd be a whole lot easier to handle businesses than it would be individuals.

      In 2009, there were just under 6,000,000 active businesses.
      In 2009, there were 140,494,127 individual tax returns filed.

      The IRS employs about 93,000 employees and is expected to hire 16,500 more.

      By eliminating the individual filing requirement, you'd eliminate almost 96% of the returns.
      IRS agents have an average salary near $75,000.

      Let's say you applied 4 times the labor to each business return.
      Then only about 18,000 staff are required to handle the load.

      91,500 jobs would be cut for an annual savings of $6.8 billion.

    5. Re:Typical by DaHat · · Score: 1

      State sales taxes are of no value to balancing federal budgets.

      When the states are hurting because of their own misguided decisions... they often go to the feds looking for a bailout (either in name or in practice).

      Whenever you hear the president talk about how billions and billions of cops, teachers, etc will be laid off if his bill doesn't pass... it is because the feds are subsidizing many a state.

      Ergo, if states were more responsible in their own financial matters (and we didn't have an overbearing federal government)... then there would actually be an impact to the federal budget.

    6. Re:Typical by Anonymous Coward · · Score: 0

      A flat-tax is regressive & unduly affects the poor who spend the largest part of their income on things needed for survival.

    7. Re:Typical by Anonymous Coward · · Score: 0

      91,500 jobs would be cut for an annual savings of $6.8 billion.

      [politician]That kind of anarchist talk has no place in a civilized society. There are already too many women and minorities in need of steady employment. We need more jobs, not fewer![/politician]

    8. Re:Typical by Lithdren · · Score: 2

      Wait.. you want to put almost 100,000 people out of work that used to WORK FOR THE IRS!?

      Yeah, that's excatly what we need. 50,000 people on the street with cardboard signs saying "Please give what you can, its tax deductible under city ordinance 41.4b, clause 2, section 4, paragraph 2.C"

    9. Re:Typical by HornWumpus · · Score: -1, Troll

      They should get off their collective asses and start working harder then.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    10. Re:Typical by Anonymous Coward · · Score: 0

      As opposed to the millions out of work or under employed to support unneeded govt workers?
      So yes, I am all for govt workers to get exposed to the reality we all have been exposed to already.

    11. Re:Typical by SillyHamster · · Score: 1

      Ergo, if states were more responsible in their own financial matters (and we didn't have an overbearing federal government)... then there would actually be an impact to the federal budget.

      Assuming that the federal money earmarked for "subsidizing" the states is in any way linked to the budget shortfalls of the states.

      Those federal agencies don't exist because states can't pay the bills, they exist to expand federal power over the country. "Here's a pot of federal money if you do things the federal way, instead of how your state wants to do it."

      If the states don't ask for money, will the spending at those federal agencies go down? Money is power, and bureaucracies have a vested interest in maintaining their own power base. My guess is "No".

    12. Re:Typical by snadrus · · Score: 1

      Go further: banks could collect a "incoming wealth" tax & send it in for you.
      They already interact with the government regularly. It would be even fewer entities involved.

      --
      Science & open-source build trust from peer review. Learn systems you can trust.
    13. Re:Typical by RevDisk · · Score: 1

      My first after school job was doing 1040 prep work for a local accounting company.

      100,000 IRS employees being laid off would be a nice start. Please tell me the next step involves Pay Per View and rabid animals.

    14. Re:Typical by SillyHamster · · Score: 1

      91,500 jobs would be cut for an annual savings of $6.8 billion.

      The IRS bureaucracy isn't going to like that.

      Neither will the income tax software folks.

      Taxes should be simpler, but people whose livelihoods depend on its complexity are going to be a lot more passionate about keeping the status quo. (Or adding more complexity)

    15. Re:Typical by Anonymous Coward · · Score: 0

      91,500 jobs would be cut for an annual savings of $6.8 billion.

      Maybe you're new here... GovCo has no interest in shrinking the size of GovCo quite the opposite really. Also... making this argument while we are allowing the fed to print 80 billion a month for QE4 kinda rings hollow.

    16. Re:Typical by Anonymous Coward · · Score: 0

      But is it obvious to a retired person who has saved his money and already paid federal income tax on that money that he should now pay a federal sales tax on it? I don't think double taxation is a good idea, much less obvious.

    17. Re:Typical by Anonymous Coward · · Score: 0

      A challenge is that sales tax disproportionately affects those with less money. Without people filing returns, it wouldn't be feasible to offer refunds. The result is that people would buy fewer consumer goods and spend less money on fast food and the like. Chances are, we'd see a large rise in unemployment.

    18. Re:Typical by hypergreatthing · · Score: 1

      Ok so what is the average tax return that the feds get from individuals?
      Lets say 2k, which isn't a lot, but i figure the average salary of 37k - 10k deductable = ~27k taxable. At 2012 tax bracket rules, that's around 15%, so 4050. At this level lets say there's some dependents and deductions, so i'll take half of that. Roughly 2k.
      So 140,494,127 * 2000 = 280,988,254,000.
      Lets just subtract those wages of those pesky irs agents. You're left with 274188254000.
      Ok so you'll have a salary savings of 6.8 billion, but will be reducing the tax income of the gov't by 274 billion.
      Not i'm not saying i agree with how things are, but why in the hell would you want to lose 274 billion if you were the gov't?
      Your math stinks. You can't look at cutting costs without seeing what it affects.

    19. Re:Typical by TaxMeToDeath · · Score: 1

      The problem would be that total sales tax would be
      around 25-30%. Even more incentive to avoid the
      tax. People buying stuff off the back of a truck
      would be the norm.

      If you want to increase prosperity, just go back the
      road you traveled to get here: reduce all taxes in
      the order that they were increased.

      Economic output will increase tremendously. Just
      keep reducing taxes until the tax burden is about
      8%. Right now it is about 60-80%.

      Laffer Curve: http://www.google.com/search?q=Laffer+Curve

    20. Re:Typical by crdotson · · Score: 1

      Many sales taxes exempt the things needed for survival, such as food.

  8. Taxes... by Anonymous Coward · · Score: 0

    Taxes... Is there anything they can't solve? We obviously need MORE of them!

  9. Re:I intend to block the sales tax using a HOST fi by Anonymous Coward · · Score: -1, Offtopic

    Can I be in your quote list?

  10. Meaningless vote by Anonymous Coward · · Score: 0

    It's an amendment to a concurrent resolution. IF the amendment were adopted and IF the concurrent resolution were adopted by the Senate and IF the House adopted the concurrent resolution (which is very unlikely), then it would not have the force of law because, after all, it's just a resolution.

  11. Getting the rates by Todd+Knarr · · Score: 4, Insightful

    I'd be OK with sales tax on on-line sales, on one condition: states be required to provide a standard way for merchants, at no cost to the merchant, to ask what the sales tax rate for a given address should be, with the answer being the legally binding rate (if the merchant charges the rate given in that answer then the merchant cannot be held liable if that rate turns out to be wrong, and if the service failed to answer for any reason then the merchant can't be held liable for failing to charge sales tax).

    1. Re:Getting the rates by omnichad · · Score: 1

      That makes collection easy. But say you have to collect city sales tax. Only one customer bought anything from you from Midnwhere, AR. You have to spend $0.46 to pay 2% collected city sales tax amounting to $0.36 to that town. That's just insane, and illustrates the true problem.

    2. Re:Getting the rates by omnichad · · Score: 1

      $0.46 is the price of a postage stamp. I meant to say that.

    3. Re:Getting the rates by Anonymous Coward · · Score: 0

      Presumably you would just have one set "interstate" rate that counts as a Federal tax, and then the federal government could distribute it back to the states according to some kind of poorly-thought out ratio system or just spend it on earmarks or whatever.

      Trying to actually figure out the correct rate for every state, county, city, borough, etc. etc, then collecting the taxes into a big pool and distributing them to said jurisdictions properly sounds like way too much work.

    4. Re:Getting the rates by N7DR · · Score: 2

      Yes, I find that more than half the time I am charged the tax rate for the city in which the post office that serves my address is located; which is about triple the tax rate that actually applies at my address. I put this down to the use of some database somewhere that uses 5-digit ZIP codes instead of 9-digit ones to determine the tax rate.

      And the vast majority of the companies that overcharge me in this way simply ignore requests to fix the problem. I vote with my dollars, and tell them that I'm doing so, but none of these companies (i.e., the ones who don't immediately respond and correct the tax on the order) has ever cared enough to fix the problem even after my complaint.

      I have to wonder if it's even legal for a company to charge me tax that I shouldn't be charged. What do they do with the money? One assumes they send it to the city in question, but in any case the whole system seems remarkably free of any checks or chances to correct errors.

       

    5. Re:Getting the rates by dywolf · · Score: 1

      charge sales tax based on the vendors location rather than the buyers.
      then its just business like normal for the vendor.
      downside is it means "your" tax dollars go to other locales instead of your own...but it does mean vastly simpler collection system, no database required (and no location verification needed)

      --
      The guy who said the election was rigged won the presidency with the second-most votes.
    6. Re:Getting the rates by Todd+Knarr · · Score: 1

      I'd say that's not the merchant's problem. If the state wants to have out-of-state merchants collect sales tax for it, then the merchants just remit to the state according to the rate the state sets. It's up to the state to distribute anything due to entities under it's jurisdiction like counties and cities. Or if the state doesn't want to collect taxes at that level, it can fight it out with the cities and counties. If it turns out the state wants merchants to collect city and county tax and remit it separately, then the state has to provide information in it's service about where to contact those cities and counties and they have the responsibility to provide the same standardized tax-rate service the merchant can query. Fair's fair, any entity that wants merchants to collect tax for it has to take responsibility for telling merchants how much tax to collect for each transaction. They don't want the responsibility, it's not the merchant's job to pick it up.

    7. Re:Getting the rates by Anonymous Coward · · Score: 0

      Where is Amazon though? They have a national headquarters, regional distribution warehouses, local storage facilities...

    8. Re:Getting the rates by Attila+Dimedici · · Score: 1

      I have to wonder if it's even legal for a company to charge me tax that I shouldn't be charged.

      The answer is almost certainly "No", and if the state wanted to go after them, they could quite likely be subject to a pretty hefty fine. I would recommend that you report such merchants to the state Attorney General's office.

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    9. Re:Getting the rates by RicktheBrick · · Score: 2

      Delaware and New Hampshire do not charge any sales tax. If the tax is charged to the billing address and someone purchase an item from those states and has it delivered to another state than there would be no sales tax. What would stop someone from Delaware from setting up a business where the products were purchased from that state but delivered to another. They could just split the sales tax between them. Sales tax is a regressive tax as it does not depend on the purchaser's income. It would be totally ironic if it were passed when they are refusing to eliminate any deductions for the super rich. I guess we would know who's back pocket congress reside in.

    10. Re:Getting the rates by Anonymous Coward · · Score: 0

      > You have to spend $0.46 to pay 2% collected city sales tax

      You're assuming the county or city accepts paper checks and that approving and printing a check costs $0.

      In our case, we spend about twenty minutes on average collecting ACH account info so we can pay a county or city. Some cities have it on their web site and for others you have to talk to several people to extract the info. Then BoA charges us $3 for three-business-day processing or $10 for next-business-day processing per transfer. For about 25%(SWAG) of the cities and counties we pay sales tax to, we pay more in fees to BoA than for the tax.

      Also, there are sometimes fees on incoming ACH transfers. For example, the local city where I live is charged $3 per transaction by Chase. Most months, Chase makes more money off of our sales tax payment than the city.

      Sales tax at the county and city level is a bank scam. That's why you hear BoA and Wells Fargo pushing so hard for adding more levels of taxes.

    11. Re:Getting the rates by DogDude · · Score: 1

      states be required to provide a standard way for merchants, at no cost to the merchant, to ask what the sales tax rate for a given address should be, with the answer being the legally binding rate

      Hahahaha! That's absurd. If you want to run a business, you have a responsibility to figure out your own taxes. If you want to deal with 10,000+ tax jurisdictions, that's your problem. If you want to deal with 1, that's your problem.

      --
      I don't respond to AC's.
    12. Re:Getting the rates by Anonymous Coward · · Score: 0

      No, it's still completely unworkable. You have a website, generally speaking it will use some sort of shopping cart solution. This needs to already know what the price is, you can't ask how much tax you owe after, because you have already collected payment. Also, you can't just say "tax included", since that is illegal in some states (sales tax must be itemized). Also, you need a sales tax permit to collect sales tax in most states. In this state it is referred to as a sales and use tax license, it's easy to get but requires quarterly filings, and you owe a penalty for late filing even if 0 taxes were due. I suspect most states are similar. I will cancel mine and stop selling online if I am required to do this for 50 states. Amazon won't have a problem with this, people like me, selling a couple thousand dollars of parts a year as a service and for a little extra cash will have to shut down.

    13. Re:Getting the rates by UnderCoverPenguin · · Score: 1

      I suspect it would cost the state more to investigate the problem than it could collect in fines.

      Also, the merchants are collecting and remitting the tax in good faith, therefor any court judgement - if it went to court - would be in favor of the merchant - even if the evidence that the merchant where informed of the error was irrefutable.

      Besides, except in the case of income tax where tax payers file a form showing what they owe vs what they paid, the government has no motivation to refund overages of collected taxes..

      If it were shown that the merchants were keeping overages in collected sales tax rather than remitting all collected tax (minus the amount they are allowed to keep to cover the cost of remitting the taxes), then the government would have motivation. But most likely, any tax and fines reclaimed from the merchant would be kept by the state.

      --
      Don't try to out wierd me, three-eyes. I get stranger things than you, free with my breakfast cereal. --Zaphod Beeblebr
    14. Re:Getting the rates by c++0xFF · · Score: 1

      A few complications that must be resolved:

      1) Certain items are taxed at different rates. Groceries vs. junk food vs. everything else, for example. The merchant would have to provide details of the transaction to the state (I can't see that going down well with the ./ crowd) on what was purchased. The same liability issues would have to be resolved.

      2) Sales tax exemption mechanisms need to be honored.

      One common argument for internet sales tax is to level the playing field with local, brick-and-mortar stores. Don't let the pendulum swing too far the other way, making it an extra burden on internet sales that doesn't otherwise apply locally.

    15. Re:Getting the rates by Anonymous Coward · · Score: 0

      Then if the locality or state doesn't make it easy enough for you, you can opt to just not do business or ship anything there.

