PSA: Taxes on ALL ONLINE purchases are imminent

[Anonemous]

The Marketplace Fairness Act

http://www.nbcnews.com/business/end-tax-free-online-shopping-draws-nearer-6C9576838

The days of tax-free online shopping could be numbered.

A bill to impose sales tax on Internet purchases took one step closer to being passed Wednesday, when the Senate voted 75-22 in favor of considering The Marketplace Fairness Act. A vote on passage could come this week.

The bill is supported by the White House and e-commerce giant Amazon.com and embraced by brick-and-mortar retailers, their trade association and the National Conference of State Legislatures. But it has been sharply criticized by online merchants led by eBay, as well as anti-tax advocates.

 

[highland145]

That's it. I'm moving to Cuba.

 

[Red Storm]

Why is Amazon in favor of it?

 

[Anonemous]

Why is Amazon in favor of it?

Amazon trying to open up their Locker Kiosks in all states to have fast 1 day delivery. It's cheaper than opening a store and all they do is rent a little space and it's automated.

 

[Tweak155]

You're supposed to be paying tax today anyway...

 

[surfsatwerk]

You're supposed to be paying tax today anyway...

If you're a sucker.

 

[BrunoPuntzJones]

Why is Amazon in favor of it?

What the feller above me said. Every state is kicking Amazon in the balls regarding tax, so they might as well suck up the inevitable and jump on the forefront and will give them the ability to have a presence in each state without the "penalty" of having to sell taxable items. Level playing field for them.

Just build a large automated facility in each state, run on thin margins and give people less of a reason to shop retail. You could get pretty much everything overnight.

 

[kranky]

And keep in mind many states charge tax on any S&H charges too. I don't consider it a new tax, it's just a different way of collecting the tax that people already owe (use tax) but don't pay.

This does make sense from a fairness standpoint. And it's good for local business, which matters to me. But no doubt it will be a major problem for small online sellers. They will have to partner with some company who will provide the tax calculations in real time and handle the tax reporting. No little company can afford to pay an accountant to file quarterly returns for 50 states (assuming that's what is required when a merchant collects sales tax).

It will also enable some serious tax cheating from shady merchants who collect the tax but don't forward it to the states, as they figure they'll never get caught.

 

[vi edit]

So is this acting as a proxy for state sales tax? Or in addition to?

And is it going to vary by state to match the state sales tax?

 

[Tweak155]

If you're a sucker.

No? Supposed to and doing it are two different things.

 

[Craig234]

That's it. I'm moving to Cuba.

You're not allowed. You MUST stay in the land of freedom.

 

[Craig234]

If you're a sucker.

That's why we need the seller to collect the tax - as it is, it's a tax on being honest.

 

[Craig234]

Note, we can probably largely thank CA for Amazon's support for this. CA's fight to make Amazon collect the tax makes it in Amazon's interest for other sellers to also collect it.

 

[vi edit]

Note, we can probably largely thank CA for Amazon's support for this. CA's fight to make Amazon collect the tax makes it in Amazon's interest for other sellers to also collect it.

Add IL and NY to that last.

 

[highland145]

Add IL and NY to that last.

S.C. gave them a 5 year break with their new distribution plant but that was part of the deal.

 

[rcpratt]

Makes me sad, but it's probably for the best.

 

[kranky]

So is this acting as a proxy for state sales tax? Or in addition to?

And is it going to vary by state to match the state sales tax?

Proxy for existing state sales taxes, so it would have to vary. And in some cases, the tax is not the same across the whole state. Our county has a 1% sales tax which is added to the state 6% sales tax.

 

[highland145]

Proxy for existing state sales taxes, so it would have to vary. And in some cases, the tax is not the same across the whole state. Our county has a 1% sales tax which is added to the state 6% sales tax.

Interesting. Our county has an added .01. So A. should collect based on the state sales tax and the locals can go jump a rope.

 

[onza]

I'm doing a lot of shopping at target, since they PM Amazon. And I have it within seconds compared to two days. (prime member)

 

[Juddog]

Come on everybody - we all knew this was coming eventually.

 

[SaDiZTiKStyLeZ]

Didn't Amazon strongly oppose this shit? Saying the tax put some of their marketplace merchants out of business? Yea. Shitty. I already don't make much from the items I sell as it is.

 

[ElFenix]

Amazon trying to open up their Locker Kiosks in all states to have fast 1 day delivery. It's cheaper than opening a store and all they do is rent a little space and it's automated.

that and amazon is such a large operation with a well known brand that it doesn't hurt them as much as their online competitors.

 

[Dulanic]

Didn't Amazon strongly oppose this shit? Saying the tax put some of their marketplace merchants out of business? Yea. Shitty. I already don't make much from the items I sell as it is.

No. Amazon opposed if it only affected them. They want it on all online merchants so it's not just a burden on them.

 

[darkewaffle]

While I don't necessarily want to pay more, I still think it's the right thing to do.

 

[Juddog]

No. Amazon opposed if it only affected them. They want it on all online merchants so it's not just a burden on them.

Exactly - if Amazon has to pay, they think everybody should pay, because otherwise it's an uneven market.