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In 1992, the U.S. Supreme court ruled that you cannot tax an internet business unless the business had a physical presence in the state. However recently, states are suing online businesses for taxes. They project a loss of revenue but their reasons is because people "look" at merchandise locally and buy on the internet for a better price.
Chicago sues eBay and StubHub over amusement taxes - May. 20, 2008 (broken link)
What do you think? Should the goods on the internet be taxed?
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
16,259 posts, read 24,675,435 times
Reputation: 3587
Quote:
Originally Posted by evilnewbie
In 1992, the U.S. Supreme court ruled that you cannot tax an internet business unless the business had a physical presence in the state. However recently, states are suing online businesses for taxes. They project a loss of revenue but their reasons is because people "look" at merchandise locally and buy on the internet for a better price.
Chicago sues eBay and StubHub over amusement taxes - May. 20, 2008 (broken link)
What do you think? Should the goods on the internet be taxed?
Yes they should. Why the hell should the local merchant have to pay taxes on what he sells yet the internet merchant pays zero? The internet merchant already has advantages in not having to maintain a storefront with employees and such.
So then the question becomes HOW to tax them because it would be impossible to keep up with thousands of local tax rates that change all the time and what is exempt here and not exempt there or- as in Georgia which has 2 weekends a year where you can buy "school supplies and clothes" exempt from taxes. Therefore the only answer would be a national tax in internet sales that would be apportioned among the states according to population.
Ebay is a different animal though. It does not sell anything. Individuals sell things on its site and it should not be responsible to pay taxes that individuals owe.
Yes they should. Why the hell should the local merchant have to pay taxes on what he sells yet the internet merchant pays zero? The internet merchant already has advantages in not having to maintain a storefront with employees and such.
Then the merchant should be utilizing the internet in addition to his storefront. Theoretically his internet store can be equally competitive as any other... however he still has that storefront. Thus storefront owners have an additional degree of potential profit making.
Ebay could collect taxes from buyers based on the zip code it is mailed to...
Technically ebay doesnt transact financial transactions, thereby they couldnt collect the taxes. They could however send out financial documents at the end of the year with a total sales for the year..
Let me tell you, I make most of my living from buying/selling online. While I claim 100% of my revenues on my tax returns, sales tax is a completely different story. Its very difficult currently to sell on various websites and enforce a sales tax because websites do not want to be bothered with collecting the tax on the vendors behalf. I think they should be forced to collect this tax, (along with numerous other sellers I know) but it will takes some force by the government to have it happen.
If we tax internet purchases, then we have to go after people who physically purchase goods in states or even foreign countries without a sales tax. After all, why should those purchases get away untaxed? Can anyone imagine the bureaucratic nightmare that would ensure?
While it may not seem fair that a person with an actual store has to collect sales tax while internet merchants get away without doing it, it is not the government's role to subsidize a form of business that is less effective (the physical store) by taxing the more effective competitor. It is also a bad idea to punish more effective retailers through additional taxes.
People pay more than enough tax in this country already. At all levels of government.
If we tax internet purchases, then we have to go after people who physically purchase goods in states or even foreign countries without a sales tax. After all, why should those purchases get away untaxed? Can anyone imagine the bureaucratic nightmare that would ensure?
While it may not seem fair that a person with an actual store has to collect sales tax while internet merchants get away without doing it, it is not the government's role to subsidize a form of business that is less effective (the physical store). It is also a bad idea to punish more effective retailers through additional taxes.
People pay more than enough tax in this country already. At all levels of government.
The problem is that most internet sales, proper sales tax in state is never collected, even though legally it should be. The sales tax is one of the most fair taxes that exist. Consume, and pay taxes. The more people consume, the more taxes they pay.
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
16,259 posts, read 24,675,435 times
Reputation: 3587
Quote:
Originally Posted by evilnewbie
Ebay could collect taxes from buyers based on the zip code it is mailed to...
Not really. My zip code includes 3 city jurisdictions (Austell, Mabelton and part of Lithia Springs as well as unincorporated parts of 2 counties (Cobb and Douglas). Each has its own sales tax rate and each decides what will be taxed and what will not be taxed. Then you have the state tax which also has its own exemptions and "no tax" holidays for certain items. It would be a nightmare. That is why a national sales tax of a fixed amount would be a fair way to resolve the issue. The money paid to the Federal Government who would then send it to each state based on that state's population.
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