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 ...
So does MN, but I think nearly every state does.
buy everything used .
next they’ll send out the garage sale police .
The tax is on the importer but collected by the exporter.
“It would exempt online companies with sales of less than $1 million a year from collecting or paying the sales taxes.....”
But it would provide a permanent (and therefore illegal) list of honest American citizens that legally purchase firearms and/or ammo on the internet.
The White House Devil is in the Details.
I don’t have much faith.
. Once again, increasing tax revenue for the ever expanding Government entitlement programs.
And once again
.The trouble with Socialism is that eventually you run out of other peoples money
The WH has never seen a tax that it doesn’t like.
Sen. Richard Shelby (R)
304 Russell Senate Office Building
(202) 224-5744; 224-3416
Tuscaloosa: (205) 759-5047
Sen. Jeff Sessions (R)
326 Russell Senate Office Building
(202) 224-4124; 224-3149
Montgomery: (334) 244-7017
Sen. Mary Landrieu (D)
431 Dirksen Senate Office Building
(202) 224-5824; 224-9735
New Orleans: (504) 589-2427
Sen. David Vitter (R)
516 Hart Senate Office Building
(202) 224-4623; 228-5061
Lafayette: (337) 262-6898
Sen. Ben Cardin (D)
Sen. Sherrod Brown (D)
713 Hart Senate Office Building
(202) 224-2315; 228-6321
Cleveland: (216) 522-7272
Sen. Rob Portman (R)
338 Russell Senate Office Building
(202) 224-3353; 224-9075
Columbus: (614) 469-6774
Sen. James Inhofe (R)
205 Russell Senate Office Building
(202) 224-4721; 228-0380
Tulsa: (918) 748-5111
Sen. Tom Coburn (R)
172 Russell Senate Office Building
(202) 224-5754; 224-6008
Tulsa: (918) 581-7651
The States have been whining for this. Evil gluttons, just like our “reps” in D. C.
Yes, but nobody would join in.
If your family earns less than $250,000 a year, you will not see your taxes increased a single dime. I repeat: not a single dime. - Barack Hussein Obama, Feb. 24, 2009
In New Mexico it is call the “Compensating Tax.” If you buy something from out of state that you could have purchased in New Mexico - regardless of price difference - you are expected to pay 5% to the state. This is enforced for businesses, but less so for individuals.
When we lived in Florida my in-laws bought us dining room furniture while traveling in North Carolina (they owned a lighting showroom and often bought furniture for resale from out of state). Unfortunately they had it shipped directly to our home. About a month after we received it, we received a sales tax bill from the State of Florida. They tried to charge us on the full retail value of the furniture, but we had an invoice showing the true sale amount, so we just paid the sales tax on that.
We were later told that if the furniture had been delivered to my in-law’s store and then delivered to our home, we would not have owed the tax. It would have been considered a “zero sale” by our in-law’s store and no one would have paid tax...go figure...
Grouped by Home State
Alabama: Sessions (R-AL), Yea Shelby (R-AL), Yea
Alaska: Begich (D-AK), Yea Murkowski (R-AK), Not Voting
Arizona: Flake (R-AZ), Yea McCain (R-AZ), Yea
Arkansas: Boozman (R-AR), Yea Pryor (D-AR), Yea
California: Boxer (D-CA), Not Voting Feinstein (D-CA), Yea
Colorado: Bennet (D-CO), Yea Udall (D-CO), Yea
Connecticut: Blumenthal (D-CT), Yea Murphy (D-CT), Yea
Delaware: Carper (D-DE), Yea Coons (D-DE), Yea
Florida: Nelson (D-FL), Yea Rubio (R-FL), Nay
Georgia: Chambliss (R-GA), Yea Isakson (R-GA), Yea
Hawaii: Hirono (D-HI), Yea Schatz (D-HI), Yea
Idaho: Crapo (R-ID), Yea Risch (R-ID), Yea
Illinois: Durbin (D-IL), Yea Kirk (R-IL), Nay
Indiana: Coats (R-IN), Yea Donnelly (D-IN), Yea
Iowa: Grassley (R-IA), Nay Harkin (D-IA), Yea
Kansas: Moran (R-KS), Yea Roberts (R-KS), Nay
Kentucky: McConnell (R-KY), Nay Paul (R-KY), Nay
Louisiana: Landrieu (D-LA), Yea Vitter (R-LA), Nay
