More Info About IRS Plan To Tax eBay Sellers

[gsethi]

Originally posted by: mugs

Originally posted by: AgentJean

Originally posted by: bluestrobe
Too much ignorant panic everywhere about this. eBay will only be required to report sellers with 100 or more sales AND $5,000 profit each year. If you are meeting those two figures you are a business already reporting your taxes or you are a power seller that is probably selling on eBay to avoid taxes.

Either way it doesn't hurt the small man or occasional seller.

The thing is it should not be Ebay's job to police this.
What next, should flea market operator;s start doing the same?
What about Craigslist? What about ISPs and Web hosts reporting to the IRS info regarding my website?

What's next, employers having to send the IRS a report of your earnings and taxes withheld each year? This is MADNESS!

We already do that....Employers have to file quaterly 941 and annually 940 which state incomes and taxes/withholdings for all employees.

 

[mugs]

Originally posted by: gsethi

Originally posted by: mugs

Originally posted by: AgentJean

Originally posted by: bluestrobe
Too much ignorant panic everywhere about this. eBay will only be required to report sellers with 100 or more sales AND $5,000 profit each year. If you are meeting those two figures you are a business already reporting your taxes or you are a power seller that is probably selling on eBay to avoid taxes.

Either way it doesn't hurt the small man or occasional seller.

The thing is it should not be Ebay's job to police this.
What next, should flea market operator;s start doing the same?
What about Craigslist? What about ISPs and Web hosts reporting to the IRS info regarding my website?

What's next, employers having to send the IRS a report of your earnings and taxes withheld each year? This is MADNESS!

We already do that....Employers have to file quaterly 941 and annually 940 which state incomes and taxes/withholdings for all employees.

Yeah, I know, I was being sarcastic. 😉 AgentJean is talking like requirements to report income should not fall on the income source, when that is exactly what we do for other sources of income. If the IRS relied on individuals to report their own income from investments and from interest, no one would report it. Same here - no one reports it, so they have to go to the source.

 

[Linflas]

Originally posted by: erub

Originally posted by: Raduque

Originally posted by: Wreckem

Originally posted by: jpeyton
Text

My favorite bit of info pulled from the article:

By 2012, the new laws will pull in an additional $220 million in revenues per year; enough to fund about 19 hours of our war in Iraq.

Uh, you are already legally obligated to pay income tax on stuff sold on Ebay. Just like you are legally obligated to pay taxes if you are drug dealer, or a prostitute. The IRS is just implementing measures to enforce people to pay taxes one what they are already supposed to be paying taxes on. Plus they want to punitively hit those currently skirting the law.

Why should items sold on Fleabay get double-taxed? Unless it's coming from an actual business and not a person who's selling something they had hanging around, then there should be NO taxes involved - the IRS already stuck their finger in that item's pie, they don't deserve second helpings.

did you read the article? Over 100 sales per year, and over 5k worth of gross sales. I don't know about you, but someone who is selling 2 items PER week at an average of $50 each for the entire year is a business, not a guy looking to get rid of some junk.

Yeah and back when they started this income tax nonsense nobody but "the rich" would be subject to them, ditto with the AMT. These things always have a way of growing beyond the initial narrow target.

 

[mugs]

Originally posted by: Linflas

Originally posted by: erub

Originally posted by: Raduque

Originally posted by: Wreckem

Originally posted by: jpeyton
Text

My favorite bit of info pulled from the article:

By 2012, the new laws will pull in an additional $220 million in revenues per year; enough to fund about 19 hours of our war in Iraq.

Uh, you are already legally obligated to pay income tax on stuff sold on Ebay. Just like you are legally obligated to pay taxes if you are drug dealer, or a prostitute. The IRS is just implementing measures to enforce people to pay taxes one what they are already supposed to be paying taxes on. Plus they want to punitively hit those currently skirting the law.

Why should items sold on Fleabay get double-taxed? Unless it's coming from an actual business and not a person who's selling something they had hanging around, then there should be NO taxes involved - the IRS already stuck their finger in that item's pie, they don't deserve second helpings.

did you read the article? Over 100 sales per year, and over 5k worth of gross sales. I don't know about you, but someone who is selling 2 items PER week at an average of $50 each for the entire year is a business, not a guy looking to get rid of some junk.

