Tax-free Internet shopping may be at an end

CNET News ^ | April 15, 2009 | Declan McCullagh

[Comparative Advantage]

If a little-known but influential alliance of state politicians, large retailers, and tax collectors have their way, the days of tax-free Internet shopping may be nearly over.

A bill expected to be introduced in the U.S. Congress as early as Monday would rewrite the ground rules for mail order and Internet sales by eliminating what its supporters view as a "loophole" that, in many cases, allows Americans to shop over the Internet without paying sales taxes.

Currently, Americans who shop over the Internet from out-of-state vendors aren't always required to pay sales taxes at the time of purchase. Californians buying books from Amazon.com or cameras from Manhattan's B&H Photo, for example, won't pay sales taxes at checkout time that they would if shopping at a local mall.

"We will have the bill ready for introduction by next Monday," said Neal Osten of the National Conference of State Legislatures. "We finalized the language and now we're working out the remaining issues and adding some new provisions at the request of various stakeholders."

This is hardly a new debate: pro-tax officials and state governments have been pressing Congress to enact such a law for at least seven years. They argue that reduced sales tax revenue threatens budgets for schools and police, and say that, as a matter of fairness, online retailers should be forced to collect the same taxes that brick-and-mortar retailers do.

[Comparative Advantage]

I'll be contacting my congressmen about this on Monday. These creeps need to stay out of my wallet.

[elkfersupper]

Then I won't be buying anything.

Nice way to end a recession, a@@holes.

[hunter112]

Go ahead, Demoweenie asshats, make our day...

[troy McClure]

No Problem I will just relocate my Domain to TJ and then the sales will be international and not subject to any state sales tax.

[clintonh8r]

Well, I still won’t shop at the local Borders or Barnes and Noble....I don’t buy books that have been pre-read by latte-sipping freeloaders.

[pepperdog]

Big surprise, not! Any way they can think of to tax us they will. Exhaling will probably be the next thing, global warming you know.

[ColdWater]

Not to worry. Obama pledged that he would not raise taxes on anyone making < 250k.

[mowowie]

Get ready for the fingernail growth tax.

[ken21]

democrats always raise taxes.

this is destructive—sales taxes + shipping will make the net uncompetitive.

[RocketMan1]

“We’ve got tax, eggs, bacon and tax. Tax, tax, tax, eggs and tax. Bacon, tax, tax, tax, tax, ham, tax, tax, eggs and tax ..”

“Tax, tax, tax, tax, tax, tax, tax, tax, taxity-tax..!”

“But I don’t like tax!”

[4Speed]

Obama and Congress found a NEW WAY to shut down Economic Growth ?

Such Resourcefulness.....Tax it and it will shrink and make the Govt. look for more ways to Tax Americans, and the Economy shrinks even more.

Harvard Grads are Dumasses...

[hinckley buzzard]

Then I won't be buying anything. Nice way to end a recession, a@@holes

Indeed. This initiative was long in coming but it reveals the totally depraved nature of goobermint today. These turds, from Obama down to the county commish, ought to be celebrating and endorsing the new frontier of the internet but instead seek to drag it down into the cesspool they have created already.

My solution is to turn the tables--buy as little as possible, and when possible buy locally for cash or barter. They can ignore the tea-parties, but if we all practiced austerity for awhile, it would send a message they cannot ignore.

[PhiKapMom]

Harvard Grads are Dumasses...

I will second that statement. I bought almost all of Christmas from Amazon.com -- no taxes, no crowds, and no shipping fees as I have prime.

[exist]

Then I won't be buying anything. Nice way to end a recession, a@@holes.

Good timing...

[paul51]

democrats always raise taxes. this is destructive—sales taxes + shipping will make the net uncompetitive.

You are right. This will require a fee to be added on to brick and motar store sales so everything is fair.

[Ouderkirk]

The Rats who run NY have inserted a line on my personal income tax for for me to pay sales tax on anything I purchased out of state in the flesh or on the internet.

I routinely put that number as zero.

I spend thousands either on the internet or in Delaware. Cigarettes on the Indian Reservations. Your 8.25% sales tax is more than the cost of shipping.