Maine: Collins (R-ME), Yea King (I-ME), Yea
Maryland: Cardin (D-MD), Yea Mikulski (D-MD), Yea
Massachusetts: Cowan (D-MA), Yea Warren (D-MA), Yea
Michigan: Levin (D-MI), Yea Stabenow (D-MI), Yea
Minnesota: Franken (D-MN), Yea Klobuchar (D-MN), Yea
Mississippi: Cochran (R-MS), Yea Wicker (R-MS), Yea
Missouri: Blunt (R-MO), Yea McCaskill (D-MO), Yea
Montana: Baucus (D-MT), Nay Tester (D-MT), Nay
Nebraska: Fischer (R-NE), Yea Johanns (R-NE), Yea
Nevada: Heller (R-NV), Nay Reid (D-NV), Yea
New Hampshire: Ayotte (R-NH), Nay Shaheen (D-NH), Not Voting
New Jersey: Lautenberg (D-NJ), Not Voting Menendez (D-NJ), Yea
New Mexico: Heinrich (D-NM), Yea Udall (D-NM), Yea
New York: Gillibrand (D-NY), Yea Schumer (D-NY), Yea
North Carolina: Burr (R-NC), Yea Hagan (D-NC), Yea
North Dakota: Heitkamp (D-ND), Yea Hoeven (R-ND), Yea
Ohio: Brown (D-OH), Yea Portman (R-OH), Yea
Oklahoma: Coburn (R-OK), Nay Inhofe (R-OK), Nay
Oregon: Merkley (D-OR), Not Voting Wyden (D-OR), Nay
Pennsylvania: Casey (D-PA), Yea Toomey (R-PA), Nay
Rhode Island: Reed (D-RI), Yea Whitehouse (D-RI), Yea
South Carolina: Graham (R-SC), Yea Scott (R-SC), Nay
South Dakota: Johnson (D-SD), Yea Thune (R-SD), Yea
Tennessee: Alexander (R-TN), Yea Corker (R-TN), Yea
Texas: Cornyn (R-TX), Nay Cruz (R-TX), Nay
Utah: Hatch (R-UT), Nay Lee (R-UT), Nay
Vermont: Leahy (D-VT), Yea Sanders (I-VT), Yea
Virginia: Kaine (D-VA), Yea Warner (D-VA), Yea
Washington: Cantwell (D-WA), Yea Murray (D-WA), Yea
West Virginia: Manchin (D-WV), Yea Rockefeller (D-WV), Yea
Wisconsin: Baldwin (D-WI), Yea Johnson (R-WI), Not Voting
Wyoming: Barrasso (R-WY), Yea Enzi (R-WY), Yea
This is such BS. Many of my Amazon purchases are supplied by small businesses.
But... It would exempt online companies with sales of less than $1 million a year from collecting or paying the sales taxes
Of course someone could have a small business, sell 1.1 million of merchandise that they had to buy for 1.05 million dollars, which leaves them 50K in “EEEVIL” profit...
If they are supporting a family that is near poverty level....
Way to break shit Obama...
Same here since they started collecting CA sales tax.
I use to order quite a bit from them.
Small time operators who make their living on bulk purchases that sell more than 1 million that have razor thin margins are gonna get screwed over, they are gonna need obamacare to install a new asshole in them after this.
On the other hand, Congress is placing a burden on Internet businesses that brick and mortar businesses don't have to do. The Internet businesses must collect taxes for all states and localities. A brick and mortar business does not unless they required all purchasers to identify their state.
Five states have no sales tax: NH, DE, OR, AK, and MT. So a brick and mortar business in those states would be required to have each customer provide a state of residence, calculate the sales tax for the that state, collect it, and then deposit into that state's coffers. Under the proposed Internet law, the brick and mortar businesses would not be required to collect such taxes.
They’re quick to say “it’s not a Federal tax. If that’s the case why not leave it to the States? Just more Federal intrusion into the domain of the States.
Need to watch which Republicans go wobbly on this one
And just how are all the Mom & Pop online stores going to know what the sales tax is supposed to be for tens of thousands of local districts?
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.
Roberts will just rule it as a fee not a tax...
Five states have no sales tax: NH, DE, OR, AK, and MT. So a brick and mortar business in those states would be required to have each customer provide a state of residence, calculate the sales tax for the that state, collect it, and then deposit into that state’s coffers. Under the proposed Internet law, the brick and mortar businesses would not be required to collect such taxes.