    16. Re:Getting the rates by Attila+Dimedici · · Score: 1

      Some years back the state I live in changed its sales tax from one that was simple to understand what was taxable to one that was fairly complicated. A local merchant gave up on figuring out was now taxable and what wasn't. He collected sales tax on everything and remitted the full amount to the state. The state prosecuted him for over collecting sales tax, the fines were more than his yearly profit.

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    17. Re:Getting the rates by Anonymous Coward · · Score: 0

      If you read the bill these two are sponsoring, the Marketplace Fairness Act of 2013, it says almost exactly this. States must provide a simplified tax code, provide software free of charge to find the correct rate, and remote sellers are not responsible for errors by the state.

    18. Re:Getting the rates by Anonymous Coward · · Score: 0

      Yes, this is sort of the idea - http://www.streamlinedsalestax.org/

    19. Re:Getting the rates by soundguy · · Score: 1

      I'm calling possible bullshit. BOA does not charge anything for the first twenty 3-day direct deposits (it's about 80 cents each after that number) They also charge nothing at all for BillPay check services and when paying major corporations (and I suspect all government entities like tax authorities) they don't physically mail a check anyway. It's all done electronically thru ACH for free. If you are really paying $3 a pop for DD, you need to grab your "personal banker" by the throat and remind him that you can take your business right down the road to Chase or WF if they don't start treating you better.

      --
      Nothing worthwhile ever happens before noon
    20. Re:Getting the rates by Anonymous Coward · · Score: 0

      It sounds like you're talking about personal accounts. For business checking accounts, BoA charges for everything. They, like most banks for business accounts, even charge us for deposits after the first (IIRC) 5 per month and per check written over a certain number. Go to https://cashproonline.bankofamerica.com/ and look for yourself. We pay $7 per ACH batch. With our usage patterns, we're playing about $2 per ACH on average.

  12. That's great and all by H3lldr0p · · Score: 1

    but I hardly think that an amendment to a provisioning bill passes sufficient legal muster for it be enforced. First of all, I am already required to pay local and state sales taxes for entities operating out of my state. So no change there.

    But for extra-state sales, this will have to survive a 10th Amendment challenge and well settled legal precedence dating back to the 18th century. Not saying that it can't but a short blurb in a different, unrelated law doesn't seem sufficient on its face.

    For an "internet sales" (whatever that means) tax to work, it would have to be established as something the feds collected and redistributed. The legal authority is already there in the 16th amendment, and it could easily function as interstate funding for roads and schools do currently.

    Likewise, if two states wanted to enter into a compact to collect and remit as some currently do with income taxes, then that could also work.

    I guess this is just some more busywork for the congress-critters to say that they've been doing something rather than nothing.

    1. Re:That's great and all by DaHat · · Score: 1

      But for extra-state sales, this will have to survive a 10th Amendment challenge and well settled legal precedence dating back to the 18th century

      Not really... many states have forms of 'use tax'es which kick in when you purchase something out of state and then bringing it into state... and depending on how much tax you paid out of state.

      Here in Washington (state for instance)... if one take a drive down to Oregon and purchase a couple thousand dollars worth of electronics sales tax free (because OR has no sales tax)... upon bringing these goods into WA they am required to pay a use tax (more or less the same amount as the WA sales tax) on the goods.

      Granted this is what a person is legally required to do... I'd be curious to know how often it happens as I know plenty who go to Portland just to spend a few hundred (or thousand) dollars to avoid the 9.5% sales tax round these parts.

      This technically also applies to online sales... regardless of where the seller is located (or has a presence)... but again... not that many go by the law.

    2. Re:That's great and all by nschubach · · Score: 0

      For an "internet sales" (whatever that means) tax

      So, what if I buy something from France and have it shipped to Ohio. Can Ohio force a French retailer to pay a percentage of the sale as tax? What about vice-versa? If they can't enforce this across national borders, all it's going to do is encourage business internationally. You can pretty much ship anything UPS to every corner of the globe.

      --
      Every time I start to have faith in humanity, I ruin it by driving to work between 7 and 8 am.
    3. Re:That's great and all by H3lldr0p · · Score: 1

      Not really... many states have forms of 'use tax'es which kick in when you purchase something out of state and then bringing it into state... and depending on how much tax you paid out of state.

      Which is what I was saying. It's a well defined legal area that's been administrated by the states for a very long time now. For the Feds to step in with a new law, they'd have to show (to whatever court this gets taken to) some sort of legal authority over it where none existed before both as in the US Constitution as through well settled and aged legal precedence.

      It's not as easy as saying "Interstate Commerce lets us" as it's never before been defined as such. Doesn't mean that it won't get upheld on that ground, but it will have to be shown that such legal ground exists within the framework of the current laws.

    4. Re:That's great and all by Anonymous Coward · · Score: 0

      It's not as easy as saying "Interstate Commerce lets us" as it's never before been defined as such.

      a lot of things shouldn't be as easy as saying "LOL COMMERCE CLAUSE!13#" but that hasn't really stopped them much before.

    5. Re:That's great and all by westlake · · Score: 1

      But for extra-state sales, this will have to survive a 10th Amendment challenge and well settled legal precedence dating back to the 18th century.

      Homeland Security Stole Michael Arrington's Boat , The Department Of Homeland Security Stole My Boat Today

      Arrington's notion of a boat that is "nothing too fancy or large" is a 48' high-performance Canadian built aluminum cruiser with a base price of one million dollars. It's the kind of boat that ships with a hydraulic lift to make the in-board engine more easily serviceable.

      The Washington state sales tax became due and payable about a week after delivery and, soon to come, this year's state "property tax" bill on the boat.

    6. Re:That's great and all by UnderCoverPenguin · · Score: 1

      It's not as easy as saying "Interstate Commerce lets us" as it's never before been defined as such. Doesn't mean that it won't get upheld on that ground, but it will have to be shown that such legal ground exists within the framework of the current laws.

      Which is what the new purports to provide.

      --
      Don't try to out wierd me, three-eyes. I get stranger things than you, free with my breakfast cereal. --Zaphod Beeblebr
    7. Re:That's great and all by petermgreen · · Score: 1

      I'm in the UK and I know if I order something worth above £15 (including delivery) from outside the EU the VAT is supposed to be collected at import time. Presumablly something similar could be done by the US if they so desired.

      --
      note: i'm known as plugwash most places but i screwd up registering that here somehow in the past and now can't register
  13. Vote with your dollars? by steelfood · · Score: 1

    There goes one of the best ways to vote with your dollars.

    I can still make political campaign donations to my heart's content. That's what you mean by "vote with your dollars", right? Right?

    --
    "If a nation expects to be ignorant and free in a state of civilization, it expects what never was and never will be."
  14. Apply sales tax at the credit card level by Anonymous Coward · · Score: 0

    Seems like it would be a lot simpler for everyone to implement a tax at the credit card level. It would work for all retailers and eliminate a lot of sales tax withholdings at various companies.

    1. Re:Apply sales tax at the credit card level by Anonymous Coward · · Score: 0

      How does the credit card know whether I'm buying taxable items or non-taxable items?

  15. I honestly think... by Synerg1y · · Score: 3, Insightful

    That we really need to close this loop hole. I'm not in favor of raising taxes or anything, but by making this law, we'd be going back to a revenue model that we know. The ripple effect would be we wouldn't get tax hikes in other places I'd imagine.

    And the government does need the money... it would be nice to see them get it internally, but that's idealism. We need pot holes fixed, bridges replaced, and maybe we could throw money at some of the issues we're behind the rest of the world on.

    Another ripple would be brick and mortar stores would regain some traction against online retailers, the argument used to be that shipping > tax, but that's dramatically changed over the last decade with free shipping being pretty easy to get as online firms compete against each other.

    The downside is of course less money for the savvy consumer, but history has taught us loop holes never end well, so I think the benefits outweigh the downside.

    1. Re:I honestly think... by a_big_favor · · Score: 1

      All good stuff. Im okay with money out of my pocket if the process isn't bungled. Like most, I'm afraid the states will bungle it.

    2. Re:I honestly think... by Anonymous Coward · · Score: 0

      And the government does need the money

      That word...I do not think it means what you think it means.

    3. Re:I honestly think... by Dan667 · · Score: 2

      brick and mortar stores are pushing for the internet tax, but no one is going back to them that buys online. I can click a few buttons and they bring it right to my house or go deal with clueless sales people and bad service. No contest.

    4. Re:I honestly think... by Synerg1y · · Score: 2, Insightful

      Two words: instant gratification .

      If you're not saving money anymore, you'd be surprised how much more justifiable it becomes to get something today rather than in a week. Most people leave their homes for work / errands / social occasions, so swinging by a brick and mortar is less of a big deal for some than others.

    5. Re:I honestly think... by Dan667 · · Score: 1

      Maybe you missed the part that they will bring it to you and you will also get the best price online. Online still wins.

    6. Re:I honestly think... by Anonymous Coward · · Score: 1

      Two words: instant gratification .

      If you're not saving money anymore, you'd be surprised how much more justifiable it becomes to get something today rather than in a week. Most people leave their homes for work / errands / social occasions, so swinging by a brick and mortar is less of a big deal for some than others.

      Only if instant gratification qualifies as swinging by a brick and mortar on a weeknight, spending an hour combing their shelves and asking sales people, and arriving at home defeated because the store doesn't carry the desired item.

    7. Re:I honestly think... by Hatta · · Score: 2

      And the government does need the money

      Then they can get it from the rich, who are doing better today than they were in 2008. Those of us whose budgets are stretched already can't pay more in tax without cutting back purchases elsewhere. This will hurt the lower classes, and it will hurt the economy and the country as a whole.

      --
      Give me Classic Slashdot or give me death!
    8. Re:I honestly think... by Feyshtey · · Score: 1

      And the government does need the money...

      No, it doesnt. That's the lie you've bought into.

      If the government would get out of all of the venues they shouldnt be in, and would stick to the limitations that were purposefully placed on it, it could easily function on less than we all pay now. Not to mention the gross waste inherent in government, with the leaders of agencies and departments at every level of government scrambling every quarter to make sure they spend every penny they were budgeted so they dont risk a smaller budget in the next quarter. There's no incentive to be efficient. There's no reward for operating within their means. And then there are the endless asinine projects out there like evaluating the potential damage to property values due to duck farts or something.

      Government doesnt need more money. They just need to try to be marginally rational with the money they already get.

      --
      "But we have to pass the bill so that you can find out what is in it,..." - Nancy Pelosi
    9. Re:I honestly think... by Synerg1y · · Score: 1

      it would be nice to see them get it internally, but that's idealism

      Would be nice if they invested some of the money they stand to gain from this tax into education, wouldn't it?

    10. Re:I honestly think... by Synerg1y · · Score: 1

      Stop buying shit online if you can't buy the essentials.

    11. Re:I honestly think... by Anonymous Coward · · Score: 0

      You're naive if you think this will stop the government from raising taxes, and you're blind if you think the government needs any more money than they already get.

    12. Re:I honestly think... by Thaedron · · Score: 2, Insightful

      I beg to differ on the saving money arguement... The vast majority of the time, my price comparisons don't even need to account for Sales Tax. I'm a Techie and to keep my electronics / gadget desires satisfied Amazon / NewEgg / MonoPrice / Etc... beat the local alternatives on base price. Nevermind accounting for sales Tax. I don't expect that taxing Internet sales will have any material impact on my online purchasing habits.

    13. Re:I honestly think... by misexistentialist · · Score: 1

      European countries have inescapable VATs (usually around 20% !) added into prices, and they continue to raise taxes...and they complain of being broke. Government does not need the money, it needs to spend less

    14. Re:I honestly think... by Feyshtey · · Score: 1

      Would be even nicer if they spent the effort they've consumed on gun debates, laws and regulations and instead invested that level of attention to education. Our local town has spent millions of dollars to buy up 10's of 1000's of acres of scrub brush land as "investments", fences it, hires rangers to ensure that no one can enter it, and then votes to enact excise, use and sales taxes to offset the loss from the investment. There's a recurring council meeting to discuss ways to promote the area for geese migrations. The EPA is studying locusts... in Eqypt. The examples go on indefinately. But they need more of my money?

      This is not a matter of needing more money to do the right things. It's a matter of ending the use of money on stupid meaningless bullshit and using instead on things that actually matter.

      --
      "But we have to pass the bill so that you can find out what is in it,..." - Nancy Pelosi
    15. Re:I honestly think... by Synerg1y · · Score: 1

      I actually agree, whoever down modded you is a moron. Not only do I agree, but I know this for a fact, but lets consider the bigger picture: That gap shrinks slightly raising unit sales... increasing revenue... and assuming best buy wants to compete, which I think they do, they'd go after a competitive price w newegg, amazon, mono, etc...

      What you need to realize is that as things are that's not even feasible, they'd have to drop below par to compensate for the sales tax, so they don't even try. Those that go to them to buy electronics have a reason (instant gratification? :P) to and they milk them for it.

    16. Re:I honestly think... by Synerg1y · · Score: 1

      It's tough to grasp, but sometimes there's a bigger picture:

      imagine being the states government, not only are you responsible for the well being of your people, but you're responsible for policing the world, ensuring foreign threats don't make it on shore, and trying to innovate something here and there as well as advance humanity through technology and space exploration. Bad decisions are bound to happen and your example is nothing compared to what they did w the F-35 fighter jet.

      And it would be nice to just tell all the idiots in the government to fuck off and replace them with competent people and they do try to do that, it's just insanely hard and there's more than one way to skin a cat, the idiot could be clever.

      Channeling more $ into the government may not be the best solution, but it's a solution... and I don't know anybody living off the bare essentials, do you? I'm sure there's some, but between me getting a 50" instead of a 55" TV, and the government investing that difference to cure cancer from each of us, I'd sleep better w the cancer cure, it's getting them to invest that money in cancer or a similar benevolent agenda that's hard I agree on that too.

    17. Re:I honestly think... by dywolf · · Score: 1

      he didnt say they need more money. just that they need money period.
      you know, as opposed to being to just say "DO THIS." and you have to do it, without compensation.
      reading comprehension ftw.

      being that we exist in a capitalist, free market (dont quibble with me here; it is the base ideal we use), where people get paid for their time and services, the government MUST work within that framework. even as bad as they are with money, its still better than what we've seen in many other countries through history where they could demand whatever, and not actually have to pay people for it.

      so gov really does need money to function.
      after all, you like your roads paved, your police/firemen paid, your schools funded, dont you?

