Looks like internet sales tax legislation will pass the senate today - Page 2 - TigerDroppings.com

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GumboPot
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re: Looks like internet sales tax legislation will pass the senate today


quote:

Lets say a small internet business does a little over 1m in annual sales at a normal profit margin of 20%.


That is a huge profit for high volume type goods.

quote:

Depending on how many employees they have and other overhead charges, they aren't making much. How the frick are they going to afford to hire an accountant to keep up with state taxes?


They will pass along the cost to the consumer.


The fundamental question that is not being asked is, when will governments ever have enough money?






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EST
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re: Looks like internet sales tax legislation will pass the senate today


Now that I think about it - yes - to a point. See how conditioned we are to theft.





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a want
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Member since Oct 2010
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re: Looks like internet sales tax legislation will pass the senate today


quote:

"Fairness" or that which is deemed "fair" by the left has destroyed this nation. One of the many reasons is that "fairness" for the left is rooted in relativism. Let the record reflect, if this passes congress and is signed by Obama, that Obama ushered in taxing the internet.


Why should brick and mortar stores that employ workers in YOUR town and contribute to your local economy be at a disadvantage by having to charge tax to its customers, while e-commerce businesses don't?






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GumboPot
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re: Looks like internet sales tax legislation will pass the senate today


quote:

Why should brick and mortar stores that employ workers in YOUR town and contribute to your local economy be at a disadvantage by having to charge tax to its customers, while e-commerce businesses don't?


They aren't disadvantaged. They can sell online too.






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EST
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re: Looks like internet sales tax legislation will pass the senate today


quote:

Why should brick and mortar stores that employ workers in YOUR town and contribute to your local economy be at a disadvantage by having to charge tax to its customers, while e-commerce businesses don't?


You're right! They shouldn't have to charge sales tax either then - to make it fair.






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Lsut81
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re: Looks like internet sales tax legislation will pass the senate today


quote:

That is a huge profit for high volume type goods.


Not really... Depends on what you are selling.

If its electronics, you are talking an average markup of 100% on accessories and then, depending on hardware, anywhere from 10-30%.

It just depends.... Hell, if its softlines, then you are talking about huge markups across the board.






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GumboPot
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re: Looks like internet sales tax legislation will pass the senate today


This bill wreaks of "big-box-store" crony capitalism.





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SlowFlowPro
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re: Looks like internet sales tax legislation will pass the senate today


quote:

Why should brick and mortar stores that employ workers in YOUR town and contribute to your local economy be at a disadvantage by having to charge tax to its customers, while e-commerce businesses don't?

oh shite a keynes (jobs) v. chicago (price) argument is BREWING!

on a more serious note, the question should be: why do our local/state governments keep relying on an inferior tax scheme given the face of consumer choice today? this isn't an indictment of consumer choices, it's an indictment of the sales tax as a general comment






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Gmorgan4982
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Member since May 2005
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re: Looks like internet sales tax legislation will pass the senate today


quote:

Why should brick and mortar stores that employ workers in YOUR town and contribute to your local economy be at a disadvantage by having to charge tax to its customers
This seems like the "One bad law should beget another" theory.






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Gmorgan4982
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re: Looks like internet sales tax legislation will pass the senate today


quote:

"big-box-store" crony capitalism.
I would guess the big box stores have more lobbyists to grease the wheels.






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dante
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re: Looks like internet sales tax legislation will pass the senate today


I am a little confused about this law and need some clarification. Let me preface this by saying I am not in favor of any higher taxes, but at the same time, certain companies should not be allowed to by-pass charging taxes based on their location.

Assumptions about the law
If an internet sales company already has a brick and mortar store in the state which the product is ordered then sales tax is charged on the internet sale. For example, if I order anything online from Academy I will get charged state taxes(not sure about local taxes) because they are already doing business in Texas. What happens if order something from a small business in Oregon, which has no state sales tax?

I assume the tax aspect of the transaction occurs from the buying parties delivery address or credit card address. If that is the case the software would be very complicated for a small company to buy and maintain. The cost of record keeping and compliance would also be expensive.






