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eBay Urges Customers To Oppose Washington Internet Tax (knkx.org)

An anonymous reader quotes a report from KNKX: If you live in Washington state, you might have gotten the email from eBay. It begins: "The Washington State Legislature is threatening to impose new Internet sales tax burdens on you." It goes on to urge the recipient to send a form letter to Washington lawmakers opposing "harmful tax laws." So what's this about? EBay's Brian Bieron said the company is alerting its customers to a proposal to require out-of-state retailers to collect sales tax from Washington residents. "It's the right of all of our users to know when new tax policies would impact their ability to sell online or shop online, we think that they want to know and they want to get involved," Bieron said. The fact eBay is emailing its customer base now indicates the company is concerned the internet tax bill will be part of a final budget deal in Olympia. Washington House Democrats and Senate Republicans are currently trying to hash out a compromise budget that fully fund schools. That agreement will likely include some additional sources of tax revenue. Of all the choices on the table, capturing sales tax from more online sales might prove the most palatable to tax-averse Republicans. House Democrats estimate the proposal could bring in an estimated $341 million over the next two years.

34 of 71 comments (clear)

  1. Seattle by Anonymous Coward · · Score: 1

    And stuck with 128K ISDN because these a-hole politicians can't get their act together.

    No way I'm paying any tax until they fix my fucking broadband.

  2. Re:As a Washington resident... by HornWumpus · · Score: 1

    As soon as I open a location in Washington state, sure. Until then, fuck off.

    What are your cops/judges going to do about it? Stamp their feet? Waggle their wigs?

    --
    John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
  3. Re:As a Washington resident... by 93+Escort+Wagon · · Score: 3, Informative

    Then why the special tax?

    Washington state (of which I am a resident) already requires purchasers to pay - after the fact - a tax on out-of-state purchases which is equivalent to the in-state sales tax. The problem is, the state has no way of knowing what you've bought from, say, an online retailer in New York. So, being based on the "honor system", almost no one actually pays this tax.

    This new solution is basically trying to get out-of-state businesses to collect that already-owed tax at the time of purchase.

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    #DeleteChrome
  4. Re:As a Washington resident... by 93+Escort+Wagon · · Score: 2
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    #DeleteChrome
  5. One eighty... by Ichijo · · Score: 1, Insightful

    Of all the choices on the table, capturing sales tax from more online sales might prove the most palatable to tax-averse Republicans.

    It is both ironic and saddening that Republicans support regressive taxes, which help keep the poor trapped in the cycle of poverty, because it was the Republicans who abolished slavery in the USA a century and a half ago.

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    Any sufficiently unpopular but cohesive argument is indistinguishable from trolling.
    1. Re:One eighty... by Anonymous Coward · · Score: 1

      This tax is pushed by the Democrats; it's just the one the Republicans are least likely to put up a fight against.

      Actually the Democrats and Republicans basically swapped names throughout recent American history. If this thread is going to refer to something as old as abolishing slavery, this becomes relevant. Although - when Lincoln signed the Emancipation Proclamation, the territories he controlled were already anti-slavery. He signed a law telling Confederate states that they may have no slaves. It was a symbolic gesture, partly intended to convince abolitionists, slaves and former slaves to support him.

      A more relevant example would be the Civil Rights Act supported by the Republicans and opposed by the Democrats. Apparently the Democrats learned a lot about racial divisions since then because now they enjoy most of the black vote. It's not a majority but it's large enough to really matter.

      The real issue with this tax is that it's an exclusive tax, itemized and tacked onto the total sale price. It's transparently passed on to the purchaser (at the retail level). The company is acting as a collection agent The customer pays the tax. So it's harder to portray as "tax those corporations!" "make them pay their fair share!" etc. That really changes the politics of it.

      Of course that's just politics. Assuming they're equally applied, corporate taxes just get passed onto the customers anyway. When they're not equally applied, those companies paying less taxes have a competitive advantage, so it's like picking winners and losers. Corporate income taxes (an inclusive tax) work like that. Either way, it's the customers - the people - who actually pay the taxes. Everything else is a cost of doing business.

  6. Re:As a Washington resident... by DaHat · · Score: 2

    Attempt to prevent you from selling/shipping items to people in the state... as they long have with Alibaba.

  7. States double dipping on used items. by bongey · · Score: 1

    I have no problem with tax on new items, as in the very first time an item has been sold. Sales tax on items that are used, that are being sold less than the original purchase price should not be able to be taxed again. The government already got their cut the first time, they shouldn't be able to get a cut every time the item changes hands.

    1. Re:States double dipping on used items. by kqs · · Score: 1

      Why not? So I shouldn't be taxed if I buy a house? I mean, it's used.

