Internet sales tax

[vladimir]

I thought we'd completely exhausted the topic of internet sales vs local dive shops. Today's Wall Street Journal raised a good point that I think has been largely left out of our discussions:

In that case, cheer on New York and Texas as they chip away at the popular but grossly unfair advantage enjoyed by the Amazon.coms of the world. Online retailers don't have to collect sales tax on the items they sell if they're "out of state" companies.

Now, chances are you've ordered a tax-free book or two from Amazon, and enjoyed the experience. No one likes paying taxes. But this particular tax break is an especially pernicious one.

For starters, by giving online businesses a permanent advantage over their bricks-and-mortar competitors, it helps those who need it least -- huge, profitable e-commerce companies -- at the expense of often-struggling local retailers.

Here's the full article, for subscribers:

Portals - WSJ.com

 

[shotthebreeze]

LDSs keep getting beaten over the head...it's really something else...

My LDS includes tax in his marked down prices, so it's not so noticeable.

 

[Papa_Bear]

If you don't like it wait the Dumocrats will be passing bills like in L.A. to tax you on the internet! It doesn't mean you don't owe it! Your required to pay sales tax/use tax on out of state purchases on the honor system! In California you can report it on your income tax return and pay your use tax! But I see in the future it will be all taxed, because too many Dumocrats feel it is an untapped source of income to spend buying votes! After all it will be "For the sake of the children" or "The environment"!

 

[Jeff Toorish]

By the same token, most Internet sales require a shipping fee. (Notice I said most.) The internet shipping fee and local retailer sales tax are often a wash --especially if you need something relatively quickly.

Those who intentionally misspell the names of political parties notwithstanding, I hope we never tax the Internet. But the reality is, it is a huge untapped revenue source and it is very unlikely Internet sales will remain untaxed for much longer.

The only reason Internet sales have thus far remained mostly immune from sales taxes is because we do not have a national sales or value added tax in the US. Congress --both parties actually --have protected online sales from state taxes. You can bet if the federal government had a sales tax, online sales would be getting whacked.

Just look at the the federal taxes on airline tickets and phone bills --much of those increases came during time of Republican control of government.

Jeff

 

[vladimir]

If you don't like it wait the Dumocrats will be passing bills like in L.A. to tax you on the internet! It doesn't mean you don't owe it! Your required to pay sales tax/use tax on out of state purchases on the honor system! In California you can report it on your income tax return and pay your use tax! But I see in the future it will be all taxed, because too many Dumocrats feel it is an untapped source of income to spend buying votes! After all it will be "For the sake of the children" or "The environment"!

As usual, this is mostly irrelevant nonsense! The article is talking about the collection of existing state sales taxes! Taxes that an LDS must collect and LeisurePro generally does not! Not some imaginary tax in the future!

 

[shoturtle]

Vladimir

Good article. Sales taxes make up a large source of the some states revenue. So it up to the states to decide on high income tax, property tax, or sales tax to generate the their revenue. The states that generally do well during hard times are the ones that go the property tax route, as it is least affected by peoples and companies spending.

The Federal government should stay out of interstate commerce, and let the states settle it with the companies. If the states want the federal government to get involved, they we might as well have a Vat or national sales tax and do away with thousands of individual state, local and city sales taxes. And the local government should get a shear of the national sales tax.

Until that happens, I think I will take advantage of the free tax holiday. The post office and other shipping companies reaping the reward of the internet sales. I am not 100% sure about the ups, dhl and fedex but I think that there are taxes included in the shipping price. With the US postal the federal gov is getting some money form postage charged. There are way to many hiding taxes that are paid without our knowing about them.

So Taxes and Death are the only constance in life, and the Tax system is way to complicated to figure out with just one article. So let what may come, come and until then I will go pay my nys 8.65% when I go to LP, and when I find a better deal online, I will get to enjoy the tax holiday and free shipping for spending over 50-100 bucks.

 

[Thalassamania]

PB already got his education, subsidized I might add by the good people of the Great State of California.

I'm sorry that they wasted their money, since he neither learned to spell or punctuate. He clearly feels that people coming along now should not enjoy the same benefit that he received, but squandered.

 

[El Orans]

Amazon.co.uk does add VAT for its European customers.

 

[vladimir]

Amazon.co.uk does add VAT for its European customers.

A NY law being challenged by Amazon in the courts requires them to collect NY taxes on sales to NY residents. That's what provoked the article. One of the early arguments against the law was that it would be difficult to implement. The fact that Amazon can add VAT, as well as calculate shipping to any zip code, effectively undermines that argument.

 

[Garrobo]

This forum has got to be at the top of the list when it comes to the practice "killing the mesenger". So many times I have seen where some responds to a post he disagrees with by ridiculing the poster's intelligence instead of stating an meaningful response.