Hey Governor Patterson and Speaker Sheldon Silver...screw you. You’ll never get a dime of it.

[Gator113]

When it ends, my web shopping will also end.

I refuse to pay these bastards one more dime that doesn’t go toward survival, period.

If they are going to make us live as if we are in a depression, we might as well quit buying anything and force everything to crash. Only then... will we have a chance to rebuild.

[Ezekiel]

They argue that reduced sales tax revenue threatens budgets for schools and police

When theses folks cry about an obesity epidemic, they are merely projecting. "Pro-tax officials" are the out-of-control government gluttons that are burdening society en masse. At least the folks scarfing down junk food are helping to keep employment up at the Dorito factory.

How about these useless feeders go on a diet. Talk about excessive consumption disorder.

[savedbygrace]

How could such a scheme possibly pass Constitutional muster?

[Dr. Scarpetta]

I bought almost all of Christmas from Amazon.com -- no taxes, no crowds, and no shipping fees as I have prime.

I buy from Amazon too and usually don't pay shipping if the bill is $25 or more. What is prime?

[LostInBayport]

Big surprise, not! Any way they can think of to tax us they will. Exhaling will probably be the next thing, global warming you know.

As I read this story, I was hearing the Beatles singing about the Taxman...

They intended sarcasm (I think) but it's coming true...

[PhiKapMom]

I paid for Prime Shipping two years ago expecting to have to renew it every year but was only charged the first year. It is 2-day shipping for free on most items.

[Vigilanteman]

Even the tax grabbers here in Pennsylvania have figured out one of the few reasons shoppers flock to this state is to buy clothing because it is sales tax exempt. A number of great clothing outlets and even clothing manufacturers who locate in this state because of the favorable tax treatment. The state makes a lot more taxing the profits and payrolls than they would taxing the clothing.

But the same tax grabbing nimrods can't make the same connnection with other industries which they are taxing out of business or encouraging them to leave the state.

[Dr. Scarpetta]

Just wondering if you ever buy the used books at Amazon. I’ve been thinking about trying it.

[elpinta]

I can see merchants starting to sell for cash and forgetting to report it... and us buying ‘less-tax’...
I lived in such a place, and it works real well.
It was a socialized cesspool, still is, but the ‘leaders’ still manage to milk the people somehow.
FUtaxman!

[Redbob]

"This will require a fee to be added on to brick and motar store sales so everything is fair."

You don't think the brick/mortar store owners will figure this out?

Prices will go up for everyone, when the "brickies" figure out they can charge more and still be competitive with mail order.

Meanwhile, outfits like Amazon brought this on themselves by blatantly flaunting the law: they have regional warehouses throughout the country from which they ship, but pretend they don't need to collect taxes for sales in the states where they're located.

[max americana]

In a way, the more you read at BN, the more you hurt the sales at the store because u don’t buy anything. BN are run by avid libs anyway, and you are just practicing what THEY preach. Capitalism is baaaaad..

[kempo]

I can see thousands offs layoffs at UPS and FedEx in the making. Economy goes down further. These people are not smart.

[Redbob]

"I can see merchants starting to sell for cash and forgetting to report it..."

Where ya been, el?

Merchants have been doing this as long as there have been taxes.

[theymakemesick]

This can’t be true, 0bama said taxes won’t go up.

[AZLiberty]

Not to worry. Obama pledged that he would not raise taxes on anyone making < 250k.

Send a copy of your 1040 to Amazon, and demand an exemption.

[elpinta]

Yes, a lot of merchants have, but is not wide-spread, not to the larger stores.
THIS little event we are discussing could make it REALLY popular.
I did retail for a while, I know how it works... ;-)

[Dr. Scarpetta]

You’re right about people coming to shop here in PA for clothes because there’s no tax.

Whenever I go shopping at the Crossings Outlets near Stroudsburg, PA, I always see busses from NY. The parking lot is usually full of cars with NY plates too.

http://www.premiumoutlets.com/outlets/outlet.asp?id=59

[angkor]

>>>> My solution is to turn the tables—buy as little as possible, and when possible buy locally for cash or barter. <<<<

If/when they add state sales taxes to online purchases, I’ll stop buying online.

