Internet Sales Tax

Discussion in 'Off-Topic' started by rickjames, Jul 25, 2012.

  1. rickjames

    rickjames Hard Work! Dedication! Supporter

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  2. BLCKWLF

    BLCKWLF GrassHopper

    I hate it, it costs more money...
     

  3. rickjames

    rickjames Hard Work! Dedication! Supporter

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    Same thing I was thinking.
    I love Amazon and my prime membership. I better order everything I need soon.
     
  4. KeenansGarage

    KeenansGarage Hiding in plain sight....

    Free economy failing. Just my .02 cents.
     
  5. jonm61

    jonm61 New Member

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    What most people fail to understand is that we, as individuals, are supposed to pay this sales tax ourselves, in the form of a "use tax". Every state I know of has a use tax statute. It's identical to sales tax, but applies to items purchased outside of the state. Since the state can't collect it on it's own, taxpayers are supposed to pay it quarterly to annually, depending on the state. The states generally forgive the tax on items purchased from another state where sales tax was paid in that state.

    These taxes pre-date the internet. They go back to the boom of catalog sales. Some states have had them on the books for longer, but most enacted them in the early 90's. The problems with use taxes are that A) the state has no way to know of the sales, B) has no way to enforce the tax collection (especially in states with no income tax) and C) people generally don't know that they even owe the taxes. A very small % of people, even among those that do know, actually bother to pay the tax.

    So, while I'm not all that thrilled by them levelling the playing field, I do understand it and I agree with it. When you think about it, this does directly benefit us, because the money goes to the state/county/city where we live, solving budget problems and potentially leading to a budget surplus (after resolving outstanding issues, like road repair that they haven't been able to afford, I hope) and the lowering of other taxes.

    Granted, it will benefit some more than it does others, and some will pay more than others based on their purchase volume, but that's the nature of all taxes.

    If this were a Federal tax, then I would be vehemently opposed. I don't, necessarily, believe that Congress needs to take this action, rather than the states, but I don't know what current law(s) may be or are impeding the states.
     
  6. rickjames

    rickjames Hard Work! Dedication! Supporter

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    Thanks for the detailed reply.
    After reading this and if the funds go where they are supposed to, not obamas jet fuel for vacations, I have to agree.
     
  7. BLCKWLF

    BLCKWLF GrassHopper

    As a small business owner I object. Little known fact is that in order to engage In the retail business you must pay money for a tax license, this license allows us to pay the sales tax, we have the option to pass this cost to our customers. However we still have to pay for the licenses, and some of which aren't exactly cheap, some are yearly fees, there is book keeping and logs that must be kept, postage and mailing fees, late fees, fees for fees. It is more work for the small business owners and is unnecessary burden on society. Government needs more money then they need to stop spending it on crap!!!
     
  8. rickjames

    rickjames Hard Work! Dedication! Supporter

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    I feel for you then. I will make sure to take a different route in choosing my long term career.
     
  9. BLCKWLF

    BLCKWLF GrassHopper

    The retail job sector is a tough one. Sometimes I wonder why I even decided to open my own business, it is an uphill battle. But that one email I get, telling me that they love the product I sold them and the information I provided, makes it all worth it.
     
  10. iGlock

    iGlock Lead Farmer

    I heard it was going to effect some states but not all.
     
  11. Correct, iGlock, not all states are making Amazon collect state taxes. Eventually it'll happen for all states that charge a sales tax most likely.

    Also with jonm61 on this. I really don't mind paying state sales tax for online purchases. It keeps the roads paved and cleared (pruning trees and cutting grass to keep the roadways clear, or plowing snow, or picking up road kill), and state police on patrol. The one thing that repeatedly jumps to mind is why did it take states upwards of 25 years to catch up to online shopping - they lost a lot of tax dollars through their inability to adapt until now.

    I do feel for vendors if this adds expense to their doing business, but vendors also benefit from having roads in good order and police on call.
     
  12. Danzig

    Danzig I do hood rat sh%t! Supporter

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    Because they didn't build their business.
     
  13. BLCKWLF

    BLCKWLF GrassHopper

    Mmmmhmmmmm....

    image-4260348052.jpg
     
  14. jonm61

    jonm61 New Member

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    I would imagine, in short order, there will be tax software, that comes with regular updates, for businesses to use when this happens. It will be an initial expense, and possibly an annual update fee, but it will make it a lot easier than what I did, working for a mail order company, in the early 90's. We had to sort, by hand, every order sent within the state, broken down by county, and then I had to calculate the tax for each. We didn't charge sales tax, so I had to break it out of each order. Just me, my pen and my calculator. Ugh.