States Are Trying to Force Internet Sales Tax

[Guest]

It is bad enough that the commenters don't know the difference between a sales tax and a use tax, but shouldn't the person reporting (even if just cut and pasting) know the difference?

Colorado is trying a new way to enforce their use tax. In other words, everyone in Colorado that purchased on item online from out of state was already subject to the use tax when the item was brought into Colorado. People who failed to pay the use tax were/are engaged in tax evasion/fraud. The enforcement of a use tax is not the imposition of a new tax. Further, it is in no event the creation of a new sales tax.

Furthermore, a sales and/or use tax is not a tax levied against a retailer. It is a tax levied against the purchaser of an item. A store (within the jurisdiction of the state) is obligated to collect that tax as a service to the consumer. This is why the sales tax is itemized seperately on your receipt. Further, the money collected is held in trust for the state, it is not money available to the retailer for any purpose.

Yes, the purchasing habits of consumers may change when they are no longer able to evade the use tax, but the state legislature/governer are representatives of the people and the laws of the state are the laws of the people. If you don't want a use tax, then democratically remove the tax. All the rest is malcontent whining.

 

[daworstplaya]

I know nobody likes paying taxes but it seems like most of you aren't looking at the 30,000 ft strategic view. The roads that you drive on, the sewage system, the public schools, the higher educational institutions are all payed for by taxes. The entire public infrastructure we enjoy in this great land are payed for by taxes.

When one purchases items from online retailers, they usually save on taxes compared to buying from businesses that have a local presence. So an item you would buy locally ends up being bought out of states from Newegg or Amazon. This hurt the businesses that have a local presence that actually employ people that live in your neighborhood.

Local businesses have to compete against the online e-tailers, but consumers looking to save a buck or two will mostly purchase from online merchants due to the lack of paying taxes. So in the end the state loses tax revenue which would have gone into funding local infrastructure (roads, schools, etc) and local business lay off folks due to a lack of sales from the local economy. Unemployment rises in your local area and all the roads, schools, etc get underfunded and go to shit.

Is that what you want?

 

[Jenoin]

[citation][nom]daworstplaya[/nom]I know nobody likes paying taxes but it seems like most of you aren't looking at the 30,000 ft strategic view. The roads that you drive on, the sewage system, the public schools, the higher educational institutions are all payed for by taxes. The entire public infrastructure we enjoy in this great land are payed for by taxes. When one purchases items from online retailers, they usually save on taxes compared to buying from businesses that have a local presence. So an item you would buy locally ends up being bought out of states from Newegg or Amazon. This hurt the businesses that have a local presence that actually employ people that live in your neighborhood.Local businesses have to compete against the online e-tailers, but consumers looking to save a buck or two will mostly purchase from online merchants due to the lack of paying taxes. So in the end the state loses tax revenue which would have gone into funding local infrastructure (roads, schools, etc) and local business lay off folks due to a lack of sales from the local economy. Unemployment rises in your local area and all the roads, schools, etc get underfunded and go to shit.Is that what you want?[/citation]
Yes

 

[jonathan1683]

I don't care i pay sales tax on most items anyways since newegg is in California and so am I. If it helps put money back in the education system I am for it. California is nearly bankrupt or is and the amount generated just from newegg could possible help us out.

 

[rooket]

Is steam based in delaware? I find it odd that I never get charged tax there, I thought they'd be somewhere else. Also I thought a few years ago we were going to have to start paying taxes for all online stores but it only amounted to if the business has a warehouse in my state. I guess I lucked out but I bet with the way things are going it isn't going to last a whole lot longer. I think I pay plenty income taxes already. All taxing off amazon and the like would do is cause me to buy a lot less items.

 

[matt_b]

[citation][nom]frozenlead[/nom]This was pretty much inevitable. The question is - where is all this new money going?[/citation]
Same place the rest of it goes: excessive and wasted spending. Our local and national government cannot find a way to spend money wisely and they do not believe in "rainy day" funds. So you, the consumer, need to pony up even more money so they can sustain themselves.

Also, like False_Dmitry_II said, businesses do not absorb the extra costs, they are not expected to. They also already pay taxes, every state they do business from within, they pay them their tax rates. This is meant for these companies to collect from say a buyer in New York when they are based in California; the company pays their taxes and fees to operate a business to the sate of California, collect at whatever sales tax rate New York charges and apply it towards all purchases made by that consumer, then report to both states all sales tax charged, and finally hand over the collected money to the state of New York for that customer's purchases.