Yeah and back when they started this income tax nonsense nobody but "the rich" would be subject to them, ditto with the AMT. These things always have a way of growing beyond the initial narrow target.

The tax doesn't only affect sellers who make over a certain amount - that just relates to eBay's reporting requirements. People who sell less than the requirements still owe taxes on their profits and always have, they just neglect to report it to the IRS usually.

 

[AgentJean]

Originally posted by: Jawo

Originally posted by: AgentJean
Wait, I don't understand this. People are already required to report ALL income, why would Ebay need to report anything? My ISP and Web hosting company report nothing to the IRS regarding sales on my website. I report ALL of that information.

I just say it' time to disband the IRS and do away with the payroll withholdings. Then institute a national sales tax(on non necessities). The Goberment will have a lot more money to play with than an extra 200 million a year. The American people will also have more money to play with.

Billions of dollars will be saved on tax processing.

Gee...that sounds like the lovely VAT that Europe (and colonies) complain about. I'm sure everyone will complain if taxes go up by 30%!!!!

But in Europe the VAT is precalcualted(like tax on gasonline) and they still pay Income taxes.

With the fair tax(around 25%) it works just like state sales tax does. Each month, every house old gets a check for taxes paid on necessities like food and clothing.
And before you think that paying a 25% sales tax is going to harm the poor. In order to pay your $1000 monthly rent you must make over nearly $1500 pretax. Under this system rent is NOT taxed. That means you'll have an extra 500 bucks a month to spend.

I've done the math using the proposed national sales tax. The numbers work. I'd have more money to spend on things than I do now. This is before adding in any money from the refund checks.

The only people who loose under the system is Congress(they can't run on the lower the taxes for the poor while rape the rich tickets any more) and the IRS. Those loses are acceptible in the greater skeme of things.

 

[smack Down]

Originally posted by: AgentJean

Originally posted by: Jawo

Originally posted by: AgentJean
Wait, I don't understand this. People are already required to report ALL income, why would Ebay need to report anything? My ISP and Web hosting company report nothing to the IRS regarding sales on my website. I report ALL of that information.

I just say it' time to disband the IRS and do away with the payroll withholdings. Then institute a national sales tax(on non necessities). The Goberment will have a lot more money to play with than an extra 200 million a year. The American people will also have more money to play with.

Billions of dollars will be saved on tax processing.

Gee...that sounds like the lovely VAT that Europe (and colonies) complain about. I'm sure everyone will complain if taxes go up by 30%!!!!

But in Europe the VAT is precalcualted(like tax on gasonline) and they still pay Income taxes.

With the fair tax(around 25%) it works just like state sales tax does. Each month, every house old gets a check for taxes paid on necessities like food and clothing.
And before you think that paying a 25% sales tax is going to harm the poor. In order to pay your $1000 monthly rent you must make over nearly $1500 pretax. Under this system rent is NOT taxed. That means you'll have an extra 500 bucks a month to spend.

I've done the math using the proposed national sales tax. The numbers work. I'd have more money to spend on things than I do now. This is before adding in any money from the refund checks.

The only people who loose under the system is Congress(they can't run on the lower the taxes for the poor while rape the rich tickets any more) and the IRS. Those loses are acceptible in the greater skeme of things.

Your a fool if you think the IRS will no longer be needed. IF you think an income tax is easy to cheat you should see how easy it is to cheat on sales tax.

It would take about two weeks after a sales tax is implemented for congress to figure out that cutting sales tax on say clothing less the 100 dollars and increasing it on tv over 3 grand is great way to get votes.

 

[Vette73]

Originally posted by: AgentJean

Originally posted by: Jawo

Originally posted by: AgentJean
Wait, I don't understand this. People are already required to report ALL income, why would Ebay need to report anything? My ISP and Web hosting company report nothing to the IRS regarding sales on my website. I report ALL of that information.

I just say it' time to disband the IRS and do away with the payroll withholdings. Then institute a national sales tax(on non necessities). The Goberment will have a lot more money to play with than an extra 200 million a year. The American people will also have more money to play with.

