New York Readies Internet Sales Tax

[Guest]

New York (NY) - New York state will be collecting millions of dollars in tax money from Internet e-tailers starting on June 1st.

New York Readies Internet Sales Tax : Read more

 

[soloman02]

This will fail miserably. For the first 2-3 years NY will get Tax revenue for it and will call it a success. However, it will take this long for companies to relocate to another state with no taxes, effectively killing the tax revenue for NY. Another great reason to live in NH. NO SALES TAX ON ANYTHING!(Except hotel rooms and meals, but That doesn't amount to a lot for me)

 

[mdalli]

$50 million? $75 million? Nope, sorry. Those companies are not just going to blithely sit there and have their businesses sucked dry, they'll move their presence out of state in a New York minute!

 

[Guest]

So for the first year they expect to rake in 50 million $ over 7 months, that's 7.15 million per month. Then over a 12 month period they expect to rake in 75 million or 6.25 a month. Hmmmm...

Why is this? Could it be that the etail business is collapsing? A recession perhaps? Unlikely

Or could it just be the fact that even the NY legislators expect companies to move their business out if state? I wonder how intelligent the people who passed this bill really are...Sure you stand to increase tax revenue by tens of millions of dollars per year but hae you thought of the revenue you will lose due to lost jobs? I think that in the long run this will hurt NY's economy but in the short run the politicians will be able to pat each other on the back and say they brought more revenue into the state's coffers. This is an election year afterall isn't it?

Oh and I actually expect the etail sales taxes to dry up even faster than predicted. Etailing is a very competitive business and no company will be able to survive with an additional 5% (or whatever) added to their prices. Even if the comapanies don't leave the consumers will ho for the cheaper product even if it's from out of state.

 

[Guest]

So for the first year they expect to rake in 50 million $ over 7 months, that's 7.15 million per month. Then over a 12 month period they expect to rake in 75 million or 6.25 a month. Hmmmm...

Why is this? Could it be that the etail business is collapsing? A recession perhaps? Unlikely

Or could it just be the fact that even the NY legislators expect companies to move their business out if state? I wonder how intelligent the people who passed this bill really are...Sure you stand to increase tax revenue by tens of millions of dollars per year but hae you thought of the revenue you will lose due to lost jobs? I think that in the long run this will hurt NY's economy but in the short run the politicians will be able to pat each other on the back and say they brought more revenue into the state's coffers. This is an election year afterall isn't it?

Oh and I actually expect the etail sales taxes to dry up even faster than predicted. Etailing is a very competitive business and no company will be able to survive with an additional 5% (or whatever) added to their prices. Even if the comapanies don't leave the consumers will ho for the cheaper product even if it's from out of state.

 

[davidgbailey]

"For years, retailers with "brick and mortar" stores in New York, such as Wal-Mart, have charged sales tax on orders placed through their Web sites. Yet Amazon.com and other e-tailers with no physical stores have not charged the tax"

The government is going to get theirs. Remember when they tried to charge for emails because it cut into their postal profits. I think this is going to be a trend that will eventually blanket the entire country. It will level the playing field and help the stores that have high overhead like CompUSA, which pays for property taxes per store, sales associates, etc. I only shop online because of the price and I don't like the atmosphere of the stores (mail in rebates.) I realize that someday I may be forced back into the stores again due to rising shipping prices and the loss of the tax-free buying. Wal-Mart stays competitive due to bulk shipping. Just enjoy buying things online without a sales tax, downloading music for free, and not paying for emails while it lasts.