Posted on 08/20/2013 12:55:21 PM PDT by redgolum
You might think the biggest challenge for Amazon founder Jeff Bezos is figuring out how to make money running a print newspaper, but here is a risk hitting much closer to home: Brick-and-mortar retail stores are becoming cheaper than Amazon
(Excerpt) Read more at blogs.wsj.com ...
One of the things I like about Amazon is that you get user reviews which are useful in making buying decisions. You dont get that inside a Walmart. Sure you can read the reviews first then buy it at a big box IF they have it and the price is significantly better. Easier to just order it from Amazon if you dont need it instantly.
Equalize the sales tax my A$$. I live in NH. We do not have a sales tax. If your state spends too much money and raises your sales tax, that is not my problem.
Sorry to be rude FRiend.
FYI, I love Amazon. They have revolutionized the way the world buys products. Along with Amazon, I have purchased a Grohe faucet from faucets.com and Hunter ceiling fans from lighting.com. just recently. I have also purchased furniture, lawn mower parts, chainsaw parts, woodworking tools, sporting goods, clothes, computers, cameras, books, cds, digital music, lights, tvs, carpets, sandpaper, garage door openers ALL OVER THE INTERNET.
I also can see the day when we will purchase groceries, with the exception of some perishables, over the internet delivered to our homes. There are many things, like paper towels, TP, laundry detergent, that I would buy in bulk if it was less expensive. Many of us do not live close enough to a Cosco, BJ’s or Sam’s Club to make it worthwhile to join and drive there.
Not a problem foe me. I’m overseas and sometimes on trips home mail items to my FPO - motorcycle helmet, golf club etc . It is not unusual for these items to take six weeks to get here and I’m not at an FOB in Afghanistan. However, when I order from Amazon, it’s here in ten business days tops.
Whoa, hold up there pardner. I didn’t say: “equalize the sales tax ...” I said: “apply it equally everywhere”. Perhaps I wasn’t clear: I meant if B&M retailers have to collect sales tax; then so should on-line retailers. Otherwise, the tax system is penalizing B&M retailers, and subsidizing on-line retailers. That’s not how a tax system is supposed to work.
The on-line retailer knows where you live (how else do you expect to get the merchandise?), you would be charged the rate that applies in your home state. If there’s no sales tax where you live, you would pay no sales tax for on-line purchases. Using about ten microseconds of computer time, the on-line retailer would calculate the total taxes collected by state, and remit those amounts to the respective states.
BTW, I also mentioned the alternative of removing all sales taxes.
Agreed it sorta “pays” for itself, but it is not free. You have paid for the “Prime” and Amazon includes some or all of the cost of shipping in the price you pay. Believe me.
You do save by not burning gas. Just inconveniencing some electrons.
[I can get things that I can’t get anywhere else...]
Indeed! And the reviews are worth their weight in gold!
I’ve saved TONS of money buying on Amazon!
I compare, so I’m not guessing.
$450 on a lawn tractor.
$50 on a chain saw.
Not to mention being able to find things that are perpetually out of stock locally.
It’s already applied equally. Online retailers do not collect taxes in States where they have no physical presence. To do otherwise would make them tax collectors for the over 10,000 cities, counties, and States, along with having the burden of keeping tabs on all legislation regarding changing rates and tax impositions. This compliance nightmare would make them subject to audits from up to 46 states.
Yep, Amazon made a massive strategic error there. Commercial space prices are falling and retailers are modifying their sales tactics. The market is reacting, sadly RE is crippled by massive government involvement and people cry about the government takeover of health care.
Our economy wouldn’t be in the tank now, but for government’s conspiracy to help home owners.
Physical presence or virtual presence — either way retailers are selling merchandise to the same consumer. The B&M retailers are already conscripted tax collectors. If you are going to collect the tax, it should be collected fairly.
If businesses still used adding machines and ledger books, there would be a “compliance nightmare”. With computerized systems, it wouldn’t be any more difficult than it is for the B&M stores (most of which are national or international chains, whose systems have to track and process all the information you allude to.)
