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Internet Sales Tax: On Its Way And Utterly Upside Down!
Boston Herald ^ | April 21, 2009 | Michael Graham

Posted on 04/21/2009 5:56:33 AM PDT by suspects

Leave it to a Massachusetts politician to get taxes completely wrong.

U.S. Rep. Bill Delahunt is soon expected to reintroduce the Streamlined Sales Tax (SST) bill, a federal mandate for collecting local sales taxes on interstate purchases. You buy organic Oreos from Oregon or moose meat from Montana, and Massachusetts sales taxes would track you across the Internet.

Supporters argue it’s unfair to make traditional “brick-and-mortar” businesses collect our state’s 5 percent (for the moment) sales tax while a shop next door can sell the same item online tax-free.

They’re right. Every business should be treated the same. What’s wrong is Delahunt’s convoluted, big-government solution.

SST would make every small business across America a tax collector for each of the 50 states. These businesses would be forced to collect data on every Internet customer; calculate their home-state sales tax; collect and report it, and send it to each state capitol. SST would simplify this somewhat by making sales taxes more uniform across the states. But there would still be conflict and confusion.

CNET News’ Declan McCullagh uses the example of Twix Crunchy Cookie Bars. Under some state tax codes, Twix is a “candy.” In others, it’s a potentially tax-exempt “food.”

And I can only imagine what would happen with grits - considered a vital foodstuff in South Carolina but a construction-grade bonding agent in New Hampshire.

Why so complicated? The fair and obvious solution is to treat every Internet purchase like an ice cream cone on Hampton Beach.

The Ben and Jerry’s guy there doesn’t ask where you’re from. For every dollar of ice cream he sells, he collects the same sales tax, period. Why not have Internet retailers do the same?

If a business in New Hampshire sells a product, online or at the drive-thru, it always...

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


TOPICS: Business/Economy; Government; News/Current Events; US: Massachusetts
KEYWORDS: bho44; ecommerce; internet; internettaxes; liberals; michaelgraham; salestax; taxes; taxincrease

1 posted on 04/21/2009 5:56:33 AM PDT by suspects
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To: suspects

One more way to retard business.


2 posted on 04/21/2009 5:58:06 AM PDT by cripplecreek (The poor bastards have us surrounded.)
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To: suspects

Properity - can’t have that! Tax it...


3 posted on 04/21/2009 5:58:47 AM PDT by Caipirabob (Communists... Socialists... Democrats...Traitors... Who can tell the difference?)
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To: suspects
For every dollar of ice cream he sells, he collects the same sales tax, period. Why not have Internet retailers do the same?

Because then Internet retailers would all move to the state with the lowest sales tax rate - and we can't have that.
4 posted on 04/21/2009 5:59:29 AM PDT by chrisser (Those who say we "did nothing" about Bush's spending must have missed the 2006 election.)
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To: cripplecreek

One more way to retard business.

Yep. And one more retard to waylay business.


5 posted on 04/21/2009 5:59:55 AM PDT by saganite (What would Sully do?)
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To: suspects

Can’t allow death to trump taxes!


6 posted on 04/21/2009 6:01:33 AM PDT by luvbach1 (Worse than we could have imagined.)
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To: chrisser
Because then Internet retailers would all move to the state with the lowest sales tax rate

Like DE

7 posted on 04/21/2009 6:02:12 AM PDT by NativeSon (Fight for America - if you don't, who will?)
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To: suspects

How will a company doing business online be able to determine if the person buying is giving their real shipping address? I guess they’ll realize something is amiss when 95% of their customers give their address as Delaware - hehe.


8 posted on 04/21/2009 6:02:18 AM PDT by randita
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To: suspects

If it moves, tax it.

If it keeps moving, regulate it.

If it stops moving, subsidize it.


9 posted on 04/21/2009 6:02:22 AM PDT by Zeppelin
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To: suspects

It’s not about revenue - it’s about power.


