States Attempting To Tax Internet Sales (Including Tobacco)

[brian64]

I don't doubt you are correct Peck regarding the "importation" requirement if one transports a purchased product across state lines...but as papipeguy alluded to in his comments, no one has ever heard of it or ever does it.
The whole issue is similar in a way to automobile insurance. It would simplify things to attach the policy to the driver rather than to the vehicle. But in the case of taxes, nothing is ever done with simplification as the desired outcome.

 

[checotah]

The whole subject of taxation would not be nearly as repugnant if there were not so much waste, corruption, and unfairness in the spending of those tax monies.

 

[dcrguns]

Interesting topic. I deal with this in the firearms business. Some states require their sales tax be collected on a firearm shipped into their state. The receiving dealer is responsible for collecting the tax on the amount paid. California for instance, does this. The thing that makes this viable, is there is a third party involved in the transaction. The receiving dealer. This does level the playing field in those states for the local dealer as the buyer has to pay the sales tax anyway so why not buy the gun locally? However on other types of Internet purchases where there is no third party to accept a purchase and it is shipped directly to the purchaser, the seller in another state would be required to collect the tax and forward it to the state where it is shipped. This would be hard to enforce and regulate. It is already done in some instances such as media type purchases. Like Netflix or iTunes. I would not be suprised to see some sort of federal VAT tax like in Europe. This has been discussed before. I am sure there will be major push back on these types of taxes. People are not used to paying them on their internet purchases. We shall see.

 

[bigtex]

Taxation is theft!

 

[warren]

A simple observation: No government entity taxes at a level higher than what the population will except. Corporations vote with their feet when a certain level is passed.
Further, the governed will except, indeed expect, a certainly level of corruption. In some areas corrupt politicians are rewarded with reelection term after term. It is the new American way. I can't think of any country which is not like this, Democratic Republic or not. As long as enough of the moneys are used to keep the majority minimally content, everything is "cool." A politician is now a "professional." Professionals expect to be paid well. So, we pay them, allow them all sorts of extravagant benefits and reelect them often.
Heck, the American Revolution was started by a wealthy handful of people, the majority of colonists were pretty content with life under the King.

 

[dcrguns]

Yea, Washington decided he had finally had enough of the King taking his money.

 

[jefff]

Tobacco will never be cheaper than it is today.

 

[deathmetal]

If you accept that some taxes need to be raised (to pay for schools, roads and other infrastructure)

I don't. They're wasting the money. Sin taxes are just a convenient way of raising more to waste as well.

 

[warren]

Maybe, more probably "sin taxes" are a way to get into the pocket of many who pay no other taxes and are possibly on the government dole. Sin taxes hit the low income and unemployed. Possibly, along with sales taxes, the most equitable of taxes as they are not not based solely on income level or use, such as gasoline taxes.

 

[gloucesterman]

Taxes are a big reason tobacco products will never be prohibited. They generate a lot of revenue. Despite all the revelations in the Tobacco trials a number of years back you can still buy cigarettes in almost any convenience store in any city or town in the country. They just cost a lot more now.

 

[papipeguy]

The kicker is that once "sin taxes" are imposed the state governments they budget forecasted revenues and they are always short on the income side.

 

[deathmetal]

Maybe, more probably "sin taxes" are a way to get into the pocket of many who pay no other taxes and are possibly on the government dole.

And yet, it flows right back out to them.
https://theconversation.com/weve-been-measuring-inequality-wrong-heres-the-real-story-56179

 

[warren]

Well, duh!
The people at The Conversation certainly have a keen grasp of the obvious. Well, they had to do a study so, maybe not.

 

[peckinpahhombre]

Artificially splitting this up into separate issues that evade the bottom line is, IMO, nuts.

No worries. I am used to people not seeing issues as plainly and as obvious as I see them. But being nutty can be lucrative.

 

[perdurabo]

Let's get this straight, (Education just started, listen up)! Taxes are Theft. Cut and dry. No arguing around. It. These states(people) that willfully steal private property(money) from their fellow neighbor are villains and should be treated as such. Sweep it under the rug, look the other way. Government can only stand as long as the individuals allow it. Hell, as long as we have entitlements, taxing scapegoats will be apart of the American Nightmare that we find ourselves living in.
I just gave up, I'm going to get my EBT card tomorrow and Join the herd. Tax that nasty tobacco that those rich folks make. You know the Rich folk back in the day that started The American Revolution. Everybody loved to live under despots. You don't have to do nothing, just sit around and talk on my IPhone. Get the f***outa here, Jeez, America needs to wake up. This is tyranny. Welcome to The United Dystopiadic States of the Oligarthic Democratic Repubilcan Party of America. How long do you intend to participate in this crass act of progress.

 

[gloucesterman]

If you think it's bad now, just wait. The duel impact of the enormous interest on the National Debt and tens of thousands of "Baby Boomers" hitting the social security rolls every month makes across the board tax increases almost a certainty in the near future. You can bet the "sin taxes" will hit all time highs and that will happen earlier than other forms of taxation because it's the easiest to sell to the public at large. Brace yourselves, our hobby is about to get a lot more expensive in the foreseeable future. Throw in a little runaway inflation that lets the government pay off the debt with dollars worth a fraction of what they were when borrowed and it's easy to see tobacco getting a lot more expensive.

 

[peckinpahhombre]

Also, if I buy a souvenir tee shirt in Florida should I be expected to pay the sales tax in my home state because I will wear it here? It gets real messy very quickly.

By the way, the answer is yes.
http://www.revenue.pa.gov/GeneralTaxInformation/Tax%20Types%20and%20Information/Pages/Sales%20Use%20and%20Hotel%20Occupancy%20Tax/Use%20Tax/Use%20Tax%20for%20Individuals.aspx#.Vyl7m8fsEgM

When you purchase taxable property from a seller who is located outside of Pennsylvania and the property is delivered into or used in Pennsylvania, you are required to pay use tax.
Example: You buy a desk in Delaware and you bring it into Pennsylvania to use in your home. You owe use tax on the desk.

However, I have seen your tacky shirts John. I am sure you have a viable defence that they have no value.
I doubt they will go after you in any event.
But lets all raise a drink for this poor sap in Arizona who wasn't so lucky:
http://www.bankrate.com/financing/taxes/4575-tax-bill-for-online-cigarettes/

 

[perdurabo]

Death metal, the Conversation piece forgot the Laffer Curve which they indirectly proved but went around their asshole with computer models to spout. Higher taxes never will, ever create wealth. Look at The Soviets and red China. Bernie and his cult will always look to another man's money, but what do they do when that man runs out? The common sense thing to do, which works, is reduce taxes. I say to the point that only the military receives any benefit from them. Politicians are not required to be paid. Their supposed to go back home and work for a living. As far as entitlements, nobody said freedom was easy. Don't have enough money to go to the doctor, looks like you planned your life wrong. It's not my problem or anyone on this threads problem. If Deathmetal, Peck, and Warren decide they want to help billkay that's fine, but that help should be done on on their terms, not billkay's.
Yes Internet tax is the new progressive tool. They can't wait to sip. Let's see how this shapes up.

 

[madmurdoc]

Only ~3% of total GDP is used for infrastructure, if they're trying to raise taxes, it's a pretty safe bet that it's not for that.

 

[skraps]

Only ~3% of total GDP is used for infrastructure, if they're trying to raise taxes, it's a pretty safe bet that it's not for that.

It never goes where they say it will. Just look at the Lottery. It's one of the biggest swindles out there, and people drop their money like it's nothing and use the justification that "It's going to Education". That's funny.