Obviously none of the other comments are from people who know anything about
running an small internet business.Imagine the nightmare of trying
to figure out exactly what is and is not taxable in each and every state and
locality in the country. What the tax rate is, and then add that to their bill
before shipping. Then, you take those taxes collected from a dozen or a hundred
different taxing entities and fill out their required reports and send them a
check for pennies to a few dollars, maybe even a hundred dollars. Do it on
line? Yeah, how much time will that take away from taking care of customers,
updating catalogs, shipping orders or the other jobs that business people have
to do.Many small internet retailers will go out of business rather
than enslave themselves to dozens of new bureaucratic tax masters.
As I understand things the tax is not necessarily on the consumer but the
business itself. They usually pass it along to the consumer but can only tax
the amount allowed by law. For example, this restaurant I like to
frequent charges $5 for a burrito. That's it, $5. I'm assuming that
they are paying the tax by law. But I pay the flat amount. It's actually
a pretty cool concept, they charge even dollar amounts for their food and every
purchase or combination thereof ends in an even amount money. So
here, if the on-line business doesn't want to charge sales tax, I guess it
is their deal. But again, as I understand the law, the state collects the money
from the businesses which can then tax the amount needed at the time of
purchase. But there is nothing stopping a store from charging an amount of
something like this restaurant and then paying the tax later to the state. I
don't think the consumer is obligated to mail anything into the state on
their on-line purchases.Am I missing something?
Re:LostinDCThe Bush tax cuts:"The average tax cut that
people making over $1 million received exceeded $110,000 in each of the last
nine years — for a total of more than $1 million over this period.The tax cuts made the tax system less progressive. In each of the nine years
from 2004 through 2012, the tax cuts increased the after-tax income of the
highest-income taxpayers by a far larger percentage than they did for middle-
and low-income taxpayers. For example, in 2010, the year in which all of the
Bush income and estate tax cuts were fully phased in, they increased the
after-tax income of people making over $1 million by more than 7.3 percent, but
increased the after-tax income of the middle 20 percent of households by just
2.8 percent."(Center on Budget and Policy Priorities)
Ultra Liberal Bob,"People should share in the cost of their government
according to the benefits they receive,"I did not say it was perfect,
but the problems you cite already exist and way more. A pay as you go tax would
be the most fair and could be tailored, like I said. I can't put all of the
answers in this forum, but I am sure it could be worked out. It would be better,
if for no other reason than, there would be less people to audit. (businesses
@Baron Scarpia,Rural areas don't get public transportation
services, and other urban programs. Seems to me it balances out in the end.
Besides, the rural areas are generally farming areas, filling a basic need we
all have, called food. Like it or not, the rural area inhabitants/workers are
essential to the city dwellers.@ all you liberals who fuel the
various forms or social warfare:Finding yet another way to divide
ourselves from each other just sinks the boat we are all in together. I find no
sense in that. Do you?
So basically you want a handout for living far away from stores?
SteveDIf sales tax is determined by the purchase price, how can sales tax
be fair method for calculating an Americans share of the cost of government?
If a Utahn was to purchase the set of identical goods and services
from Utah businesses and a Californian purchased the same set of goods and
services from California businesses, would the purchase amount and the sales tax
be the same? Probably not. It is most unlikely that businessmen in this
country would accept a single fixed price for an article throughout the USA.
People should share in the cost of their government according to
the benefits they receive, without the ability to measure the true benefit of
each citizen, some of us believe that personal income is the best measure of
that benefit. Consider that every dollar paid out from a business, for
every purpose, to every person involved in bringing something to that business
is personal income to somebody, somewhere on this earth. If we apply the flat
rate to that amount, we are applying the flat rate income tax to every worker,
every owner, everywhere in the world, involved in that particular business.
Sales tax on internet sales would not balance the playing field. The savings in
sales tax simply offsets the shipping charges. Charges you don't pay at a
brick and mortar store. I have never paid sales tax on items
purchaed through Amazon and I have made hundreds of purchases through them.The only fair tax is a sales tax, if there were a national sales tax
instead of the ,far too complex, income tax, everyone that makes a purchase
would have to pay their fair share. It could be tailored to tax luxury items
more than essentials, thereby taxing the wealthy more.Income tax,
even a flat tax has to have deductions for business operating costs and that
makes loop holes for the wealthy owners. You cannot get away from that.
Seems its always about the rich and the poor. "A house divided..."
The current law as established by the Supreme Court says that if a company does
not have a physical presence in a state they are not required to charge sales
tax and I agree with that. However, if you're going to require online
sellers to charge a sales tax I don't understand why they wouldn't be
collected for the tax entity where the seller resides and not the buyer. It
seems that would simplify things and at least provide incentive for low sales
tax rates (by encouraging online sellers to operate in low tax jurisdictions) If
I go to CA and buy a product I pay sales tax there and not in Ut so I don't
understand why if I buy online from a seller in CA I would pay sales tax in UT.
The filthy rich 1% don't pay sales tax [their CPAs find ways of purchasing
everything tax-exempt], This is only yet another tax on the 47% who
Mitt Romney and the rest of the GOP think don't pay ANY taxes.
states that charge a use tax do so contrary to the US constitution, which
proscribes sgtates from placing levies on interstate commerce.Maverick, actually bush's tax cuts cut rates for the low and middle
income folk more than for wealthy folks. BO's restoration of the SS tax
rate hits the poor moreso than the wealthy.
Sales tax is unfair, inadequate, inefficient and a very bad way to finance
government. Any tax collected at the state level will probably not
be distributed to the city and county where the purchaser resides. All consumption is not taxed. Stores collect more tax than is
remitted to the government. They claim the surplus as a fee for doing the
government’s job.Sales tax provides business with a tool to
blackmail cities and towns and even states for favors if the business would
relocate. The proper way to support government would be by a flat
rate personal income tax with no exceptions and no exemptions. Universally collected on every income throughout the USA, this would eliminate
the ability of rich people and businesses to blackmail local governments. The tax should be collected according to business location but
distributed according to population.
Amazon already charges tax on most purchases and supports taxing internet sales.
Call your rural congressman, they will grant you a farm subsidy.
It is interesting to note that rural communities often are the most expensive
for states to serve. For example, developing power lines, water facilities,
roads, ambulance, fire protection, schools, etc. all have to be paid through
taxes for residents in rural areas where the actual revenues to serve these
areas are typically subsidized by people living in more urban communities. While I can sympathize that paying taxes is a nuisance, our nation was
built on taxes. And all the infrastructure in rural communities were developed
via taxes, largely paid by someone else.
@ Joe BlowThanks for the clarification. I was not aware of that.
"Some companies may choose to collect sales tax, but the majority of U.S.
purchases online do not include sales tax."I do not dispute
that. However, Utah Law (as in many states) requires that people submit sales
tax for their out of state purchases.Just because companies do not
collect it, does not mean it is not owed.
@ Joe Blow and GeorgeBuyers do not always pay sales tax on all of
their internet purchases. The law currently is that online companies do not have
to charge sales tax unless the company has a physical store inside the state.
Some companies may choose to collect sales tax, but the majority of
U.S. purchases online do not include sales tax.
You already pay sales tax when you buy on line.
Mr Cole,Are you aware that by law you are already required to pay
sales tax on all of your internet purchases?
The sales tax is a tax upon the poor and middle class. Our politicians have yet
to find a tax on the poor and middle class which they did not like. They also
have yet to find a tax to levy upon the rich. Probably because they themselves
are rich and serve their top campaign contributors.