      I don't actually mind if your plan is "remove sales tax on used items and raise other taxes enough to make up the difference", though I guarantee that that loophole will be exploited.

    2. Re:States double dipping on used items. by boskone · · Score: 1

      on that vein... we don't pay sales tax on houses in WA. do most states charge that???

      we do have a 1.78% excise tax on sale of real estate, charged to the seller, but we don't apply the 10.5% sales tax to homes (cars we do though)

  8. Re:Seems unconstitutional to me by chuckugly · · Score: 1

    How is this different than Amazon and California some time ago?

  9. Re:Seems unconstitutional to me by PPH · · Score: 1

    California is bigger than Washington State.

    Although I do think it's cute how WA tags along after CA.

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    Have gnu, will travel.
  10. Re:In other news... by PPH · · Score: 3, Insightful

    Finally! Both sides agree on something. The dollar amount.

    But this is Slashdot. And we obsess over things like units. Could we have that in Bitcoin?

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    Have gnu, will travel.
  11. the principle of least dickering by epine · · Score: 1

    The least distorting tax is a small tax, and the smallest tax is a broad tax. I'm in favour of taxing everything by a mostly equal, small amount. Less discretion, less political dickering.

    People do realize that the taxation system is a waterbed ...

    Don't they?

  12. Stuck by SeattleLawGuy · · Score: 1

    And stuck with 128K ISDN because these a-hole politicians can't get their act together.

    No way I'm paying any tax until they fix my fucking broadband.

    Where are you in Seattle that you are stuck with 128K ISDN?

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    Real lawyers write in C++
  13. Re:As a Washington resident... by 93+Escort+Wagon · · Score: 1, Offtopic

    I think their argument is that they're not taxing the out-of-state business, they're taxing the citizen of their state. (yeah, yeah... six of one, a half dozen of the other)

    Really it's an attempt at a cash grab via tortured wordplay - but lawyers love that sort of challenge, as do congress-critters.

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    #DeleteChrome
  14. For once I agree with eBay by rsilvergun · · Score: 2

    Sales tax is a regressive tax that disproportionately hurts working families. Raise capital gains and top margin rates instead. Folks who spend their entire earnings getting by shouldn't be looked at as walking dollar signs.

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  15. Re:Nightmare of tracking/paying many sales tax rat by DogDude · · Score: 1

    You just use a service. $10/month. https://taxcloud.net/

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    I don't respond to AC's.
  16. Re:As a Washington resident... by Dog-Cow · · Score: 1

    You are saying to stop calling them lawmakers and instead to all them "makers of laws"?

    Whatever. Go fuck a porcupine in the ass.

  17. Translation by tempo36 · · Score: 1

    "We at eBay would like to continue to have an advantage over Washington based retailers who are required to charge sales tax. We are concerned that if we are required to charge sales tax that our customers will no longer have a financial incentive to use our service. We don't care at all about "extra taxes" being placed on consumers or small businesses. We just want to be able to undercut any business that can't get out of sales tax. Please write your congressman so that we can continue to make a lot of money and you can find a way to deal with your state's lack of tax revenue some other way."

    See also:
    "We of the GOP want to urge everyone to oppose the estate tax. Democrats are trying to rob you of your inheritance and take away your family farms. Though you may have heard that there is a $5 million exemption on the estate tax, this has nothing to do with rich people keeping a lot of money tax free. We just want to look out for the little guy"

    "Write your congressman and oppose the increased tax on capital gains and dividends. This will hurt hard working Americans who are just trying to get by on their stock investments and will hurt Job Creators"

    Etc.

  18. Wash state is doing it wrong. by WindBourne · · Score: 1

    The federal government needs to implement a 10% tax on all out-of-state/nation sales, BUT have the shipping company collect it. Then 10% of that goes to shipping company, 70-80% goes to the state where sold to, and 10% to the feds to pay down debt. Note that states would have to agree to this.

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    I prefer the "u" in honour as it seems to be missing these days.
    1. Re:Wash state is doing it wrong. by OrangeTide · · Score: 1

      Note that states would have to agree to this.

      Technically only a majority of the representatives in Congress would have to agree. Even if none of the representatives from a particular state agreed to it.

      A national sales tax is a big hammer, and it would probably solve the immediate problems. But it creates new problems of its own, and there is concerns that a new tax would negatively impact the economy. And more importantly to Congress is that it would impact the next election. Nobody wants to go into an election being that guy that made the new tax that everyone hates.

