Internet Sales Tax Bill Dead In Congress
jfruh writes: Last year, a bipartisan coalition helped get the Main Street Fairness Act approved by the U.S. Senate. The bill would have allowed state and local governments to collect sales taxes on Internet sales by companies in different jurisdictions. But House Speaker John Boehner, a longtime opponent of Internet taxes, won't bring the matter to a vote in the House before the end of the year, which should kill it for the immediate future.
I already have to pay in-state sales taxes on purchased from Newegg & Amazon, so the big ones are covered. Oh, and if you are just purchasing from the online arm of a brick & mortar store, they've been taking sales tax for a long long time anyway.
AntiFA: An abbreviation for Anti First Amendment.
...dunno how long the streak will last, but at least they got this one concept correct.
Light travels faster than sound. This is why some people appear bright until you hear them speak.........
Who says you can't get blood out of a rock?
“He’s not deformed, he’s just drunk!”
1. It helps small/startup internet merchants. (big ones like Amazon got dragged into paying money to individual states)
2. It helps poor(er) people. Rich obviously do not benefit much from the few meager dollars saved buying stuff on ebay, and the very poor don't do online shopping. So the main beneficiary are lower middle-class people.
Real federalism never enjoyed a consensus among the Founding Fathers, and it was pretty much dead before the War of 1812 anyway. A lot of states receive more funds from the federal government than they contribute to it. So, why should there be state taxes any more? Lots of developed countries have centralized tax collection where it all goes to the central government and then is redistributed to the regions. It's obvious that more and more sales will happen online and cross state borders, so why maintain the facade of empowered states collecting revenue?
I love how government goes about naming bills to make them sound a certain way so that voting against them appears evil. I suppose the makers of the bill would argue that they are coming up with a short name that defines the "essence" of the bill. But when you get into the details, it just makes them seem like they are trying to hide something from you ... aka: being politicians.
"Main Street Fairness Act" - It's simply a bill to apply fairness. You don't like fairness?
"Affordable Care Act" - It's just making care affordable. You don't want care to be affordable?
You could have a lot of fun with this actually. Increased NSA surveillance? "Terrorist Identification Act". Or even better "Protecting our Children from Terror Act". Free cars for all politicians? "Political Accessibility Act".
...between online and brick & mortar stores, all a state has to do is abolish its own sales tax. Regressive taxes ought to be illegal, anyway.
Any sufficiently unpopular but cohesive argument is indistinguishable from trolling.
Then don't complain when things don't get fixed in your state.
Sorry, teleporters just kill you and then make a copy. A perfect, soul-less copy.
Even a broken clock is right twice a day.
thanks to sales tax I can get the same thing (most of the time) cheaper from elsewhere (like NY) (although I've also had serious issues with both Amazon and Newegg's business practices/customer service - personally).
So, a completely unelected position has total control over which bills get put up for a vote??
Corrupt states and cities already do this. I wonder if we can fire them...
How do 'things' get fixed in states like Delaware and New Hampshire where they have NO sales tax? This law appears based on the idea that your home state is entitled to collect sales tax on anything you buy, no matter where you buy it...
How do 'things' get fixed in states like Delaware and New Hampshire where they have NO sales tax?
Property taxes. Most people move to Texas to avoid paying a state income tax, and then discover that property taxes are significant higher than states with a state income tax. The privilige of living in a "no tax, low reg" state.
I am so happy that I voted for the right party this time.
No, you voted for the status quo. The Republicans lack the votes to get anything done in Congress. Another two years of gridlock.
overturn a veto. It would obviously take a few Democrats who have come to come to believe they fucked up when they first voted for it. Republicans will not hold enough seats to overturn a veto by themselves, that's true enough. Depending on how the La. runoff (and Ak...did they declare a winner yet?), GOP could have 54 seats. There are 2 "independents" who are Democrats in all but name. It is very unlikely but not totally unthinkable that 6 Dems or independents could support overturning a veto on at least some parts of Obamacare.
