Democratic senator wants Internet sales taxes

[The Northerner]

A Democratic senator is preparing to introduce legislation that aims to end the golden era of tax-free Internet shopping.

The proposal--expected to be made public soon after Tax Day--would rewrite the ground rules for Internet and mail order sales by eliminating the ability of Americans to shop at Web sites like Amazon.com and Overstock.com without paying state sales taxes.

Dick Durbin of Illinois, the second most senior Senate Democrat, will introduce the bill after the Easter recess, a Democratic aide told CNET.

"Why should out-of-state companies that sell their products online have an unfair advantage over Main Street bricks-and-mortar businesses?" Durbin said in a speech in Collinsville, Ill., in February. "Out-of-state companies that aren't paying their fair share of taxes are sticking Illinois residents and businesses with the tab."

Read more: http://news.cnet.com/8301-31921_3-20052999-281.html

[rocktivity]

1. Get the bush tax cuts rescinded instead

Stop expecting the other 98 per cent to take up the slack.

:headbang:
rocktivity

[OhioChick]

6. +1000 n/t

[Psephos]

2. Gee, if only there wasn't that pesky Constitution getting in the way.

:eyes:

[Moondog]

10. Exactly.

He doesn't have a hope in hell of this, but he just can't resist playing to the credulous.

[joeunderdog]

3. I agree with this.

I know it's taboo, but desperate times call for desperate measures.

[Rage for Order]

29. Don't take the bait

The money not spent on sales tax is spent on other items and stimulates the economy via additional economic activity.

[P. Galore]

4. Dick Durbin - the president's mentor. nt

[msongs]

5. another (insert 1st name here) who could save billions in military cuts but won't lol nt

[Exilednight]

7. He does have a point. Brick and mortar are at an unfair advantage. On the other hand,

should we really put a sales tax on internet companies, or eliminate sales tax for brick and mortar stores and raise taxes on the rich to offset the difference?

[FLAprogressive]

8. Yep, another tax on the working class when we COULD tax the rich

[Shandris]

9. I'm not entirely sure how I feel about this.

Part of me is against it on principle -- I don't like arbitrarily raising taxes anymore than I like arbitrarily lowering them. On the other hand, I can see the point to a goodly degree. (Note: Raising taxes on the wealthy is NOT an arbitrary thing! It's a demand for simple fairness.)

I have to admit, I haven't entirely formulated an opinion on this one yet. Although...one thing that may or may not need to be taken into consideration: taxes alone will not make or break the competition with a Mom & Pop store, who also has tremendous overheard in the form of insurance, rent/taxes, even simply things like electricity and basic utilities. Think I'll sit this one out and watch the debate before I decide. I think overall I'm leaning slightly in favor of it as a starting point.

Edit: Note

[bullwinkle428]

11. Sorry, Dickie - you're just rearranging deck chairs on the Titanic.

[silverweb]

12. This is up in the California legislature, too.

I agree with it. Tax-free internet shopping hurts small, local businesses and is unfair.

[Critters2]

27. It just passed in Illinois, which has something to do with this, I'm sure. nt

[silverweb]

30. The idea's been around for quite a while.

I remember a few years ago, after I bought a bunch of LED lightbulbs from Texas, the friend I split the order with asked if I'd be declaring them on my California tax return.

There's an option on the California annual tax return to "voluntarily" declare and pay taxes on items bought outside the state for use in the state, including things bought over the internet. I'd been unaware of that line before, hadn't saved the paperwork from the purchase, and I'm sure like most other people asked the same question, I just laughed and shook my head.

The states have been losing sales tax revenue to internet sales, and this will help remedy that situation. I'm all for it and so are small businesses.

[taught_me_patience]

33. I support it too here in CA

Amazon has an extreme unfair advantage over any brick and mortar here in California.

[jillan]

13. People like myself that sell on Ebay do so because we needed a job - why don't you go after GE &

leave us garage sale shoppers alone??????

