Senate To Vote On Internet Sales Tax (For Real This Time)
New submitter JoeyRox writes "On 3/22 the Senate approved a non-binding proposal to allow states to tax online sales to residents outside their state. That vote was a trial balloon to gauge the support for the Marketplace Fairness Act. This week Senate Majority Leader Harry Reid filed a cloture to allow the law to be voted on for real this time. The vote may occur as soon as tomorrow. eBay is attempting to rally Americans against the bill via a massive email campaign."
> How in the hell is income tax unconstitutional when Amendment XVI of the constitution specifically authorizes Congress to levy it?
Good heavens, don't feed the trolls. You'll get a dozen answers and the net result is that you'll be late for dinner. :)
I strongly recommend Dan Evans Tax Protester FAQ. He covers all of the arguments (and why they've failed in court) in more detail than you probably want.
http://evans-legal.com/dan/tpfaq.html
Cogito, igitur comedam pizza.
The title of the summary is STUPID and most of the commenters have absolutely no clue whatsoever what this is. It's not an "internet sales tax", guys. It is simply legilation which would ALLOW the states to collect state sales tax on purchases made via the web, just as they do on other purchases. It doesn't mandate that any state has to do it. It just removes a barrier that currently exists, whereby no state may enlist and compel the services of internet sellers to collect that state's sales tax for them. It doesn't give the FEDS any additional power to collect any new federal tax whatsoever.
Most or all states already require their own taxpayers to volunteer purchases they made out of state, by WHATEVER means, and cough up the sales tax for same on their tax return. Of course only about one millionth of taxpayers are sucker enough to so volunteer. All this does is make payment unavoidable by burdening the red tape and collection on the sellers.
I am entirely against the measure, on various grounds, but come on, let's at least realize what this is.
That's not alway true. I live in Oregon, and I buy stuff in Washington and fill out a short, simple form with my Oregon ID and pay no sales tax. Washington has what most states have now, a "use based" sales tax which means it depends not upon where the item is sold, but where it's primary use will be, which means the tax actually does depend upon the resident's location. I know this because I've recently had to implement such a system for a Washington and Oregon based business with almost 200 retail location. between the two states.