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CNet.com: Republican Senators Push for Internet Sales Taxes


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CNet.com: Republican Senators Push for Internet Sales Taxes

CNET has learned that two Republican senators are preparing to introduce new legislation that would allow states to force Amazon.com and other out-of-state online retailers to collect sales taxes. Sens. Mike Enzi of Wyoming and Lamar Alexander of Tennessee are currently putting the final touches on their bill, which is backed by Wal-Mart Stores, Best Buy, Home Depot, and other companies that are currently required to collect sales taxes. It's a bipartisan concept: a related effort was embraced by Democrats including Sen. Dick Durbin of Illinois a few months ago.
"It's time to close the online sales tax loophole," says Jason Brewer, a vice president at the Retail Industry Leaders Association in Arlington, Va., which represents big box stores. "Amazon and companies like it are no longer fledgling startups."
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A recent draft of the Republican Enzi-Alexander bill obtained by CNET appears to be even more pro-big box retailer than the Democratic version. It lets state tax collectors force sales tax collection in some cases, assuming the states centralize some tax functions including audits, without requiring them to go through the more extensive simplification procedures spelled out in the Streamlined Sales and Use Tax Agreement. It also says that any small business with more than $500,000 in "gross annual receipts" can be ordered to collect taxes, a much lower limit than before.
Big, Federal government efforts are bad! Also, taxes are just a way for government to redistribute wealth, and Americans are "taxed enough already!" Wait, what was that Republicans? Since the burden of these taxes would fall on the middle class, and not the rich; you don't mind?
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Actually, sounds like an idea that makes sense, to me.

I think I would demand a clause on it, though. I would demand that the retailer collect whatever is the sales tax that applies to the whole state, and that it remit it to the state.

To me, it's not an undue burden to require my business.com to know what the sales tax is, in Nebraska. But to me, it is an undue burden to compell them to know the tax rates, exceptions, paperwork, and remittance procedures for every single local jurisdiction in Nebraska.

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The taxes already exist. This would just give the states the ability to enforce them. Technically, everybody with a state sales tax should be paying for internet purchases now, it's just that various Court decisions have made it impossible for states to collect if a business takes steps to avoid it.

It's a little disingenous to call this a new or raised tax.

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Anything to put more tax burden on poor and middle class people and less tax burden on corporations and the 1%ers. Also, it would force some internet businesses out of business if they had to collect taxes, because it would cause a financial burden on them to process them, more accounting costs too. Big corporations who do business on the internet have to collect taxes because they often have brick and mortar stores in the states and are already collecting sales taxes. It will run small, entreprenurial 1 or 2 person businesses out of business.

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While I think this a good idea, the hypocrisy from the GOP is unbelievable. Every single tax change they have proposed recently has shifted more and more of the tax burden on the middle class. It should be apparent to anyone paying attention that they do not have the country's best interests in mind. They are firmly 100% in the pockets of big business and the mega-rich.

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Anything to put more tax burden on poor and middle class people and less tax burden on corporations and the 1%ers. Also, it would force some internet businesses out of business if they had to collect taxes, because it would cause a financial burden on them to process them, more accounting costs too. Big corporations who do business on the internet have to collect taxes because they often have brick and mortar stores in the states and are already collecting sales taxes. It will run small, entreprenurial 1 or 2 person businesses out of business.

Small, entrepreneurial 1or 2person businesses who do more than 500,000 a year in sales, interstate, who can't afford computer software that looks at the state, and perform a single multiplication?

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Larry and techboy,

You're applying the wrong standard. You need to apply a Republican standard to talk about this plan. Think about how Republican rhetoric applies to this plan.

1) Tax Avoidance is acceptable for companies. We have no problem with companies using any scheme to reduce/avoid taxes. So why do we want to make policies which collect taxes on other companies?

2) This will increase the cost of tangible goods... this is simply a tax on small businesses and other shrewd people who use the Internet to avoid the extra costs associated with brick and mortar purchases. These companies will be left with less capital to be the job creators.

3) The people of my state did not send me to Washington to increase the size of bureaucracy back home. This bill will increase the number of public workers, who are inherently bad, and increase the size of my state government.

This plan must be abhorred!

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Forgot one:

5) This plan will add uncertainty to businesses. Now they will have to keep track of the sales tax in 50 states, taxes which may continue to rise. We can't have that in this type of environment. Maybe if unemployment was lower and businesses were booming, but now is not the right time to impose a tax on those who create the jobs in this country.

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Anything to put more tax burden on poor and middle class people and less tax burden on corporations and the 1%ers. Also, it would force some internet businesses out of business if they had to collect taxes, because it would cause a financial burden on them to process them, more accounting costs too. Big corporations who do business on the internet have to collect taxes because they often have brick and mortar stores in the states and are already collecting sales taxes. It will run small, entreprenurial 1 or 2 person businesses out of business.

1. Everyone not in the top 1% is not destitute. This is a Tax that should have been collected from the start, as much as I like shopping tax free.

2. There is little overhead in collecting the tax. It's a change to a computer program to calculate it. It's all done electronically. It's not like Mom and Pop will be doing door to door collections.

3. This will actually help local Mom and Pop brick and mortar stores. By the time you add Tax and Shipping costs, online purchases lose some appeal. I will certainly purchase less online if this goes into affect. That will benefit my local economy.

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Forgot one:

5) This plan will add uncertainty to businesses. Now they will have to keep track of the sales tax in 50 states, taxes which may continue to rise. We can't have that in this type of environment. Maybe if unemployment was lower and businesses were booming, but now is not the right time to impose a tax on those who create the jobs in this country.

Or they will have to install software, which will be available from numerous, competing, vendors, on their web page.

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Forgot one:

5) This plan will add uncertainty to businesses. Now they will have to keep track of the sales tax in 50 states, taxes which may continue to rise. We can't have that in this type of environment. Maybe if unemployment was lower and businesses were booming, but now is not the right time to impose a tax on those who create the jobs in this country.

This is no issue at all. It is a very few lines of computer code to see what state was entered in the billing address, pull the rate for that state from a table and calculate it.

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Gotta get that dime dontcha!!!

Never let a good opportunity to tax the average American go by!!!

And that's from someone who lives in a state where an Amazon distribution center is located so I already pay the sales tax.

So you're in favor of completely eliminating all sales taxes?

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While I agree that this probably needs to be done at some point, this isn't going to help people get back to work, which is really the most pressing need in this country.

Additional tax revenue could help fund programs that assist those out of work with re-education programs. My wifes uncle used such a program after getting laid off from the printing business a few years ago. He got retrained and the program assisted with getting him placed with a company. Such a great investment of tax dollars as opposed to never ending unemployment that does nothing to improve the situation of the unemployed.

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So...will this raise the price of products people buy online?

Of course it will, we can't very well stimulate the economy by increasing spending when we can just continually tax the people who are already carrying the heaviest burden.

---------- Post added November-4th-2011 at 11:20 AM ----------

Additional tax revenue could help fund programs that assist those out of work with re-education programs.

Yeah, right and the lottery is going to save the schools and give us new roads....

---------- Post added November-4th-2011 at 11:21 AM ----------

So you're in favor of completely eliminating all sales taxes?

I'm in favor of looking at the corporations that are only paying an effective tax rate of 17% instead of putting more of a burden on those carrying more than their share of the load.

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Gotta get that dime dontcha!!!

Never let a good opportunity to tax the average American go by!!!

And that's from someone who lives in a state where an Amazon distribution center is located so I already pay the sales tax.

Why should you be burdened when purchasing from Amazon and others arent'? If I drive to your state and make retail purchases, I pay your sales tax. As a champion of the down trodden, you should welcome an influx of tax revenues to your state that can only help your states citizens. Somehow I suspect that if you're making enough online purchases that the taxes you end up paying are anywhere near significant, you're not part of the populus that is going to be impacted by that extra burden.

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Why should you be burdened when purchasing from Amazon and others arent'? If I drive to your state and make retail purchases, I pay your sales tax. As a champion of the down trodden, you should welcome an influx of tax revenues to your state that can only help your states citizens. Somehow I suspect that if you're making enough online purchases that the taxes you end up paying are anywhere near significant, you're not part of the populus that is going to be impacted by that extra burden.

I know I'm not, but just because I'm not part that will be impacted doesn't mean that I can't or shouldn't speak out on behalf of those who will. Right now the corporations pay an effective tax rate at an average of about 18% all while companies like GE have a negative effective tax rate...and ya'll want to raise the taxes on the guy on the street?!

No wonder we're screwed.

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