Illinois Governor Signs Amazon Internet Sales Tax Law

[brian64]

Interesting, continuing developments regarding taxation and freedom of internet sales. This trend will affect web sales of all merchandise, but look for tobacco to be especially targeted as usual:
Illinois Governor Signs Amazon Internet Sales Tax Law
http://blogs.forbes.com/janetnovack/2011/03/10/illinois-governor-signs-amazon-internet-sales-tax-law/

 

[brian64]

The battle over Internet sales tax
http://www.csmonitor.com/Business/Tax-VOX/2011/0308/The-battle-over-Internet-sales-tax

 

[forsooth]

Thanks for the link. It is interesting to note the blogger's "ruling class" mentality on the this issue. For example:
"It isn’t about raising taxes either. If you think sales taxes are too high, fine. Lobby to lower them. But it doesn’t make sense [sic] to tax a tea kettle purchased from one seller differently from the same tea kettle bought from its competitor."
Mr. Blogger, we don't have a tax problem in this country. We have massive spending problems.

 

[tanless1]

Arrrggghhhh!!

 

[duncan]

To be honest I would be fine paying sales tax on items I purchase online if it was included in the bill at checkout. The items that I buy online is only because I can not get them locally. At the end of the day I would rather pay the taxes on my purchases than having internet sales banned all together like Maryland is about to.

 

[yoru]

I'm actually okay with online sales taxes serving as a level-playing-field tariff. Its like import taxes, only precisely equal to what everyone else places. Too many business are failing these days, and the internet is one of the reasons why.
As for this just being another way to get taxes, increased government revenue -- I hate the new presses for increased taxation without presses for proper spending. Fixing problems by increasing cashflow is the stupid man's way out. When you meet with a financial consultant they give you two possible things -- a budget you do have the money for, or say you're too stupid for that and tell you get a better job. . .by the way that'll be 200 dollars and I'm not a financial planner I'm just a consultant, so no, I can't help you find a better or even another job.
We need to either get smarter, or fire the consultants and hire some planners.

 

[forsooth]

Yoru, I disagree that it is about a "level" playing field between online and B&M. That will never be, for a variety of reasons. What local bookstore (including Barnes & Noble) is on a "level" field with Amazon? In addition, it is not the tax code's duty to create a level playing field. When a business fails, it fails because it no longer offers a desired service or product at a competitive price.
This is all about states getting into profligate debt (read: state employees' overblown retirement promises, etc.) and trying to tax their way out.

 

[sparroa]

They are going to strangle the internet economy, too. That won't revitalize small businesses. Excessive taxation does no favours to anyone. Our governments need to get their houses in order before they rob Peter to pay Paul once again. You can't blame it all on the internet companies - they have devised a successful low overhead operation with superior selection and now everyone wants a piece of the pie. Borders et al bankrupted the Mom & Pop Bookstore, now they are bankrupt themselves; it's evolution, baby. Retail is going to increasingly migrate online and the government knows this, so they will tax the successful companies like Amazon and the not so successful start-ups that followed in their wake until even they aren't convenient or cost effective to the customer. The consumer always loses in the end - Governments should quit propping up failed business models and get their hands out of everyone else's pocket for a change.

 

[sparroa]

Just to be clear - as a Canadian I already pay through the nose in applicable sales tax for all my online purchases within the country. (I don't make many, partially for that reason)
I hate to see you guys hit with the same. Maybe it's just inevitable...

 

[papipeguy]

This was inevitible so I'm not surprised. What hands me a laugh is when the state's comptroller's give estimates on lost tax revenue. Illinois estimates +$153 million/year in uncollected sales tax from internet sales. Where does that figure come from? How is it derived? I'll tell you. It comes out of their ass.

The next big thing to be coming our way, and it will, is federal VAT. The current administration has made it known that it favors a national sales tax. Some pundits say it should replace the income tax structure but it won't. It'll be accretive to the income tax structure just as it is in other countries.

You guys in Europe and other countries with VAT should chime in on this as well. Tell us how its grown your economies.

 

[admin]

Great discussions here guys.
I could say a lot on this, but you guys are covering the bases well, and I have to keep moving. Super busy here, so good thing Marty sent me that big bag of PA.
I'll just make the statement that the INTERNET is one of the few things keeping the cogs in the economic wheels spinning today, and now some moronic politicians, that are only politicians because they don't qualify for any real job, are making decisions to f*ck that up too.
However, having said that, in theory I agree with Duncan, but in practice, we don't need this right now.
The government needs to figure out how to run the country like a business rather than a person that needs a sugar daddy to survive.

 

[papipeguy]

Well said, Kevin. Donald Trump has been making noises about running for President. Not sure if he's the guy but people just have not embraced business people as serious candidtaes. Ross Perot, Steve Forbes, etc. I hope folks wake up for 2012.

 

[hobie1dog]

It just keeps getting worse, I'm glad I have my pipe and my music to escape this insanity. ::
If I could just find a way to live here permanently: