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States look to Internet taxes to close budget gaps.
FoxNews ^ | Published June 19, 2011 | Associated Press

Posted on 06/20/2011 11:42:54 AM PDT by justlittleoleme

With sales tax revenue slumping more than 30 percent in most states between 2007 and 2010, lawmakers across the country are grasping for ways to collect those unpaid taxes. Retailers and lawmakers in several states have proposed ways to solve the problem, some with more support than others.

Internet retailers cite a 1992 U.S. Supreme Court decision involving catalog sales, Quill Corp. v. North Dakota, which ruled that states could require only companies that had a physical presence within the state to act as tax collector.

Last year, New York enacted a law that said Internet retailers' practice of paying commissions to marketing agents based within the state constituted a presence. Arkansas, Colorado, Illinois, Rhode Island and North Carolina quickly followed with similar laws.

Bills are pending in Arizona, California, Florida, Hawaii, Massachusetts, Minnesota and Pennsylvania. Texas lawmakers passed such a measure, but Gov. Rick Perry vetoed it. Now legislators are trying to resurrect the bill by attaching it to a larger budget measure. The matter is now before a conference committee.

While the U.S. Supreme Court sided with online retailers in its Quill decision, the ruling also said Congress should pass a law standardizing sales tax collection under the Interstate Commerce Clause. Perry, the pro-business and states-rights Texas governor, said in his veto message that a national solution is the only way to settle the issue.

(Excerpt) Read more at foxnews.com ...


TOPICS: Front Page News; Government; News/Current Events
KEYWORDS: amazon; bhotyranny; biggovernment; cultureofcorruption; internet; internettax; liberalfascism; obamalied; taxandspend; taxes; tyranny

1 posted on 06/20/2011 11:43:00 AM PDT by justlittleoleme
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To: justlittleoleme
With sales tax revenue slumping more than 30 percent in most states between 2007 and 2010, lawmakers across the country are grasping for ways to collect those unpaid taxes.

They aren't "unpaid taxes."

They are "unsustainable spending."

2 posted on 06/20/2011 11:44:42 AM PDT by E. Pluribus Unum (If Sarah Palin really was unelectable, state-run media would be begging the GOP to nominate her.)
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To: justlittleoleme

I got a news flash for the states wanting more revenue. QUIT spending more than you take in you idiots!


3 posted on 06/20/2011 11:47:49 AM PDT by Sunshine Sister
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To: justlittleoleme

all this will do is force the companies to base themselves offshore and the money they make will be kept in foreign banks.

brilliant

you tax that which you wish to discourage. smoking. gasoline. business. internet.

brilliant


4 posted on 06/20/2011 11:50:48 AM PDT by sten (fighting tyranny never goes out of style)
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Comment #5 Removed by Moderator

To: justlittleoleme

It is NOT their Money!!Hands OFF.


6 posted on 06/20/2011 11:53:04 AM PDT by Cheetahcat ( November 4 2008 ,A date that will live in Infamy.)
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To: Sunshine Sister

Hey that works!

When I was a child I did childish things like spend more than I should have, more than I could afford. Then I became and adult and stopped overspending! It is so simple, the Feds must be STUPID to not see it....
QUIT spending more than you take in!


7 posted on 06/20/2011 11:56:09 AM PDT by buffyt (Abortion is the ultimate CHILD ABUSE!)
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To: justlittleoleme

“With sales tax revenue slumping more than 30 percent in most states between 2007 and 2010, lawmakers across the country are grasping for ways to collect those unpaid taxes.”

What “unpaid taxes?” Couldn’t it simply be that these states have lost residents, so their current population is not spending as much? That is what is applicable in my state. Or it could be that the cost of goods is increasing so the amount of goods bought is decreasing....

I love it when governments and reporters assume that the behaviour of the citizenry is static.


8 posted on 06/20/2011 11:57:37 AM PDT by CSM (Keeper of the "Dave Ramsey Fan" ping list. FReepmail me if you want your beeber stuned.)
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To: justlittleoleme

I always laugh a little when I see the word “lawmakers”. They are no such thing. They create crime where none used to exist through legislation. These “lawmakers” are nothing but highwaymen keeping a lookout for the less travelled roads used to circumvent the commerce bandits.