Chances are if your state has a sales tax, it has an equivalent use tax. You are supposed to pay the use tax on goods purchased from out-of-state and imported into your state. So if you didn't cheat on your taxes, the local stores would not be at a disadvantage.
Imagine a store in a state with 0% sales-tax, say, Delaware. Further assume it is close to the border with a state that has a high sales tax, like, hmm, Maryland which is considering a 7% rate. By reputation and the lure of 0% sales tax (by virtue of evading their own local use tax), people from the neighboring state make the short trip to buy their wares. Being a brick-and-mortar store, they charge all their customers the local sales tax rate (0%). They do not care nor ask where their customers are from, there is no question *at all* where the transaction takes place.
The store decides to create a website to allow their loyal customers (and hopefully new customers) to buy things online and have them mailed to them. Under this proposed rule, the store not only have to treat their online customers differently from their in-store customers, but have to comply with 10,000 different tax regimes?
The issue here is that Maryland would and should have zero chance of enforcing its will on Delaware business to force them to act as proxy tax collectors for Maryland's use taxes--the taxes being evaded by Marylanders--even if hoards of Marylanders rolled into Delaware every day to stock up. It is the Marylanders who are violating Maryland's use tax laws. Why is it the responsibility of a store in Delaware to enforce Maryland's use tax laws?
There's no practical difference between Marylanders driving to Delaware to shop compared to Marylanders ordering from a store in Delaware and having the loot delivered.
How is it fair to force a store in Delaware to be a tax collector for a California municipality? And without *any* compensation for the favor, not to mention the overhead of tallying and remitting taxes to all those difference jurisdictions, *plus* the inherent liability should they god forbid make a mistake in their forced servitude as proxy tax collector. I'm sure California would have no problem shutting down a Delaware store for failure to comply with California's tax code.
If a state wants to actually help their local retail businesses, then they should eliminate sales tax.
SLOWER TRAFFIC KEEP RIGHT
The interstate commerce clause specifically forbids a state from charging sales tax on interstate commerce. States that want to tax interstate commerce charge a "use tax". Whether such a tax is legal, I don't know.
The commerce clause (Article 1, Section 8 of the U.S. Constitution) restricts interstate tariffs to those that do not create an "undue burden." Court decisions (e.g., Quill v. North Dakota) have established that placing a collection burden on an out-of-state business that has no physical in-state presence creates such an undue burden; hence the arguments around whether or not Amazon (and others) can be compelled to collect and remit tax for states in which it claims to have no nexus. Requiring customers to remit their own use tax for interstate purchases has not been found to create such an undue burden, and has been in practice since long before the interweb was invented.
States have no right to regulate interstate commerce, period. It is prohibited by the Constitution. No Law can allow them to do it, because such a law would be a flagrant violation of the Constitution.
That might be more arguable had commerce clause court precedents not hinged on whether interstate tariffs created an undue burden. Imposing a collection requirement on an out-of-state seller with no in-state nexus has been held to be an undue burden; but requiring individual customers to track, report and remit state use taxes has not been held to be such an undue burden.
The use tax is a sales tax on interstate commerce which is completely unconstitutional, if I'm accused of tax evasion courts ignore all my paper structures and convict if the bottom line is I got money and didn't pay the tax. Why should it be any different if the state is simply calling the exact same tax by a different name?
No the constitution prohibits imposing a tax on stuff imported from another state, period. Saying "oh and also marbles are bad" alongside said tax does not allow the state to do so. If any provision of any bill has the RESULT of taxing commerce across state lines it is unconstitutional.
California and New York have the highest tax rates in the nation, how well is everything fixed there? No matter how much is collected in taxes, there will always be politicians willing to flush it down the toilet. People are finally starting to realize it.
Other taxes are higher.
If a state relies on a tax, regardless of what it is, and half those people don't pay, state services suffer.
Sate with use tax rely on sales tax for services.
