Skip to comments.Amazon Supports a Bill Forcing Online Shoppers to Pay Sales Tax
Posted on 11/12/2011 7:39:16 AM PST by Perdogg
The days of skirting around having to pay retail sales tax by shopping online may be coming to a closeand Amazon, of all companies, is supporting the effort.
Online retailer Amazon.com has a long history of fighting requirements for shoppers to pay their local state sales tax whenever a purchase is made via the Internet. Most recently, Amazon has been battling it out with California, which has been trying to force Amazon and other online retailers with ties to the state to collect sales tax on purchases.
(Excerpt) Read more at moneyland.time.com ...
they support it to screw their competition and the consumer
Of course. The big corporations always support legislation that makes it difficult for smaller competitors.
I am against taxes, but I have to to note that the bill levels the playing field because small business owners were at a disadvantage compared to amazon.
Agreed. First, the exemption from sales tax for amazon destroyed their competitors who had to pay sales tax. Now that amazon is well entrenched, smaller players in the online arena will be the ones who get destroyed with the new legislation. It is a mess.
I order from Amazon all the time. I even pay the 25 dollars a year so that i can have shipping and handling “free” for the year.....a great deal for me and others as long as you order a lot from them. My only concern with this sales tax thing is that you don’t screw up a good thing. Netflix has learned this the hard way. Hopefully Amazon does not have to learn a hard lesson for being stupid.
Well gee, ain’t it grand? We get to pay more to the state government than we already do. And the Republicans in the house and senators like Enzi helped them screw us some more.
I’m in a state supposedly run by Republicans. They will gladly take any tax the feds tell them is available and go back to mouthing their anti-tax lies.
The solution is to cut government and get rid of all such taxes, not just for amazon.
I sympathize with smaller sellers, and I try to support my own local businesses whenever possible, but when money’s tight, what are you going to do? I went to a local auto supply and paid $36 plus tax for two windshield wipers I could have bought from Amazon for $20, tax free, shipped free in 2 days—and often they ship it overnight for free.
But I know this can’t last for Amazon. They see the future, and it’s endless litigation with tax-hungry states. I guess they feel they need to bite the bullet and roll with the punches.
Well, I guess you could say that, as well as the opposite. I don’t like it either, but an objective analysis would question why a retailer who invests in your community by creating a physical presence (brick and mortar), hiring employees, maintaining an inventory of demo merchandise, etc is penalized vs. an online retailer that doesn’t do any of these things. Amazon is in the position now of selectively collecting and paying sales taxes, and I’m thinking their motivation here is to “flatten” the tax by making it apply to everyone everywhere.
Of course the other alternative would be to eliminate sales taxes everywhere, but that’s not going to happen.
Generally I hate whining about “It’s not fair!” - but having talke to a number of small business owners, in this case it’s true. Amazon knows it will still get it’s share, especially since charging taxes across the board will lower their costs.
I won’t give up on Amazon because greedy states are making it impossible for them to do business. It’s not their fault; they’ve fought it as long as they reasonably can. Even with tax, their prices are still far better than brick and mortar, and the value of time saved by shopping online is incalculable. I can order a pair of shoes or a book in less time than it would take me to look for my car keys. As long as Jeff Bezos runs Amazon, I’ll stick with it.
what is this 25 dollar fee? For a year? I shop amazon all the time, but I only know about the super save shipping.. sounds great.
You get Amazon Prime for $25.00 per year? I pay $79.00.
Oh yes. It is called Amazon Prime and you pay a 25 dollar fee and for the entire 365 or 364 days you receive everything else with zero postage. I love it.
Really? Under Amazon Prime?
Gosh. I hope that when my year is up that they haven’t raised the price. Even if they do though I would buy it. Even 79 dollars is a steal as long as you buy a lot. I need to see what changed.
That's a student rate, is it not? I believe you need an email with .edu in order to qualify. We got that price for a year because we have a daughter in college.
I think that’s the plan in the long run.
Make it so people’s only option is to buy on line, which helps foriegn
Make it so all people have to have a checking account
from the Government bank to do any business at all. Cash is out.
This will hurt Amazon more than they think. Be prepared.
State sales taxes on products not originating in the state were unconstitutional (reserved for the federal government): SCOTUS Brown v. Maryland. Then SCOTUS excised that clause in 1865.
Many things online, even with a sales tax and shipping, are significantly cheaper that those items are locally.
Three years ago I purchased (no tax) a water purifier unit and two cleaning cylinders for $27, shipped. Locally at Walmart, that same unit without the cylinders was $40 and the cylinders were $20 each. Lowes local was even higher.
I sometimes go to a local employee-owned grocery, but their general prices are astronomical, compared to the discounts grocery stores. Why pay them $15 for a can of coffee, when the same can in another local store is $9.00?
Kiss Amazon good bye! They’ll be Chapter 11 by next year.
The $25 Amazon Prime is the student discount. Their is a similar discount for new Moms, too.
The regular Amazon Prime is $79. They did add free streaming of many TV series and movies in their Prime service.
I have no sympathy now with the economy...
Pay $20 to save money vs $36? Simple: pay the 20. I have better things to worry about. I just bought an MP3 player 3 days ago with free shipping from AMZ. I am just taxed enough already.
More states are legislating the collection of online sales taxes.
My state did this year. I think it starts next year — for ALL online purchases.
It is coming. And next year, more states will need new sources to make up their shortfalls.