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THRILLHO
New Orleans Saints Fan
New Orleans, LA
Member since Apr 2006
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re: Looks like internet sales tax legislation will pass the senate today


quote:

I would guess the big box stores have more lobbyists to grease the wheels.



Plus, from what I understand, Amazon has a huge hand in software that companies would use to figure out these new internet taxes. Plus they already have to pay taxes in a bunch of states.






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mmcgrath
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New Jersey
Member since Feb 2010
4025 posts

re: Looks like internet sales tax legislation will pass the senate today


quote:

on a more serious note, the question should be: why do our local/state governments keep relying on an inferior tax scheme given the face of consumer choice today? this isn't an indictment of consumer choices, it's an indictment of the sales tax as a general comment
Pick your poison: Sales tax, income tax, or property tax.






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Mo Jeaux
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re: Looks like internet sales tax legislation will pass the senate today


quote:

Consumers are expected to declare those taxes on their state income tax returns but often don't.








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GumboPot
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re: Looks like internet sales tax legislation will pass the senate today


quote:

dante


There are laws on the books in each state to collect internet sales tax. Those laws apply to the consumer. Of course no one that shops online pays those taxes and enforcement by the states is next to impossible.

This regulation will put the burden to pays sales tax on the retailer. So if you live in Louisiana and buy online from a store in Georgia the retailer in Georgia will have to submit sales tax to Louisiana and the federal government will apparently enforce this regulation.


This is how I understand the regulation to work, but I could be wrong.






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BaylorTiger
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re: Looks like internet sales tax legislation will pass the senate today


quote:

LSUT


quote:

How the frick are they going to afford to hire an accountant to keep up with state taxes?


I know several small business owners with sales of around or less than $1m and they all have CPA's that do their taxes at year end.

None of them have full-time accountants and none of them do their own taxes.

I imagine, and I'm no expert so take it for what you will, this will increase the cost of that CPA's work but not by the catastrophic amount you are alluding to.



This post was edited on 5/6 at 10:02 am


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DeltaDoc
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The Delta
Member since Jan 2008
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re: Looks like internet sales tax legislation will pass the senate today


quote:

quote:Why should brick and mortar stores that employ workers in YOUR town and contribute to your local economy be at a disadvantage by having to charge tax to its customers, while e-commerce businesses don't? They aren't disadvantaged. They can sell online too.


Yep






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kingbob
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St. Amant, LA
Member since Nov 2010
16930 posts

re: Looks like internet sales tax legislation will pass the senate today


I don't like this law, but I agree with this:
quote:

ACTUALLY, this is a scenario that i envision would fit within the concept of the ICC when written

this is "regulating commerce among the states" as it was originally intended






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LJBurton
Member since Feb 2005
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re: Looks like internet sales tax legislation will pass the senate today


I don't understand what the problem is with this bill. All it does is shift the burden for remitting sales tax on interstate purchases from the consumer to the business. The fact of the matter is that very few people are going to keep track of these purchases throughout the year and remit the appropriate amount on their individual state returns (I sure as hell don't), and the states have ZERO ability of enforcement. So, what happens is that very little sales tax is ever collected or remitted on these transactions, and state governments are missing out on revenue that they are lawfully entitled to.

Ordinarily, I would be in favor of anything that keeps money out of the government's hands and in the hands of the people who earned it; however, in this case, the fact that individual states are powerless to collect these sales taxes has created a two tier system and allowed online retailers to have an unfair advantage over their brick and mortar competitors. Their products are less expensive to the ultimate consumer, as sales taxes are not figured into the calculation, and they don't have to worry with the costs associated with calculating, collecting, remitting or complying with state sales tax laws, which allows them to do business more efficiently.

Online retailers should be compelled to collect and remit sales taxes just as brick and mortar retailers are. There should be no difference. Unless you are advocating for brick and mortar to no longer be compelled to collect and remit sales taxes, and shift that burden onto the consumer, effectively killing all sales tax collection, I'm not sure how you can be against this bill. Does it place an increased burden on the online retailer? Absolutely, but it is a burden that ALL businesses have been compelled to bear. Online retailers should be no different.






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SpartyGator
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Member since Oct 2011
30297 posts

re: Looks like internet sales tax legislation will pass the senate today


quote:

I sure hope this bill dies in the house.







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