Anyone else ever notice how more new taxes continue to be added to the way of life yet things don't seem to equate with all the extra revenue they take in? I could only dream about the time that not too long ago their was no income tax - man what an economic boom that would be if they were to financially be able to rid that tomorrow! Oh well, it wouldn't be government unless they were capable of spending %110 of what they take in.

 

[everygamer]

I love how the state trys to blame Amazon for hurting the people ... when Amazon and the people were doing just fine until the state came along and complicated matters.

The best part is, from Amazon's perspective they do not have their systems designed to track taxes in those situations, so instead of spending money to modify their complex system they made a simple business decision to just cut the program in the state and save in increased costs.

Stopping a business practice is hardly evading a law, evading the law would be continuing to do business as usually and not paying.

 

[bildo123]

[citation][nom]frozenlead[/nom]This was pretty much inevitable. The question is - where is all this new money going?[/citation]

Where else? The fancy suits and their greedy ambitions. In other words, their huge year-end bonuses. Cmon' you know that Mercedes doesn't like that 87 octane garbage!

 

[hillarymakesmecry]

[citation][nom]montezuma[/nom]Cut spending more? The tax situation in Georgia is so bad that the State is raping the education system. Of course, this is mostly due to idiots in power and wasteful spending, but that does nothing to help those victimized by this bullshit. The numbers speak for themselves.Education has already been piliged enough, but Georgia is cutting another $1.3 billion USD($1 billion from K-12 and $300 million from higher education). The educators in public education have said that the cuts will hurt them, but will kill higher education. They are absolutely correct.As a student in Georgia, my tuition continues to sharply increase, while the quality of my education is decreasing. This is wrong on many levels, but what is more wrong is what the legislature is letting go into effect.Governor Purdue is getting around $9 million USD for some fucking horse stables, but he is letting the State kill education. I can promise you that Georgia is not the only state that is screwing over so many of its citizens. While I do enjoy the tax-free purchases at Amazon and Newegg, they are beyond stupid to believe they can avoid sale-tax. Those two companies can afford to process sale-tax for all customer's state governments and even the local governments. The problem will be with the smaller retailers.I believe there should be a cap at which a state can demand sales tax. If a company is raking in billions in sales, then they should have to pay. The hardworking citizens in the United States are not immune from paying their share of taxes, so neither should corporations in the United States. If they do not like it, then stop doing business.[/citation]


And I'd like to ask you, Montezuma, why it is the responsibility of taxpayers in GA to subsidize your higher education? Pay for your own education. I had to pay for mine.

So if you're at UGA you're going to have to pay another $300 a year? Holy crap! Get a freaking job. Or don't go drinking for one month and it'll be paid for.

Stupid kids are the problem with GA's education, not funding. The people in the state just ain't(just for you) as intelligent as those from other states.

 

[Nizodizo]

Oh no, sales Tax!
Right here in the U.S of MF'N A right!
If you love lower taxes bitching about it on the internet is not the solution. Use the voting rights that you were born with in the United States.

 

[elbert]

I can see it right now. UPS and Fedex lays off x number of employees due to net tax lowering internet sales. States lose jobs and the tax gains only offset job loses.

 

[jcknouse]

Colorado hurt themselves.

Instead of being happy withletting someone make money...and SPEND it and get charged SALES TAX on what they spend their earnings on...

Colorado has passed a law that punishes someone from earning a wage.

I wonder if these people host their site in Vermont that had the Amazon referral if they have to pay income tax there too?

So stupid. Colorado evidently unknowingly just killed part of their sales tax income by reducing the disposable income of many people in their state.

Way to go, Colorado. Instead of helping people and small business make a little extra to spend in your state, you've cut your own fiscal throat.

No wonder the USA is going to heck in a handbasket with ninnies like those running our governments.

 

[skpman]

eh, I don't care much if this law passes. I live in California and it seems almost all etailers are based here anyway.
Tigerdirect is about the only website I can think of that will be affected for me.

 

[daworstplaya]

[citation][nom]hillarymakesmecry[/nom]And I'd like to ask you, Montezuma, why it is the responsibility of taxpayers in GA to subsidize your higher education? Pay for your own education. I had to pay for mine. So if you're at UGA you're going to have to pay another $300 a year? Holy crap! Get a freaking job. Or don't go drinking for one month and it'll be paid for.[/citation]

Do you seriously think you paid entirely for your college education?!? I'm betting your college fees were also subsidized by Federal/State funds and private donations. If you think your University was able to survive and provide the level of education based on the measly amount they get from student tuition you're not in touch with reality.