>Kiss Amazon good bye! Theyll be Chapter 11 by next year.<
They have until Sept of 2012 in CA, and after that I’ll be shopping on Overstock. At least they still keep fighting unlike Amazon. Eventually, one person can start his own Amazon and do it offshore..
That is the rational, just solution. However, the parasite class at all levels will NOT stop in their desire to get more and more of our hard earned income.
A big incentive to buy from Amazon is no sales tax. The parasite class is truly evil. It is filled with humans who are enslaving the non-government workers.
Let's hope there is not a total economic collapse in our future. If there is, I pray there is no mercy shown to those in the parasite class -- to go French on them is too kind.
We would have a peaceful, happy, prosperous Republic if government at all levels was 1/6 the current size.
There already is a level playing field.
Online, you pay shipping charges but not sales tax.
In a bricks-and-mortar store, you pay sales tax but not shipping charges.
I live in a rural area of Maine, and some items simply cannot be purchased locally.....the small business owners usually do not have the item I’m looking for.
Then there are the antiques and vintage items sold on eBay and other web sites. Some of these items are rare and, in other cases, one of a kind.
Amazon should tread carefully lest they kill the goose that laid the golden egg.
I applaud your effort. It is truly distressing how the parasite class NEVER stops in their greedy desire to steal more and more of our income. It is truly legal plunder on a grand scale.
I doubt that the offshore model would work for physical products. If their warehouse is offshore, there would be some import duty and if they kept their warehouse stateside, they would still apply the state tax. However electronic books movies and music could potentially evade some of these taxes through encrypted transactions. Let’s set up shop next to the offshore medical clinic.
Meanwhile, buy you stuff at garage sales while you can.
First, some disclaimers, I did not intend to convey the impression that I was intending to pay less for goods and services. There is often no monetary gain, and sometimes there are additional costs in not paying sales tax, so this is not about the money.
It's about not cooperating with parasites that actively seek to destroy the culture, society and nation because they (and their policy) are so worthless and destructive that they would starve to death without a government paycheck or entitlement, and no matter how much you give them, it is never enough, they always "need" more after they have wasted nearly all that has already been given them.
I will pay a producer more to deny a parasite less.
See #34, I neglected to add you, so I ping, sorry.
I actually do have a .edu e-mail address because I work at at University but I want to ensure that they know I am not a student. Can you imagine? A conservative ripping off a company. Now that I know this, I will get down to the bottom of this. I can’t stand people without ethics and morals so I don’t want to become one....lol.
Yes, I buy a lot from Amazon. Let’s find out what the deal is.
You might be ok - I think that rate is offered to anyone with a valid .edu email.
The clerk accidentally gave him a 32 GB (about $70). He walked out but must have realized the mistake and returned to the store to get the one he paid for. It was nice to witness a young person with morals.
>Meanwhile, buy you stuff at garage sales while you can.<
That’s one way to go. I bought my 2nd emergency laptop for cheap from this guy who sells on Craigslist. Went to HIS apartment where he runs a fix it pc biz, paid cash. What was better was his younger hot sister was sunbathing outside..
This is incorrect. It is not the government's job to create level playing fields. Second, you are wrong about bricks-and-mortar stores not factoring in shipping charges into the price. They've already shipped it to your neighborhood and that is reflected in the price.
You make a choice whether you want to save time and energy and not leave your couch to buy your item or whether you want to take a look at it and get it instantly without waiting for it. The prices of the items will reflect the prices of these conveniences.
I live in a rural area of Maine, and some items simply cannot be purchased locally.....the small business owners usually do not have the item Im looking for.
Yes, the more remote your location, the costlier it will be to ship it there and the carrier may charge you more. You cannot demand that the government ensure that you pay no more than a shopper where competition has beaten down the prices.
“This is incorrect. It is not the government’s job to create level playing fields.”
I never said I’m in favor of the government creating “level playing fields.” I’m opposed to an Internet sales tax - the government confiscates - and pisses away - enough of our money now. Taxed Enough Already, the acronymn of the TEA Party. It seems to me that those who support online sales taxes are in favor of government creating a “level playing field.”
As to “whether I want to look at it and get it instantly,” I can’t do that, because the local retailers usually don’t have what I’m looking for. The is especially true in regards to antiques and vintage items, which in some cases are one-of-a-kind.
I don’t really understand your last point - “the more remote your location, the costlier it will be to ship it there and the carrier may charge you more. You cannot demand that the government ensure that you pay no more than a shopper where competition has beaten down the prices.”
I’m the one paying for the shipping, not the government. I pay for Priority Mail shipping, which has quadrupled in price since I first discovered Internet shopping in December, 1998. Even when a seller offers cheaper Media Mail or Parcel Post, I usually pay extra for Priority Mail shipping.
I’m 100% in favor of small businessmen and small businesswomen purchasing the goods and services being offered by other small businessmen and small businesswomen. But they have to have the goods and/or services to offer the consumer in the first place.
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I pay $79.00. What is this $25.00 2 day free shipping that you speak of?
I agree. I do a lot of Amazon shopping. As long as I can get free shipping it won’t be too bad.
I think it will hurt them though.
Same here. $79 a year.
And to be honest, it will eliminate some of the issues where a state starts attacking people for their online purchases.
Actually, the absence of sales taxes online protected brick and mortars from even more drastic sales taxes and regulation. It is only in being able to escape onerous taxes that taxes are restrained.
It is no coincidence that the 16th Amendment passed only after Arizona became a state. That left Americans with no where to run.
From the article
“The bill would not affect especially small businesses, however: Any seller with less than $500,000 in sales annually would not be required to collect and remit sales tax.”