Posted on 04/18/2009 10:00:00 AM PDT by sheikdetailfeather
Friday, April 17, 2009
Print ShareThisThe free ride may soon be over.
For the past decade and a half, most Internet shoppers haven't been forced to pay sales tax while buying goods online.
But now, according to CNet News, an alliance of "brick-and-mortar" retailers and state governments has teamed up to end that — and they've crafted federal legislation that may be introduced in Congress as early as next week.
Previous attempts in past years to do so have flopped.
(Excerpt) Read more at foxnews.com ...
You said — The internet has been pretty much tax free so far. When I buy out of state they seldom add taxes. So there really is a big deal here. And the on-line places like QVC and HSN are going to have a lot of customers angry over this.
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Sure..., I know that people have been “getting away with it” for years. Don’t I really know that, since I’ve had the same experience. The difference is, that I know the states have always required that sales tax to be paid — but — they haven’t had a way to “make it so”. They’ve had to depend upon “voluntary sales tax payment” — and we all know how well “voluntary” works... LOL...
If we had to “voluntarily” pay sales tax at the cash registers, how many do you think would *really* volunteer to do that?! No, hardly anyone would do it (but a few would...). It’s only because the state taxing authorities on sales taxes have made it be “part of the system” that they are able to collect the sales tax.
And it’s the same thing here, it’s been “voluntary” for many years (and no one pays it...) but now it’s not going to be “voluntary” any more and they will do it just like when you buy something “in person”...
This has been a long time in the coming and no one should be surprised.
I don’t think we should think of this in terms of it’s a natural inevitability. We should fight this tooth and nail.
The internet was originally established as a tax free zone. There’s no way in hell we should surrender that distinction. And since taxes have not been collected, it hasn’t really be a taxed zone yet, in practice.
We need to scream bloody murder about this.
“And the on-line places like QVC and HSN are going to have a lot of customers angry over this.”
I pay CA sales tax on all hsn/qvc orders. Don’t they charge in every other state?
There would be nothing unconstitutional about a national sales tax on internet/catalog sales. The fair tax people have been talking about one for years.
(Ducking and covering)
Sales tax we are supposed to pay!
My state contracts out-of-state workers (because it is cheaper) which sends state revenue out of state to be spent by those workers. Yet, I as a taxpayer am not allowed the same opportunity to buy cheaper by going out of state. I am sick of this double standard given to government and business but excludes the citizen/taxpayer what could be better deals for them.
It is nothing but power over the people.
In many states, taxes were always owed. I’m surprised they haven’t demanded address lists from every online retailer like they did when they went after online tobacco sales. I wouldn’t be surprised if they did do that eventually.
You asked — I pay CA sales tax on all hsn/qvc orders. Don’t they charge in every other state?
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There have always been “loopholes in the loopholes”... LOL...
The first “loophole” but rather was something that was temporarily allowed, was to not collect state sales taxes for online purchases.
BUT, the first big loophole in this loophole (of not collecting the state sales taxes) was that if the selling entity had a “physical presence” in the state, then it had to pay sales tax in that state for all the purchases going to that state.
But, others, in other states did not have to pay “California sales tax” basically because they didn’t reside in that state.
So, that’s what happens with a lot of online retailers. They have to be *somewhere* physically, and that state will charge sales tax for purchase “inside” that state...
You said — This Congress and this administration seem hellbent on destroying the Republic.
— Well, you’ve got to remember that one is talking only about sales taxes that *are collected* when one does a purchase “in person”. In this case, many people are escaping sales taxes that they are supposed to be paying *anyway* — regardless. All that is happening here is making sure that the sales taxes do get collected that are supposed to be collected — and that *are collected* when one does the purchase “in person”...
This is really no big deal, other than closing up a loophole that allowed a lot of people to “get out of” their sales taxes that they were supposed to pay.
Well you sound very close to the many leftists who are advocating more and higher income taxes. The last time I checked, there was nothing to keep you and others from paying MORE income tax or paying all the sales tax you wanted.
How about we keep it that way.
Every time you make an on-line purchase, you go ahead and dutifully pay the sales tax to whatever state you live in and let the rest of us who shop on-line enjoy this little tax-free benefit.
My on-line purchases amount to Thousands of $ per year and the hundreds I save on sales tax, pays for my Internet service.
Furthermore, anyone who suggests that such tax would NOT affect on-line purchases has 0 business and 0 common sense.
PS I would bet with that attitude, you were probably not at one of the hundreds of Tea Party protest?
Well, I could complain that you state charges me sales tax and I don’t live in your state. That’s sort of discriminatory, I think — against me... LOL...
If I buy a computer in your state and never live there, and use the computer for years, why should I be charged your state’s sale tax... :-)
As you can see, your state also benefits by charging *out of state* people sales tax in which they can not vote on and have absolutely nothing to do with...