Simple.

[AZLiberty]

I buy used books all the time through, not from Amazon. The sellers of used books are independent booksellers who sell through Amazon. I've bought books for as little as one cent -- plus $3.99 shipping -- and have almost never been disappointed. Once I got the wrong book but the seller -- figuring he sent my book as the wrong book to someone else -- just refunded the purchase price plus shipping.

Used books are not covered by the $25 rule or by Amazon Prime. You always pay shipping, but it's pretty reasonable.

[GlennBeck08]

When will it end?

[giotto]

There’s no way you could get me into a Barnes and Noble. Every time I’ve been to one of our local B&Ns, the attitude of the clerks was incredibly obnoxious. Of course, it didn’t help that I was asking about books by Ann Coulter, Mark Levin, etc.

[UCANSEE2]

They argue that reduced sales tax revenue threatens budgets for schools and police Caribbean cruises and Limos.

[Blood of Tyrants]

That is the Rat way. Spend more money than ever and raise taxes.

[Moonman62]

Meanwhile, outfits like Amazon brought this on themselves by blatantly flaunting the law:

The last I heard, Amazon actually supports an internet sales tax.

[UCANSEE2]

I can see thousands offs layoffs at UPS and FedEx in the making.

Too late. It has already happened.

[giotto]

Warehouses are not the same as retail outlets. Whether you keep your inventory in your bedroom closet or in a rented warehouse, it’s just stock. It becomes a store when you have walk-in traffic and a cash register.

[sickoflibs]

The Peter Schiff/Redistribution Watch Ping. (Washington Bankrupting our Nation by Spending your past, present and future money!)

Remember no one 250K would see their taxes raised? This tax would allow YOUR high tax state to rip you off for a product from another state, they contributed NOTHING too.

[Proud2BeRight]

You got it. Obama signs it and it is another lie.

[webschooner]

>> No Problem I will just relocate my Domain to TJ and then the sales will be international and not subject to any state sales tax.

What’s TJ?

[webschooner]

Try Half.com for used books.

[ladyvet]

I also buy plenty of used books through Amazon. Just check shipping and handling charges to make sure your getting a good deal. I was only burned once and Amazon took care of it.

[webschooner]

We are so screwed.

[Fred]

creates an underground economy were cash is used for purchases.

[Mikey]



"The politicians don't just want your money. They want your soul. They want you to be worn down by taxes until you are dependent and helpless. When you subsidize poverty and failure, you get more of both."

James Dale Davidson

"Anyone may so arrange his affairs so that his taxes shall be as low as possible. He is not bound to choose that pattern which best pays the treasury. There is not even a patriotic duty to increase one's taxes."

Judge Learned Hand

“...every tax or rate, forcibly taken from an unwilling person, is immoral and oppressive.”

Auberon Herbert

"Once Confucius was walking on the mountains and he came across a woman weeping by a grave. He asked the woman what here sorrow was, and she replied, "We are a family of hunters. My father was eaten by a tiger. My husband was bitten by a tiger and died. And now my only son!" "Why don't you move down and live in the valley? Why do you continue to live up here?" asked Confucius. And the woman replied, "But sir, there are no tax collectors here!" Confucius added to his disciples, "You see, a bad government is more to be feared than tigers."

Lin Yutang

"The taxpayer -- that's someone who works for the federal government but doesn't have to take the civil service examination."

Ronald Reagan

"The collection of any taxes which are not absolutely required, which do not beyond reasonable doubt contribute to the public welfare, is only a species of legalized larceny. Under this republic the rewards of industry belong to those who earn them. The only constitutional tax is the tax which ministers to public necessity. The property of the country belongs to the people of the country. Their title is absolute. They do not support any privileged class; they do not need to maintain great military forces; they ought not to be burdened with a great array of public employees. They are not required to make any contribution to Government expenditures except that which they voluntarily assess upon themselves through the action of their own representatives. Whenever taxes become burdensome a remedy can be applied by the people; but if they do not act for themselves, no one can be very successful in acting for them."

Calvin Coolidge, Inaugural address, March 4, 1925

"The power to tax is the power to destroy."

Daniel Webster (1782–1852)