Topic: Senate passes internet sales tax bill (Read 1632 times)

In my county there are seven "Special Purpose Districts" which impose their own sales and use tax in addition to state, city, transit, and county taxes.

THis is something we (my business partner and I) were following closely, because we knew Amazon wanted to do same-day delivery, and we were hoping to network their spread-out distribution hubs/warehouses with high speed (350mph+) automated MAGLEV delivery tracks. This way, they could still have only a few distribution/warehouse centers around the country, but could deliver packages to specific pick-up hubs around the country automatically, and hopefully cheaply. Since they decided to go with the "A warehouse in every state, and near every large city" approach, we were all  and 

I stopped shopping at Walmart a long time ago.  If Amazon is gonna play dirty and be the new e-Walmart, they can rot in hell, too.  Sides, they still owe me some $1 red-blue 3D glasses that I never received.  I will not stand for this!

So, we stop shopping at Walmart and Amazon.

blerg.  I should have known.  Amazon lost their tax fight in VA last year.  Still I think this year passage is unlikely.  If it was an intrade bet with even money I would bet against it.  Now looking out over the next 5 to 10 years ... well the prospects of keeping it at bay are looking more dim.

Not any more...

Amazon has been fighting collection of state sales taxes in states where it doesn't have a physical presence so expect them to lobby hard against this.  The good news is that although it is incorrect (and as pointed out above it isn't a new tax) most people will perceive it as a new tax.  The speaker of the house has indicated not supporting it.  Combine big internet companies being against it, the speaker not supporting it, and "new taxes" it likely will die ... this year.  Sadly I feel it is only a matter of time.

If it passes ... yes however it is most like 237 tax jurisdictions. Don't forget taxes depend not just on the state but the city/county as well.

On edit:
Actually I was wrong there are 11,000 distinct taxing jurisdictions in the US however many have opted to not assert that authority (for example in VA all county/city sales taxes are 1%) so there are "only" 237 different tax rates in the country.   However that could change at anytime, a city/county in VA feeling budget shortfall could opt to raise sales tax from 1% to 1.5%.  It gets worse when you consider that some states tax different products at different rates and some exempt some types of products.  Of course there is no standardization.  One state might tax food at a lower rate, while another might tax all sales the same, while another might exempt medicine and food, and still another only exempt some types of food, and yet another tax food at a lower rate and exempt medicine. 

The number of permutations is utterly mindboggling which is why the moratorium passed to begin with.  The "idea" was that states could work together to consolidate and reduce the tax collection burden (imagine 27 states opted for the same rate and exemptions).  Somehow that has changed to ... we won't make it any easier (so same problem still exists) we will just burden small businesses with it.

If it didn't make sense 15 years ago it doesn't make sense today.

Primarily because Amazon and company were against it. Now that they're big enough, and have locations in enough places that they're already doing most of the work the bill would require, they're all for it.

The better to keep out any small competition.

Once this gets to the House vote it will probably be DOA, which is the general feeling. They have tried pushing through this crap for 15 years, and have failed for 15 years to implement it.

A couple more nice wars? Get's that military complex really going, maybe to some legistlation in support too.

Along with other things, makes you wonder what they're really trying to do..

I mean, before this new tax, if I was in charge and said to my team of *peoplewhoscreweveryoneelseover* "what can we do next to further destroy peoples jobs and small businesses and get people more in debt slavery?"

I'm sure there'd be a few people yelling "TAX THE INTERWEBZ!"

So.. whats next

I didn't know certain cities and counties had their own sales taxes on top of the "standard" state sales tax

State, county, city (!) It's going to be a nightmare.

50 wouldn't be bad.  There are over 7500 different sales tax jurisdictions in the US.

Big disaster imo.

Federations...

Still, EU also have this in some ways. For certain amount of bussiness to certain country they have to pay VAT...

So... does this mean that an online business that sells stuff, and files taxes to their one state (along with Federal taxes) will now have to keep track of taxes for every sale, and file taxes to all 50 states (minus the few that don't have sales tax)? Tax accountants will be loving this...

...And?

Still has the same effect of quashing small businesses' online presence, and limiting the big boys' (Amazon and Wal-mart) competition.

In fact, a new federal tax would be better than this. Easier to keep track of and implement in the online commerce systems.

Oh FFS.

THIS IS NOT A NEW FEDERAL TAX.

This is allowing states to require out-of-state merchants to collect tax on sales to residents of their states.

This is taxes you're supposed to already be paying, but don't bother to because you don't get caught.

Basically, Congress is using their commerce clause power to reverse National Bellas Hess v. Illinois, which found the states don't have the power to require out-of-state merchants to collect tax.