[Shandris]

15. Surely Ebay wouldn't count? I mean, you don't pay taxes at auction do you?

(I've never been to one, nor have I sold on Ebay before). But that wouldn't...no, I wouldn't be in favor of that at ~all~.

[jillan]

23. Oh yeah - that's in the plan too.

[Oasis_]

14. An extremely foolish proposal

It has absolutely zero chance, but provides plenty of ammunition for political opponents to attack with. This is the type of nonsense that really hurts Democrats as a whole nationally.

[nevergiveup]

16. Large internet companies will hire big-time attorneys

and wiggle their way out of paying the taxes and small Ma and Pa internet companies will take the hit. This is the way it always works and yes, there are many very small internet companies..

[Drale]

17. Dick what are you doing man?

Why do you have to do things like this, it hurts.

[Critters2]

24. This law just went into effect in Illinois. He's trying to even the playing field.

We pay these taxes in Illinois, now. It's a pain in the ass, but if we have to, shouldn't others? I'm guessing that's his thinking.

[bluestateguy]

18. Maybe Durbin can cry and blubber on the Senate floor to persuade other Senators

that's worked so well for him in the past.

[jmowreader]

19. Sales tax is a state level tax, and Durbin is a US Senator

I think you know the routine already, but if you don't let me spell it out for you...

1. Senator Durbin writes a bill requiring e-commerce sites to collect sales tax based on the location the purchaser resides in.

2. The US Chamber of Commerce says the bill needs to be killed because it will place an "unfair burden" on the e-commerce sites to do this. (As you know, it would be easy for an e-commerce site to use a computer to calculate sales tax for each jurisdiction--but since e-commerce companies do their accounting on abacuses and hand-cranked adding machines rather than computers the point is moot.)

3. The Teabaggers will scream about there being a new tax created--never mind that this "new tax" has been in force for the last 170 years.

4. The National Federation of Independent Business will whine about the unfair burden that's about to be placed on hard-working small businessmen like Jeff Bezos.

and...

5. Faux News will complain about federal intrusion into a state issue.

The bill will die before it ever reaches committee.

[AlabamaLibrul]

28. and....

I'd have to do a lot of unnecessary bullshit just to conduct an ebay sale. That's not the CoC's line, that's mine because I can't even remember the last time I had a sale within Alabama that requires you to pay state sales tax anyway.

Also, it is essentially the federal government pushing its way into state sales taxes for no real good reason (it doesn't hurt the corporate donors) and I do hope the bill dies before it ever reaches committee. I think it's a stupid bill and I'm tired of our people coming out with shitty, stupid bills.

Quite frankly, I think it is an example of "big government" in its truest, barest form, pushing its way into something it really doesn't need to be involved in, since we don't have a VAT or other national sales tax.

[Historic NY]

20. GE brings good things to life and doesn't pay one thin dime in taxes Senator.

[Critters2]

26. +1 nt

[Dappleganger]

21. What a fecking nightmare...

this will fall hard, as it should.

Tax the rich first, dumbasses.

[AsahinaKimi]

22. So if I buy a CD from Hong Kong...

Who do I pay taxes to?? Meh... Leave it to a senator to mess up a good thing.

[Critters2]

25. We're supposed to if we are in Illinois when we conduct the transaction.

If the seller doesn't keep track of it, we're supposed to, and report it in our state income tax. Honest. It's a PITA.

[TheKentuckian]

31. Anything as long as the wealthy and the corporations are left in peace

If it is revenue then it must be regressive.

[deacon]

32. Idiotic. Can this idea. It's dumber than dumb. n/t

[Rochester]

34. I support this

The nature of the internet already allows internet businesses to reward the right-wing anti-tax states with their presence and jobs, taking payments from people in more progressive, higher-tax states but offering no jobs in return and hurting the jobs that are already there through competition. That they don't even have to pay taxes only makes this problem worse, the people in the progressive states have an even larger incentive to send their money and jobs out of state and the state doesn't even get any tax money. It's time to put a stop to this!