Skip to comments.States look to Internet taxes to close budget gaps.
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 ...
They aren't "unpaid taxes."
They are "unsustainable spending."
I got a news flash for the states wanting more revenue. QUIT spending more than you take in you idiots!
all this will do is force the companies to base themselves offshore and the money they make will be kept in foreign banks.
you tax that which you wish to discourage. smoking. gasoline. business. internet.
It is NOT their Money!!Hands OFF.
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!
“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.
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.
And since they can't get the sort of regulations they want yet, they want to discourage the Internet.
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.
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.”
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?
>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.
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
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?
States should look to cutting “gifts to those who don’t work”
Just what we need: more taxes, higher taxes, more fees, higher fees. :(:(:(:(:(:(
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...”
“all this will do is force the companies to base themselves offshore and the money they make will be kept in foreign banks.
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.
Government spending has increased!
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."
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.
Having shut down every other form of commerce...the BOrg are now going to finish things off.
All your moneys are belongs to us.
“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!
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