9 posted on 06/20/2011 11:58:21 AM PDT by SpaceBar
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To: sten
"you tax that which you wish to discourage. smoking. gasoline. business. internet."

And since they can't get the sort of regulations they want yet, they want to discourage the Internet.

10 posted on 06/20/2011 12:08:01 PM PDT by Rashputin (Obama is insane but kept medicated and on golf courses to hide it)
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To: Sunshine Sister
I got a news flash for the states wanting more revenue. QUIT spending more than you take in you idiots!

That's the only solution. The evil parasite class will not stop until we have either total collapse or revolution.

Government parasites are a cancer on our Republic. They continuously attack and belittle the productive citizens.

The greatest joy about online shopping is that the parasite class can't steal even more of our money.

11 posted on 06/20/2011 12:09:45 PM PDT by sand88 (Sarah Palin announces her run: August 12, 2011 11:10am ET)
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To: sand88

I don’t buy much on the internet but it makes me smile when I buy something from a little company in another state and don’t pay sales tax on it. We had the wicked witch running our revenue dept. She would complain bitterly about us scoff laws not paying our “fair share.”


12 posted on 06/20/2011 12:16:45 PM PDT by Sunshine Sister
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To: E. Pluribus Unum
The Commonwealth of Pennsylvania has two industries which are sales tax exempt and which are thriving: clothing and candy.

Look at some of your junk mail and Sunday newspaper ads and explain why an inordinate number of clothing companies and candy makers have set up shop in Pennsylvania.

Look at our malls near the borders of New York, New Jersey, Maryland, Ohio and West Virginia and explain why there are so many out of state license plates.

The answer is fairly simple: We don't impose an additional sales tax on those products so people not only come and shop here to save money, but the revenue generated by the additional payroll and profits taxes provided by the economic activity generated by their workers more than makes up what we could get by playing "me, too" in imposition of sales tax on these activities.

Funny how that works, isn't it?

13 posted on 06/20/2011 12:25:20 PM PDT by Vigilanteman (Obama: Fake black man. Fake Messiah. Fake American. How many fakes can you fit in one Zer0?)
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To: sten

>all this will do is force the companies to base themselves offshore and the money they make will be kept in foreign banks.<

I’m pro-offshore banking. The gubmint will just use my money for illegals anyway if I leave my money here.


14 posted on 06/20/2011 12:53:25 PM PDT by max americana (.)
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To: max americana

The progressives are also for moving money to banks in other countries...

any mechanism that encourages American wealth getting shipped out of the US is ok by them


15 posted on 06/20/2011 1:18:10 PM PDT by sten (fighting tyranny never goes out of style)
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To: justlittleoleme
My big question:

And what will these same states do when collecting Internet taxes don't close the budget hole?

Bottom line - in the future, starting today and going out for decades, the various taxing authorities are going to have to cut $ 5.00 for every $ 1.00 in new taxes to stay where they are - broke and with bills to pay. If they want to “close the budget hole” they are going to have to cut 7 to 8 dollars for every new tax dollar.

And the odds of this happening are?

Can you say Greece or Spain or Italy?

16 posted on 06/20/2011 2:29:47 PM PDT by Nip (TANSTAAFL)
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To: justlittleoleme

sfl


17 posted on 06/20/2011 2:47:39 PM PDT by phockthis
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To: justlittleoleme

States should look to cutting “gifts to those who don’t work”


18 posted on 06/20/2011 3:10:04 PM PDT by The Wizard (Madam President is my President now, and in the future)
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To: justlittleoleme

Just what we need: more taxes, higher taxes, more fees, higher fees. :(:(:(:(:(:(


19 posted on 06/20/2011 3:22:10 PM PDT by Tzimisce (Never forget that the American Revolution began when the British tried to disarm the colonists.)
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To: justlittleoleme

The internet tax is the major hikes in postal rates for packages since the dawn of ebay. They also have increased the delivery times from priority being 2pounds 2ounces 2days GUARANTEED to “maybe it’ll get there in 2-3 days typically if it isn’t lost...”


