Um, a VAT is so much different than individual State income taxes based on individual purchases. It's a horse of an entirely different color and to compage the two is absolute utter nonsense.
Bush Bites
· 10 months ago
I agree that it's going to be difficult, but disagree that it shouldn't be tackled.
Let's face it, online purchasing is still just a sliver of what it will be in 5, 10 years or more, and it's time the various taxing authorities got a handle on it.
It's not going away and it's only going to keep becoming a bigger percentage of overall purchases.
Bush Bites
· 10 months ago
And, as the article points out, it's also unfair to brick-and-mortar stores when online stores get out of collecting sales taxes.
existenz
· 10 months ago
Don't many sites already charge sales tax? When i order from Amazon, MacMall, buy.com they already charge CA sales tax, even though the product is often shipped from out of state.
I don't really see this as the nightmare you make it out to be. Part of running a business is charging sales tax. How hard can it be to write a program incorporating each state's sales tax into it? They already calculate shipping for UPS, USPS, Fed Ex all depending on where you live, etc.
Bush Bites
· 10 months ago
Yeah, you're right.
They're probably just saying it's hard because they don't want to do it.
(I never believed e-commerce needed the tax-free feature to grow anyway.)
Bush Bites
· 10 months ago
Ha!
I bet they didn't factor in taxes on porn sales.
R. Warren Gill III
· 10 months ago
I have moved a few times, and other states are already do what NY or requiring. Just a month ago, I ordered from Dell.com -- I was originally going to have the items shipped to California, but my travel plans changed for the holidays and I had to change the shipment to New Jersey. This changed the tax rate.
Also, when I worked in retail, whenever we would ship something to another state, we had to charge that state's sales tax. We had the various states sales tax right next to each registered.
Nothing new...many companies are already set up for it. No problem at all.
Griffon
· 10 months ago
I fully believe a tax moratorium should be declared until the government can account for the taxes already expended; specifically, the bailout billions and the missing account ledger on Iraq. As with any run-of-the-mill corporate practice, the expenses need to be justified first before the expense account is approved.
Receipts. The IRS demands them, why not the taxpayer in return?
Nick
· 10 months ago
Go ahead and tax it. Gives more people a reason to steal.
Indigo
· 10 months ago
Taxation is inevitable.
paulbot5
· 10 months ago
Inflation is a tax, work on ending that while your at it
johnbpt
· 10 months ago
What's the problem? Only the rich deserve tax breaks.
KLG
· 10 months ago
If Amazon has a physical presence in the state to which a shipment is sent, you get charged sales tax. If not, it's up to you to report it on your tax return and pay it. Uh huh.
leo
· 10 months ago
I think this is only fair. The timing might not be great but the business that's decided to set up shop in the neighborhood ought not to be at a disadvantage with a business that sells its wares online -- because of sales tax!
10 years ago we were all warned that the 'Net was so new, such a tax might tank the whole thing. I think we've matured a bit in our analyses since then.
tas
· 10 months ago
It will be a real clusterfuck and will cause prices on the net to rise dramatically. retailers and other sellers will have to purchase expensive programs to take care of it and tax reporting will be an expensive nightmare for retailers. ebay will go fing nuts. so will craigs list, all those auctions, etc. may as well track credit card sales. Oh, forgot. they do.
Gary SF
· 10 months ago
I don't have a problem with this. And the expense of gearing up for this is tax deductible for businesses. But if it is only going to net $3 billion, forget about it. That won't make a dent in the budgets of big states, like California.
MommaKat
· 10 months ago
People shop online for a variety of reasons, but usually price is at the top of the list. I've been buying online for over a decade, and almost every venue that previously sold to me without tax no longer does so, and hasn't for awhile. What they're talking about in this article is a horse of a different color, though, and will lead to huge increases in online pricing. When that happens, I'm out, and so are many others. The net gain from this online sales tax won't be even close to that reported or expected, and it will have a negative impact on online retail.
Bush Bites
· 10 months ago
I don't know.
Frankly, everybody I know who shops on line does it for convenience, and not price.
Maybe we're in the minority, but I doubt it.
Do you have a survey to back up your assertion?
Gary SF
· 10 months ago
Number 1 for me is price. Playing tag with the delivery people is not my ideal of fun.
Luke
· 10 months ago
I'm a big buyer of books. If my local friendly bookstore suddenly came within reach of the low prices I pay at Amazon, I'd probably shop more locally. That's not a bad thing. Overall I'd spend less too on luxury items (which is mostly - not entirely - what I buy online, really).
My gut reaction is as negative as anyone here, but rationally it's not so bad.
foxy
· 10 months ago
Some states are already doing this. For example, Washington State.
Chris From Maine
· 10 months ago
worst idea ever.
Charel
· 10 months ago
VAT is charged in Europe at the rate applicable to the country where the sale is made. There is therefor no reason for the seller to keep track of the rates charged in any other country. VAT on sales outside the Union are not charged or are refundable. VAT is so engrained that it is not an issue. When you buy, you pay.
