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 Post subject: Yet More Taxes: Internet transactions is up next
PostPosted: Mon Apr 20, 2009 7:58 pm 
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Report: Congress Set to End Tax-Free Online Shopping

The free ride may soon be over.

For the past decade and a half, most Internet shoppers haven't been forced to pay sales tax while buying goods online.

But now, according to CNet News, an alliance of "brick-and-mortar" retailers and state governments has teamed up to end that — and they've crafted federal legislation that may be introduced in Congress as early as next week.

Previous attempts in past years to do so have flopped.

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The sheer complexity of sales-tax-collection in the U.S. — it's estimated there are about 7,000 different states, counties, municipalities and other governmental agencies that collect it — has made it nearly impossible to collect taxes from online retailers.

In theory, customers are supposed to calculate how much they owe and to whom they owe it, and then pay it separately, but few if any people do.

The only exceptions until recently have been in cases where large online retailers have physical offices in certain states.

For example, Washington state residents pay sales tax on orders from Seattle-based Amazon, as do residents of Kansas, Kentucky and North Dakota, where the company has facilities.

States and municipalities hate the current system, but few have done anything about it — except New York state, which has very aggressively fought to get back its money.

As of June 1, 2008, all online retailers have been obliged to charges local sales taxes on items shipped to anywhere in New York — and also charge tax on the shipping and handling.

Now the impetus is on to have it happen nationwide — and Congress is getting involved in what could be seen as a purely local issue.

"We will have the bill ready for introduction by next Monday," a spokesman for the National Conference of State Legislatures told CNet News in a story posted Wednesday. "We finalized the language and now we're working out the remaining issues and adding some new provisions at the request of various stakeholders."

It's not clear what exactly the bill would do, but it's expected to be introduced in the House by Rep. Bill Delahunt, D-Mass., and in the Senate by Sen. Mike Enzi, R-Wyo.

The real thinking behind it comes from the Streamlined Sales Tax Project (SSTP), a slow-but-steady effort to get states and municipalities to simplify and unify their sales-tax regimes so that online sales tax can reasonably be collected.

cont..
http://www.foxnews.com/story/0,2933,516988,00.html

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 Post subject: Re: Yet More Taxes: Internet transactions is up next
PostPosted: Mon Apr 20, 2009 10:19 pm 
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Yet another action by government that will discourage spending by the public. Obama and his administration's projections of a solid 3.2 percent growth for 2010, followed by three years of more than 4 percent growth each year will fall short.

This will mean fewer jobs will be created, more may be lost, and the internet retail boom that the US has seen over the last 10 yrs will decline.

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 Post subject: Re: Yet More Taxes: Internet transactions is up next
PostPosted: Mon Apr 20, 2009 10:24 pm 
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I don't know about this, I've often had to pay sales tax based on the shipping address - usually WA and NY - for a couple of years now.


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 Post subject: Re: Yet More Taxes: Internet transactions is up next
PostPosted: Mon Apr 20, 2009 10:28 pm 
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Veer wrote:
I don't know about this, I've often had to pay sales tax based on the shipping address - usually WA and NY - for a couple of years now.


The general rule has been that if the online retailer you are purchasing from either has a brick and mortar store in your state, or has some sort of warehouse/processing facility in your state, then your state is entitled to sales tax. As the article mentions, NY and a handful of other states have been the exception.

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 Post subject: Re: Yet More Taxes: Internet transactions is up next
PostPosted: Tue Apr 21, 2009 3:41 am 
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Next thing you know, they'll be charging a fucking ridiculous VAT tax on video games like Europe. There's a huge buck to be made there by our politicians also.

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 Post subject: Re: Yet More Taxes: Internet transactions is up next
PostPosted: Tue Apr 21, 2009 7:05 am 
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Why are the Feds acting as tax collectors for the states?

Long before the internet, there was ye olde Sears catalog. Where was the sales tax anxiety then?

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 Post subject: Re: Yet More Taxes: Internet transactions is up next
PostPosted: Tue Apr 21, 2009 7:47 am 
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Zad Fnark wrote:
Why are the Feds acting as tax collectors for the states?


Maybe this has something to do with it......

He'd [Barney Frank] like to create what he calls an FDIC-like federal insurance program for municipal bonds. Jurisdictions issuing debt would pay premiums into the insurance fund, and in return the federal government would guarantee the debt against default.

If the federal government were to create an FDIC-like federal insurance program for municipal bonds, then isn't it logical to believe that the federal government would have an vested interest in insuring that those municipalities would have adequate sources from which to repay those bonds?

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 Post subject: Re: Yet More Taxes: Internet transactions is up next
PostPosted: Wed Apr 22, 2009 3:00 pm 
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Yet another way to 'cut taxes to the poor' (Even though 43% of the population paid no Federal Taxes at all under Bush) and then get it back from them by other means.

Internet tax
Cap and trade
Gasoline tax
Cigarette tax
Higher corporate taxes
Higher employment taxes

All of them disproportionately tax the poor and extract money from them without having them pay a dime in income taxes. That way you can claim you are cutting their taxes (from 0%??) and yet actually be taxing them more by other means.

Very clever these liberals. Very clever indeed.

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 Post subject: Re: Yet More Taxes: Internet transactions is up next
PostPosted: Wed Apr 22, 2009 3:08 pm 
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Quote:
Why are the Feds acting as tax collectors for the states?


Sooo many reasons why they want to do this.
1. Gets the Fed exercising another state function, which in turn undermines state autonomy.
2. Passes coin through the hands of a federal agency, allowing skimmage.
3. Increases the size of the Fed bureaucracy, self-justifying more taxes to feed that bureaucracy.
4. Gets consumers used to being taxxed more, regardless of the source.

That was just my off the cuff list. No doubt there's other reasons as well.

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 Post subject: Re: Yet More Taxes: Internet transactions is up next
PostPosted: Wed Apr 22, 2009 3:19 pm 
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That's the biggest jist of it, Mdiehl.

Things will come to a head if this trend continues.

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