      --
      The guy who said the election was rigged won the presidency with the second-most votes.
    18. Re:I honestly think... by dywolf · · Score: 1

      as for getting funding internally....we could always set it up like china has, where the PLA (the army) owns a majority interest in essentially every single major company or industry in china. every thing you buy made in china....helps them modernize their military. gotta love it!
      course we have that whole thing against state owned industries...

      --
      The guy who said the election was rigged won the presidency with the second-most votes.
    19. Re:I honestly think... by Anonymous Coward · · Score: 0

      What if I don't want to invest in a cure for cancer, but instead a cure for some other disease that's affected my family, such as Alzheimer's? You've now taken my choice away to invest in Alzheimer's research. The US government was never meant to be and should not be all things to all people. If you and a group of other like-minded people would rather invest in cancer research than a 55" TV, feel free to do that privately, but don't take away my choice to do what I please with my hard-earned money.

      As the founders had envisioned, government should be very limited and limited to do only what can't feasibly be accomplished by the citizens themselves. Instead, we have a bloated and unwieldy government that takes too much of the people's resources to do much more than it should in a very inefficient manner producing very undesirable results, all with the best of intentions, of course. Voluntary cooperation and competition in the market place have always produced much better results than government and no one need be coerced into giving up their money.

    20. Re:I honestly think... by Anonymous Coward · · Score: 0

      No, the government has much more than enough money to perform it's necessary duties. It's the liberal politicians that always need more of other people's money. This shouldn't be very surprising. Liberals have no problem believing your average businessman will attempt to extract as much money from his customers as possible, yet they believe their politicians are somehow immune from such temptations -- as if liberal politicians are somehow fundamentally different men. I have much more respect for the businessman, since his intentions are clear and honest. Liberal politicians, on the other hand, are nothing more than con-men on the grandest scale. They impose high taxes on the people to do things that are much more efficiently done through the market, all for your own good. Of course, if it were for your own good, you'd already be spending the money on whatever it is you need, and you wouldn't need an unnecessary, costly, and inefficient government middle-man to do it.

      The very reason we can't fill potholes, replace bridges, and grow our infrastructure is not because of too little government, it's because of too much. There is a place for government in providing safety, justice, defense, and limited other areas that are infeasible to handle privately. If government were limited to such pursuits, we would have the money for such basic necessities as pot holes and bridges. Until government is scaled back as described, feeding more money to the beast only makes it stronger and hunger for yet more.

    21. Re:I honestly think... by Anonymous Coward · · Score: 0

      There is no such thing as free shipping or free anything for that matter. The cost of shipping is simply rolled into the cost of the product. The price you see online includes the shipping and often that price is better than what you will see in a physical store (and I'm not even factoring in any taxes). Online prices will always be cheaper, as electronic stores will always be less costly to run than physical stores with actual people being employed and buildings being maintained.

      While I think it's fair for all businesses in a given tax jurisdiction to pay the same taxes, I don't think it's fair to require all businesses learn the intricacies of the near 10,000 tax jurisdictions in the US just to do business. We should either abolish the sales tax in favor of the corporate or income taxes or require businesses only collect sales tax for the jurisdiction they are physically located in, not for the near 10,000 jurisdictions a purchase could possibly come from. Therefore, I'm not in favor of this bill.

    22. Re:I honestly think... by Anonymous Coward · · Score: 0

      He said the government does need the money, as in the additional money that would be obtained through the additional taxation being proposed. I suggest you work on your own reading comprehension.

      Of course government needs money to function and of course a limited government is necessary for a free society, but don't fool yourself into thinking that the government taking a substantial portion of your wage to waste on things that don't benefit you, or that even detracts from your quality of life, is any different than the slavery you cite. While not absolute slavery, it's slavery nonetheless.

    23. Re:I honestly think... by Rakarra · · Score: 1

      No, it doesnt. That's the lie you've bought into.

      If the government would get out of all of the venues they shouldnt be in,

      See, the citizens of our country have demanded that the government be in those venues. To fulfill those mandates, the government needs money. Those most half-assed of government involvement comes when it gets a mandate that is underfunded.

  16. That makes a bit of sense by Anonymous Coward · · Score: 0

    No one LIKES to pay taxes, but everyone likes paved roads and healthcare. (Canadian here, btw, also too lazy to log into account). I see no real harm in a minimalist approach to some sales tax on orders placed out of province/state that wouldn't be taxed otherwise. In Canada, we pay sales tax on just about everything ordered online, unless out of country of course.

    The complications of the matter are a bit different, yes. Hopefully you would just have one place to send it, but with how over complicated and redundant 90% of your laws are already I would find it unlikely you can make even this...intelligent? tax system worth while.

    Good luck with it though.

    1. Re:That makes a bit of sense by wierd_w · · Score: 1

      Here's the deal..

      I don't mind paying for bridges, roads, police officers, and other such vital services. In fact, if I could see a garantee that the money collected went for *those things*, and not "senator Taint Brownstain's new fantastic porkbarrel boondoggle that 'so totally isn't the pro quo from quid pro quo'", I wouldn't complain about taxation.

      However, since all fed tax money gets stirred up in a big pot, I get no such assurances.

      I don't like financing the killing of brown people, just because I want paved roads, for instance.

    2. Re:That makes a bit of sense by lgw · · Score: 1

      The majority of tax dollars spent at every level (federal, state, local) these days is spent on pensions (broadly speaking: SS and Medicare included here). Bridges, roads, police, etc, is almost an afterthought in today's government spending.

      If your judge by dollars spent, modern government is a mechanism to transfer money from the young to the old, which occasionally happens to build a road or kill a brown person.

      --
      Socialism: a lie told by totalitarians and believed by fools.
    3. Re:That makes a bit of sense by Rakarra · · Score: 1

      If your judge by dollars spent, modern government is a mechanism to transfer money from the young to the old, which occasionally happens to build a road or kill a brown person.

      That's a natural result of each generation living longer than the previous. With our bizarre need to extend life to the maximum number of days that current science makes possible, expect it to get worse, especially if people retire "early" and the gap between retirement and death continues to grow.

  17. Bullshit. Many States don't even have Sales Tax by Anonymous Coward · · Score: 2, Interesting

    This is a State decision, not a Federal one.

  18. will drive online shopping overseas by avandesande · · Score: 1

    You may have to wait a little longer, but people will start buying from Canada or other places without taxes.

    --
    love is just extroverted narcissism
    1. Re:will drive online shopping overseas by Subject-17 · · Score: 1

      Eh, only for high priced, small sized goods. International shipping is friggin expensive, even if you're getting it from Canada.

    2. Re:will drive online shopping overseas by Zontar_Thing_From_Ve · · Score: 1

      You may have to wait a little longer, but people will start buying from Canada or other places without taxes.

      I really doubt that. Based on what I see on other forums, most US consumers refuse to buy almost anything if they have to buy it online. I see people all the time who shlep down to their local brick and mortar store to pay more money, spend more time and get a worse quality product than something they could buy cheaper and of higher quality online. Ever been the grocery store or Wal-Mart and noticed how many people refuse to use the self-checkout line? I rest my case.

    3. Re:will drive online shopping overseas by Anonymous Coward · · Score: 0

      If an American and foreign merchant cooperate, the foreign merchant could do the billing, and the American one ship the goods. Sayonara, sales tax.

    4. Re:will drive online shopping overseas by CRCulver · · Score: 2

      You may have to wait a little longer, but people will start buying from Canada or other places without taxes.

      Besides the fact that international shipping (even from Canada) is quite expensive, you may have to pay import duty on certain items and/or items over a certain value.

    5. Re:will drive online shopping overseas by ArcadeMan · · Score: 1

      And if it's the same both ways, UPS and FedEx will charge you anywhere from 20 to 50 dollars in brokerage fees, on top of the import duty and shipping cost.

    6. Re:will drive online shopping overseas by CrimsonAvenger · · Score: 2

      Based on what I see on other forums, most US consumers refuse to buy almost anything if they have to buy it online.

      If that were true, then the problem solved by this bill would be too trivial to make it worth the bother.

      --

      "I do not agree with what you say, but I will defend to the death your right to say it"
    7. Re:will drive online shopping overseas by the+eric+conspiracy · · Score: 1

      Then don't use them. I recently purchased a watch from Japan. EMS shipping in 3 days, no duty or brokerage fees, $15.00.

      Now all I have to be concerned about is use tax.

    8. Re:will drive online shopping overseas by ArcadeMan · · Score: 1

      Je n'avais pas besoin de cette hypothèse.

      FTFY

    9. Re:will drive online shopping overseas by Anonymous Coward · · Score: 0

      That has much more to do with the POS self-checkout equipment than anything else. I don't need to listen to the POS tell me that an unauthorized item was put in the bag or to fight with the bill reader to pay for the items.

    10. Re:will drive online shopping overseas by CrimsonAvenger · · Score: 1

      Besides the fact that international shipping (even from Canada) is quite expensive, you may have to pay import duty on certain items and/or items over a certain value.

      And here I thought NAFTA removed all those nasty import duties from stuff from Canada and Mexico....

      --

      "I do not agree with what you say, but I will defend to the death your right to say it"
    11. Re:will drive online shopping overseas by CRCulver · · Score: 1

      Nope, whole classes of goods still attract duty when imported from Canada.

    12. Re:will drive online shopping overseas by VisceralLogic · · Score: 1

      You may have to wait a little longer, but people will start buying from Canada or other places without taxes.

      I really doubt that. Based on what I see on other forums, most US consumers refuse to buy almost anything if they have to buy it online. I see people all the time who shlep down to their local brick and mortar store to pay more money, spend more time and get a worse quality product than something they could buy cheaper and of higher quality online. Ever been the grocery store or Wal-Mart and noticed how many people refuse to use the self-checkout line? I rest my case.

      Good point. I expect Amazon to declare bankruptcy in the near future.

      --
      Stop! Dremel time!
    13. Re:will drive online shopping overseas by Rakarra · · Score: 1

      I really doubt that. Based on what I see on other forums, most US consumers refuse to buy almost anything if they have to buy it online. I see people all the time who shlep down to their local brick and mortar store to pay more money, spend more time and get a worse quality product than something they could buy cheaper and of higher quality online. Ever been the grocery store or Wal-Mart and noticed how many people refuse to use the self-checkout line? I rest my case.

      In my case that's because there's a line for the self-checkout terminals, and the self-checkouters are almost always confused about how to work the thing. They have to search through a list of images for the right produce (while a real checker will have it memorized or have a quick list they can look through). Whoops, they're buying alcohol, now they have to wait for someone to come by to authorize the approval. Swipe one item, wait for a moment, put it in the storage area.. oops, they put too many things in the storage area, now they have to figure out how to put the correct amount of things there for the system to think that they're not trying to shoplift. Swipe one item, wait 10 seconds, read everything on the screen, swipe another item...

      I'm pretty quick about it, but again, produce or anything else without a barcode will slow the process down appreciably. I eventually learned that the self-checkout line can be much longer than the regular line staffed with a competent checker (which is most of them, surprisingly).

  19. It's kind of insidious as well.. by Lumpy · · Score: 4, Insightful

    As it will cover all Ebay sales and Craigslist sales.

    They want to charge you tax on even items you are not making money off of. Next up, Evil Garage sales and Flea Markets, how can we tax this scourge to the economy?

    --
    Do not look at laser with remaining good eye.
    1. Re:It's kind of insidious as well.. by Anonymous Coward · · Score: 0

      What about the sale of virtual goods? Such as an AppStore app?

      No shipping required, should it be taxed? i say no.

  20. Gunna werk goot by wulfmans · · Score: 1

    Hows this going to work out in Oregon where they do not have sales taxes ? they going to make all the internet retailers collect taxes for the other 49 states? LOL going to work out just fine.

  21. Too late by Anonymous Coward · · Score: 0

    Given that companies and states have already settled into thinking "The internet doesn't have state sales tax unless it happens to be an intra-state sale," I can quickly see a few business-hungry states amending their tax codes to exempt interstate sales. Based on the way I read this, this would allow companies to continue distributing the same as they always have (no sales tax unless you live next door to us), and if few enough states implement it, it could be a serious economic turning point as businesses flee to those states.

  22. No Tax or Duty shall be laid on Articles exported by scorp1us · · Score: 4, Insightful

    "No Tax or Duty shall be laid on Articles exported from any State." - Article 1, US Constitution.

    It seems to me, that any such legislation would be a tax being exported from one state to another. I don't believe a distinction can be made from those being exported and those being imported, since it is only matter of perspective. A tax on imports to a state is a tax on the same article being exported from another. There is no limit to the prohibition. It could also read: "All taxes and duties are prohibited on all articles being exported from any State."

    --
    Slashdot's rate-of-post filter: Preventing you from posting too many great ideas at once.
  23. Actually a Constituitonal tax all of a sudden by roman_mir · · Score: -1, Troll

    If it is passed and it meets the criteria of being uniform, then it is a Constitutional tax, I cannot say anything about it.

    I can say that income tax is unconstitutional and it is collected unconstitutionally. The 16th amendment didn't specify actually what that tax was, and so it took SCOTUS to do it and SCOTUS specified that the only way that tax was legal if it was indirect (because it is not apportioned) and to make an income tax indirect, the person must be disconnected from the source of income, and this is only possible via a corporate balance sheet, so in reality what the IRS claims is an 'income' tax can only legally exist as a profit tax and individuals don't have profits (otherwise you should be able to have revenues and expenses and be able to deduct things like amortisation of your education and training, depreciation of your own body, etc.) There are many arguments explaining that there is no such thing as a law that forces a person to pay a mandatory income tax, you can read my comment about it that I linked to.

    However a federally mandated sales tax is legal as long as it is uniform and can be collected in a uniform manner (so there is no discrimination against any people when the tax is collected, there should be a clear standard that would apply across all state borders, etc., as to how this is collected.)

    So of-course by having BOTH the federal income tax and the federal sales tax, you are getting squeezed on all ends, it's obscene. Same thing is true of other countries of-course, but in USA the law is much more precise about things that the government cannot do (supposedly) but it does them anyway. Medicare and Payroll taxes for example are illegal for the same reasons that the income tax is illegal. By the way, payroll tax was only deemed Constitutional on a definition that it is not in fact tied to any benefit, because it's illegal to tax one person for a direct benefit of another, so this is one more way to understand, for those who don't, that they are not accruing any benefits in SS regardless of how much they contribute to it (SCOTUS: Flemming v. Nestor (1960), no one has an accrued property right to benefits from Social Security).