10 posted on 04/21/2009 6:04:22 AM PDT by andy58-in-nh (You have enemies? Good. That means you've stood up for something, sometime in your life.)
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To: suspects

Look for online sales to move off shore.


11 posted on 04/21/2009 6:05:23 AM PDT by listenhillary (Rahm Emmanuel slip - A crisis is a terrible thing to waste.)
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To: chrisser
Because then Internet retailers would all move to the state with the lowest sales tax rate - and we can't have that.

I think the current proposal is such that the tax is based on the buyer's state, not the retailer.

That being said, which address do you use to determine SST? Billing address or shipping address?

I could see people opening credit cards with billing addresses of relatives in states with no/low SST...

12 posted on 04/21/2009 6:05:39 AM PDT by Zeppelin
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To: suspects

They’ll have to change the Constitution first.


13 posted on 04/21/2009 6:11:06 AM PDT by WackySam (The fact that there are 24 hours in a day, and 24 beers in a case, is not a coincidence.)
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To: Zeppelin

I can see more black markets opening up as well.


14 posted on 04/21/2009 6:12:05 AM PDT by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: chrisser
For every dollar of ice cream he sells, he collects the same sales tax, period. Why not have Internet retailers do the same?

It's also Unconstitutional.

Article I, Section 9:

No Tax or Duty shall be laid on Articles exported from any State.

Article I, Section 10:

No State shall, without the Consent of the Congress, lay any Imposts or Duties on Imports or Exports, except what may be absolutely necessary for executing it's inspection Laws: and the net Produce of all Duties and Imposts, laid by any State on Imports or Exports, shall be for the Use of the Treasury of the United States; and all such Laws shall be subject to the Revision and Controul of the Congress.

15 posted on 04/21/2009 6:15:01 AM PDT by ALPAPilot
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To: cripplecreek

“One more way to retard business.” Good choice of words when talking about U.S. Rep. Bill Delahunt.
Just another MA idiot.


16 posted on 04/21/2009 6:16:08 AM PDT by Holicheese (He stopped the War on Terror and started a War on Patriotism!)
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To: luvbach1

I’m expecting a property tax bill on my grave plot when I’m a stiff...


17 posted on 04/21/2009 6:26:31 AM PDT by WKUHilltopper
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To: cripplecreek

Have the retailers collect the sales tax for their location, other than cars, sales tax is based on the location of the seller not buyer.

Let the retailers locate their businesses based on the most competitive sales taxes. Let the states compete for this business with their tax rates.

You do not need to make this complicated.


18 posted on 04/21/2009 6:32:23 AM PDT by dangerdoc (dangerdoc (not actually dangerous any more))
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To: ALPAPilot

“No State shall, without the Consent of the Congress”

How long will that take?


19 posted on 04/21/2009 6:34:14 AM PDT by dangerdoc (dangerdoc (not actually dangerous any more))
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To: suspects

Alright, if I drive to, say, Nevada, and buy something there, I don’t have to pay CA sales tax. Why should I have to pay it if I buy it online? I can see states charging a tax for their state for things sold online in their state, but this BS is ridiculous. The left is determined to kill off all business, some of the dumb a**es politicians actually believe they will get more revenue by doing this, many of them know it will simply cause less revenue to flow and it will hurt business. They are trying to trash our country boys and girls and be had better find a way to stop them and very, very soon.


20 posted on 04/21/2009 6:35:39 AM PDT by calex59
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To: calex59

You actually are expected to pay sales tax for that item you drove out of state to buy. Many states have a form and a provision for you to report out of state purchases and pay sales tax on them.


21 posted on 04/21/2009 6:52:30 AM PDT by ltc8k6
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They can discern location from your IP address.

Either way, this is starting to get way out of hand. How many creative ways can representatives look to take more of our money? We have our income it gets taxed ,then we take that money andinvests it in the market, make a cap gain, and that gets taxed then you go sign up for internet, that service gets taxed, and now you want to buy something online and guess what that same money gets taxed. It never stops.


