Dems push for Internet Sales Tax

[chanel]

The halcyon days of tax-free Internet shopping will, if Rep. Bill Delahunt gets his way, soon be coming to an abrupt end.

Delahunt, a Massachusetts Democrat, introduced a bill on Thursday that would rewrite the ground rules for Internet and mail order sales by eliminating the option for many Americans to shop over the Internet without paying state sales taxes.

At the moment, Americans who shop over the Internet from out-of-state vendors usually aren't required to pay sales taxes. Californians buying books from Amazon.com or cameras from Manhattan's B&H Photo, for example, won't be required to cough up the sales taxes that they would if shopping at a local mall.

This is hardly a new debate: pro-tax officials and state governments have been pressing Congress to require taxes to be collected for a decade or so. They argue that reduced sales tax revenue threatens budgets for schools and police, and say that, as a matter of fairness, online retailers should be forced to collect the same taxes that brick-and-mortar retailers do.

But with states scrambling for new sources of revenue during what may be a double-dip recession, pro-tax lobbyists are hoping that they'll have better luck this year. The National Conference of State Legislatures applauded Delahunt's legislation, saying he should be commended for allowing states to collect as much as $23 billion in new taxes.

Co-sponsors of Delahunt's bill, the "Main Street Fairness Act," include Reps. Michael Capuano, John Conyers, Stephanie Herseth Sandlin, and Peter Welch, all Democrats. No Republican has signed on as a co-sponsor.

The final version of Delahunt's legislation had not yet been made public on Friday, and his office did not immediately respond to queries from CNET. But it's expected to be similar to other versions he's introduced before

Democrats push for new Internet sales taxes | Politics and Law - CNET News

"If it moves, tax it. If it stops moving, subsidize it."

 

[Gremlin-USA]

They have been pushing that for years, what worries me is Cap and Tax and the Worst idea they are pushing is the VAT (value added tax)


.

 

[Care4all]

so the States are asking the feds to close this loophole to make it fair to mainstreet retailers who are forced to collect taxes? and of course the States want to collect taxes on sales.

 

[Care4all]

the more money the States collect in sales taxes the less money the fed gvt has to give them in bailouts....this could be a good thing?

 

[editec]

The halcyon days of tax-free Internet shopping will, if Rep. Bill Delahunt gets his way, soon be coming to an abrupt end.

Delahunt, a Massachusetts Democrat, introduced a bill on Thursday that would rewrite the ground rules for Internet and mail order sales by eliminating the option for many Americans to shop over the Internet without paying state sales taxes.

At the moment, Americans who shop over the Internet from out-of-state vendors usually aren't required to pay sales taxes. Californians buying books from Amazon.com or cameras from Manhattan's B&H Photo, for example, won't be required to cough up the sales taxes that they would if shopping at a local mall.

This is hardly a new debate: pro-tax officials and state governments have been pressing Congress to require taxes to be collected for a decade or so. They argue that reduced sales tax revenue threatens budgets for schools and police, and say that, as a matter of fairness, online retailers should be forced to collect the same taxes that brick-and-mortar retailers do.

But with states scrambling for new sources of revenue during what may be a double-dip recession, pro-tax lobbyists are hoping that they'll have better luck this year. The National Conference of State Legislatures applauded Delahunt's legislation, saying he should be commended for allowing states to collect as much as $23 billion in new taxes.

Co-sponsors of Delahunt's bill, the "Main Street Fairness Act," include Reps. Michael Capuano, John Conyers, Stephanie Herseth Sandlin, and Peter Welch, all Democrats. No Republican has signed on as a co-sponsor.

The final version of Delahunt's legislation had not yet been made public on Friday, and his office did not immediately respond to queries from CNET. But it's expected to be similar to other versions he's introduced before

Democrats push for new Internet sales taxes | Politics and Law - CNET News

"If it moves, tax it. If it stops moving, subsidize it."

Going to be a pain to collect it and pay the states what they believe they are owed.

Many internet retailers haven't got a clue where their customers are.

My site doesn't, for example, since its customers pay via PayPal.

They'll find a way, however.

They always do.

 

[Gremlin-USA]

Going to be a pain to collect it and pay the states what they believe they are owed.

Many internet retailers haven't got a clue where their customers are.

My site doesn't, for example, since its customers pay via PayPal.

They'll find a way, however.

They always do.

Agreed, They want me to be a tax Collector for all 50 states?, I have a hard enough time dealing with Sales Taxes in my own State

.

 

[Oddball]

I'd like to know how the feds plan on 'splaining how it's within their jurisdiction to enforce state sales tax laws.

 

[ba1614]

They have been pushing that for years, what worries me is Cap and Tax and the Worst idea they are pushing is the VAT (value added tax)


.

I agree, these are the biggies that I think are total bullshit, and needs to be stopped. I fear however that the obama will cram them through one way or another. Too many of his buddies have too much money involved for it not to be passed.

 

[chanel]

Exactly. Different rates; different items... A complete clusterfuck with the feds monitoring for compliance? Clusterfuck to the nth degree.