    If this tax goes through you really should start thinking about all the ways that you are getting screwed, some are legal and some are not. The most insidious tax that any average means person pays on daily basis is the tax created by the Federal reserve - inflation. Every time something goes up in price rather than going down because of natural increase in efficiency and productivity in the market, you should thank your federal reserve printing those dollars (and Bernanke is quite explicit that he will keep printing money and just pouring it into the economy in every way, from government Treasury purchases to mortgages purchases to bank stimulus, whatever.

    Here is something fun to watch.

    1. Re:Actually a Constituitonal tax all of a sudden by Anonymous Coward · · Score: 0

      Tax is tax, inflation is a consequence of fiat money. The Fed may affect inflation but it doesn't control it.

    2. Re:Actually a Constituitonal tax all of a sudden by Anonymous Coward · · Score: 0

      Printing money is not a tax, and inflation is a symptom of private enterprise becoming desensitized to the availability of money.

      The government specifies an authorized agent (the Fed) to handle its debts. It does this by sovereign force. The agent must then print debt notes (dollars) that the government may then spend. These debt notes mean that the government is indebted to you by the face value. They're an IOU. As you collect these things and go about your daily life, you use government services (military protection, Social Security, roads, whatever), and the government bills you for those services in the form of taxation. You hand in some of the IOU's, forgiving that much of the government's debt, and the lifecycle of a dollar is complete. The dollar's value is essentially destroyed, as the government cannot be indebted to itself. They then "print more" (as you put it) and repeat the process.

      There is a word for this. It's a novel idea called an "economy". Just because you trade those IOU's in an increasingly unfavorable manner with other people does not mean that inflation is a tax created by the government. Now if you're a government contractor, then you ARE part of the problem.

    3. Re:Actually a Constituitonal tax all of a sudden by roman_mir · · Score: 0

      The Fed may affect inflation but it doesn't control it.

      - the Fed creates inflation, as to 'controlling' it, it does somewhat. When the Fed creates fake credit to buy Treasuries and mortgages, the very first place that the money ends up in is the bond and the housing market. In fact Bernanke is on the record, talking about the need to 'prop up housing'. He wants house prices to go higher, because obviously it's so much better if things cost more. What he really ends up doing is creating inflation and in response prices of everything else go up together with the house prices (which need to go down, by the way, not up, there is no reason why house prices should be going higher, the market needs the house prices to fall further).

      But you are right, the Fed can't control inflation. Bernanke says he has a '2% target', while the reality is that the real rate of inflation is easily 4-5 times higher than that right now at any moment in time. He can't actually control the rate at which inflation shows up in different markets. He can flood the Treasury and housing markets with money but he can't control how quickly money moves out of those markets.

      However here is what we do know: you can't really inflate the same bubble twice in a row, so while he is really trying, he won't be able to create an absurd housing bubble right now, but he is propping up house prices. However we also know that Treasuries have maturity date.

      That's the thing, Clinton with Rubin refinanced US mortgage (debt) with short term, adjustable rate paper, they went away from 30, 20 even 10 years Treasuries, those are now on the Fed's balance sheet (operation Twist, remember?). The other debt holders have short term paper which matures once every 3 or 2 or 1 year or maybe even 6 months! So when the talking heads on TV say: it's very cheap to borrow, so we should borrow more and more, what they don't understand is that it's cheap to borrow NOW.

      So you are going to end up loaded with debt and all of a sudden the people stop rolling these things over (and the Fed is the only buyer of new Treasuries at this point as is), and what happens to interest rates all of a sudden?

      Read my sig, the US government can pay the interest on its debt right now, when it's at historic lows. What happens 6 months from now, 1 year from now? We know that the debt will be higher, but will the bond holders roll their holdings over again or will they sell? (and really, they can sell at any moment, but even if they hold it until maturity it doesn't really make much of a difference when it's 1 year or 2 years term paper).

      What happens is that all of a sudden instead of 300 Billion USA has to pay 1 or maybe 2 Trillion in INTEREST PAYMENTS and maybe even more than that, but that's about how much the federal gov't collects in revenues today. So what happens at that time, when they can't collect more revenue and they can't borrow any more money because people are selling in bulk?

      Where will the interest rates go, how high? Will the US gov't even have enough revenue in a year to pay the interest? If 100% (or more) of revenues go towards interest payments, how can the gov't exist?

      What is happening in Cyprus right now can happen in USA, because all of the big banks in USA are bankrupt the moment interest rate goes over 2-3%. So your deposits are at risk, never mind your government operations, because the banks will immediately fail (the people won't be able to afford their loan payments to the bank and the banks will have negative equity, as all of those Treasuries that the banks hold for the 2-3% return all of a sudden fall through the floor in price).

      What is going to happen is going to be horrific. When I say it, I see it the same way as when I was talking about the Iraq war being a mistake because Saddam had nothing to do with 9/11 and had no WMDs, people didn't want to understand. Same thing is going to happen here.

    4. Re:Actually a Constituitonal tax all of a sudden by DarkOx · · Score: 1

      roman_mir,

      I am normal inclined to agree with you about monetary policy matters.

      In fact Bernanke is on the record, talking about the need to 'prop up housing'. He wants house prices to go higher, because obviously it's so much better if things cost more.

      But this is one case where Bernanke is possible correct. Its not moral or just its plainly stealing from some to benefit others but...

      We have an ugly demographic problem were the large very near to retirement age segment of our population has all or most of their savings tied up in or otherwise exposed to real-estate. We can't have them work forever (that has its own implications for the young) and we won't simply let them stave. We haven't got the revenue to take care of them, so politically we are between a rock and hard place. Unless we blow a housing bubble.

      --
      Repeal the 17th Amendment TODAY! Also Please Read http://www.gnu.org/philosophy/right-to-read.html
    5. Re:Actually a Constituitonal tax all of a sudden by roman_mir · · Score: 1

      And the ugly demographic problem will become an ugly catastrophe when people will not be able to use dollars to buy goods they need to survive. What good if your house is 500,000 dollars if your weekly food costs you 10,000? 20,000?

      The young will be much better off if there are no bubbles at all, if the debts are restructured, why should they be on the hook for the debts while in an economy that is suffocating because the debts prevent any type of investment?

    6. Re:Actually a Constituitonal tax all of a sudden by DarkOx · · Score: 1

      There is no question they young will be better off with affordable housing and a functioning market. There is is no doubt that inflation usually results in negative wage growth if you look at the compounding effects of constant price growth vs typically anually at most COLA adjustments by employers. I don't doubt you.

      What I want to know is what do we do with all the nearly retired who were expecting to live off the proceeds from they sale of there inflated home and often far to little savings to make up any short fall there. Again the right thing, the ethical thing, is for government to stop blowing bubbles, but how do we get there from here; without creating a whole new group of dependants who will likely be on the dole for 20-30 years until they expire, or crowding younger workers if they are especially healthy and able to work?

      I really don't have an answer but as a nation we need some kind of plan, sadly the only obviously answer to me is new housing bubble; which is of course a quick fix that will lead us to asking the very same question when it next pops, and all bubbles do pop.

      --
      Repeal the 17th Amendment TODAY! Also Please Read http://www.gnu.org/philosophy/right-to-read.html
    7. Re:Actually a Constituitonal tax all of a sudden by roman_mir · · Score: 2

      what do we do with all the nearly retired who were expecting to live off the proceeds from they sale of there inflated home and often far to little savings to make up any short fall there.

      - let the interest rates go up where the market takes them right now and the retired will have an income from their savings. Worst case for those who don't have savings except for a house is to sell the house in the falling market and use the money from the sale to get income due to actual interest rate that the market would pay for their savings if the government stops destroying the money.

      Do you not see that the people who are hurt the most by inflation are those very people on fixed incomes and the retired, whose checks will buy less every month.

      Who knows, the Cyprus like situation is not actually impossible. Cyprus bought bad Greek debt and now has no money to return to the depositors, who are just creditors to the bank. So it's not the bond holders that are going to take a haircut, but the depositors. Of-course the bond holders should now run forward and offer to take a haircut and spare the creditors (depositors), otherwise the bondholders will lose 100% (those who didn't liquidate yet, many did probably), because without depositors there is no bank.

      My point is that the situation that the Fed is creating with inflation is almost unpredictable in terms of how exactly it will play out, but it IS predictable that there will be an implosion due to this, and so why would you want to risk an implosion (imminent implosion) instead of allowing the economy to restructure right now? Yes, restructuring means a recession. You know what, USA is in a depression right now, never mind the government numbers, the reality is that there is no recovery. The jobs are fewer every month (they can manipulate the numbers because there are people who stop looking and so it may seem that unemployment numbers go down, in reality what is going down is the desire and ability to work in that system).

      new group of dependants who will likely be on the dole for 20-30 years until they expire,

      - you are assuming that this is possible for the government to take care of the people who will suffer due to the economic collapse for 20-30 years, I beg to differ. I don't believe that there is any way at all to take care of them. That's what I think the situation is, there is no way to take care of them by using government if the system blows. Government gets its money from working people and that's how the dependent get their checks. If the system blows the way I think it will, then the government will not be able to take care of ANY dependent people, it's a physical impossibility.

      Even with interest rates being over 3% the system collapses AFAIC, but if the interest rates are, say, 15%? 35?

      At 7% the entire revenue of USA goes towards interest payments, nothing else, and actually it's worse, because at those interest rates USA revenues will be disappearing for a while at least, there will be many failures, so much fewer income revenue will be coming in.

      Do you see what I am saying? You believe that it is physically possible to take care of people for 20-30 years, I think what will happen will make it a physical impossibility to do it. It would be better right now to stop pumping money into the system and allow interest rates to rise now and take a hit and let the prices fall and let people to start making income from interest payments (this would deflate the bond market bubble, the equity bubble, this would return some stability to the dollar).

      I think the pain that will come because of that will be much less prolonged. 1921, 1947, 1981 show that the difficulties that are met with real cuts and higher interest rates are solved by the market in just a couple of years.

      I think what will happen if this is not allowed will last for decades, and then yes, your scenario: wait until people die off (but you won't have to wait

    8. Re:Actually a Constituitonal tax all of a sudden by DarkOx · · Score: 1

      I am not sure from your tone (or offended don't worry) but I don't want you think I am arguing with you. I am really enjoying this conversation; because reading your posts for a long time now, I have really come to respect your opinion and knowledge about this subject.

      I don't think is possible for government to take care of all the retired or soon to be either. Which is why I was/am looking for a way to avoid the need or politically perceived need to do that. You are correct the fixed income folks are hurt by inflation. Those folks that have already done the home downsize and transition to living on SS, annuity payments, bond interest are better positioned though than the folks still just about it.

      Correct or not (and largely due to government propaganda as much as anything) the typical thinking in 2007 was that if you had a $500K valued home, owed $300K, and had $200K in equity that effectively meant you had $100K in retirement savings because it was going to appreciate another $50K in the next 5 years. From some magical place a buyer for your $550K home was going appear despite the fact you know your own children could never scrape together a down payment for a house like yours. You were going to come away with $250k in proceeds from the sale at that time of which you would spend $150 on a little bungalow some place to live in.

      Aggressively stupid! Certainly. None the less this is what these people expected to happen.

      That house now will sell for $300K. So the whole plan is really unhinged. Even if interest rates go back to 1980's levels you won't generate enough revenue to buy groceries and heating oil with bank deposits, money markets, and investment grade bonds with so little principle. You won't have enough for rent payments on a crappy apartment if you preserve a little extra captial and skip the buy the bungalow part.

      So here is the central point of the matter. Without a housing bubble I think your dollar bubble is nearly as certain as death and taxes. We can't find the political will reduce actual spending at all; and we can barely cut when we tell ourselves nice little lies like not adjusting for inflation counts as cutting. The sheeple are stupid they will cut off their own leg to feed the mouth if a guy in a nice enough suit tells them to do it. I don't think the government can take care of everyone but it will damn well try. That means the FED balance sheet expansion at beak neck speeds. When the interest exceeds the revenue the treasury will start to play games minting trillion dollar coins. As you say then it goes BOOM.

      --
      Repeal the 17th Amendment TODAY! Also Please Read http://www.gnu.org/philosophy/right-to-read.html
    9. Re:Actually a Constituitonal tax all of a sudden by roman_mir · · Score: 1

      I am not arguing, I am writing thoughts down in response to any question and to criticism (I mostly get criticism).

      It's going to be impossible to do the right thing, politically it's impossible, so it's a majority driven suicide pack and because of that you have to take care of yourself and people you know, I don't think you can fix the problem for all, just try and mitigate it for people you care about. There are no politicians that will do the right thing in the office. The ones who would do the right thing do not get access to do it, Ron Paul didn't get access, Gary Johnson didn't get access, etc.

      I am looking at Cyprus, because it's a microcosm of what is happening everywhere (some of my relatives have some money stuck there that were in transit, so money was moving through a bank in Cyprus, and just like in a highway robbery, with masked bandits stopping the wagon to loot it, the bankers and politicians in Cyprus stopped a transfer of funds and stole it). And so what do we observe from the politicians and bankers? First they steal to create an illusion of prosperity (apparently they were getting a 'good return' on buying Greek bonds for a few years, that Greek debt became expensive) and when it obviously went bust, they started looting anything they could put their hands on, even money in transit. That's the only thing politicians understand how to do - steal, they know nothing else. Again, those who wouldn't steal and wouldn't promise to "take care of people" are not in government.

      The problem with hoping that the Fed's next bubble will prevent the dollar bubble is that you can't and neither the Fed can control where the bubble is going to form. Sure, the Fed buys mortgages to the tune of 80Billion USD/month (and it's going to increase those amounts), but so what? What happens with those loans that the Fed gives out with fake money? Where does the inflation go? The money is created and then the owners are expected to refinance their houses because the Fed creates artificial demand, so the owners refinance just to make payments in the inflating economy.

      That money that is a liability to the Fed, but that's irrelevant. That money flows into the system through the mortgages and it ends up somewhere. Where does it end up? Who gets it? It's partially the stores in USA, partially it's the manufacturers in other countries (50Billion USD/month trade deficit shows that USA consumption comes from other countries, and that 50 Billion is just the trade deficit, never mind the amount of goods that come in that are actually paid for, so they don't end up as deficit, but the manufacturers still get the dollars).

      But those dollars end up in foreign central banks, that print the local currency to buy the dollars, and then they use the dollars to buy more short term US Treasury paper, they can't do anything else with it. So they grow their credit balance with USA Treasury. That's the bubble, not the mortgages, because you see, the money doesn't end up in anything but Treasuries (and equity).