22 posted on 04/21/2009 6:53:01 AM PDT by TerP26
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To: calex59

http://www.dornc.com/downloads/E554.pdf


23 posted on 04/21/2009 6:54:03 AM PDT by ltc8k6
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To: suspects

I heard a presentation by the director of our state Retailer’s Association where he talked about the concerns of retailers when the organization was founded about 100 years ago. The retailer’s biggest concern at the time ...catalog mail order sales from Montgomery Ward being unfair competition because they did not pay local property or sales taxes. It is ironic that many of these retailers are still around while their nemesis, Montgomery Ward, is nowhere to be seen.


24 posted on 04/21/2009 7:03:05 AM PDT by The Great RJ (chain.)
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To: suspects

So, why don’t every online seller just tell the govt. no?


25 posted on 04/21/2009 7:03:36 AM PDT by philetus (Keep doing what you always do and you'll keep getting what you always get.)
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To: suspects

Here in Washington State, my local Costco always asks me if I live in Oregon. When I asked the clerk why she wanted to know, she replied that they don’t collect sales tax on Oregonians. Just thought it interesting that some businesses are not collecting taxes on people who are from tax free areas, or the opposite of this proposal.


26 posted on 04/21/2009 7:06:39 AM PDT by sportutegrl (If liberals could do math, they would be conservatives.)
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To: dangerdoc
Duties and Imposts, laid by any State on Imports or Exports, shall be for the Use of the Treasury of the United States.

If they lay out on internet tax the money has to go to the Feds not the States.

27 posted on 04/21/2009 7:11:30 AM PDT by ALPAPilot
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To: suspects

This is about more than just taxes. Once this door is opened they will regulate all aspects of it including free speech/hate speech or what they deem so. “Commerce” has been the door through which all this socialization and “thought control” crap has been introduced, legislated and enforced.


28 posted on 04/21/2009 7:11:43 AM PDT by Altura Ct.
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To: listenhillary
Look for online sales to move off shore.

Have you ever had a package caught in a customs inspection because you tried to have it slip through without paying tarriffs on it. Have you ever had to argue with someone about what the package is and under what category it should be taxed? Have you ever had something just disappear in the system only to show up months later? Believe me, you'll be begging to pay the tax on a US shipment after just one international shipment like that.

I'm not saying I like the interstate taxes. I'm just saying that a line which says 7% is much easier than dealing with customs.

29 posted on 04/21/2009 7:13:13 AM PDT by KarlInOhio (No free man bows to a foreign king.)
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To: calex59
In Ohio, not only is the taxpayer expected to pay a use tax on anything purchased with a lower tax rate (such as from out of state, or in person in a state with a lower tax), he's expected to pay the use tax on the difference between county tax rates. If I buy something in the next county with a 6.5% rate instead of my county with a 7% rate, I'm expected to send that 0.5% to the state or county government. I don't think anyone has ever actually done that, but it is the rule.

Cars are taxed based on the residence of the purchaser because too many people were driving a few miles away to a lower tax county. As far as I know, that is the only thing where they ask for your residence. They might for local delivery too, but I haven't checked recently.

30 posted on 04/21/2009 7:21:15 AM PDT by KarlInOhio (No free man bows to a foreign king.)
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To: suspects
NY is big on this now. They enforce it now on big retailers like Amazon. And my sales tax is 0.0865%! But some little company purchases have not bothered to collect.

I bet additional software will opens us up to more credit card security problems.

31 posted on 04/21/2009 7:25:47 AM PDT by AmericaUnite
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To: ALPAPilot

Again, how long will that take?


32 posted on 04/21/2009 7:26:00 AM PDT by dangerdoc (dangerdoc (not actually dangerous any more))
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To: suspects
The Ben and Jerry’s guy there doesn’t ask where you’re from. For every dollar of ice cream he sells, he collects the same sales tax, period.

Who buys ice cream on the Internet?