 

[editec]

I suspect that the path to enforcing these taxes will be found by making the aggregators (Paypal and the Credit card companies) collect and disburse them.

For we NET retailers, that likely means higher administration fees.

For the purchasers that mears higher prices and, of course, state sales taxes.

Since some percentage of my business goes to international clients, I wonder how (or if) taxes will be collected on THOSE sales.

If anything, people selling OUT of the nation ought to be given CREDITS for helping this nation's balance of trade.

Not that I expect it, naturally.

 

[Immanuel]

The halcyon days of tax-free Internet shopping will, if Rep. Bill Delahunt gets his way, soon be coming to an abrupt end.

Delahunt, a Massachusetts Democrat, introduced a bill on Thursday that would rewrite the ground rules for Internet and mail order sales by eliminating the option for many Americans to shop over the Internet without paying state sales taxes.

At the moment, Americans who shop over the Internet from out-of-state vendors usually aren't required to pay sales taxes. Californians buying books from Amazon.com or cameras from Manhattan's B&H Photo, for example, won't be required to cough up the sales taxes that they would if shopping at a local mall.

This is hardly a new debate: pro-tax officials and state governments have been pressing Congress to require taxes to be collected for a decade or so. They argue that reduced sales tax revenue threatens budgets for schools and police, and say that, as a matter of fairness, online retailers should be forced to collect the same taxes that brick-and-mortar retailers do.

But with states scrambling for new sources of revenue during what may be a double-dip recession, pro-tax lobbyists are hoping that they'll have better luck this year. The National Conference of State Legislatures applauded Delahunt's legislation, saying he should be commended for allowing states to collect as much as $23 billion in new taxes.

Co-sponsors of Delahunt's bill, the "Main Street Fairness Act," include Reps. Michael Capuano, John Conyers, Stephanie Herseth Sandlin, and Peter Welch, all Democrats. No Republican has signed on as a co-sponsor.

The final version of Delahunt's legislation had not yet been made public on Friday, and his office did not immediately respond to queries from CNET. But it's expected to be similar to other versions he's introduced before

Democrats push for new Internet sales taxes | Politics and Law - CNET News

"If it moves, tax it. If it stops moving, subsidize it."

Going to be a pain to collect it and pay the states what they believe they are owed.

Many internet retailers haven't got a clue where their customers are.

My site doesn't, for example, since its customers pay via PayPal.

They'll find a way, however.

They always do.

I don't have a problem with paying sales tax on purchases over the internet as long as the taxes paid go to my state/county and not Mass or the state of the seller.

As for determining where the purchaser resides that could be done with a simple field or two requesting state and county but generally there is a delivery that needs to be so the delivery address could be used. In cases where the delivery is made via download i.e. e-books, the seller would need to find out the state/county of deliverance.

One thing that I would consider, however, is to make the tax rate a flat amount (say 6%) rather than basing it upon the counties tax rate. I know here in Hillsborough County Florida the rate is 7.5% where as in Orange County, Fl the rate is 8% so rather than dealing with the hassle of different rates and people choosing the cheapest rate in the nation, just use a flat rate for internet sales.

As for forms to fill out... it would only take one form and that could be accomplished online fairly easily.

Immie

 

[Dont Taz Me Bro]

so the States are asking the feds to close this loophole to make it fair to mainstreet retailers who are forced to collect taxes? and of course the States want to collect taxes on sales.

Do you have any idea what a clusterfuck that's going to be? Occasionally, I'll sell some old clothes or something I don't want anymore on eBay. Would I be expected to collect sales tax from somebody in Vermont? There are people that sell thousands of items on eBay. How are they going to be equipped to collect taxes for 50 different states with 50 different tax rates? We're talking about people making a modest living out of their homes, not big corporations.

The governments at both the state and Federal level have more than enough money. They don't have a taxing problem; they have a spending problem.

 

[Dont Taz Me Bro]

the more money the States collect in sales taxes the less money the fed gvt has to give them in bailouts....this could be a good thing?

Or, you know, they could just spend less money. Boy, there's an innovative idea there, huh.

 

[Flopper]

As much as I love tax free shopping on the net, I think this tax loophole should be closed. However, the problem vendors face is how to implement this. 24 states need to change their tax code to make this work. For example some states have tax free days, other have no on tax on specific food or drugs, other have no tax on specific services. Then there is municipality and county sales tax. There are thousands of differences between the different state tax codes which make it almost impossible for a vendor selling on the next. I wouldn't look for this to happen anytime soon.

 

[daveman]

I'd like to know how the feds plan on 'splaining how it's within their jurisdiction to enforce state sales tax laws.

Like everything else lately: "Because we say so!" And idiots believe them.

 

[chanel]

We were audited for sales tax this year. The documents they required filled half my kitchen. The auditor found a 400 dollar discrepancy from 05 after spending a week perusing the material. Hmmmm. How much did he make vs.how much he collected?

We are a tiny little business. Multiple that scenario times a million. How many auditors will they need?

 

[Immanuel]

so the States are asking the feds to close this loophole to make it fair to mainstreet retailers who are forced to collect taxes? and of course the States want to collect taxes on sales.

