Skip to comments.Get Ready To Be Taxed on Internet Purchases
Posted on 04/23/2013 1:54:01 PM PDT by Jean S
Proposed Internet sales-tax legislation received a huge boost on Monday when the White House officially backed the bill, saying it would level the playing field among online and retail stores by ensuring that both pay sales taxes.
Today, while local small-business retailers follow the law and collect sales taxes from customers who make purchases in their stores, many big-business online and catalogue retailers do not collect the same taxes, White House press secretary Jay Carney. This puts local, neighborhood-based small businesses at a disadvantage to big, out-of-state, online companies.
Now, the Senate is scheduled to debate the Internet sales-tax legislation for the remainder of the week, and the bill is largely expected to pass (a similar, nonbinding amendment was approved weeks ago, 75-24).
The so-called Marketplace Fairness Act would allow a state to collect sales tax on Internet purchases made by its residents, even if the Internet company has its headquarters in a different state. It would exempt online companies with sales of less than $1 million a year from collecting or paying the sales taxes, and it would add roughly $10.1 billion a year to local government coffers, according to the Congressional Research Service, at a time when most states are looking for any and all fiscal fixes.
But, the essence of the fight really pits industry against industry.
(Excerpt) Read more at news.yahoo.com ...
Because nothing spells “Economic Recovery” like “Tax Increase.”
This is such BS. Many of my Amazon purchases are supplied by small businesses.
Never miss an opportunity to increase taxes. I’ll bet my RINOs are in the yea column.
They’ve been waiting to do this for a long time. THe one part of the economy doing well, and you can’t have the economic collapse/crisis you’ve been wet dreaming about for so long, with sections of it working well.
I thought it was unconstitutional to have interstate taxation?
Article 1 Section 9:
“No tax or duty shall be laid on articles exported from any state.”
obama said he would never tax the middle class.
this will tax the middle class.
Hey, Leftist Bay Area Internet E-Commerce Entrepreneurs.....the JOKE’S ON YOU!!!!
Note that "leveling the playing field" always seems to be achieved by adding weights to the fast runner.
Marketplace Fairness Act , sounds like it was created by a Democrat
Fine. Then we should just refuse to purchase online for six months or so. Guess who’ll be demanding the taxes be done away with then.
“I thought it was unconstitutional to have interstate taxation?”
Tenth Amendment: A state has the inherent and reserved right to regulate its domestic commerce. However, that right must be exercised in a manner that does not interfere with, or place a burden on, interstate commerce, or else Congress may regulate that area of domestic commerce in order to protect interstate commerce from the unreasonable burden.
In other words, the Several States have no rights. They are an anachronism.
That’s my plan!
The wife and I have not purchased from Amazon since they nuckled under to Texas on sales taxes. And since that time alot of others have too because Amazon has not made their sales estimates with Wall Street for the last two quarters.
Weasel socialists have ways around everything.
The very fist sentence is wrong. Businesses do not “pay” sales tax. They are forced by law to collect it on behalf of the state. This bill give states permission to force businesses across the nation to collect tax for them.
You’ve always been bound by law to pay a sales or use tax on everything you buy. There’s just no method of enforcement for out of state purchases so folks rarely comply. (I certainly don’t...)
Pay no attention to the man behind the curtain (raising your taxes on the Internet).
For a nominal fee, of course...
In National Bellas Hess v. Department of Revenue, 386 U.S. 753, 87 S.Ct. 1389 (1967), the Supreme Court ruled that a mail order reseller was not required to collect sales tax unless it had some physical contact with the state.
Democrat “fairness” = You get screwed.
Straight from the Atlas Shrugged manuscript.
There cannot posible be an internet versus brick-and-mortar store level playing field.
The internet seller does not have to support the INCREDIBLE overhead of a store with cooling, heating, parking, security, sales peeps, etc. ad infinitum.
The internet will still undercut regular store sales by a huge percentage.
The best idea is to have A NATIONAL STRIKE where no one buys ANYTHING but food and gasoline for 2 weeks.
Doesn't this violate the 13th amendment?
Surely the house will not vote for another tax increase? Last time I checked the GOP was in control of the house.
Marketplace Fairness Act , sounds like it was created by a Democrat
“Fine. Then we should just refuse to purchase online for six months or so. Guess wholl be demanding the taxes be done away with then.”
Heck, I'm pretty much doing that right now.
What is sales tax?
So tax on “internet purchase,” but if I call the seller to place an order, then no tax?
It’s the online businesses that are at a disadvantage. Sell online and somebody has to pay for shipping. Depending on the item, the shipping can be anywhere from $20 to $500+ (large furniture items, cars, etc.) And if the buyer pickups up the item in person from the online store - the tax is charged so this law does nothing but hurt the online businesses that have to pay shipping.
In a sane world this would be true, but Boehner is in charge of the house. It could be that the numbnuts writing these articles have no idea that the senate and house BOTH have to pass a bill into law.
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I agree. The Democrats have tried to do this every year since on-line sales were invented, and every year it has failed. I think it will be easy for the Republicans (even the RINOs) in the House to vote against it.
Of course, when I moved to Colorado 20 years ago I thought it would always be a conservative state. Now the Democrat-controlled legislature is taking away our rights as fast as they can draft the violations to the Constitution.
Note the lack of nuance exhibited by ignoring places with no sales tax.
They've never seen a tax they didn't like. If justice was truly served, they'd all be in prison.
If you have a state sales tax, you should be paying it already. Iowa has a line item on the return for it.
Most people decide to cheat it.
I'll be buying on Craigslist, to avoid taxes....until they jump on that, too.
Yep, why not simply lower property taxes on brick and mortars? Why not lower sales taxes on in-state purchases?
Brick and mortars are making a deal with the devil. As long as there are “tax free” Internet sales, there will be a cap on local taxes. As soon as that ends the lid can come off.
This is terrible policy. I mean, if Obama wants it, it cannot be good.
A pox on their houses. Politicians never saw a tax they didn’t like, or think of first.
Better be DOA in the House.
From my High School History I seem to recall that this Country once fought a war over Taxes, Tyranny and Guns!!!
This sounds like it could be a nightmare for small businesses everywhere.
What happens if you get a statement from Iowa saying you owe them $2000, and another from Florida saying you owe them $700 when you believe you don’t. Will you have to defend yourself against all 50 states?
We are supposed to voluntarily pay it in TN but of course no one does.
At least not individuals. Business better pay on out of state purchases (called a use tax here but still just the sales tax) because they get audited.
Big purchases like furniture from NC you better pay...NC has an agreement with TN and they send the state the information.
If you buy a car out of state they get their sales tax when you register and get tags.
I recently spent $28 on something from Amazon.com and they sent me, and the state, an email with the information. While the state won’t come after me for the $2.59 tax they probably could.
Canada requires the shipper to do the same and they will collect from their citizens. I sent someting to a friend in Calgary once and she got a bill for the tax.
Funny they don't mention who is going to administer the program.
And this is also a foot in the door to institute a national sales tax on top of all the other taxes we are forced to pay.
Democrat fairness = You get screwed.
Progressive = Repressive
Maybe its time to go underground somewhat. Trade and barter with family, friends and associates and skip the government extortion’s whenever possible. Starve the beast ay?
wait a minute. where is this bill being introduced? boehner controls the house where revenue bills have to originate. is boehner for this?