Democrats push for new Internet sales taxes

[A Guy]

The halcyon days of tax-free Internet shopping will, if Rep. Bill Delahunt gets his way, soon be coming to an abrupt end.

Delahunt, a Massachusetts Democrat, introduced a bill on Thursday that would rewrite the ground rules for Internet and mail order sales by eliminating the option for many Americans to shop over the Internet without paying state sales taxes.

At the moment, Americans who shop over the Internet from out-of-state vendors usually aren't required to pay sales taxes. Californians buying books from Amazon.com or cameras from Manhattan's B&H Photo, for example, won't be required to cough up the sales taxes that they would if shopping at a local mall.

Source

A Guy

 

[not so gray matter]

Saw this coming a mile away in my business... could be a bit of a fight this time with the recession hitting so hard. Not to mention the fact that the legislative and executive branches are both occupied by democrats and they have historically been the party to create new taxes.

 

[electrotune1200]

It's going to be a long road back for the states. A national debt of 13 trillion, and quite a few state governments nearly bankrupt.

Something has to give. We have to pay for it somehow.

 

[smsff7]

This sucks....why won't they just cut back on spending instead of trying to steal more money from people

 

[noobvious]

This sucks....why won't they just cut back on spending instead of trying to steal more money from people

It's a nice idea, but it isn't quite that simple, unfortunately.

 

[arkhi]

It's going to be a long road back for the states. A national debt of 13 trillion, and quite a few state governments nearly bankrupt.

Something has to give. We have to pay for it somehow.

Au contraire, the US national debt isn't a problem that is THAT big. For a start, GDP is at 14 trillion. To avoid blabberying economics, let' make it simple. Consider this analogy: you earn 30k a year and want to buy a 35k car. Can you afford it? Sure, through monthly payments and such, you'll eventually pay it off. Plus, majority of the debt are domesticly owned, which is actually much better than having to owe another foreign state.

Back to the iNet tax thing, I'd rather not have it simply because I spend a good deal of shopping online.

 

[bummpr]

This sucks....why won't they just cut back on spending instead of trying to steal more money from people

It's a nice idea, but it isn't quite that simple, unfortunately.

Sorry Randy...I disagree...it is this simple. Not easy but simple.

 

[johnwillyums]

Do things cost a lot different from one State to the next then? Never knew that.
Imports into the UK have to pay tax so regular traders are all working from a similar cost to themselves.
Direct imports are different.
It would be much cheaper for me to ask an American friend to buy an iPhone on my behalf, open the box, re-wrap and send it to me.
My friend bought an expensive camera lens from a Malaysian trader on ebay and it came in a box with a printed label saying "This is a Personell Gift of Litle Value"

The former is probably legal the latter not

 

[richc46]

I know about sales tax. A simple law will not do it

In 1953 the Supreme Court said in the National Bellas Hess case, that you must have a location in the state to impose a tax. Now it will go to the court and they will have to decide is an internet connection a location.

 

[noobvious]

This sucks....why won't they just cut back on spending instead of trying to steal more money from people

It's a nice idea, but it isn't quite that simple, unfortunately.

Sorry Randy...I disagree...it is this simple. Not easy but simple.

Well, let me try to clarify then.

The theory is sound,yes..... but what is tricky is deciding what spending to cut. Any spending cuts you make are going to draw fire(hopefully figurative and not literal) from those whose livelihood (or ideology) is affected by them.

Are there spending cuts that should be made? Absolutely....but I do not envy those who have to make those decisions.

 

[noobvious]

Do things cost a lot different from one State to the next then?
*snip*

Actually, they can. I think recently Airbot mentioned a pack of cigarettes as costing just over five dollars in the state of California, well, they are now over $10 here in New York State, for one of the major brands, like Marlboro, Camel, etc. Individual state taxes are the difference, I think, in that situation.
(Man, I'm glad I don't smoke anymore!)

 

[CarlTR6]

The halcyon days of tax-free Internet shopping will, if Rep. Bill Delahunt gets his way, soon be coming to an abrupt end.

