I have dutifully paid use tax in Utah for all out of state purchases because it
is the law. If they aren't going to tax e-commerce transactions, then they
need to do away with the use tax, because it penalizes me for paying it while
others that overlook reporting purchases get the benefit of tax-free sales. The
bill would merely provide the purchaser with the ease of paying sales tax
without having to keep track of their purchases during the year. Which, BTW, it
is not hard to track the purchase. Every time you do e-commerce, print or save
the emailed invoice in your tax file. It's easy.
If sales tax is allowed on Internet sales, all proceeds should be retained by
the city in which the sale took place, i.e., no requirement to forward any money
to any State. Sales tax is a tax for the cost of providing
government services to a business, i.e. fire and police services. Those costs
are local to the business. Passing tax revenues to other States is taxation
without representation. That business cannot vote on the tax rates charged by
other locals. That business requires no government services from other locals.
That business is not creating a "burden" on other locals.Taxing Internet sales is simply a money grab. Even Utah, which requires that
we pay a "use tax" for all out of State purchases, should be sued to
prove that it has authority to tax us for services rendered in another State.
This tax creates a nightmare for small businesses. Amazon can afford to have a
large tax dept, or expensive tax software, to file returns in various different
states. Some states have varying sales tax rates by municipality. This will be
difficult for the small business owner to manage. The exemption for small
businesses needs to be set higher than $1M in sales.
"Duty" (taxes) on interstate sales is un-constitutional. This makes any
discussion on this subject moot at best.
The businessmen who support sales tax to support our government do not care for
the harm done to ordinary people. Any tax that is applied to the purchase of
goods or services, according to the purchase price is a bad tax. Merchants set their retail prices by many different factors and seldom match
others prices. So different consumers are taxed at a different rate for the
same article. It is likely that dumb people pay a much larger sales tax bill
than smart people which is not good for our society. It’s like kicking a
guy when he’s down. It is not likely that adding cost (tax)
to internet sales will change the market to any great extent. The internet
product will still cost less that the purchase at a local store, who has a
protected market. I don’t drive anymore and when I want
something, if I can get it mailed to me I will buy on the internet. However I
don’t buy much anymore.