Stimulus for Tax Collectors -- Internet consumers beware

Wall Street Journal ^ | January 15, 2009

[Zakeet]

America's state and local governments have a new proposal for the Obama stimulus plan: Slip in an Internet sales tax. The National Conference of State Legislatures estimates that states could wring another $30 billion out of consumers if Washington will allow them to force out-of-state Web merchants to collect sales taxes.

NCSL leads a coalition asking Congress to authorize 7,500 tax collectors to reach outside their borders to force companies to comply. States and localities have met with bipartisan opposition every time they've tried to sell the plan to Congress in the past, but their hope is that this time their fiscal distress will cause Congress to relent and let them soak the Web. They need Congress to pass a law overturning the 1992 Supreme Court's Quill decision. And Congress may be willing, perhaps to reduce the $200 billion in bailout cash it is otherwise planning to include in the stimulus.

[Zakeet]

The question: How targeting can consumers for higher tax collections possibly encourage consumer spending, which is ostensibly the point of the bill.

The answer: Have Rat-Lib's ever shown they have even one ounce of intelligence?

[Red in Blue PA]

People will simply spend less, but these fools do not see it.

[USCG SimTech]

No it won’t... People will stop buying from the internet and the .COMs will dry up...jobs lost...orders from MFRs slow... more jobs lost.

Tax the people in one domain and they will move on to another. It’s called shopping.

[j. earl carter]

This might be really good for Canadian retailers.

[stubernx98]

Yeah, but they will get their cut. From 0 to 8% of something. What is worse is the paperwork nightmare for the Internet sellers to file reports for every state and send checks.

[Alberta's Child]

I suspect this (taxation if internet sales) is seen not just as a revenue-producing measure but as a desperate attempt to keep large segments of the commercial real estate market from collapsing.

[bamahead]

America's state and local governments have a new proposal for the Obama stimulus plan:Slip in an Internet sales tax.



Libertarian ping! Click here to get added or here to be removed or post a message here!

[Dr. Sivana]

Well, there is one answer for all of the non-tangible Internet sales.

Set up a private mailbox in the no sales tax state of your choice (Alaska, New Hampshire). Have that be the billing address for your credit card.

Buy your stuff off of that account (e.g. software).

[Clinging Bitterly]

I have begun to sort of like buying online for various reasons - even store will-call orders save time & money.

Over Christmas I purchased several gifts online, earlier in the fall a couple of notebook computers, and I just finished installing a new garbage disposal I bought that way yesterday (saved $18 and maybe 2 or 3 hours of my time). It's great being able to research (and especially look at reviews and problems folks have with a product) without having to drive all over the place.

But, if the government decides it is going to take a cut, I'm out.

[radiohead]

But, if the government decides it is going to take a cut, I'm out.

Don't you have a sales tax where you live? Although I hate the idea of internet taxation with the heat of 1000 suns, and I actually get to rail against it in class (shoot, if the lib professors can propagandize in their classes, why can't I in mine?), but why would I stop purchasing online when I'm gonna get taxed if I go to my local mall to shop? I love shopping online; they'd have to make the tax 20% before I'd stop buying online.

[Clinging Bitterly]

No sales tax in Oregon. Local governments could impose one but very few do because it's almost universally unpopular here. We do have much higher than average income taxes and somewhat higher than average property taxes. Every couple years a “revenue neutral” proposal for a sales tax comes up but there remains a healthy sense of distrust and countless times those ideas have gone down the tubes.

Still, governments here will attempt to tax anything they can and a favorite method is to impose a tax that would be paid by some minority of folks, hoping for the favor of the majority who would not be subject to it. An internet transaction tax would have a big bullseye on it if it were allowed.

[SunkenCiv]

America's state and local governments have a new proposal for the Obama stimulus plan: Slip in an Internet sales tax. The National Conference of State Legislatures estimates that states could wring another $30 billion out of consumers if Washington will allow them to force out-of-state Web merchants to collect sales taxes.

Not having a sales tax on internet purchases is an obvious disadvantage to local merchants who do have to charge sales tax -- and putting a sales tax on internet purchases would give an advantage to web retailers outside US borders.

[gogogodzilla]

Works for tangible goods too. Just have the mailing address different than that billing address.

[traviskicks]

blech! lol, nice article

[july4thfreedomfoundation]

The level playing field is this.....

On the Internet, you have to pay shipping.

In person, you have to pay a sales tax.

Local merchants assume you will buy from them. Well, I live in a rural area, and 99% of what I buy is not available from local merchants. People who buy antiques and collectibles on eBay can attest to this fact.