20 States Start Taxing Internet - Scofflaws will be punished no matter where, Bahama, Canada, anyplace

[dmcowen674]

3-4-2004 States Bent on Collecting Internet Taxes

Remember all those gifts you bought online during the holidays? Now it's time to pay sales tax on them, at least so say the income tax forms of 20 states.

Though Supreme Court precedents side with the states, DeVeronica said he was outraged New York would try to collect: "The Internet is not a government service. It's privately owned so it shouldn't be taxable."

"We're going to make tax evaders out of law-abiding citizens and policemen out of tax preparers and accountants," said Assemblyman Ronald Tocci, a Democrat in the chamber's majority. Who, he asked, "keeps tabs of what they buy on vacation in the Bahamas or Canada? Or anyplace? It's crazy. It's insane."

Meanwhile, a number of major retailers including Wal-Mart, Toys "R" Us and Target voluntarily collect state taxes.

 

[EagleKeeper]

Cost of proof will be more expensive than the amount of tax collected.

 

[Dissipate]

The new tax return line, New York state officials say, forces taxpayers to confront their liability or potentially face audits that could uncover credit card statements and mounting tax debt.

This just drives home the point that the income tax is an "us" vs. "them" system.

New York tax officials are expecting the new tax line, for which they've added seven pages of instructions and tables, to yield just $2.5 million. Like New York, most states let taxpayers estimate their liability based on household income.

Talk about insane! Seven pages of bureaucracy just to figure out what you supposedly owe on this tax?! Anybody who actually goes through this process might as well walk around with a ball and chain attached to their leg.

"That's always a problem, making people aware of this liability," Anderson said. "It's one of the most misunderstood taxes out there."

If it is the most misunderstood tax out there (and that is truly saying ALOT) then get rid of it!

 

[ElFenix]

you've always had to pay sales tax on them. dell beat that into me when i worked there. i couldn't outright say "and theres no sales tax so your final total is:..." i had to say something about dell not collecting sales tax in their state and blah blah... they could speak to the tax department if they had questions

 

[dmcowen674]

Originally posted by: ElFenix
you've always had to pay sales tax on them. dell beat that into me when i worked there. i couldn't outright say "and theres no sales tax so your final total is:..." i had to say something about dell not collecting sales tax in their state and blah blah... they could speak to the tax department if they had questions

Speaking of Dell, your Ex Boss got himself half Fired today like Eisner.