California, other states, edging toward sales taxes on Internet purchases

Associated Press ^ | Feb. 26, 2003 | by Jim Wasserman

[Schatze]

SACRAMENTO, Calif. (AP) -- With his state staring at a budget deficit that could hit $35 billion, California Gov. Gray Davis is rethinking his longstanding objection to imposing sales taxes on Internet commerce -- a move that could ignite similar steps around the nation.

[Schatze]

Davis spokeswoman Hilary McLean has been saying Davis is open to Internet sales taxes ... She also notes Davis' 2000 veto message said the state should revisit the issue in three to five years.

Notice that the issue should be revisited after Davis is out of office -- which may be sooner than he thinks if the recall drive succeeds.

[NoControllingLegalAuthority]

All of this assumes people would keep buying via the Internet at the same levels after sales taxes are levied. People won't and this will simply destroy another market. These damn fools always think people will just bend over and pay more taxes without adjusting spending habits.

[Schatze]

I say we put a 100 percent tax on Gray Davis' hairspray purchases. That ought to take care of the deficit in short order.

[Revel]

I just helped someone put in an order from an outfit in CA. $30.00 shipping on a $170.00 purchase. What kind of tax rate would that come out to be. No doubt that all of that 200.00 is taxed at other levels...It is income to the seller and income to the carrier. So it is taxed. Now If one had to chuck in another $20.00 in taxes then this sale would not have been made.

One could argue that more taxes would then be collected from local retail purchases. That may be true. But I think this would cause still cause fewer purchases over all because when you are stuck paying the huge markup of local retailers in many states then you just go without. On top of that Since so many hi tech(IE computer componets) sales come from internet purchases from California then they would be the worst loosers of all if they initiated such a tax. IMHO. There would be a huge shrinking in there buisness base.

[Arkinsaw]

They are going to kill the egg that contains the goose that is going to lay the golden egg someday.

[Schatze]

What kind of tax rate would that come out to be.

It depends on the county; the rate ranges from 7.75% to 8.25% -- among the highest in the nation. Big surprise.

[Revel]

Oh...what I meant was that that if you consider the shipping that you would not have to pay locally it would be equivalent to arround a 17.6% tax rate. that would be the 30 dollars shipping for a $170.00 purchase.

[Schatze]

Ridiculous, isn't it? And it's going to get worse with oil prices skyrocketing thanks to So Damn Insane and his OPEC buds.

[elbucko]

These damn fools always think people will just bend over and pay more taxes...

Those damn fools are Democrats and don't care if reality is the opposite of their theory.

[Schatze]

Those damn fools are Democrats and don't care if reality is the opposite of their theory.

Yep. Yesterday on the radio, a Republican California congressman said the Democrats in Sacramento have no sense of urgency about the budget crisis.

[blackbart.223]

"These damn fools always think people will just bend over and pay more taxes without adjusting spending habits."

If this doesn't stop Atlas will have no choice other than to shrug.

[Revel]

I think it is only a matter of time before they fall financialy and morally.

[SAJ]

Very well said. Comps!

[blackbart.223]

Thank you and I'm sure the UN blows dead dogs.

[philetus]

Seems like more and more internet shops are listing a phone number you can call to order.

[monkeyshine]

What are they talking about here? Additional taxes on California consumers shopping from California online retailers, or just applying the current tax to non Californians? Either way I am opposed, to the former moreso than the latter, but I just want some clarification.

[unixfox]

The egg has been layed, we are just waiting for it to hatch now.