Comparing them to states different tax structure is so stupid, you should be refrained for using the internet for 24 hours.
The Kruger Dunning explains most post on
Another AC liar.
The Kruger Dunning explains most post on
The use tax is a sales tax on interstate commerce which is completely unconstitutional
The constitution gives the federal govt jurisdiction over interstate commerce. States cannot tax interstate commerce without permission from the feds. The whole point of this law was to GIVE THEM THAT PERMISSION.
Which doesn't change the fact that the state laws indicating you have to voluntarily pay them what amounts to sales tax on interstate purchases now.
No, it sounds like gridlock is actually better. Without gridlock, we'd get a Congress that would pass an internet sales tax bill. With gridlock, the bill dies, which is exactly what I want to see happen.
So strangely, I actually have to cheer for the Republican takeover on this issue.
Won't work, for the reasons the AC responder said. This company won't know whether your product/service is taxable or not, or if it needs to be taxed at a different rate, etc. They're not going to employ human representatives to look at every single thing you sell and make a determination.
Here's my suggestion: all the states have to agree on a single tax rate, nationwide, and a single set of rules (e.g., groceries are not taxable, clothing isn't taxable or is reduced, etc.). Then there's a single federal-level agency where the tax money is remitted and distributed to the right state. No localities can levy additional sales taxes. Until all this happens, no nationwide sales tax is allowed.
Gridlock is expensive. I prefer my tax dollars spent on a functional government that get things done.
If getting stuff done means a shitty internet sales tax law, then no, I don't want to get things done.
People like you is why this country is in a mess. It's about you and you only, everyone else can go to hell. Shared sacrifice as a society requires taking the good with the bad.
People like you are why this country is in a mess. You spout shit like "taking the good with the bad" and because of this you advocate horrible legislation that would put an undue burden on small-business owners, giving a huge advantage to big businesses like Amazon and local big-box stores. There's 10,000 tax jurisdictions in the US, each one with completely different rules about what can be taxed, and at what rate. In some states, shipping is taxable, in others it isn't. In some states, clothing is taxable, in others it isn't. In some states certain items have a lower tax. How the hell is some small-business owner supposed to figure all that out for 10,000 different jurisdictions?
And why do stupid liberals like you love sales taxes so much anyway? They're the most regressive form of taxation and hurt poor people the most. Obviously you're OK with making the poor working-class stiffs take the good with the bad, while letting your ultra-rich cronies at Comcast and Citibank off.
And why do stupid liberals like you love sales taxes so much anyway?
I'm a moderate conservative. I prefer taxes over borrowing because the sacrifice is made today rather than tomorrow. Unfortunately, neither politicians nor voters want to sacrifice anything for anyone.
So you prefer fucking over poorer people with regressive sales taxes, and letting the rich off easy, and somehow the poorer classes should be the ones doing all the sacrificing? Got it.
I would repeal the Bush/Obama tax cuts to fix the $4T revenue hole in the annual budget and pay off the national debt in five years.
That's great (though not what I'd call "conservative"), but it doesn't address sales tax, which is a state and local level issue, and was only being considered federally (with this bill) because so many states were pissed about it. They need to just dump sales tax altogether (i.e., ban it at the federal level), and if a consumption tax really is necessary, then levy it at the federal level only as a VAT just like every other first-world country does. A single VAT (payable to a single governmental entitiy) would be fairly simple for internet merchants to deal with, and would eliminate all the avoidance of use taxes. But if they're going to keep their crazy and arcane scheme of sales taxes with 10,000 jurisdictions, forget it. And the idea of requiring merchants to use a third-party processor to handle sales taxes is wrong too, since 1) that processor won't know what is and isn't taxable except for some general things (i.e. shipping), and 2) requiring people to use particular for-profit businesses is fascism.
I live in Florida where there is no state taxes at all. I know we are talking about sales tax but in this particular case (bill) i am not sure if that is intertwined or related at all..???
move to Florida or Texas - no state income taxes :)