Delahunt, a Massachusetts Democrat, introduced a bill on Thursday that would rewrite the ground rules for Internet and mail order sales by eliminating the option for many Americans to shop over the Internet without paying state sales taxes.

At the moment, Americans who shop over the Internet from out-of-state vendors usually aren't required to pay sales taxes. Californians buying books from Amazon.com or cameras from Manhattan's B&H Photo, for example, won't be required to cough up the sales taxes that they would if shopping at a local mall.

Source

A Guy

Not at all surprising.

 

[seekermeister]

Any form of sales tax is regressive, effecting the low income people far more than those of greater income. Being on a pension places me in a very low income level, and internet purchasing has been a bit of a relief.

To make it worse to, they are also going for a federal sales tax. With these taxes, internet venders will lose a signicant portion of their business. and though they haven't collected sales taxes, they have paid income tax, and I doubt increased local sales will offset their losses.

It seems that there is a pendulum...the internet caused a lot of local stores out of business, now the backswing, where taxes may do the same for internet venders.

Taxes may be inevitable, but there is far better ways to fund the government than sales taxes. As far as the national debt goes, I have been hearing this all of my life (which has been longer than some that may read this) and I know that the national debt will NEVER be paid, or even balanced. Using it to justify a tax is a red herring.

 

[hoganth]

Yep,
Same old tax and spend!

 

[Bootz]

Any form of sales tax is regressive, effecting the low income people far more than those of greater income. Being on a pension places me in a very low income level, and internet purchasing has been a bit of a relief.

To make it worse to, they are also going for a federal sales tax. With these taxes, internet venders will lose a signicant portion of their business. and though they haven't collected sales taxes, they have paid income tax, and I doubt increased local sales will offset their losses.

It seems that there is a pendulum...the internet caused a lot of local stores out of business, now the backswing, where taxes may do the same for internet venders.

Taxes may be inevitable, but there is far better ways to fund the government than sales taxes. As far as the national debt goes, I have been hearing this all of my life (which has been longer than some that may read this) and I know that the national debt will NEVER be paid, or even balanced. Using it to justify a tax is a red herring.

You call it regressive like most people would, but the demos call themselves progressive. :roflmao:
Taxes are only inevitable in a socialist society, not what the US was founded on...

Anyone want to start taking bets how many decades it will be before the next dem. takes office again once Nobama's gone lol. Besides clinton the last dem. we had was Jimmy Carter in the 70's. Hmmm wonder why....

 

[Win7User512]

The dems really want to kill businesses. They hate the free market. The only companies they like are the ones that they are invested in.

 

[JonM33]

I pay shipping, why should I pay sales tax? If they introduce this bill the only people that will suffer are those that make a living off of online sales. I will definitely stop purchasing online if I have to pay sales tax.

 

[Win7User512]

I pay shipping, why should I pay sales tax? If they introduce this bill the only people that will suffer are those that make a living off of online sales. I will definitely stop purchasing online if I have to pay sales tax.

Me too. I will have no incentive to buy online except for items that cannot be bought in store.

 

[arkhi]

The dems really want to kill businesses. They hate the free market. The only companies they like are the ones that they are invested in.

Is apple included by any chance? :sarc:

 

[pparks1]

This sucks....why won't they just cut back on spending instead of trying to steal more money from people

I'm unsure how this could be viewed as stealing money from people. Buying online is often done with the benefit of NOT paying your own state's sales tax. So, in essence, you are going around the system to skirt paying for something.

I pay shipping, why should I pay sales tax? If they introduce this bill the only people that will suffer are those that make a living off of online sales. I will definitely stop purchasing online if I have to pay sales tax.

Shipping and sales tax are 2 very different things. Obviously, if you buy something which isn't local and they have to put it in the mail and have it delivered, there is going to be a necessary cost to this. For example, if you buy something at your local mall as a gift and then ship it to a friend...you don't get free shipping costs because you paid sales tax in your state.

I purchase online not because I avoid sales tax, but because I can find a better price or have more selection going this route. So, if I get a better price and then pay sales tax to my own state...it's still cheaper this way. For me, most of the stuff is purchased online simply because I don't know where to find it locally or cannot find it local. No additional taxes make these issues go away for me.