      Why doesn't it end up in anything else? Because there is no investment and production.

      What do the store owners do with their part of the money that they get from the transactions, when the refinanced mortgages are used to buy the goods? They pay the ever inflated prices for rent (again, thanks Fed), utility costs, taxes that are going up in everything, don't forget Obamacare, that's a tax that will cause massive shift from permanent jobs into part time jobs for low quality positions.

      So plenty of that money is just siphoned into the government as taxes again but whatever is not is recirculated into something else.... equity prices - the stock market traders are happy that the Dow is going up, the stocks are going up.

      Bernanke won't be happy until Dow hits 20,000, well sure, but that's just inflation in itself, it doesn't create any new productive output.

      So what have is just bidding wars. Bidding wars to escape inflation - bonds, equity, and you have an attempt to reflate

    10. Re:Actually a Constituitonal tax all of a sudden by Anonymous Coward · · Score: 0

      It's going to be impossible to do the right thing, politically it's impossible, so it's a majority driven suicide pack and because of that you have to take care of yourself and people you know

      Other way around, people only want to take care of themselves, and because of that, it's politically impossible to do the right thing.

      What do you think the politicians are doing, if not taking care of themselves and people they care about?

      What do you think the mob who votes for more welfare for themselves are doing?

      All those other people who you think are to be blamed for the destruction? They're not other people. They are you

      I have been telling this to people for quite a long time, many years now.

      More evidence that you are part of the problem. You've been talking, people have listened, and yet things are still worse than ever.

      The common denominator of all your problems... is you

  24. save us rand paul! by Anonymous Coward · · Score: 0

    this will affect the average american WAY more than drones ever will

  25. Usher in tracking bots by Anonymous Coward · · Score: 0

    Another issue is the ushering in of tracking bots at the ISP level. In order for them to be able to tell if you bought something, they will have your ISP track your every move (or click) to see if your are buying something or not. Either that or they insist that everyone selling anything on the internet record everything and provide records (from worldwide locations too, which they don't have jurisdiction over), or they insist that people volunteer information about what you bought at www.1-900-hot.girlz.com. Clearly having a sales tax would raise more questions than answers. I personally don't think it's a good idea. I thought Americans didn't like taxes (or at least revolted against them more than other nationalities).

  26. I already pay online taxes by Nyder · · Score: 0

    I live in Washington state, so almost everything I buy online gets taxed if I send it here. Services I guess not as much.

    So would I have to pay more taxes? Fuck off if that's the case. You need more money Federal Gov? Stop wasting it.

    --
    Be seeing you...
    1. Re:I already pay online taxes by jader3rd · · Score: 2

      You need more money Federal Gov? Stop wasting it.

      This isn't to allow the feds to collect taxes, it's to allow states to collect states sales tax on purchases made over the internet, regardless of the state where the vendor has a physical presence.

  27. Why should the state I live in get the money? by Anonymous Coward · · Score: 0

    I don't understand why the state that I live in should get any sales tax from an item purchased in another state.

    If I walk across the state line and make the purchase, should the state I live in get the money? If so ... why? If not ... how is it different from purchasing online?

    I honestly am not against sales tax, but I think the state in which the purchase is made is the one that should collect the tax. Keep the money where the business is located/operating rather than collecting it in a location that had nothing to do with the sale.

    1. Re:Why should the state I live in get the money? by Todd+Knarr · · Score: 1

      IMO that'd be another thing I'd push: if on-line merchants are expected to collect taxes based on the buyer's place of residence, then brick-and-mortar stores should also have to collect it that way. So if I walk into a store in Nevada, they have to look up the sale tax due in San Diego, CA and collect that and remit it to California.

      Brick-and-mortar retailers, I'd like to introduce you to this guy named Procrustes.

  28. To be fair... by Junta · · Score: 5, Insightful

    The 'no sales tax' scenario is generally enticement to commit tax fraud.

    Usually, a 'no sales tax' purchase has an obligation to pay a 'use tax' equal to the amount the sales tax would have been. People saving money due to sales tax are almost always committing tax fraud.

    So this isn't levelling by force, it's correcting a 'loophole'. In my mind, abolish use tax, if you *must* enact sales tax to do that, oh well, it's easier than sales tax to keep track of.

    --
    XML is like violence. If it doesn't solve the problem, use more.
    1. Re:To be fair... by rlwhite · · Score: 1, Interesting

      Use tax is arguably unconstitutional due to the interstate commerce clause, and that is why states do not enforce it. They can wield the moral force of "this is the law" to those that don't know better and get them to put it on their tax returns, but they won't go after those who don't pay because they're afraid to lose. The states' end game has been a federal authorization for the states to collect sales tax because it would put them on much more solid legal ground.

    2. Re:To be fair... by mabhatter654 · · Score: 5, Insightful

      This whole thing still shows even Congress doesn't grasp the basic laws at work.

      Sales Tax is almost always owed by the PURCHASER. That's why all the stores in my state have a LICENSE to COLLECT that tax and sent it on your behalf to the State. So if I buy something via mail order in Michigan from a business only in Iowa THAT BUSINESS has no obligation to MICHIGAN to collect anything. I still have the obligation to PAY MICHIGAN its USE TAX because I LIVE in that state.

      That's the only issue, that a state cannot tell people in OTHER STATES to follow its laws. Not to mention, complying with ONE state tax where your physical store is located is hard... Why should an online business have to collect for 50 states?

      Why don't states force BUSINESSES to pay the Sales Tax on what they sell? Because taxing sales BETWEEN THE STATES is illegal for any state to do. It's illegal for Ohio to force a business shipping into Ohio to pay ANY tax to do so. It's illegal for Michigan to COLLECT any tax from Michigan business on an item sold to Ohio. That keeps states from starting trade wars with each other.

      So either the FEDS need to enact a federal clearinghouse that allows Internet businesses to only file one form per customer, or they need to compel the BANKS and other financial services located IN EACH STATE to collect taxes based on their accounts mailing address. That's the closest to "constitutional" because you receive and pay your Visa at a bank licensed to your state, and you receive the bill at your postal mailing address. So each statement would only have to account for ONE sales tax per customer.

    3. Re:To be fair... by CrimsonAvenger · · Score: 2, Interesting

      That's the closest to "constitutional" because you receive and pay your Visa at a bank licensed to your state, and you receive the bill at your postal mailing address. So each statement would only have to account for ONE sales tax per customer.

      Hmm...

      Since I started collecting credit cards, I've lived in eight (or perhaps nine) States. Which credit cards are associated with any particular bank, I have no clue at all. And could care less.

      In addition, my spouse and such of the children as are old enough have access to some (or all) of my credit cards.

      The children do not always live at home (when they're away at college, for example), but still get to use the cards.

      And then there's the fact that I pay my credit cards online, without receiving paper bills at my home address (I haven't checked to see what mailing address my credit cards use this century - I'd have to just hope that they're consistent with where I actually live now).

      Actually, come to think of it, I KNOW that whatever addresses my credit cards think I live at are incorrect, since I didn't bother to update them when I moved last year....

      --

      "I do not agree with what you say, but I will defend to the death your right to say it"
    4. Re:To be fair... by Gr8Apes · · Score: 1

      The real answer is GAT (no, not a VAT). Solves all the problems, and it could possibly answer the issue of income tax for the 98% and corporations dodging income taxes.

      --
      The cesspool just got a check and balance.
    5. Re:To be fair... by Anonymous Coward · · Score: 5, Funny

      Yes, you are correct. Your new cards - for the one that is expiring soon - came to me. I do like the new TV I got with it, and my new tablet is in shipping now. I should have it in a day or two. You might want to tell those credit companies your current address unless you want me to order more free stuff with the next cards that are up for expiration.

    6. Re:To be fair... by dnahelicase · · Score: 4, Informative

      Use tax is arguably unconstitutional due to the interstate commerce clause, and that is why states do not enforce it. They can wield the moral force of "this is the law" to those that don't know better and get them to put it on their tax returns, but they won't go after those who don't pay because they're afraid to lose. The states' end game has been a federal authorization for the states to collect sales tax because it would put them on much more solid legal ground.

      You've clearly never been through a sales/use tax audit as a business.

      They do not feel like it's unconstitutional, and are not afraid to enforce it. it's not a "moral force" - it actually is the law. You cannot get out of state entities to collect sales taxes for you, but if they can show that you have nexus in a state, they can make you collect them. If you buy things from anywhere, in or out of state, as a purchaser you must pay use tax on it. It's not a suggestion for the ignorant - it is the law that you report your untaxed purchases.

      Technically you owe this on everything, even those things that have been taxed by other states - it's just that most states agree to reciprocity.

      There is very little gray area here. As an individual they probably won't go after you, but businesses that are supposed to collect sales tax (including those without a physical presence) and pay use tax - they go after you like wolves.

      A universal rule for everyone would be a dream for those that process sales taxes. It's ridiculous the amount of time that is spent figuring out which sales are taxable, what jurisdiction those are in (the state, county, city, LOST, misc taxes) and how to report and pay those.

    7. Re:To be fair... by peragrin · · Score: 1

      whose sales tax do you collect?

      If company A in State A sells something to person, or company B in State B there is no sales tax charged or collected.

      As long as your shipping product to the distant state and it isn't picked up locally the transaction has occurred in between states and no sales tax is charged.

      The exception is when Company A has physical holdings in State B then they must charge That area of state B's tax rate.

      Every county, Every City and the State itself at least as far as NY goes has a different sales tax rate. You can save money by driving across the county border and doing your shopping.

      --
      i thought once I was found, but it was only a dream.
    8. Re:To be fair... by iamhassi · · Score: 1

      This whole thing still shows even Congress doesn't grasp the basic laws at work.

      Sales Tax is almost always owed by the PURCHASER. That's why all the stores in my state have a LICENSE to COLLECT that tax and sent it on your behalf to the State. So if I buy something via mail order in Michigan from a business only in Iowa THAT BUSINESS has no obligation to MICHIGAN to collect anything. I still have the obligation to PAY MICHIGAN its USE TAX because I LIVE in that state.

      That's the only issue, that a state cannot tell people in OTHER STATES to follow its laws. Not to mention, complying with ONE state tax where your physical store is located is hard... Why should an online business have to collect for 50 states?

      Clearly congress and even /. doesn't understand the complexity of online sales tax. There is not 50 states to tax, there are thousands of counties to tax.

      When I worked at network solutions ecommerce support several years ago we were trying to tackle this tax problem because some online stores had to collect tax according to their state government. OMG it was a nightmare! Thousands of different counties to keep updated tax information from, and unfortunately there was no central area to pull the most up to date tax info from, just had to google it to see if you could figure out if that local county govt had increased the taxes recently. We eventually just implemented what we thought was the correct taxes, told them to use at own risk, and allowed stores to update any county they wanted with what they thought was the correct tax info. Most stores just rounded all the taxes up to a real high tax rate to be safe, hoping if one county wasn't taxed high enough, maybe the excess taxes collected from another county would compensate for it.

      I suspect we will see the same, online stores will just charge 10 or 12 percent hoping that will cover most counties. With shipping this will make online shopping more expensive than local stores and online sales tax will kill online business.

      --
      my karma will be here long after I'm gone
    9. Re:To be fair... by TapeCutter · · Score: 1

      Sales tax in Oz has been run by the Feds for a couple of decades now, in the past it was like the US, a state based labyrinth of rules as to how much tax was owed on what item. Now it's a flat 10% everywhere and it is the business owner who is responsible for ensuring it is paid. It's a very simple system, both government and business have benefited by getting rid of all the paperwork involved in the old system. The same tax applies to internet sales, the fly in the ointment is there is no way to collect the tax from internet businesses that are based overseas (eg: Amazon).

      --
      And did you exchange a walk on part in the war for a lead role in a cage? - Pink Floyd.
    10. Re:To be fair... by Anonymous Coward · · Score: 0

      And Oz is less than a 1/10th the population, and the government is proportionally small. And it is of a different structure for historical reasons.

      How about this, you solve your countries problems and we'll solve our countries problems, rather than playing armchair legislator and trying to scale some incompatible system.

    11. Re:To be fair... by Nixoloco · · Score: 2

      Use tax is arguably unconstitutional due to the interstate commerce clause, and that is why states do not enforce it. They can wield the moral force of "this is the law" to those that don't know better and get them to put it on their tax returns, but they won't go after those who don't pay because they're afraid to lose. The states' end game has been a federal authorization for the states to collect sales tax because it would put them on much more solid legal ground.

      The use tax on the residents within a state by that state is perfectly constitutional according to the Commerce clause because it places the burden of payment equally on everyone in the receiving state. The sales tax charged by one state to a seller in another state is unconstitutional (according to the Commerce clause) because it places the burden on the seller in the other state.

    12. Re:To be fair... by Sponge+Bath · · Score: 1

      You've clearly never been through a sales/use tax audit as a business.

      I'm glad to see there is an adult on this site. A little real world experience goes a long way. My company got to go through such an audit. Our scrupulously anal accountant buried that poor auditor in immaculately cataloged records. Nothing to see here, move along.

    13. Re:To be fair... by hpa · · Score: 1

      Use taxes are definitely enforced for big-ticket items where use can be established, such as automobiles or airplanes.

    14. Re:To be fair... by Anonymous Coward · · Score: 0

      That's the only issue, that a state cannot tell people in OTHER STATES to follow its laws.

      Sure they can. If you want to do business in another state, you'll have to follow those states laws. You are not forced to do business with anyone, so you are not forced to follow those laws, it's entirely your choice. That fact that it's hard is the only reason it was found unconstitutional, not some crazy freedom argument.

    15. Re:To be fair... by vux984 · · Score: 1

      I suspect we will see the same, online stores will just charge 10 or 12 percent hoping that will cover most counties.

      Even if they collected around the right amount of tax, how would they remit it? Are they going to file a tax return with every county in the country? That's pretty much completely impractical for a small / medium business to keep up with.

      Around here jurisdictions require quarterly or even monthly returns, even if you are just reporting zero sales in the jurisdiction. Can you imagine registering with thousands of counties, and filing thousands of returns accross the country to remit county taxes? Nevermind the complexity of mapping your customers what county they are from in the first place. I'm guessing there's a zip code database map? Or do you zip codes cross county lines? In which case you'd have to look at the whole address.

    16. Re:To be fair... by Anonymous Coward · · Score: 0

      This is correct. The taxes are already due. They are just not being collected right now.