James K. Sayre
· 10 months ago
Sales taxes on items purchased on the Internet? Sounds like an excellent idea to me. Those shoppers who have computers and internet connections are surely not the poorest of the poor. We've all had a free ride shopping on the Internet for the last several years. The absurd comments that sales taxes would be "too compliciated?" Gee, we have computers now, that can add and subtract and even mutiply and divide... quickly and accurately, no problemo...
First, Obama should rescind the Bush taxes cuts for the rich.
Mike_in_the_Tundra
· 10 months ago
Even the poor have access to computers. Have you been to a public library lately?
BobW
· 10 months ago
Yes, that's where 'the poor' purchase their new hybrids and designer clothing - all you need to buy anything is a computer! Technology sure is wonderful.
reflux1000
· 10 months ago
All Sales taxes should be gotten rid of.When they force sales tax onto the Internet it will kill online business.Also how many states will get taxes from each purchase will a business have to pay tax in the state they reside and pay taxes to the state of the buyer and if they have computers in several states will each state demand taxes on each purchase of any item sold to prevent those state from missing out on a piece of the pie just because the "Headquarters" is in another state but the business has workers with computers in their State's handling sales and shipping to the home state of the Buyer.
timncguy
· 10 months ago
All the brick and mortar companies with an online presence already charge sales tax if they have a physical location in the state where the item is to be shipped. So, expecting the companies without a physical location to give up their "special interest loophole" is not unreasonable. Why should "online only" retailers be assigned special status which gives them a price advantage over their competitors?
Peter LiBoissonnault
· 10 months ago
Thanks, Chris and John...you finally got me to do what I've considered doing for several months....to stop reading AmericaBlog. John's support of large corporatists and his anti-community opinions are more than I can support. When I want the right wing opinions, I can turn to my family. If you change and start supporting local businesses and realize that taxes stimulate, not hurt the economy, feel free to send me an email and I'll look at AmericaBlog again.
Gilda92
· 10 months ago
What is it with Americans and taxes? Taxes are what pay for all those things you'd like your country to provide you with. For example, universal health care, which you so badly need! Here in the cold and snowy north (otherwise known as Canada) we have both Provincial and Federal taxes as applicable added to many purchases. Oh sure. People bitch and snort about it here too. But, it works! So shut up and eat your porridge.
The way this is written it is absurd. If you use Google or any banner ads you pay sales tax. If you do not advertise or maybe advertise by radio or tv , then you don't? Just absurd. Google will not stand for this.
Skipster
· 10 months ago
Chris is dead wrong on this. 1st the facts: The Federal Bill is not a tax bill; it is an act for the Congress to ratify a Compact among the States-the Sales Tax Fairness and Simplification Act sponsored by Sen Mike Enzi(R-WY) and Rep. Bill Delahunt(D-MA). It is supported by many businesses, unions, and the National Conference of State Legislators(NCSL). 45 States and DC levy sales taxes, and purchasers of covered items are obligated to pay them. At Bricks and Mortar stores, the vendor is obligated to collect the tax; also on internet sales to residents as the same state as the store, OR WHERE IT HAS A PHSYICAL PRESENCE. Until now there has not been an obligation for an out of state vendor to collect and remit to the state. This would change that and create an obligation, simplify the definitions of covered items (i.e.- Is a Twinkie an exempt food item or not?); exempt Mom & Pops, and generate more than $30 billion (in 2008) in new revenue to the States and local govt's from the uncollected tax obligations. It would also end an unfair advantage internet vendors have over local stores.. For the libertarians that complain, the next time your house is on fire, please just text your "virtual fire department" to come put it out.
All Comments
Let's face it, online purchasing is still just a sliver of what it will be in 5, 10 years or more, and it's time the various taxing authorities got a handle on it.
It's not going away and it's only going to keep becoming a bigger percentage of overall purchases.
I don't really see this as the nightmare you make it out to be. Part of running a business is charging sales tax. How hard can it be to write a program incorporating each state's sales tax into it? They already calculate shipping for UPS, USPS, Fed Ex all depending on where you live, etc.
They're probably just saying it's hard because they don't want to do it.
(I never believed e-commerce needed the tax-free feature to grow anyway.)
I bet they didn't factor in taxes on porn sales.
Also, when I worked in retail, whenever we would ship something to another state, we had to charge that state's sales tax. We had the various states sales tax right next to each registered.
Nothing new...many companies are already set up for it. No problem at all.
Receipts. The IRS demands them, why not the taxpayer in return?
Gives more people a reason to steal.
10 years ago we were all warned that the 'Net was so new, such a tax might tank the whole thing. I think we've matured a bit in our analyses since then.
Frankly, everybody I know who shops on line does it for convenience, and not price.
Maybe we're in the minority, but I doubt it.
Do you have a survey to back up your assertion?
My gut reaction is as negative as anyone here, but rationally it's not so bad.
VAT is so engrained that it is not an issue. When you buy, you pay.
First, Obama should rescind the Bush taxes cuts for the rich.
If you change and start supporting local businesses and realize that taxes stimulate, not hurt the economy, feel free to send me an email and I'll look at AmericaBlog again.
The way this is written it is absurd. If you use Google or any banner ads you pay sales tax. If you do not advertise or maybe advertise by radio or tv , then you don't? Just absurd. Google will not stand for this.