Check out how much of an Institutions expenses are cover by state and federal grants. If it was solely based on student revenue either of the 2 things will happen:
1. The quality of education will go down due to the inability of to purchase the necessary equipment.
2. Tuition rates will sky rocket to cover all the costs the Institution has to bear, as it is happening in California and several other states.

This is a critical time for the US to surge ahead of the world in terms of education and skilled workers. How is that supposed to happen if the challenges people face to get an education is extremely steep. Higher level education won't be feasible unless there is some sort of monetary backing ...

 

[Guest]

It's about time. How many local retails have been put out of business since the advent of tax free sales. Not to mention bankrupt states. My sales have been dropping every year for the past five years. At least it will help level the playing field for people who try to support their state and city governments.
Maybe the solution is too simple for most of you out there. Whatever state/city you are selling from, you collect sales tax from the purchaser and sent it to your local treasury. When a person visits my store form another state they pay local taxes. Surprizing isn't it. It's worked this way for over 100 years. I'm very proud to be apart of this great country. For all you dead beats out there, I'm sure Nevada would love to have you, they don't care about taxes.

 

[drakefyre]

They'll just move out of state, hurting the state economy.

 

[geofry]

[citation][nom]monitizuma[/nom]Education has already been piliged enough, but Georgia is cutting another $1.3 billion USD($1 billion from K-12 and $300 million from higher education). The educators in public education have said that the cuts will hurt them, but will kill higher education. They are absolutely correct.

As a student in Georgia, my tuition continues to sharply increase, while the quality of my education is decreasing. This is wrong on many levels, but what is more wrong is what the legislature is letting go into effect.
[/citation]

If the quality of your education is decreasing, stop paying money for it. If you are not paying for it, well then who do you think you are? You are getting something for free and you don't like it? Well how about too freaking bad, go get a job, make your own money and go find an education that is worth it, but don't whine to the rest of us about it. We or anyone else in this country do not owe you a damn thing.

Let me clue you in on a little secret, unless it's a science, engineering, medical, or business (maybe) degree, it is not a real degree and the diploma is worth little more than the paper it is printed on.

 

[sactownbwoy]

[citation][nom]oldoldguy[/nom]It's about time. How many local retails have been put out of business since the advent of tax free sales. Not to mention bankrupt states. My sales have been dropping every year for the past five years. At least it will help level the playing field for people who try to support their state and city governments. Maybe the solution is too simple for most of you out there. Whatever state/city you are selling from, you collect sales tax from the purchaser and sent it to your local treasury. When a person visits my store form another state they pay local taxes. Surprizing isn't it. It's worked this way for over 100 years. I'm very proud to be apart of this great country. For all you dead beats out there, I'm sure Nevada would love to have you, they don't care about taxes.[/citation]

You do realize that there are states out there that do not charge any sales Oregan is one of them.

 

[geofry]

[citation][nom]oldoldman[/nom]It's about time. How many local retails have been put out of business since the advent of tax free sales.[/citation]

And I say, good riddance. I can't remember a time when I ever liked local retailers. Poor selection and way over priced.

[citation][nom]oldoldman[/nom]At least it will help level the playing field for people who try to support their state and city governments.
Maybe the solution is too simple for most of you out there. Whatever state/city you are selling from, you collect sales tax from the purchaser and sent it to your local treasury.[/citation]

So what you are really say is that some how I owe you some sort of living at my expense when I go to make a purchase. Hmmmm.....let me think about that.....how about no. I already pay property tax to "support" the local community why should I come into your little store and have to pay more for the same item that I can order online? What is in it for me?

I get tired of the same old argument, local businesses support local taxes. The correct answer is the local residents pay local taxes, the local business, especially the retail sector, are just leaches on the local residents. Another middle man that has his hand expecting to get paid.

One of these days producers will finally realize they don't need dealers, Amazon, Walmart, or mom and pop to sell their wares and will sell directly to the consumer saving us even more money.

I look forward to the demise of all sectors of the resell/retail industry.

 

[geofry]

[citation][nom]daworstplaya[/nom]This is a critical time for the US to surge ahead of the world in terms of education and skilled workers. How is that supposed to happen if the challenges people face to get an education is extremely steep. Higher level education won't be feasible unless there is some sort of monetary backing ...
[/citation]

I think the only thing that will happen to higher education is that alot of the cash for credit degrees will dry up an blow away. If you can't land a job that is worth more than the cost of getting the training or the degree then there is something painfully wrong with the system.

There would be plenty of money for education if we would stop wasting it on subsidizing degrees that have no economic, medical, or scientific purpose.