Firms Will Regret Deal With Devil On Internet Tax

Investor's Business Daily ^ | 24 April 2013 | Editorial

[IBD editorial writer]

Government: Non-Internet businesses claim a looming, unprecedented collection of state sales taxes on their online competitors is not a new tax. They will regret their pact with the devil tax collector. The new Internet sales tax legislation currently being steamrolled through the Democratic-controlled Senate with White House support is not some kind of untax, a government revenue version of the Uncola. It's not that "certain je ne sais quoi, fresh, clean, no aftertaste!" The National Retail Federation imaginatively claims "this is not a new tax" and claims that non-Internet stores "cannot compete on sales tax," and therefore "Congress needs to address this disparity." Calls to "tax the guy across the street," however, always come back to haunt the first guy. For some time, though, Amazon.com — obviously judging the tax as inevitable — has stood together with the non-Internet, pro-tax businesses; eBay, on the other hand, remains committed to "protect small online businesses, not potentially put them out of business" via new taxes. This is not a new issue, and it's no surprise, considering the perennial greed that is second nature to government. In 1992 the Supreme Court, in its Quill decision, unanimously prevented North Dakota from audaciously collecting sales taxes from a company with no physical presence in the state but whose North Dakota customers used its software to place orders.

[CharlesWayneCT]

Every state with a sales tax has a tax which applies to catalog sales. In Virginia for example, the law specifically states that if you buy ONLY from catalogs, and less than $100, you don’t have to pay sales tax. But if you buy more than $100 from catalogs, or make ANY non-catalog untaxed purchase, you have to pay taxes on everything you bought that wasn’t already taxed.

I collect all my bills each year, and fill the worklist out so I can accurately report my tax on my income tax form. I sign that form, and my signature is still my word, and I value my word more than I value the $100 bucks or so I’d save by cheating on my taxes.

[Gabz]

Your initial interpretation of the food for home consumption tax is entirely different than mine, as it makes no mention of the VA food tax. Personally, I do not believe there should be a sales tax on food products purchased period - and have let my representatives know this.

Additionally other purchases in Maryland are taxed at a higher rate than VA, therefore, according to the instructions, do not fall into the category. If I happen to be in Delaware and make any purchases that is a different story, but I have such issues with Delaware’s hidden sales taxes that I do my best to avoid making any purchases there anyway. I most especially do not purchase grocery items while there as the hidden taxes make everything much higher than here at home, even after adding VA’s stupid food tax into the equation.

All in all, the entire concept is wrong. In no way shape or form does it level any playing fields for anyone. In fact it places unfunded bureaucratic burdens on some while exempting others. The feds have no business in this debate, it is a state issue and each state should deal with it on their own.

[tnlibertarian]

Those shipping and handling fees are already accounted for in the retail price of an object in a brick and mortar store.

Oh, so the brick and mortar store wouldn't charge me any more to drop it off on my front porch?

[ncpatriot]

you need to surf the net until u find a company that does not charge taxes and yet prices are the same

sometimes u can’t help it but generally u can find no taxes

[ridesthemiles]

So could someone place their order over the phone and NOT get chaged a tax, but using the computer will get you taxed....?????

I am confused...”””

I am also confused.

I do very little in ordering things- so I do it over the phone. I do such business with a couple of companies & have done so for at least 28 years. I use their catalogs and make my list of supplies I need for the ranch & I talk to a live person on the phone. I am an ‘out of state’ customer for both of these companies.

I would not order the same items on the internet.

I don’t pay sales taxes now. Will this change, even tho I am NOT using the internet to make my purchases??

[CharlesWayneCT]

No company charges you taxes. Your state government charges you taxes, and does so on every purchase. Some companies collect the taxes for the state, others do not.

If the company doesn’t collect the taxes, then you have to keep track of it, and pay it yourself. It is more work for you — it is a benefit to you if the company does it for you.

That is, of course, unless you plan to cheat on your taxes, to commit tax fraud, and sometimes perjury. If you are looking to break the law, you probably don’t want anybody to “help you” obey the law. You’d rather they help you hide from the law.

[Axenolith]

What does that have to do with the price of tea in China?

The shipping and handling for the production/distribution chain of B&M store merchandise is included in the cost structure of their goods already. Whether or not you can find one that delivers locally and has/doesn’t have a delivery fee is irrelevant to the overall issue of interstate tax collection.

BTW, this is the camels ass under the tent of a National Sales Tax, since apparently the feds would collect this and then “distribute” it. I can see how that ends just as surely as I can forsee the end result of a certain coyote’s purchase of ACME supplies in furtherance of roadrunner hunting...