Small companies who want to sell their products online are in real trouble. Some Republican governors, eager to enrich their thinning state coffers, are endorsing a tax that would be imposed on products sold online.According to the National Conference of State Legislatures Strapped, states could reap as much as $23 billion in new annual revenue.
New
Jersey Gov. Chris Christie recently agreed to allow Amazon to collect
sales taxes on his state's online purchases if they located distribution
facilities there. He called taxation of online sales "an important
issue to all the nation's governors" and endorsed federal legislation
that would allow states to tax online purchases.
8 comments:
nickel and dime'n us to death.
Notice it's REPUBLICAN governors looking to do this.
So if we have a DE address and DE does not have a sales tax - we can buy online and not pay 'host-state' taxes?
Why can't they just leave well enough alone - I swear can't do anything without being taxed to death.
And how much more bureaucracy will be involved in collecting and distributing this new revenue source? Sounds like it will produce a load of "jobs" that have no real productive capacity.
Why would it not be taxed? Sales tax is sales tax, why would you let a loophole this big exist? I feel that the tax should be collected in the state the product is sold from. Just my opinion. Joe can not fix Salisbury without the funds to do it.
Like everything else no body has to buy anything, even if it's over priced and over taxed.
These taxes already exist. State sales tax is supposed to be paid on all online sales. Online companies are not required to collect the sales tax online unless they have sufficient minimal conducts with the state. The case law on this issue deals with old mail order catalogs. As a result of the internet boom, local businesses have suffered as it is cheaper to buy online. Government has suffered from the reduced tax. If you read sales and use tax law, any item bought in another state that is principally to be used in another state is subject to tax of that state. It is why if you live in MD, and buy a car in DE, they charge you MD sales tax.
It is too onerous to require individuals to report their own online purchases for taxing purposes, and it is likewise too onerous to enforce the rules. States have been trying for years to get amazon and other online giants to help them collect the taxes rightfully owed to them. For a good discussion on this issue look up articles written by Professor Andy Haile.
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