33 posted on 04/21/2009 7:27:56 AM PDT by AmericaUnite
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To: ltc8k6
Many states have a form and a provision for you to report out of state purchases and pay sales tax on them.

Why would anybody in their right mind fill out such a form? Just buy the product with cash and be done with it.

34 posted on 04/21/2009 7:33:00 AM PDT by meyer (Obama is to the USA as Mugabe is to Zimbabwe.)
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To: meyer

The form is also part of the state income tax return.

No one would fill it out, but my point is that the law is already in place in many states and you can get caught for not paying sales tax on out of state purchases. With budgets the way they are it can’t be long before they make a strong effort to seal this tax hole.

Does anyone remember the story about the cops watching people return from other states with tobacco products they had not paid taxes on? Even though they weren’t actually required to settle the taxes until they filed their tax return?


35 posted on 04/21/2009 7:40:57 AM PDT by ltc8k6
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To: suspects

There was a long standing battle between a former lawyer turned bar owner and the state of Maryland about the collection of taxes. Basically the bar owner argued that the state did not pay him to be a tax collector and therefore he did not have to collect sales tax. He never collected the taxes for decades and Maryland never took him to court for fear of losing.


36 posted on 04/21/2009 7:53:31 AM PDT by Boiler Plate ("Why be difficult, when with just a little more work, you can be impossible" Mom)
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To: ltc8k6
No one would fill it out, but my point is that the law is already in place in many states and you can get caught for not paying sales tax on out of state purchases. With budgets the way they are it can’t be long before they make a strong effort to seal this tax hole.

It's interesting - I do remember the form in Ohio, and that question is asked specifically. They use the term "use tax" rather than sales tax because federal law protects internet sales from being taxed if the entity does not have an established presence in a given state. I wonder if this has really been pushed through the courts - it would seem to me that if the feds say "no sales tax on internet sales", then the states wouldn't have a let to stand on. Then again, a "use tax" isn't a sales tax, though it would imply that the item bought would have to be put to use.

Greedy government boos-tards.

37 posted on 04/21/2009 8:01:26 AM PDT by meyer (Obama is to the USA as Mugabe is to Zimbabwe.)
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To: ALPAPilot
Because of the Restriction on the U.S. Congress, Article I, Section 9: "No Tax or Duty shall be laid on Articles exported from any State." The congress is forbidden to pass this legislation. The proposed legislation is Federal.

The States can put on duties (which is not proposed), but if they did the money would have to go to the Feds. Article I, Section 10: "No State shall, without the Consent of the Congress, lay any Imposts or Duties on Imports or Exports, except what may be absolutely necessary for executing it's inspection Laws: and the net Produce of all Duties and Imposts, laid by any State on Imports or Exports, shall be for the Use of the Treasury of the United States; and all such Laws shall be subject to the Revision and Controul of the Congress."

38 posted on 04/21/2009 8:17:49 AM PDT by ALPAPilot
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To: suspects

This should run a lot of small companies out of business.


39 posted on 04/21/2009 8:27:44 AM PDT by <1/1,000,000th%
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To: listenhillary
Look for online sales to move off shore.

Import taxes, fee's, tariffs....

40 posted on 04/21/2009 10:43:45 AM PDT by AFreeBird
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To: cripplecreek
Still more government attempt to control and tax everything.

I still fail to see why buying a used item from someone else on ebay.com calls for any kind of sales tax at all. Someone already paid the sales tax on it at a store. So at least there needs to be an exemption for people that aren't stores, just selling used items.

If there is an item on amazon.com that is a new book, then it makes sense that if there is a sales tax, just tell amazon.com to impose it on every sale of a new book and send it in the state that they are headquartered in. Why should it go to the buyer's state and make such sellers keep track of 50 states' tax laws? Much simpler to charge the rate for TX or CA or wherever the home state is for whoever is doing the selling of a new (not used) item.

41 posted on 04/21/2009 3:10:27 PM PDT by wildandcrazyrussian
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