posted on July 11, 2003 08:37:41 PM new
You all hear on the news they are throwing around that "Internet" tax, again? That will be some more work to figure..ugh!
(Who said it will never happen? Because of the diff states rates and such...was it you, ACE?) Whoever said it, sure hope you are right!
posted on July 12, 2003 06:45:38 AM new
They can try but it's a very difficult task. The big retailers online would be easy but the mom and pop sellers would be tough to nail. The government has tried for years to get flea market sellers to pay state taxes like thirft shops but you'll never see a dealer charging you tax. The seller may pay a token amount if he has a resale license but there's no way to estimate how much he makes.
Internet commerce is still in its infancy and is only a few precentage points of all commerce. It should be helped to develope and not crippled with taxes. What good does giving a small tax refund do if they're going to tax every item you buy on the net?
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posted on July 12, 2003 08:13:41 AM new
I found it funny too that (I cant think of his name - that religious guy) but he stated on CNN that the internet commerce was hurting the mom and pop stores because people will buy online to avoid taxes. Which is miniscule in the grand scheme of things and besides they do tax the cars and alot of big ticket items. And the postoffice is making money! Let them divert some funds from there.
Anyway as I watched him, I am thinking "what about the high unemployment rate" and people who are trying to do this because there is no alternatative? Arent we mom and pop, too?"
And how can they classify resale items when the prices are all over the place?
(How much do you have to make to claim taxes/deductions on this as a business, anyway? Over 500? I have no idea.)
posted on July 12, 2003 08:27:08 AM new
How many people buy online to avoid sales tax? Most of my purchases are under 50 bucks so that tax doesn't even enter the equation. I buy online things I can't find locally.
Seth
posted on July 12, 2003 12:31:57 PM new
There was a lengthy discussion about this a few months ago. It is not an "internet tax". And it isn't that purchases made over the internet are not taxable (in states with a sales tax). It is that mail order companies are not required to collect sales tax on these sales when there is no business location in that state. In some, if not all sales tax states, the purchaser is responsible for paying the sales tax. Obviously, compliance is very low.
Do people shop online to avoid sales tax? Well, stores in Delaware and New Hampshire do very well with out of state shoppers. They don't just go there for the scenery.
I believe Amazon was one of the companies that claimed collecting sales tax was "too complicated". I guess far more complicated than keeping track of what I bought, what I looked at but didn't buy, what I might like, etc. Gee, nice try. Isn't complicated stuff what we use computers for?
Eventually, there will be a source for tax tables, probably with a clearing house for payments, and then appropriate amounts will be transferred to the states (similar to the electronic toll passes that work across multiple geographic areas).
posted on July 12, 2003 01:39:04 PM new
What percentage of ebay sellers that collect state taxes actually pay it to their state? Most do but there has to a lot of them keeping part or all of it. If ebay said we are turning in a special form to the IRS each January there would be a big drop in the hobby sellers.
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Some days it's just not worth chewing through the restraints...
posted on July 12, 2003 02:18:12 PM new
The high unemployment rate is *exactly* why I revived my ebay business. If sales tax goes in along with ebay and paypal fees, I'll have to raise my consignment fees, and off we go to the lost customer races.
posted on July 12, 2003 04:03:27 PM new
Demaris,
Ok, its not an internet tax. Its a sales tax aimed at all purchases made over the internet. (A tax is a tax is a tax!)
Are you a proponent FOR this tax? Your post almost sounds like it the way you ridiculed Amazon. Well, they have people to build systems so you are not that far off..but I imagine me trying to pull up different states tax rates for every .99 cent thing I sell! Postage is hard enough when you don't do a flat rate. Right now most states do put the onus on the buyer, but I think this was about requiring the sellers to do it. If so, then "Whooo-whoo!" I will really be making my hourly wage for time spent on this!! Unless of course some super-duper Vendio or other Software maker pulls that in with zip code or something. Even with that it does sound complicated when your talking fifty different states and tax code changes.
posted on July 12, 2003 04:28:56 PM new
Oh, I am in favor of not having to pay any taxes at all. But since we require some sellers to collect, why not all? Yes, there are administrative difficulties, but they will be overcome due to the fact that the internet sales will continue to grow, and the states need the money.
I believe a few of the legislators have already begun talking about making the tax schedules more consistent. My hunch is that they will come up with a central database that merchants can either download (or have their order forms bounce against) and computer taxes according to zip code order is shipped to. All sales tax for online/mail would then be sent through one entity for distribution to states.
An impact on sellers' administrative resources. Sure, but that is part of being in business. And in order to get the revenue, they will make it easier to collect. In fact, for the states I do business in, I can do my sales tax stuff over the net now.
As for Amazon and others, I just think it is funny that they have incredible databases and programming to sell all sorts of products and collect vast amounts of data, and then claim tax collection is too complicated.
The other excuses, such as that internet/mail order customers have to pay for shipping, or that it will impact the growth of the internet are equally laughable.
And even though I am no fan of Al Gore, the "I invented the internet" was not a quote from him, but a mis-interpretation of what he did say. But that's off topic.
posted on July 12, 2003 04:44:36 PM new
Actually what I heard them throwing around was some type of flat tax as well.
Still think its ALL to sordid and too much to junk through if even there is software to help.
The best of automated stuff is always still lacking somewhere. (Ever have the option to press 1,2,3 and what you need is not available? And they dont even offer an out on the menu at that point?) pffstt...