You could argue that there should be no sales tax at all. Call that the first-best solution. If you are going to have a tax at all, then the second-best (or least worst) solution is to have a fair tax.
Be careful with that overused and, often, progressive speak buzzword; “fair”. An internet sales tax is, especially, hard on a sb who hosts there own site and the software for the +10k tax possibilities is non-existent. It usually takes department strength of a mid-size or higher co. to manage that tax law environment.
Furthermore, an internet sales tax is, arguably, unconstitutional. “Why should out-of-staters pay taxes to a government when they consume none of the services or wealth transfers provided by that government? Why should they pay taxes to political entities for whom they are not eligible to vote and who are completely unaccountable to them? That is taxation without representation.” Furthermore, the imposition of a tax on an out-of-state businesses is akin to imposing duties on imports and exports between the States which is an attack on Article 1, Section 9, para. 5.
Well, no.
It is a bit longer then that. In fact a lot longer then that. I do own a small on-line business and I actually know the headache you blithely want to saddle me with.
Let me put it this way.
I AM NOT YOUR STATE'S UNPAID TAX COLLECTOR!
YOU not me are suppose to be paying taxes in the state where you reside.
I pay taxes in the state where my store resides.
I have heard all the whines about it not being "fair" from all the little liberals who somehow find it so very hard to keep track of a couple of invoices and send in what ever amount is owed. But somehow it is a fricking piece of cake for me to dig up what your state/county and local tax codes and read up on whether the item you bought is actually taxable or not fill out a bunch of paperwork and send in around 900 tax remittances every quarter.
I know it is such a pain for you to actually do your own work and pay your taxes but QUIT TRYING TO SHOVE IT OFF ON ME!
And once again you betray the fact you do not know anything about how businesses actually work.
The big stores that you are talking about actually already do pay taxes in all the states where they do business. They already have the software. They have the people they can dedicate to doing that. So you can quit worrying about the poor little states who are being screwed out of their taxes by those big ol mean online big businesses.
But the small stores? Usually they have to pay tax in the one location when they are brick and mortar stores. It is usually fairly straightforward. You don't have to keep track of hundreds of tax codes.
Keeping track of hundreds of tax codes is what you are proposing for millions of on-line businesses. Many who have one employee, the owner.
The funny thing is that while you are beating your drum about "fairness" what you are actually doing is, as is usually the case with liberals, is driving the little guy out of business.
Because those millions of little internet businesses? They will have to close up shop. They don't have the resources to do otherwise.
You have a point regarding small, independent on-line retailers. Until there’s an off-the-shelf software solution, the administrative burden would be onerous.
However, your second paragraph completely misses the mark. The taxes collected from “out-of-staters” would be remitted to their respective states.
The mere act of forcing an out-of-state business to collect and remit taxes to a State in which they have no physical presence is synonymous to imposing a tax or duty upon imports. Thus, it would be an assault on Article 1, Section 9, para. 5. and Section 10, para. 2, “No Tax or Duty shall be laid on Articles Exported from any State.”, “No state shall, without the Consent of the Congress, lay any Imposts or Duties on Imports or Exports…”
Even in USSC cases, they have ruled that a business, in order to be required to collect a tax, must have minimum contacts with the taxing State. The act of just selling and shipping a product doesn’t meet the standards of minimum contact.
Also, one can argue against your “fairness” application using “Due Process” from the 14th amendment (imposed on the States) and 5th amendment (imposed on the Fed.) on what activity can actually be taxed.
If you want the Constitution changed, then go about it the right way...We’ve had enough of legislative fiat and especially in regards to “fairness”.
Bump
>> “ If you are going to collect the tax, it should be collected fairly.” <<
.
There is no constitutional authority, neither for congress, nor the states, to collect taxes on interstate commerce.
Collection of an unconstitutional tax cannot be fair under any circumstances.
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