We should start a movement so that your state cannot charge out-of-state people sales tax... LOL...
Well, that is simple to answer. No law. With tobacco there was a 1948 ATF law requiring tobacco sellers to report to the appropriate agency anyone (other than a distributor)names, addresses and amounts spent. They have agreements to collect sales tax.
This will destroy Internet commerce. The politicians are needing to be purged from DC ASAP.
We do not want their cheesy stinking handouts.
We just want them to go away.
Many states have a use tax on “untaxed” purchases. Those states could easily use that method to harvest online taxes and strong-arm retailers into giving up sales records.
By “current” law, an on-line seller would have to get a Resale Tax Permit from every state they sell in.
You said — PS I would bet with that attitude, you were probably not at one of the hundreds of Tea Party protest?
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Heck no, I think the state should not have “sales tax” or any tax at all, in fact. I think that all conservatives should stop paying all their taxes, but I doubt that they will do that.
You see, I came from a state that *had no sales tax* so I don’t like the idea of sales tax. And even if all states started charging the sales tax that they are supposed to get on sales of goods, that state that I was in — would *not* charge *any* sales tax on those online purchases...
I think the problem you have is that you’re living in the wrong state that *has* sales taxes. You should be living in a state that has *no sales taxes* if you’re protesting.
I would suggest moving to Oregon for *no sales tax*... LOL...
But, no, I do protest all taxes, however, I do not think I’ll be winning that argument, despite all the tea parties attended.... LOL...
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And as a last note here, you said — How about we keep it that way.
The only problem with that idea is that *from the beginning* this was *always* a temporary moratorium. It was *never* anything else other than that. For some, that may be a *total surprise* — but it was always that way.
That’s like saying, when you go to a grocery store, you had this on sale last week but it’s not on sale this week and I want it for the same price as last week. The store manager would tell you that today’s price is the *normal* price — and that the price last week was the *temporary* price and you’ll have to pay the normal price this week.
And so, it was that way with the tax moratorium, in that it was *always* said to be a temporary abatement to allow time for certain of these online store to build up their presence....
The “sale” is over now... that was last week... LOL...
I’ve known that from the beginning. I’m surprised you were not that informed on the issue...
Hey, gotta pay off that stimulus debt somehow.
Either your response went right over my head or you did not understand my point.
My taxdollars pay the out of state worker who spends their money in their state—not mine. So for my state to boost their revenue they could bring the work back home or they can go after me for sales tax on purchases I make in another state.
Why can the State cross state lines and do business where they get more value for their dollars (my tax dollars paid) while the simple person/taxpayer cannot?
The use tax is an obligation of the purchaser not the Seller. They could not demand the sellers books—if there is no agreement to collect the sales tax.
You said — The internet was originally established as a tax free zone. There’s no way in hell we should surrender that distinction. And since taxes have not been collected, it hasn’t really be a taxed zone yet, in practice.”
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No, you’re wrong there..., the Internet was never established as a tax-free zone. *Originally* the Internet was established as a “business-free” zone. I should know since I’ve been on it from the National Science Foundation days... when you could be *ejected* from the Internet, have your account closed and be knocked offline for *merely* trying to sell an old worn out book online.
If you were caught so much as advertising *anything* for sale on the Internet (i.e., not “taxes” but *anything for sale*) you would be kicked offline and you would not be able to get an account.
The key was “doing business” and “for sale” online. That was *absolutely forbidden* on the Internet — and *not* taxes.
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Now, move forward to when the government turned over the Internet to “business interests” and then it became “okay” to sell something online (about the mid-90s). States were definitely going to get their cut of sale taxes. However, the Federal Government wanted to give “online businesses” the chance to “start up” as much as possible. It was then agreed to allow a “tax moratorium” for online sales taxes. This was *always* from the very beginning, a temporary moratorium. It was *never* something that was said to be permanent.
It was always stated that it was to give online businesses a chance to get a foothold and become established and then the sales tax moratorium would be lifted.
Well, that time is pretty close to now, because online businesses are quite prevalent and well-established at this time.
As I said — the Internet was *never* started as a “tax-free” entity... That’s a complete misunderstanding of the entire process and displays a bad understanding of the facts...
I was there and I remember it all and that’s how it all happened...
Federal law exempts the internet.
You get charged sales tax in your state, and I get charged sales tax in your state.
Then you go to another state and you get charge the sales tax in that state and the resident gets charged the sales tax in that state.
If I work in your state and make money there and I go back home to spend it in my state, that’s simply my own choice to do so. If you come to my state and make money there and then take it back home and spend it in your own state, that’s your choice to do so.
I don’t see any big deal with all that I’ve mentioned above....
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