    17. Re:To be fair... by Anonymous Coward · · Score: 0

      Heads up now! A tax that primarily works to the detriment of the rich? That dog's not gonna hunt here on /. I can tell by your UID that you're new so I'll cut you a little slack, but you've gotta step up your game a bit from what you used to do on Reddit...

    18. Re:To be fair... by BlueStrat · · Score: 1

      My company got to go through such an audit. Our scrupulously anal accountant buried that poor auditor in immaculately cataloged records

      That's great that your company can afford to either hire a full-time accountant or contract with an accounting firm. However, it contributes to keeping the bar high for startups and very small businesses.

      Of course, to many of the established players in both politics & business, "it's a feature not a bug" as it also tends to minimize competition, slow technology growth, and keep out the "riff-raff" home-based sole-proprietor businesses. Easier for those in power to control and tax a relatively few larger, established businesses than to control and tax a myriad of tiny ones in addition, particularly when the "control" part of "control and tax" is the dominant priority.

      Like so many other issues in the news these days it seems, the "solution" is always about increasing government's control over ever more aspects and details of people's lives. All the while confiscating ever more of the people's wealth and crippling their ability to generate it, and simultaneously removing choices, individual freedom, and gradually rendering individual rights, even the basic human rights to speech and arms for defense, things of the past.

      But hey, can't have the wrong lizard get in, right? Keep voting (R) and (D) party lines. It's been working out real well.

      Strat

      --
      Progressivism (aka US 'Liberalism'): Ideas so good they need a police/surveillance-state to enforce.
    19. Re:To be fair... by Anonymous Coward · · Score: 0

      If it was merely fifty states, it wouldn't be a big deal. But throw in county sales tax, and city sales tax, and you have quite literally thousands of tax jurisdictions. Who makes sure the city of Cincinatti gets its slice of that tax pie?

    20. Re:To be fair... by agrisea · · Score: 1

      Oregon has no State Sales Tax, which is why my corp is based here.

      It is my opinion that if a retailer is based in a particular state that has a sales tax, even if they have no physical retail store but are selling online, they must collect whatever taxes are required from sales to people in their state - It is only fair. That is how mail order sales operated for decades so online sales should not be exempt from it.

      --
      Agrisea Tsunami - Epyc Servers... https://agrisea.net/products
    21. Re:To be fair... by Reziac · · Score: 1

      So if I live in a state without sales tax, and there still are a few -- now what?

      I'm guessing this isn't so much an "internet sales tax" as a foot in the door toward an eventual national sales tax. (On top of existing taxes, of course.)

      --
      ~REZ~ #43301. Who'd fake being me anyway?
    22. Re:To be fair... by Anonymous Coward · · Score: 0

      They do not feel like it's unconstitutional, and are not afraid to enforce it. it's not a "moral force" - it actually is the law. You cannot get out of state entities to collect sales taxes for you, but if they can show that you have nexus in a state, they can make you collect them. If you buy things from anywhere, in or out of state, as a purchaser you must pay use tax on it. It's not a suggestion for the ignorant - it is the law that you report your untaxed purchases.

      Certainly the states argue it is constitutional, but I'd like to see someone with sufficient backing to bring it before the Supreme Court. Like hell it doesn't effect whether or not I do business across state lines!

    23. Re:To be fair... by lsatenstein · · Score: 1

      This whole thing still shows even Congress doesn't grasp the basic laws at work.

      Sales Tax is almost always owed by the PURCHASER. That's why all the stores in my state have a LICENSE to COLLECT that tax and sent it on your behalf to the State. So if I buy something via mail order in Michigan from a business only in Iowa THAT BUSINESS has no obligation to MICHIGAN to collect anything. I still have the obligation to PAY MICHIGAN its USE TAX because I LIVE in that state.

      That's the only issue, that a state cannot tell people in OTHER STATES to follow its laws. Not to mention, complying with ONE state tax where your physical store is located is hard... Why should an online business have to collect for 50 states?

      Why don't states force BUSINESSES to pay the Sales Tax on what they sell? Because taxing sales BETWEEN THE STATES is illegal for any state to do. It's illegal for Ohio to force a business shipping into Ohio to pay ANY tax to do so. It's illegal for Michigan to COLLECT any tax from Michigan business on an item sold to Ohio. That keeps states from starting trade wars with each other.

      So either the FEDS need to enact a federal clearinghouse that allows Internet businesses to only file one form per customer, or they need to compel the BANKS and other financial services located IN EACH STATE to collect taxes based on their accounts mailing address. That's the closest to "constitutional" because you receive and pay your Visa at a bank licensed to your state, and you receive the bill at your postal mailing address. So each statement would only have to account for ONE sales tax per customer.

      Does it matter which state you live in for your Federal taxes? All congress has to do is say that your purchase is taxable at the federal level. The feds can forward the money to the state.

      --
      Leslie Satenstein Montreal Quebec Canada
    24. Re:To be fair... by Anonymous Coward · · Score: 0

      Like so many other issues in the news these days it seems, the "solution" is always about increasing government's control over ever more aspects and details of people's lives. All the while confiscating ever more of the people's wealth and crippling their ability to generate it, and simultaneously removing choices, individual freedom, and gradually rendering individual rights, even the basic human rights to speech and arms for defense, things of the past.

      Things of the past? No, more like a return to the past.

      Slavery is the norm for humanity, not freedom. Even the US, the poster boy of freedom, has a ton of skeletons in its relatively young history. The further you go back, the worse it tends to get.

    25. Re:To be fair... by bryan1945 · · Score: 1

      Try buying a car in Delaware (no sales tax) if you live in NJ or PA and see if you don't pay a "use tax." In PA I believe it's even called "Sales and Use Tax." If you live near Delaware, a jewelry shop will give you a 6% discount if you mention Delaware. Since jewelry doesn't have to be registered like cars do, it's worth it to them to keep 94% of a few thousand $s. During the winter holidays, state cops even line up on the border to bust people trying to bring back loads of liquor from DE (not to mention the extra 17% tax PA has for the Johnstown flood. Yes, they still have it.).

      --
      Vote monkeys into Congress. They are cheaper and more trustworthy.
    26. Re:To be fair... by Anonymous Coward · · Score: 0

      They do not feel like it's unconstitutional, and are not afraid to enforce it.

      Unfortunately, there are at present a great many laws and policies that are unconstitutional, but people in government and the majority of legal professionals choose not to acknowledge this, and in fact choose to enforce some of these laws (in direct violation of their oaths). This is a consequence of massively entrenched corruption, and of ethical conflicts of interest affecting the legal profession as a class on society. The myopic blindness on the part of our "professional" press with respect to understanding legal issues does not help the situation.

      It is unclear where this state of affairs is going. Many people believe that the trend is for government (and the legal profession) to show greater and greater contempt for the Bill of Rights over time, a very disturbing possibility.

      it's not a "moral force" - it actually is the law.

      Not all laws are legal. We can, in fact, assert a right under the Nuremberg Precedent, to the effect that enforcement of illegal laws, orders, or precedents is wrongful conduct and itself contrary to law.

      Determining which laws are in fact legal requires consideration of the 9th and 10th Amendments (right retained by the people, rights reserved to the people) which were added to the Bill of Rights to make it an open ended document. By definition, it is ultimately up to the people to determine what rights they choose to retain. Those who swear oaths of office for positions in United States government, and all legal professionals, are by those oaths bound to respect this. Do you want to guess how often that actually happens?

      There are legitimate ethical and legal issues (and not just 9th Amendment issues) with respect to even just the current laws on sales tax, let alone extensions of those laws, issues which have been discussed at length here on Slashdot: this is hardly the first time this topic has come up. Hence, contrary to your assertion, there is substantial "gray area" here.

      "Ethics issues", incidentally, are NOT the same thing as "moral issues". For example, legal professionals, as a class in society, are in a position of ethical conflict of interest with respect to the nature, scope, and form of the legal system. This is not a question of morals, such as might be debated by various religions, but rather ethics. A right to ethical legal practice, and to ethical government, is certainly a fundamental right: even the appearance of conflict of interest should be avoided whenever it is reasonable to do so. This in turn should place substantial limits on the legal system and on the conduct of legal professionals. Do you care to guess how often that actually happens?

    27. Re: To be fair... by Anonymous Coward · · Score: 0

      My favorite is how in NY, if you are required to collect sales tax, you are then also required to pay a fee to be able to do so.
      A tax, on your ability to collect sales tax.
      How awesome is that?

  29. Craigslist too!? by Anonymous Coward · · Score: 0

    Does that mean the IRS will aggregate all your sales of used and stolen stuff and tack it on to your tax bill??!!

  30. no online sales tax is an individual tax break by Dan667 · · Score: 2

    the government gives billions and billions in tax breaks to extremely rich companies that don't need it, but anytime their is some perceived tax breaks for families they go out of their way to squeeze the nickel out of those who are the least able to afford it.

  31. Our Gov by Anonymous Coward · · Score: 0

    Changing the constitution on-the-fly.

    Such a dynamic document!

  32. Stop patting yourself on the back by fascismforthepeople · · Score: 0

    If it is passed and it meets the criteria of being uniform, then it is a Constitutional tax, I cannot say anything about it.

    Your religious leader will give you something to say about it afterwards, and you will go back on your word once his word comes down. Unless, of course, he shows you an easy way for people of high incomes to avoid it altogether - in which case you will claim it was an idea stolen from his notes.

    You seem to be quite proud of yourself this week, we see you recently managed to get both the karma of your main account as well as that of one of your sock puppets from shit to positive, allowing you to post nearly as fast as you can type. How many other sock puppets are you working here? Did one of them manage to get mod points to get the ball rolling for you? We can plainly see you have already allowed this to get to your head; you may have posted a couple of legitimate comments to get your karma back up but now you're right back to religious rhetoric.

    Of course, to you the religion is the truth, the only truth. You will do everything you can to push your church's agenda, in spite of the fact that it would hurt you just as badly as anyone else. You proudly drink the kool-aid and hope that you will - in spite of all reason - be spared the effects of the agenda. You seek to oppress the rights and opportunities of those who are in the bottom 99% of all wage earners; you have an agenda that supports fascism. You claim to want liberty, but you really want fascism for the people.

  33. Greed by Anonymous Coward · · Score: 1

    I can barely stand to read slashdot any more. What happened to the simple days of tech innovation, before the politicians got all mixed up in it? The state of our society and the obvious and flagrant abuses of power that happen every day make me blindingly irate. Which is a more elegant way of saying what I'm really feeling: I'M SO FUCKING MAD AT ALL THE MONEY-GRUBBING POWER-HUNGRY PIECES OF SHIT THAT KEEP WALKING ALL OVER US! Thanks, I feel better now (kind of).

    1. Re:Greed by Anonymous Coward · · Score: 0

      "What happened to the simple days of tech innovation"
      it moved out of the garage

  34. Re:No Tax or Duty shall be laid on Articles export by Anonymous Coward · · Score: 0

    from a logical point of view, sure, it is a matter of perspective, but in actual implementation, it can definitely be one or the other.

  35. Make it a federal tax by GodfatherofSoul · · Score: 1

    Figure out some way to disburse to states based on shipping address. As posters have noted, there's not a current way consistent with the Constitution to charge state tax on interstate commerce.

    --
    I swear to God...I swear to God! That is NOT how you treat your human!
  36. Re:No Tax or Duty shall be laid on Articles export by Anonymous Coward · · Score: 0

    They are already short circuiting the Constitution now, Ever hear of the 4th Amendment free zones ,

    http :/ / www.zerohedge.com/news/2013-02-09/goodbye-fourth-amendment-homeland-security-affirms-suspicionless-confiscation-device

  37. Re:No Tax or Duty shall be laid on Articles export by Anonymous Coward · · Score: 0

    That article would only apply if this were an export/import tax. Instead this tax is on the transaction itself, regardless of the origin of the goods.

  38. Shipping companies will love this by andreMA · · Score: 3, Insightful

    Folks are just going to drop-ship to sales-tax free states by having a friend or relative there order for them.

  39. The move of a desperate, bankrupt government by DNS-and-BIND · · Score: 1

    Well, what did anyone expect? The US government needs money, badly. They will reach out to any and all ways of acquiring more money. They will then immediately spend all the money to obtain more votes for themselves, then borrow against the future income and spend that too. A Republic fails when the uneducated masses learn that they can vote themselves money from the public treasury and that politicians will gladly follow along, even when such a path will certainly lead to their own deaths.

    --
    Shutting down free speech with violence isn't fighting fascism. It IS fascism!
    1. Re:The move of a desperate, bankrupt government by PPH · · Score: 1

      This isn't the US government. This is the states. The Federal government doesn't collect sales tax, some states do.

      This legislation is aimed at stopping consumers from shopping around for low tax jurisdictions and bypassing their state's collection laws.

      --
      Have gnu, will travel.
  40. What location gets to collect the tax? by El+Fantasmo · · Score: 1

    Who gets the tax? The fed or state(s)?

    Who collects the tax? The location of the buyer, the location of the seller, the shipping warehouse or the server making the transaction (actual point of sale)?

  41. Re:No Tax or Duty shall be laid on Articles export by Anonymous Coward · · Score: 0

    I like your interpretation. Where can I subscribe?

  42. Only if by betterprimate · · Score: 1

    The only way I will accept a tax is if it's a direct taxation towards making it as public utility.

  43. Oh look. by JustAnotherIdiot · · Score: 1

    Another example of the government closing tax loopholes for the common man, but they still won't close the ones that corporations are using.

    --
    What do I know, I'm just an idiot, right?
    1. Re:Oh look. by serviscope_minor · · Score: 1

      What?

      It's closing a tax loophole for corporations. By using a tax loophole, Amazon gets to undercut every other vendor, giving them a rather unnatural advantage. The tax dodging is making them huge since they can offer the cheapest prices by not collecting tax.

      --
      SJW n. One who posts facts.
  44. Craigslist does process $ transactions. by rsborg · · Score: 2

    As it will cover all Ebay sales and Craigslist sales.

    They want to charge you tax on even items you are not making money off of. Next up, Evil Garage sales and Flea Markets, how can we tax this scourge to the economy?

    Ebay yes. Craigslist no. Craigslist does not make sales, the people interacting directly do, and the overwhelming majority of these are local.

    --
    Make sure everyone's vote counts: Verified Voting
  45. Can't vote with my dollars? by PPH · · Score: 1

    I guess I'll have to vote with my Euros.

    Renminbi?