The only “good” thing could be that it could cause more states to get rid of their state sales taxes.
what gets me is our side (they few we have) are always on the defensive trying to hold them off. I know our real numbers are small. But it would be encouraging if even a few of them introduced and spoke of TAX CUTS. It may be futile but we need to somehow try to shift the debate to growth and lower taxes - even if it is only a few people yapping about it and finding clever ways to get on air. Impossible given this environment? perhaps. but we should never give up
Yeah, that will help the economy.
Shipping costs are an important variable in the online purchase calculus. But so is time travelling to a shopping center, fuel for the car, dealing with cashiers who can’t count change; for those averse to shopping, the pain points are multifarious. The value of online shopping vs brick & mortar retail will vary with the friction of distance and the conduciveness of specific product classes to the online purchase experience. Does taxation tip the balance over to the BM retail interests?
In the end, taxes hurt everyone - and as noted, on many purchases the tax is already being collected, so this law does nothing. In New York state for example, if you itemize your state income tax, you have to (~ahem voluntarily) declare online purchases and calculate the tax the state of New York expects.
Per the article, the administration is claiming the legislation will “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.”
Say what? That’s already happening...so what’s the legislation really about?
Control. Political favor. The “right” thing to do.
You are correct, but the government, through the USSC, has ruled that if a company has a “presence” in a State, tax can be charged for purchases. Silly, and wrong, ruling, but there it is.
This new law, though, doesn’t even make that pretense.
I hope some organization is able to file suit against it.
Lot of work putting that table together. I hope you didn’t have to hand code that.
“it would level the playing field among online and retail stores by ensuring that both pay sales taxes”
How about no one pays sales tax, @#$@hole?
If it passes, boycott the locals. Let the officious criminals make the next move. [There’s no next move that won’t end without the commie/fascist crooks being brought to justice.]
Didn’t Boehner say he was done with tax increases?
Also, since this is a revenue bill, how can it originate in the Senate?
It's not a revenue bill since it doesn't actually raise a tax. It allows states to collect taxes on sales from businesses in other states shipping across state lines.
It will never pass the house. It won't even get out of committee.
“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.”
I hadn’t considered this aspect of it. This is a great point. They are trying to sell this as tax fairness and somehow local governments will do the right thing and lower taxes on everyone after the tax base is broadened. But the exact opposite is likely to occur, especially in states with complete Dem control, like here in MN where I live.
Get ready to stop purchasing things on the internet.
How can we get rid of that illegal POS who is trashing America/the White House?
My only consolation is that the Good Lord is keeping Tabs on everything Zero does and says. It may not help us now, but NO ONE can escape the Final Judgement.
Get Ready To Be Tracked on Internet Purchases...
Every knew this was coming
Wait until corrupt biggov attempts to censor nearly everything on the net and they announce they want to assign everyone and Internet ID.
They’re not too happy since even those drooling in cups have seen CNN and the media are hysterical, biased, corrupt, pro big government and basically do and say as government tells them to.
This hussein character, a Karl Marx clone if ever there was one, NEVER saw a tax he couldn’t love.
So we need even BIGGER Government for "fairness"...
why? Besides the fact they want more money and not less ... they know online shopping is not just about saving taxes as compared to brick and mortar shopping. People like the convenience of buying from their home, avoiding crowds etc. So the feds KNOW that an internet tax will not significantly reduce demand. Sure some people will protest etc but the world will go on. It is generally elastic. They know this and know it is a magic cash cow.
But Obama isn’t the one in charge of doing this..... /s
I hear that argument a lot and it bothers me.
Who’s name will be signed on the bill? Who has the power to veto? Is what I tell people when they bring up that argument.
That's the first thing Jay Carney has ever said that made any sense!
the Republican throat-slitting-contest
(their own) just goes on and on
“It’s just a piece of paper”
I won’t waste my dime trying to contact any member of the Gay State’s Congressional delegation....all eleven of them are filthy,worthless Maoist punks.
Who gets the money? State with the store, state with the purchaser, FedGov?
Let’s level the playing field by getting rid of all federal sales taxes on brick and mortar stores.
If states want sales taxes on internet businesses, then that’s the states business.
If they want to forego that for now because BUSINESS (any business activity whatsoever) and JOBS are more important, then leave that to the states.
The Fed is just looking for another revenue source.
“Leveling the field” is just BS.
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