Toronado3800
Gold Member
- Nov 15, 2009
- 7,608
- 560
- 140
I work for a company with an online presence and a real brick and mortar stores. Maybe its my long commute past the empty malls but every day I'm amazed at the break given to our online arm by the lack of sales tax in most states.
Also in my opinion, the internet is here to stay. Commercial websites are cheap. Amazon and E-bay don't need tax break assistance to compete with your local stores.
So I think it is time online sales are taxed the same as in store sales.
The overall aspects of how to implement it escape me.
What tax rate to charge?
Letting companies pay taxes based on the states and counties they are registered in is a fight to the bottom. I propose charging a national average sales tax rate for the states the companies ship to. Ship to the lower 48, here is the percentage you charge. Ship to all 50, fine. I imagine a number around 8.5%?
Who to give the tax to?
I'm unsure on this one. As much as I frown upon virtual companies being able to venue shop, the tax collected can be given to the state the business is registered in. Making businesses register in 48 states is redundant. This would just be easy.
What about foreign businesses?
If Hong Kong fashion wants to sell purses in the U.S. via E-bay great. Just have them pay that same 8.5%. E-bay can collect it. How to collect if they are selling via their own website? I imagine Visa and Paypal are your easiest points of enforcement but I am not sure.
What other problems am I not seeing?
What to do about people selling streaming videos or live streaming?
This would end the unfair advantage our on-line arm (which I run) has vs brick and mortar stores. If people want to order Nightstands on Amazon then ship them back as they are too brown or whatever so be it. Helping subsidize the internet by having different rules for it is no longer needed though.
Also in my opinion, the internet is here to stay. Commercial websites are cheap. Amazon and E-bay don't need tax break assistance to compete with your local stores.
So I think it is time online sales are taxed the same as in store sales.
The overall aspects of how to implement it escape me.
What tax rate to charge?
Letting companies pay taxes based on the states and counties they are registered in is a fight to the bottom. I propose charging a national average sales tax rate for the states the companies ship to. Ship to the lower 48, here is the percentage you charge. Ship to all 50, fine. I imagine a number around 8.5%?
Who to give the tax to?
I'm unsure on this one. As much as I frown upon virtual companies being able to venue shop, the tax collected can be given to the state the business is registered in. Making businesses register in 48 states is redundant. This would just be easy.
What about foreign businesses?
If Hong Kong fashion wants to sell purses in the U.S. via E-bay great. Just have them pay that same 8.5%. E-bay can collect it. How to collect if they are selling via their own website? I imagine Visa and Paypal are your easiest points of enforcement but I am not sure.
What other problems am I not seeing?
What to do about people selling streaming videos or live streaming?
This would end the unfair advantage our on-line arm (which I run) has vs brick and mortar stores. If people want to order Nightstands on Amazon then ship them back as they are too brown or whatever so be it. Helping subsidize the internet by having different rules for it is no longer needed though.