    --
    Have gnu, will travel.
  46. It was bound to happen eventually by ALeader71 · · Score: 1

    Hey anyone old enough to remember "modem taxes?" Governments have been looking for ways to tax online activity for years. When I was in college, someone proposed a "stamp" fee for every email sent. Then there were micro charges on a per-packet basis. Ugh!
    At least a sales tax is easily added to existing point of sale portals. With the amount of free shipping available to me, the slight increase in cost will not deter me from making online purchases.

    A few more thoughts:
    I'd prefer paying state sales taxes over federal sales taxes, since I'm pretty sure state sales taxes won't go to stupid things like foreign aid to France.
    While I know this won't be used to balance the Federal budget (no one can do that), I think this is a test bed for a national sales tax. Question is, what will this partially fund? It certainly won't be used to pay down out growing debt! That's just crazy non-partisan independent thinking at work!

    --
    Only the dead have seen the end of War. - Plato
    1. Re:It was bound to happen eventually by the+eric+conspiracy · · Score: 1

      I remember modem taxes. These were email chain letters and conspiracy theories based on the idea that interstate connection charges were going to be applied to data calls using X.25 networks like TELNET.

      Utter horseshit of course.

  47. How do they know if the buyer is American? by mark-t · · Score: 1

    I mean, do they just tax based on destination state, regardless of the buyer? Or is the wording wrong, and they really only mean people who are *IN* America?

  48. Re:No Tax or Duty shall be laid on Articles export by Anonymous Coward · · Score: 2, Interesting

    The Supreme Court disagrees with you. See QUILL CORP. v. HEITKAMP, 504 U.S. 298

    In a nutshell, they found a state cannot force a company outside its borders to collect a sales tax under the commerce clause as interpreted in 1992. However, "The underlying issue here is one that Congress may be better qualified to resolve, and one that it has the ultimate power to resolve."

    Furthermore, Article 1, Section 8 of the US Constitution states "The Congress shall have Power" ... [skip a few powers] ... "To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes."

    Congress does have the power to require that a Merchant in State A charge State B's Taxes to customers in State B. The line you quoted from Article 1, Section 9 looks to prohibit them from charging federal taxes.

  49. Neigh! by Anonymous Coward · · Score: 0

    I vote neigh!

  50. Corporate Taxes? by nickmalthus · · Score: 4, Insightful

    Interesting that Congress is focusing on tax loop holes that individuals take advantage of while leaving in place loop holes that allow corporations to hide hundreds of billions of dollars in tax havens. Equally interesting is that all these states that are groveling for additional revenue grant egregious tax breaks to said corporations in the hopes of luring their facilities for fleeting benefit until the inevitable better deal comes along. Who does Congress represent again?

    --
    If a nation expects to be ignorant and free, in a state of civilization, it expects what never was and never will be-T J
    1. Re:Corporate Taxes? by Synerg1y · · Score: 1

      The lobbyists duh.

  51. Re:No Tax or Duty shall be laid on Articles export by jgtg32a · · Score: 1

    Yeah there is already Use Tax where your home state charges you for stuff you buy outside of the state.

  52. Re:No Tax or Duty shall be laid on Articles export by scorp1us · · Score: 0

    While congress may have the power to regulate commerce, any revision to "No Tax or duty shall be laid" would require a constitutional amendment in addition to what ever legislation congress enacts.All acts of congress are subordinate to the constitution, and where they disagree, the constitution wins.

    --
    Slashdot's rate-of-post filter: Preventing you from posting too many great ideas at once.
  53. Sales Tax or Use Tax? by Anonymous Coward · · Score: 0

    When I go to a brick and mortar, I pay sales tax based on the address of that store (not my own). For fair taxing, both brick and mortar and online stores need to follow the same rules.

    There is another consideration, though. I often make purchases which won't be used at my residence. I purchased a mouse to use at work (the company won't provide a mouse because the laptop has a touch pad) which is in a different county. I purchase presents for friends and family not only in different states, but also different countries.

  54. Dick Durbin, as usual by Anonymous Coward · · Score: 0

    He just keeps finding ways to pick taxpayers' pockets and shred civil rights. Illinois' second biggest contribution to the decay and corruption of the fedgov.

  55. They need to keep it SIMPLE by WindBourne · · Score: 1

    It would be good if they would give shipping companies a choice in how to pay sales taxes.
    Either figure out the REAL sales tax (i.e. based on the shipping address) OR allow them to charge a FLAT 10% sales tax. If it is a flat charge, then the feds get 2% and the rest is given to the state of interest. From there, the state divvy it between themselves and the local areas. By allowing a simple flat rate, it removes all of the hassles esp. for overseas companies. And for foreign shipped goods, they should include the tax in the shipping costs (not to be paid separately).
    If a foreign company is found to be cheating on amounts (such as declaring that it is not a sale), then both parties would be on the hook AND the sending company would be banned from mailing to America.

    --
    I prefer the "u" in honour as it seems to be missing these days.
  56. Fewer brick & mortar stores == fewer parking l by OrangeTide · · Score: 1

    Maybe we won't have to cover the earth with parking spaces if more of us would shop online.

    I'm pretty sure this internet sales tax business is being pushed by the very powerful Asphalt Lobby. Or by the Illumanti because obviously that's how they hide their secret bases.

    --
    “Common sense is not so common.” — Voltaire
  57. Re:No Tax or Duty shall be laid on Articles export by Nixoloco · · Score: 1

    Yeah there is already Use Tax where your home state charges you for stuff you buy outside of the state.

    Use taxes are constitutional because they place the burden equally on everyone in the state as opposed to sales tax which would put an unconstitutionally undue burden on the out of state seller (according to the Commerce clause).

  58. I don't necessarily have a problem with this... by aklinux · · Score: 1

    ...IF they eliminate the income tax at the same time. Fat chance...

  59. 50 State Tax Filing by Anonymous Coward · · Score: 0

    I once had to do a 50 state tax filing registration for an international philanthropic investment firm (one of those make-work things they find for temps to do), and it took me over a WEEK, maybe two. Now, I'm definitely not an expert, but I'm pretty darn smart. Every state had their own forms, some of which had to be ordered by mail or phone (this was back in 2000, probably better now). And the filing requirements were wildly disparate.

    Can a large shop like New Egg or Amazon afford to do this? Definitely. A small retailer? Possibly not.

    Remember, this has to be filed every year. I'm not even talking about the collection of the taxes, or the accounting. I'm just talking about registering to do business in ALL fifty states every year.

    -Curmudgeonly

  60. Taxation Without Representation by Zymophideth · · Score: 1

    I don't get to vote on how other states handle their taxes, so I shouldn't have to pay them. It's also way to much of a burden for every online merchant to handle the tax codes for all these different states and their ever changing rates, big companies can handle it so this will just squeeze out small businesses. If the federal government wants to have a blanket internet sales tax I would be fine with that because I actually have representation there. If the shipping address is within the US the US Treasury gets 1%, otherwise no tax which is simply enough for merchants to handle. If this passes everyone will move their online presence to states with no sales tax like Oregon.

  61. Federal sales tax==bad idea. by Eravnrekaree · · Score: 1

    I am fine with a state/local sales tax but a federal sales tax is really a simply horrendous idea. We should actually shift more responsibilities to the states and therefore the states should collect more money. We should get the federal government out of things like education and health care. The states should be taking care of most issues such as health care and welfare needs, not the federal government. I do think that it would be okay for the federal government to charge a tax on interstate commerce designed to equalize the cost of importing something into a state and producing it in the state itself, since this would avoid states being penalized for the policies they implement by strategic business relocations. This would actually allow most of the things the federal government is now doing to be shifted to states. States should be allowed to find what solutions are best for the state, different states can optimize solutions according to their needs. Of course there would be no such tax on things produced and consumed within a state. There is no natural law that the federal government is a better place to do health care and education related things. In fact, its safer to do it at the safe level, if a bad policy is implemented at the federal level, it damages the entire country. If a state implements a bad policy it is limited to that state and easier to get away from. I do think people should be free to move to the state that they feel has the best policies.

  62. Taxing buyer's address matches externalities by as.kdjrfh+sxcjvs · · Score: 1

    The new proposal bases sales tax on the buyer's address, not the sellers (the way it has been). Shipping stuff to my address has externalities for my community (traffic, waste, less local shopping). My community has an interest in deciding whether to be a low-tax, low-service, or high-tax, high-service area (and I can move to the system I like better, as people do a *whole lot*.) Letting communities collect tax on all purchases delivered into their borders is basically continuing the system we built our towns and states around. I don't necessarily care whether brick-and-mortars survive, but the old no-internet-tax system was forcing all communities toward a system they don't all prefer, and I would like variety to be possible. Details: By my druthers we wouldn't tax purely digital sales, because seems to me anything coming over the wires I'm already paying utility taxes for. Also, there are going to be people spending two hours and ten dollars driving over a state line to save eight dollars in tax. Well, not worse than dry-county borders, I guess.

  63. Re:No Tax or Duty shall be laid on Articles export by Anonymous Coward · · Score: 0

    They aren't proposing an inter-state tax. They want to collect the existing state sales taxes that are already due. If you buy something online you already owe your state sales taxes. Either the merchant needs to collect these taxes and send them to the states or you can do it voluntarily.

  64. Do it but get rid of the IRS by Anonymous Coward · · Score: 0

    I'm all for paying taxes because we all need to do our part, but get rid of the IRS and the income tax. There's no teamwork when it comes to the IRS and it's just a bunch of wasted money. Increase sales tax and everyone has no choice but to pay into them.

  65. Regressive by rsilvergun · · Score: 1

    Sales taxes are fundamentally regressive. That's because the rich have investment opportunities, while the poor spend everything to survive. Where I'm at we tax food for God's sake. And Rent.

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
    1. Re:Regressive by Arterion · · Score: 1

      Totally this. I think democrats should be opposing any sales tax, for this very reason.

      --
      "That which does not kill us makes us stranger." -Trevor Goodchild
  66. Fraud on top of fraud by Anonymous Coward · · Score: 0

    The Constitution specifically prohibits states from taxing interstate activity; the founders [a] wanted the states to, in-effect, compete with each other with taxes and policies (each state having its own, with businesses and citizens free to go where the living and working was best) and [b] wanted the federal government to be the referee by regulating interstate commerce (in the time of the founders, "regulate" meant "to make regular" rather than the modern idea of "to burden with rules taxes"). Rather than helping the states behave badly, the feds were supposed to keep the states from trying to tax across state lines, or trying to block imports and exports of various products and service to/from other states (for example: by a state like Georgia permitting goods in from Michigan, but requiring goods from Wyoming to have an "import permit" purchased from the Governor's brother.

    Many states, having behaved badly and spent more money than they had, started violating all this by trying to tax interstate commerce. They knew this would be unconstitutional, so they played word games to evade the spirit of the law and they claimed they were applying "use taxes". The so-called "use taxes" are provably as phony as 3 dollar bills: they put a "use tax" on a book you bought from Amazon dot com without regard to whether you were going to use the book, or send it as a gift to a relative in another state, but no "use tax" on the same book if you bought it from a brick-and-morter in your town. The "use tax" is further revealed as a fraudulent Constitution dodge by the fact that they stop charging that tax on that book as soon as Amazon caves-in and starts paying a sales tax on the book. I am not advising anybody to not pay these phony taxes... because if you do not pay them they will come after you with real guns. But the voters should have driven their politicians out of office long ago over this and many other deceits.

    Now many politicians are pushing for federal phony laws to circumvent the Constitution (none of the proposals attempts to legitimately amend the Constitution, each is just a fig leaf for sympathetic judges to use) in attempts to collect more taxes and make things "fair" for the brick-and-mortars in their home districts. Things are SUPPOSED TO BE "unfair". If the brick-and-mortars of California are at a disadvantage because they are in a 7.75% state and another business is in a 4% state, that is pressure on CA to stop raising taxes and perhaps lower them; Without such competition, all the states will feel free to keep raising rates because the average people will have no escape valve. If a business in CA is suffering because the governor is a moron and the legislature is packed with Marxists, the proper response is to move the business out of the state (punishing the state for its idiocy and greed) and NOT to demand that all other states become as screwed-up. People have forgotten that the justification for a "sales tax" was originally that a local business needed the same sorts of local services everybody else in town needed, but might not be turning a profit (so taxes on its profits would be zero) therefor the solution was to say to the business "add this tax charge to each sale when you provably have the money, collect it at the time of the sale and give it to the state, whether you make a profit on the rest of the transaction is a separate matter". A business outside of the state is NOT using local services and should not be fraudulently pulled-into paying for them. This has nothing to do with the book buyer; he/she is already paying plenty of local taxes as a resident in the community (even if a renter, where some of the taxes are indirectly via the landlord/landlady).

    Government at all levels is simply out of control, unwilling to reign-in any of the many billions of dollars of fraud, corruption, duplication, etc and therefore is constantly looking for even MORE money. There will never be enough money for these politicians and this will not be the final such law; they'll be back for more and more and more until the people say "stop. no more until you clean-up the government and show that you are using what you have wisely and efficiently"

  67. Re:Fewer brick & mortar stores == fewer parkin by Anonymous Coward · · Score: 0

    all those packages just magically teleport to your door dont they?

  68. Mostly all of this tells me i dont want to spend by Anonymous Coward · · Score: 0

    My money that bad.

  69. Good try by Anonymous Coward · · Score: 0

    Now try reading the REST of Adam Smith (as opposed to an out-of-context snippet that is passed-around at HuffPo or DailyKos as a weapon to use against the ignorant and the gullible).

    This is like all the liberals who lob Biblical quotes like "Judge not lest ye be judged" (to pretend the Bible says "do not condemn bad behavior") and "Render unto Caesar..." (to pretend the Bible says "pay your taxes" and "separate your civic beliefs from your religious beliefs") while hoping nobody reads the rest of the Bible for the full context. Liberals who like to quote sentences of the Bible our of context don't like the bits that say that people who are able to work but do not work should not get charity... or that part that says "go forth, AND SIN NO MORE"... or the parts that say you can never solve poverty; that you'll always have poor people and you should not elevate them over other priorities, etc

    As a general rule, if you are unwilling to pick an choose individual sentences from a history book, or an encyclopedia, or or a science book, or a biography, or a cookbook, then you ought not to it with a Bible, or with Adam Smith, or with any other book.

    1. Re:Good try by Anonymous Coward · · Score: 0

      Now try reading the REST of Adam Smith (as opposed to an out-of-context snippet that is passed-around at HuffPo or DailyKos as a weapon to use against the ignorant and the gullible).

