Amazon packing after South Carolina House vote

[sactoking]

I'm not sure it's within Congress's ability to do that. IIRC it's a Constitutional issue.

Otherwise, not sure it's even appropriate for Congress either. Sales taxes are a state matter, don't see where Congress has the authority or business of involving itself in a purely state matter such as this.

Fern

Congress is on the record as stating that the collection of internet sales tax, when proper nexus does not exist, is purely an interstate commerce concern and that onyl the Fed can collect such taxes. Currently the Fed does not do so because of the disparity in sales tax laws. Congress has pledged to the States that if enough of them sign on to the Uniform Sales and Use Tax Compact (which will not regulate tax rate but which will regulate tax administration) then Congress will enforce the taxability of interstate commerce and deliver the tax revenue to the States (minus a cut for administration). There are almost enough States signed on to the USAUTC and with some big names (CA, NY, TX) expected to join this year it will just be a matter of time and Congress until all internet transactions are taxed at the rate of the purchaser's residence county.

 

[Craig234]

NY went the route that the affiliates that Amazon was paying for advertising in the state were effectively employees of Amazon.com operating in the state, thus giving Amazon.com a nexus in NY. Other states have been generally going about the same route, but Amazon has been pulling out of those states in retaliation, while only duking it out so far with NY through NYS courts.

Congress would most likely need to pass a law that supersedes the USSC decision and say that you have to collect a state's sales tax even if you don't have a physical presence. I'd imagine that what I wrote is an oversimplification of what would be passed or needs to be passed.

With the whores running the House for big business now, there's not a chance they'll represent the people and let the states collect the taxes they're owed, unfortunately.

 

[RightIsWrong]

If the other states also demand Amazon pay taxes they most certainly loose something. Either they cough up their fair share, or they can't build that new warehouse that they obviously want.

Ding, ding, ding....We have a winner!

What is also not discussed much by those that are touting the benefits of bending over and taking it without any lube or reach around by the deals is that a lot of companies just abandon the factories/plants/warehouses after the terms of the deal runs out because there is some other politician waiting to be reamed in the same exact manner to get reelected on a platform of "job creation".

 

[Craig234]

Ding, ding, ding....We have a winner!

What is also not discussed much by those that are touting the benefits of bending over and taking it without any lube or reach around by the deals is that a lot of companies just abandon the factories/plants/warehouses after the terms of the deal runs out because there is some other politician waiting to be reamed in the same exact manner to get reelected on a platform of "job creation".

The problem is with the weakest link, 'race to the bottom' competition.

In theory, states can set the rules for corporations with charters in their state. In practice, Delaware can decided to have *extremely* pro-corporate rules, so that corporations around the country flood to Delaware for their 'headquarters', forcing every other state to gut any protections for the public to have a change to have any charters.

In theory, states can set the rules for banks in their state, in practice South Dakota can set the rules to be *extremely* bank-friendly leading to banks basing their legal location there and taking advantage of those rules, and any other state who wants a chance having to ut protections for the public.

In theory, countries can set the rules for taxes on corporations, but the Cayman Islands or Switzerland can offer extremely low rates to be the 'headquarters' where a PO box is opened, taking tens of billions of dollars out of the taxes of the countries where the corporations really make their money, and the companies can demand huge tax breaks to bring the money to those countries.

It's not practical to get the governments to 'cooperate' in standing up to the corporations - there's going to be a number of 'weak links' who cause a race to the bottom.

What's needed is stricter government rules - the very thing a hugely funded propaganda campaign by the wealth interests sells the public to oppose, hating all government.

 

[sactoking]

The problem is with the weakest link, 'race to the bottom' competition.

That's what I love about the Uniform Sales and Use Tax Compact, if (when) it's enacted the Fed will enforce it in all 50 states regardless of whether the state has signed the compact. States that fail to sign the compact lose the tax revenue to the Fed.

 

[wuliheron]

Ding, ding, ding....We have a winner!

What is also not discussed much by those that are touting the benefits of bending over and taking it without any lube or reach around by the deals is that a lot of companies just abandon the factories/plants/warehouses after the terms of the deal runs out because there is some other politician waiting to be reamed in the same exact manner to get reelected on a platform of "job creation".

Yeah, someone here I believe already mentioned a case where a state payed through the nose for a VW plant that promised 3 times as many jobs as it delivered, and then closed within ten years.

This kind of con game is as old as civilization, but modern construction and computers have made it possible for companies to more quickly locate potential suckers, take advantage of them, and move on to the next. With the national highway system they have an endless supply of accessible cites. For awhile it was a feast for wolves, but states have finally caught on that the more they compete with each other and keep their bids private, the more they invite such wolves. You can't really eliminate the wolves, but have to take at least the minimum steps to control their population.

 

[dawp]

They get income tax exemption. This one is different, it was for sales tax exemption. One of Amazon's advantages over B&M's is no sales tax. They lose that advantage, they will lose a lot of sales.

All online retailers have to collect sales taxes for states that they have a presence in. Why should Amazon be treated any different? I can't order from Bestbuy.com or Microcenter.com and not pay sales tax because they have stores here in my state, even if the closest microcenter to me in the state is on the other side(St. Louis).

 

[sportage]

Mom n pop stores only employ their own kids and relatives. Just walk into any Dairy Queen.
And yes, they offer no health coverage, vacations or promotion. The only promotion is your own when you start up a store down the street from them to compete. And hire you own kid to run your store. Mom n pops are not the answer. That is why they are so easily put out of business.

 

[lothar]

I'm speaking to the arguments beind made, not the specific situation.

More and more state governments are going after the sales taxes they've always been owed from online sellers, most of all Amzon, as they should.

So, hopefully, all states with a sales tax WILL be collecting sales tax from Amazon.

I wrote Amazon management today to tell them I want them not to fight sales taxes if they want to keep me buying.

How about one pays their "use tax" like they're legally supposed to do anyway regardless of if Amazon decides to implement sales tax collection or not?