Do you have any idea what a clusterfuck that's going to be? Occasionally, I'll sell some old clothes or something I don't want anymore on eBay. Would I be expected to collect sales tax from somebody in Vermont? There are people that sell thousands of items on eBay. How are they going to be equipped to collect taxes for 50 different states with 50 different tax rates? We're talking about people making a modest living out of their homes, not big corporations.

The governments at both the state and Federal level have more than enough money. They don't have a taxing problem; they have a spending problem.

I'm guessing in the case of online auction sites, either they would be exempt as are yard sale purchases if you go to a neighbor's yard sale or Ebay would be required to collect the tax from you (the seller) and remit it to the counties.

Immie

 

[Care4all]

so the States are asking the feds to close this loophole to make it fair to mainstreet retailers who are forced to collect taxes? and of course the States want to collect taxes on sales.

Do you have any idea what a clusterfuck that's going to be? Occasionally, I'll sell some old clothes or something I don't want anymore on eBay. Would I be expected to collect sales tax from somebody in Vermont? There are people that sell thousands of items on eBay. How are they going to be equipped to collect taxes for 50 different states with 50 different tax rates? We're talking about people making a modest living out of their homes, not big corporations.

The governments at both the state and Federal level have more than enough money. They don't have a taxing problem; they have a spending problem.

I would imagine, as immie said, anything used and being resold is not taxable, because the tax was already paid previously by someone.

As far as thousands of new items being sold on places on the net, they will have to set up their system similar to buying from any retailer that operates in every state....like Sears or jcpenney....off the net purchases are charged the sales tax for the state the person is buying it, is from....it's a simple computer program.

and yes, I agree they have a spending problem and States should cut their own spending as well....

BY LAW anything that you purchase from another State, tax free, you ARE SUPPOSE to claim this on your Income taxes for your state and pay your State sales taxes on it.

Most people IGNORE the law on this.....and they get away with not paying their state the sales taxes on their purchases owed to the State.

As far as, what power does the federal government have to enforce State laws.....

this, I don't know....I would have to do further reading on it....

 

[Immanuel]

so the States are asking the feds to close this loophole to make it fair to mainstreet retailers who are forced to collect taxes? and of course the States want to collect taxes on sales.

Do you have any idea what a clusterfuck that's going to be? Occasionally, I'll sell some old clothes or something I don't want anymore on eBay. Would I be expected to collect sales tax from somebody in Vermont? There are people that sell thousands of items on eBay. How are they going to be equipped to collect taxes for 50 different states with 50 different tax rates? We're talking about people making a modest living out of their homes, not big corporations.

The governments at both the state and Federal level have more than enough money. They don't have a taxing problem; they have a spending problem.

I would imagine, as immie said, anything used and being resold is not taxable, because the tax was already paid previously by someone.

As far as thousands of new items being sold on places on the net, they will have to set up their system similar to buying from any retailer that operates in every state....like Sears or jcpenney....off the net purchases are charged the sales tax for the state the person is buying it, is from....it's a simple computer program.

and yes, I agree they have a spending problem and States should cut their own spending as well....

BY LAW anything that you purchase from another State, tax free, you ARE SUPPOSE to claim this on your Income taxes for your state and pay your State sales taxes on it.

Most people IGNORE the law on this.....and they get away with not paying their state the sales taxes on their purchases owed to the State.

As far as, what power does the federal government have to enforce State laws.....

this, I don't know....I would have to do further reading on it....

Of course if you live in a state that does not have State Income Taxes...

Immie

 

[Care4all]

Do you have any idea what a clusterfuck that's going to be? Occasionally, I'll sell some old clothes or something I don't want anymore on eBay. Would I be expected to collect sales tax from somebody in Vermont? There are people that sell thousands of items on eBay. How are they going to be equipped to collect taxes for 50 different states with 50 different tax rates? We're talking about people making a modest living out of their homes, not big corporations.

The governments at both the state and Federal level have more than enough money. They don't have a taxing problem; they have a spending problem.

I would imagine, as immie said, anything used and being resold is not taxable, because the tax was already paid previously by someone.

As far as thousands of new items being sold on places on the net, they will have to set up their system similar to buying from any retailer that operates in every state....like Sears or jcpenney....off the net purchases are charged the sales tax for the state the person is buying it, is from....it's a simple computer program.

and yes, I agree they have a spending problem and States should cut their own spending as well....

BY LAW anything that you purchase from another State, tax free, you ARE SUPPOSE to claim this on your Income taxes for your state and pay your State sales taxes on it.

Most people IGNORE the law on this.....and they get away with not paying their state the sales taxes on their purchases owed to the State.

As far as, what power does the federal government have to enforce State laws.....

this, I don't know....I would have to do further reading on it....

Of course if you live in a state that does not have State Income Taxes...

Immie

Is it on the irs form that you have to claim such or a state income tax form? I can't remember at this point? If it is on the irs form, then the federal government is already enforcing state sales* tax law and I would presume that means that they can legally enforce state laws?? that was a question by someone earlier...does the gvt have the power to enforce state laws?