20 posted on 06/20/2011 3:40:20 PM PDT by a fool in paradise (Ask Barack Obama this election if he believes Jesus Christ rose from the dead and walked among men.)
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To: sten

“all this will do is force the companies to base themselves offshore and the money they make will be kept in foreign banks.

brilliant”

Exactly right. Even more than that, in the affiliate marketing world (of which I participate), there are marketers from all over the world. Lots in the UK, Australia, Canada, New Zealand, even developing countries like the Philippines.

If these states keep passing these laws, the only thing it does is hurt the individual marketers within the states who can no longer be affiliates. Even if all 50 states passed laws like this, all Amazon would have to do is ban all U.S. based affiliate marketers (like they have in some states already).

Believe me, there are plenty of marketers around the world that would be more than willing to pick up the slack. Amazon and other “E-tailers” wont be hurt that much. But the states and federal govn’t will lose tax revenue because all that income will go to foreign affiliate marketers.


21 posted on 06/20/2011 4:15:46 PM PDT by lquist1
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To: justlittleoleme
With sales tax revenue slumping more than 30 percent in most states between 2007 and 2010,....

Government spending has increased!

22 posted on 06/20/2011 4:18:26 PM PDT by EGPWS (Trust in God, question everyone else)
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To: E. Pluribus Unum
With sales tax revenue slumping more than 30 percent in most states between 2007 and 2010, lawmakers across the country are grasping for ways to collect those unpaid taxes.

They aren't "unpaid taxes."

They are "unsustainable spending."

This the same kind of (idiotic) mentality that argues that "tax cuts must be paid for."

23 posted on 06/20/2011 5:41:11 PM PDT by CDB
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To: justlittleoleme

So far, not a penny has been collected from any of these bills. Companies like Amazon and others at which they were aimed never had real physical presence in these states.

These bills tried to pretend that any “affiliate” web site that received a commission for forwarding a link to Amazon or other actual business was a “physical” presence.

Amazon and the others promptly responded by firing all of their affiliates in these states. As a consequence, several thousand small businesses either folded or moved to other states. The net effect was substantial revenue loss by all of the states that passed these bills.


24 posted on 06/20/2011 9:06:38 PM PDT by catnipman (Cat Nipman: Made from the right stuff!)
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To: bamahead
With sales tax revenue slumping more than 30 percent in most states between 2007 and 2010, lawmakers across the country are grasping for ways to collect those unpaid taxes.

BARF!

25 posted on 06/22/2011 7:42:54 PM PDT by rabscuttle385 (Live Free or Die)
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To: justlittleoleme

Having shut down every other form of commerce...the BOrg are now going to finish things off.


26 posted on 06/22/2011 7:47:19 PM PDT by mo ("If you understand, no explanation is needed; if you do not, no explanation is possible")
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To: rabscuttle385; Abathar; Abcdefg; Abram; Abundy; albertp; Alexander Rubin; Allosaurs_r_us; ...
Bills are pending in Arizona, California, Florida, Hawaii, Massachusetts, Minnesota and Pennsylvania. Texas lawmakers passed such a measure, but Gov. Rick Perry vetoed it.



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

27 posted on 06/22/2011 7:52:44 PM PDT by bamahead (Few men desire liberty; most men wish only for a just master. -- Sallust)
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To: bamahead

All your moneys are belongs to us.


28 posted on 06/22/2011 9:53:10 PM PDT by Eric Blair 2084 (Beware of the Socialist Government-Academia Grant Junkie-Rich "non-profit"-Liberal Media Complex)
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To: justlittleoleme
slash the so called services, commissions, boards, etc. and fire all the people that work for them and all the states can reduce their taxes!!
29 posted on 06/22/2011 9:56:23 PM PDT by dalereed
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To: buffyt

“When I was a child I did childish things like spend more than I should have, more than I could afford.”

Your parents need a good whipping!


30 posted on 06/22/2011 9:57:50 PM PDT by dalereed
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