Billions of dollars will be saved on tax processing.

Gee...that sounds like the lovely VAT that Europe (and colonies) complain about. I'm sure everyone will complain if taxes go up by 30%!!!!

But in Europe the VAT is precalcualted(like tax on gasonline) and they still pay Income taxes.

With the fair tax(around 25%) it works just like state sales tax does. Each month, every house old gets a check for taxes paid on necessities like food and clothing.
And before you think that paying a 25% sales tax is going to harm the poor. In order to pay your $1000 monthly rent you must make over nearly $1500 pretax. Under this system rent is NOT taxed. That means you'll have an extra 500 bucks a month to spend.

I've done the math using the proposed national sales tax. The numbers work. I'd have more money to spend on things than I do now. This is before adding in any money from the refund checks.

The only people who loose under the system is Congress(they can't run on the lower the taxes for the poor while rape the rich tickets any more) and the IRS. Those loses are acceptible in the greater skeme of things.

Except that 25% would not even come close to raising the amount we raise now. A flat tax is just a way to cut taxs for the rich, period. Do some basic math and you can see that. Of course it being pushed by rich people and the republican party should have been a big clue.

 

[AgentJean]

Originally posted by: smack Down

It would take about two weeks after a sales tax is implemented for congress to figure out that cutting sales tax on say clothing less the 100 dollars and increasing it on tv over 3 grand is great way to get votes.

Actually under the system, everyone gets the SAME refund check on taxes paid on food and clothing.

This means Mr Big Shot who eats steak and lobster every night of the week is going to get the same amount of money back as the "poor" college grad. who is living off of ramen, beans and rice.

You need to stop thinking like a COMMUNIST with the progressive tax system.

 

[Pabster]

Originally posted by: AgentJean
I just say it' time to disband the IRS and do away with the payroll withholdings. Then institute a national sales tax(on non necessities). The Goberment will have a lot more money to play with than an extra 200 million a year. The American people will also have more money to play with.

Billions of dollars will be saved on tax processing.

What you speak of is a consumption tax. And I agree 100%.

 

[ElFenix]

Originally posted by: AgentJean
I just say it' time to disband the IRS.... Then institute a national sales tax(on non necessities).

yeah, because a sales tax requires NO administration.

:roll:

 

[smack Down]

Originally posted by: AgentJean

Originally posted by: smack Down

It would take about two weeks after a sales tax is implemented for congress to figure out that cutting sales tax on say clothing less the 100 dollars and increasing it on tv over 3 grand is great way to get votes.

Actually under the system, everyone gets the SAME refund check on taxes paid on food and clothing.

This means Mr Big Shot who eats steak and lobster every night of the week is going to get the same amount of money back as the "poor" college grad. who is living off of ramen, beans and rice.

You need to stop thinking like a COMMUNIST with the progressive tax system.

And like I said it would take minutes before congres figures out that they can change the system and use it to buy votes.

Also you might want to check out a book on communism because it has very little to do with progressive taxes.

 

[AgentJean]

Originally posted by: smack Down

And like I said it would take minutes before congres figures out that they can change the system and use it to buy votes.

Also you might want to check out a book on communism because it has very little to do with progressive taxes.

From Chapter 2 of the Communist Manifesto

1. Abolition of property in land and application of all rents of land to public purposes.
2. A heavy progressive or graduated income tax.
3. Abolition of all rights of inheritance.
4. Confiscation of the property of all emigrants and rebels.
5. Centralisation of credit in the banks of the state, by means of a national bank with State capital and an exclusive monopoly.
6. Centralisation of the means of communication and transport in the hands of the State.
7. Extension of factories and instruments of production owned by the State; the bringing into cultivation of waste-lands, and the improvement of the soil generally in accordance with a common plan.
8. Equal liability of all to work. Establishment of industrial armies, especially for agriculture.
9. Combination of agriculture with manufacturing industries; gradual abolition of all the distinction between town and country by a more equable distribution of the populace over the country.
10. Free education for all children in public schools. Abolition of children?s factory labour in its present form. Combination of education with industrial production, &c, &c.

A critical hit, YEAH 😀