      This is like all the liberals who lob Biblical quotes like "Judge not lest ye be judged" (to pretend the Bible says "do not condemn bad behavior") and "Render unto Caesar..." (to pretend the Bible says "pay your taxes" and "separate your civic beliefs from your religious beliefs") while hoping nobody reads the rest of the Bible for the full context.

      Your argument carry more weight it it didn't start with and repeat assault on a particular group of people. Other people besides liberals have been accused of cherry-picking Adam Smith.

      Perhaps you're one of them??? Shall we slap a label on you, too??? You judged, now you've been judged (which is what that Bible quote really means).

  70. Sales tax illegal and unfair by Anonymous Coward · · Score: 0

    This law effectivly ends all small online retailers who would lack the resources to understand what tax to charge. If you want to charge a sales tax it has to be a charge that is reasonably knowable and reportable not something requiring interfacing with 50 different states and god knows how many tens of thousands of jurisdictions. You will need a spiffy GIS system to calculate out the local destination rate.

    The shit part about this is large retailers will support it because it is guaranteed to thin out the competition the same way mattress industry supported burn standards to effectivly shut out small manufacturers.

  71. WAKE UP! by Anonymous Coward · · Score: 0

    "Corporate taxes" are a LIE that politicians use to try to convince the public to support higher taxes on themselves!!!!!

    Let me explain:

    1. Corporations are NOT people who enjoy having money, raise kids, take vacations, etc. They are BUILT by people and STAFFED by people and people invest in them and we make them into synthetic people (we in-corp-orate them) for legal purposes (so they can act as an entity in contract law etc). IBM is not "happy" when it has money (it's investors might be, but the synthetic person "IBM" is not... it's a person only on paper).

    2. When a corporation distributes any of "its money" to a REAL human person (dividends to investors, paychecks to employees, etc) THAT person records that money as income and is taxed on it... so, sooner or later, every dollar a company gets from its products or services will either be spent on those products or services or will be passed-through to a person where it will be taxed.

    3. ANY tax you put on a company becomes an EXPENSE on the company books... EXACTLY like the costs of employees, or raw materials, etc. When a company sets the prices of its products and services, the prices include all the contributing EXPENSES plus some percent of profit margin. Therefore, every dollar of taxes you put on a corporation gets added-into the costs of the products and services it sells and is therefore paid by the customer

    4. Politicians LOVE taxes like this because they bring in revenue the politicians can use to win votes (by providing stuff to the voters) while hiding the tax in the rising prices of products and services (so that ignorant people get mad at the companies instead of the politicians for the COSTS of the stuff the politicians are "providing"). Look at your PHONE bill! Mad at the phone company for charging so much???? Half the stuff on your bill is taxes and fees to let politicians buy votes by giving-out "free" phones to poor people, low-cost land-lines to people in certain rural areas, etc. AND while the phone company IS itemizing many of these things, they're NOT showing you half of the picture: They're NOT itemizing all the basic business taxes you are paying for them to pay (those are hidden in the basic phone charge).

    If you have a job in the US, you are probably paying half or more of your income in taxes without actually knowing it. First, you are paying the obvious ones (your income taxes using 1050 and 540 forms). Second, you are paying a bunch of taxes your employer is hiding from you (he/she is paying a bunch of taxes to employ you , like the half of your social security tax that is required and not permitted to be recorded on your pay stub); it your employer was not paying those hidden taxes, you could have a raise of that amount since the business is paying that money to employ you anyway. Then, when you buy anything, like groceries for example, you might or might not be paying sales tax (depending on your state laws) BUT part of the price of EVERYTHING you buy provides the cash the store passes on to the government as its "business tax"... and part of the cost of EVERY ITEM in your basket is money the producer of that item passes-on to the government to pay its "corporate tax" (which is actually a tax on YOU that was hidden from you).

  72. Ha Ha Ha by Anonymous Coward · · Score: 0

    This will go on as long as dumb and gullible people like you can be tricked into thinking that things will be solved by "tax the rich" or "tax the corporations" lies. The rich and corporations will ALWAYS have lawyers and accountants. The corporations will ALWAYS pass all their taxes (which are EXPENSES to them... take an accounting class and maybe you will learn something) on to their customers. The "rich" will always be smarter and have smarter lawyers than the government bureaucrats and they will always find every loophole to keep as much as they can. Politicians, no matter HOW "progressive" or "Liberal" will ALWAYS build loopholes into the laws (so they and their rich friends can slip through). There's a REASON why all the "progressives" in congress are so filthy RICH... just look at how insanely RICH the loony liberal lady senators of California have become while being in office!!!!! If you think they care about you or will ever truly go after the money of their rich friends like Bill Gates and Warren Buffet and the Hollywood stars etc then you are a fool who has absorbed all the propaganda. You have been cynically manipulated into being a TOOL. You have made yourself into a "useful idiot" and you have only yourself to blame. Barack Obama did not improve the lot of lower-income people while finally punishing "the rich" and he never will... he wants donors to build him a Presidential library and he plans to live for decades after leaving office as a rich guy with honorary board positions at corporations and rich friends letting him in on IPOs for promising start-up companies... Black Americans, in particular, are actually WORSE OFF under Obama than under Bush. Young voters who helped elect and re-elect him are similarly worse-off than under Bush.

    Even if you really DID "tax the rich" at rates high enough to help, it would not help; You could TAKE all the money "the rich" have (something so extreme that no sane person no matter how "progressive" is proposing) and it would fund Obama's MASSIVE spending (which has benefitted all his "green energy" friends FAR more than YOU) for less than a year, and then you'd have no rich people left to tax AND still have massive public debt. This is true because while there are indeed some fabulously rich people, there are very FEW of them relative to the rest of the population. There are a lot more "somewhat rich" but still very few relative to the overall population. This all about basic math and basic accounting... the bulk of the money which the government can get year-after-year (rather than as a one-time "tax the rich" stunt that could not be repeated and will never happen) is in the hands of the middle class.

    If you are middle class, or below middle class, you need to stop spending any time watching TV and being envious of a few airheaded rich celebrities and fantasizing that Obama will steal their stuff and give it to you; You need to realize that you are already paying more in taxes than your ancestors did and you are living in many ways less well off. For every dollar the government sucks out of the economy to give you something, YOU ultimately pay BUT the government sucks-off a bit as "overhead" AND the government attaches strings... it selects WHAT you get, or IF you get it, WHEN, HOW , and WHERE you may use it etc. You think you will get "free healthcare" but they will tell you what doctor to see, what treatment you may have, and when they will no longer provide (and therefore when your duty is to die) and because they are getting you to pay them to give you "free" healthcare, they will feel free to tell you if you may ingest salt, or sugar, what to eat, what to drink, how much you may have, and (eventually) how often and how much and what type exercise you must get, etc.

    Wonder why the SAME politicians who are telling you what to eat and drink and smoke (salt bans, big-gulp bans, cigarette bans, etc) are then going all-libertarian on POT??? Bread-and-circuses... They KNOW this is all becoming un-tenable; Obama has finally admitted he has no pl

  73. Progressives, of both parties by Anonymous Coward · · Score: 0

    Progressivism is a political disease this county experienced in the early 20th century and the nation was so burned by it that it collectively turned-away from it and the progressives even changed what they called themselves to "liberal" to get away from the stink. Over the last several decades, they stunk-up the formerly honorable word "liberal" and calculated that the public had forgotten the early "progressive" experiences (and would be fooled into thinking "progressivism" had something to do with "progress" ... not much of a stretch given that so many uneducated people confuse "humanism" with "humanitarianism")

    Bush and Obama are both "progressives" in the traditional sense (though one is a social conservative and the other a social liberal). If you think you are a "progressive" because you are a "good person" and you therefore find yourself blindly supporting "progressive" politicians and causes then you need to do some VERY SERIOUS history reading... you may come away shocked and repelled. It's NOT purely a right/left thing, though at this moment in history there are some big overlaps between left-and-progressive and right-and-anti-progressive. Early 20th century progressives started-out promising progress toward a shiny future classless utopia... and ended-up supporting euthenasia, eugenics, etc (and a certain former artist and WWI corporal in Germany with a bad comb-over adopted some of that nifty progressivism....) If you cannot be bothered to do a serious study of progressivism and are convinced it's all about "good people", then at least look at some very famous film of a famous left-wing progressive of that era (a few minutes of YouTube will let you see a snippet of it grabbed from some documentary, a trip to the national archives might be better) and WAKE THE HELL UP! George Bernard Shaw is STILL loved by left-leaning progressives event though they know this stuff! These people are a NIGHTMARE

    The simple fact is this: If you grow the government so it can serve you, it will get powerful enough to serve you... and then look for more ways to use that power. When you invite the government in to keep your neighbor from doing things you do not like, it will be there to stop YOU from doing anything any of YOUR neighbors do not like. Progressives in BOTH parties grew the government to do things it was never supposed to do... and now all that excess government is doing (no surprise here, unless you are Gomer Pyle) .... lots of stuff it was never supposed to do.... and NO amount of money or surveillance will be enough.... and it will continue to NOT solve the problems it was asked to solve because then it would lose the justification to ask you for MORE money and power...

  74. You have been tricked by Anonymous Coward · · Score: 0

    They ARE playing by the same rules... the brick-and-mortar is paying sales tax because it is using state and local resources. The sales tax is just the mechanism to get taxes even from unprofitable businesses. Your local brick-and-mortar is perfectly free to start selling via mail order to people in other states (without the tax) to compete against THOSE brick-and-mortars

    Oh, and why do you not pay both a sales tax AND the "use tax" on stuff you buy from the local brick-and-mortar???? Because it's not really a "use tax"; it is an unconstitutional interstate sales tax that your state's government hopes is never properly challenged through the courts by a competent law firm. The local courts will probably support it because that's where their paychecks come from and they want the state to have the money... but the US Supreme Court would probably stomp on this garbage if a good case made it to their level... this is a case that goes directly to the plain-text of the Constitution and the basic application of simple logic.

  75. How about a tax to support Scientific Research? by Josh-Levin · · Score: 1

    Since the internet was an outgrowth of US-government-supported research, how about a flat sales tax (say 5%) on internet sales, not otherwise subject to state sales tax, that would go to fund scientific research of all sorts, including both basic and applied research. The government can take the difference from what it now spends on research, and give it to the states to compensate for lost revenue.

    This way, scientists can be assured of a consistent source of funding. This will make America smarter, and more competitive.

  76. How short can you make my sheeple leash? by TaxMeToDeath · · Score: 1

    Geez, people!

    Let's just increase taxes every month by 5% What
    is your tipping point? When 95% of what you make
    goes to government?

    If you were to receive a pay increase that doubles
    what you are making, who would you want to decide
    how to spend or invest the extra money, you or
    someone else? You are the best person to decide
    how to make yourself happy.

    The average person pays over half of their
    productive efforts to the government. Also, the
    externalities of higher taxes creates more entropy
    rather than synergy.

    Instead of arguing about this particular tax, we
    should be fighting for cutting taxes by 90%.

    Or, we can just keep going in this same direction
    towards Idiocracy:

    (http://www.rottentomatoes.com/m/idiocracy/).

  77. Regulate EVERYTHING by Anonymous Coward · · Score: 0

    It's amazing how all governments constantly look for thriving free systems from which they can find a way to extract value and wealth for their own selfish desires. If they could control the planet's breathable air, they would -- and then tax it.

  78. Re:No Tax or Duty shall be laid on Articles export by redlemming · · Score: 1

    Unfortunately, government at many levels in the US is willing to pass laws that violate the Constitution, or the Bill of Rights.

    Creating contradictions in the legal system increases the long term demand for the services of legal professionals. Hence, it should be no surprise that our legislators (most of whom are legal professionals), continue to create laws that do exactly this, and our judges (most of whom are also legal professionals) choose to uphold laws that contradict the Constitution or the Bill of Rights. Both parties in acting in violation of their oaths of office, of course, when they do this, but there doesn't seem to be enough people in with system with integrity for this to matter, and so long as "we the people" don't pay attention to this issue, this problem will continue.

    The big problem with the sales tax issue is not specifically a Constitutional one, but a fundamental issue of freedom. Consider the following thought experiment. Suppose, in the pre-internet days, a person was to live near the border of a state. Across the border, in a state with no sales tax, are stores providing the necessities of life, within a five minute drive of this person's home. Within his or her state, the nearest store is a 1 hour drive in each direction. Under these circumstances, any rational individual would clearly choose to make their purchases at the nearby stores (not only would this save substantial amounts of time from their life, but it would be environmentally the right thing to do).

    Further, it would clearly not be a legitimate act of government to force the individual to make a lengthy drive simply to shop: a right to not have one's time wasted must necessarily be a fundamental freedom.

    Similarly, it would clearly not be a legitimate act of government to force the individual to keep track of every purchase made, and whether or not it was made locally, in order to then force that person to pay taxes: a right to not be subject to excessive bureaucracy is certainly a fundamental freedom.

    Now take this thought experiment to the present day. The Internet is simply a form of technology that has effectively moved this border closer to every person: if it was not legitimate to tax out of state purchases before, then it can not be so now.

    There are two ethically sound options here: 1) Have a national sales tax, and bar state sales tax entirely, and 2) have no sales taxes at all, making up the lost revenue in income taxes.

    Eliminating sales tax entirely is the more intelligent policy, as sales taxes represent both a) double taxation on earned income, always a legally and ethically suspect policy, and b) sales taxes are biased against those who least afford to pay them: it is not possible to ethically justify the extra complexity this creates in the legal system when we are also having progressive income taxation.

  79. Re:Fewer brick & mortar stores == fewer parkin by Anonymous Coward · · Score: 0

    We assume that the UPS trucks don't need to be parked at the local mall. So significantly less asphalt required.

  80. Your vote? No, there go your $%#! dollars! by Anonymous Coward · · Score: 0

    The only freeloaders here are in Congress and the State Legislatures.

    Time to put a stop to this bullshit.

  81. Re:No Tax or Duty shall be laid on Articles export by jwhitener · · Score: 1

    I read that to cover imports/exports, not sales. Like when I mailed a friend in another country a sweater, she had to pay a import fee in order to get the sweater.

    "No Tax or Duty shall be laid on Articles exported from any State." - Article 1, US Constitution, I think was designed so that just shipping your goods from state X, through states A,B,C, and arriving in state E, would disallow states A,B and C from imposing import fees on the shipment.

    Dropping some of your goods off in A,B, and C along the way, and then selling them in those states, would still be subject to a state sales tax though.