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      “Common sense is not so common.” — Voltaire
    2. Re: Wash state is doing it wrong. by WindBourne · · Score: 1

      U might want to re-read. I said a 10%tax. Period. This is why the states have to agree. It will not allow local or state gov to impose more. Note that this is only on out of state/nation sales. In addition, the shipping company asks the company/shipping entity if it is a retail sale. If so, they ask they amount and charge 10%. If a company is found cheating, then they are barred from shipping to other states/America.

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      I prefer the "u" in honour as it seems to be missing these days.
  19. It's unconstitutional by lunatick · · Score: 2

    States do not have the right to tax interstate commerce. That is right out of the constitution just like the feds can't tax intrastate commerce. The exception is as others have stated is the Nexus rule. I should not have to collect/pay taxes for a jurisdiction that is thousands of miles away from my only location. As for Ebay. technically they don't sell anything, they provide a platform for others to sell. Their interest is in having to create code that would collect tax for the 1151 different tax jurisdictions that make up this nation. If the Washington law passes and holds up in court (which it won't) it would be a nightmare for Ebay to set this up for their sellers. They already allow their sellers to collect sales tax for where they are located.

    It creates a ridiculous amount of paperwork for a business.
    I am located in NYS I collect sales tax based on the tax jurisdiction where I am located. It takes me about 10 min a quarter to do the paperwork. There are about 50 different sales tax rated in NY. Imagine if I had to collect different rates based on where the buyer resides, fill out 50 collection forms a quarter and write 50 checks to them. While there is software to collect tax so you just have to punch in the numbers on the form it still takes about 10 min. Now multiply that by 1151 tax jurisdictions nationwide. It would take a business 11510 min/ 192 hours / 8 days / 24 8 hour shifts just to fill out all the paperwork for collection of sales tax. That's 5 weeks of work for 1 person and would go beyond the last day to submit the forms in most places (they give you about 1 month).

    No business will stand for this, there will be massive lawsuits which will waste millions of taxpayer funds to shoot down a law that is known to be unconstitutional. If it was legal it would have been done years ago. Ebay's interest again is in not having to spend the money for a lawsuit for this.

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    The Lunatick, Carpe Corpus!
    1. Re:It's unconstitutional by hackel · · Score: 1

      You're an idiot. This can all be automated. You don't have to even spend 10 minutes at it. Sounds like you're just a cheap-ass who refuses to pay for a proper accounting system. Your inconvenience is hardly justification for people dodging their tax obligations.

    2. Re:It's unconstitutional by lunatick · · Score: 1

      I am sure you have a ton of experience filling out the forms and know exactly how much an accounting system costs. If you had read you would have seen that I have software that keeps track of how much I have to pay. NYS won't just accept the software though. You have to fill out the forms either online or on paper and submit the forms.
      And as others have said, Washington state taxpayers are supposed to pay their own taxes and submit it, why should I do the work of Washington state to police their citizens.

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      The Lunatick, Carpe Corpus!
  20. Re:As a Washington resident... by chuckugly · · Score: 1

    I endorse the spirit of the plan but I doubt it's got legs.

  21. Re:Seems unconstitutional to me by chuckugly · · Score: 1

    At the time this happend, Amazon was very careful to NOT have a corporate presence (nexus) in CA. Now that they have started collecting sales tax they have opened a lot of facilities in CA, and offer things like free same day delivery. Not sure that's what the brick and mortar guys were expecting on this issue.

  22. Re:Seems unconstitutional to me by chuckugly · · Score: 1

    A 13% income tax would not be viewed as cute by WA residents I bet.

  23. This is ridiculous by slashmydots · · Score: 1

    They can't pass a tax that tells me what to do, I don't live there. Are they stupid or something?

  24. Typical consumer-grade idiocy by hackel · · Score: 1

    They aren't trying to impose a NEW tax. They are talking about passing regulations to require retailers to enforce the sales taxes that are *already* in place! Honestly, they should be going after consumers who aren't paying these taxes themselves each year as they are required to do. They are criminals and owe the government tons of back-taxes and interest on all of their untaxed out-of-state purchases.

    eBay is such a vile and disgusting company for doing this. I hope their downward spiral continues until they are made entirely redundant. I can't even shop there due to the influx of Chinese counterfeiters and businesses spamming it to all hell. What a waste.

  25. Re:As a Washington resident... by Agripa · · Score: 1

    The citizen of the state has a nexus within the state. How is the state going to enforce this on businesses outside the state which have no nexus within the state?

  26. Re: As a Washington resident... by Agripa · · Score: 1

    Ebay and Amazon are "affiliates" which may be in the state. They could drop their Washington state affiliates which is what Amazon initially did.

  27. Nice try, Washington State by russotto · · Score: 1

    Quill v North Dakota is still good law. So all Washington is doing is setting itself up for losing lawsuits.