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Old Yesterday, 10:54 AM
 
Location: Western NY
677 posts, read 723,428 times
Reputation: 795

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For 20 years the government allowed tax free internet shopping to support a new business model (like Amazon), now the tide has turned so far the other way. Would it make sense to have an extra Federal tax for internet sales or companies? Perhaps help pay some of that Federal deficit off, and help support the collapsing brick and mortar stores of today. I am not connected to retail either way, or in any way other than as a consumer. Just what I observed was government support for internet companies for 20 years letting them be sales tax free (plus they didn't pay as much property tax without all the storefronts), now the opposite side needs support. Maybe like a 3% Federal internet sale tax? Seems like many malls and stores are near collapse from mom and pop size up to nationwide retailers.
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Old Yesterday, 11:11 AM
 
8,469 posts, read 7,558,722 times
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Always baffled me how internet retailer is able to undercut brick and mortar. Brick and mortar no pay for delivery to consumer. E-commerce need to pay for delivery to each consumer. Delivery for single items has to be expensive unless you have lots of deliveries on route. But that can only happen once everyone starts ordering from single vendor.

We used to have mail in/phone in catalogs. Those did not eliminate Brick and Mortar. How is E-commerce any different?

Only way this model should work is for higher ticket items direct from manufacturer, cutting out middle man.

Like how Amazon start off selling and delivering single paperback books? People order single book, and pay for delivery as opposed to stopping at B&N on the weekends of hanging out with friends at the mall, and eating out. How can be more attractive option for consumers?

Last edited by NJ Brazen_3133; Yesterday at 11:19 AM..
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Old Yesterday, 11:35 AM
 
15,492 posts, read 1,001,514 times
Reputation: 24654
Quote:
Originally Posted by TestEngr View Post
For 20 years the government allowed tax free internet shopping to support a new business model (like Amazon), now the tide has turned so far the other way. Would it make sense to have an extra Federal tax for internet sales or companies? Perhaps help pay some of that Federal deficit off, and help support the collapsing brick and mortar stores of today. I am not connected to retail either way, or in any way other than as a consumer. Just what I observed was government support for internet companies for 20 years letting them be sales tax free (plus they didn't pay as much property tax without all the storefronts), now the opposite side needs support. Maybe like a 3% Federal internet sale tax? Seems like many malls and stores are near collapse from mom and pop size up to nationwide retailers.
You seem a bit behind the power curve. This US state does not yet charge sales tax on on-0line purchases?

With all the restrictions due to COVID, which some folks actually take serious, you want to charge extra to use one of the few available venues for shopping? While you are at it - lets get rid of back to school tax free shopping for starters. Then lets move to the European model of ad valorem taxation.
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Old Yesterday, 12:11 PM
 
Location: Western NY
677 posts, read 723,428 times
Reputation: 795
Quote:
Originally Posted by Threestep2 View Post
You seem a bit behind the power curve. This US state does not yet charge sales tax on on-0line purchases?

With all the restrictions due to COVID, which some folks actually take serious, you want to charge extra to use one of the few available venues for shopping? While you are at it - lets get rid of back to school tax free shopping for starters. Then lets move to the European model of ad valorem taxation.
I read there a favor of bricks and mortar collapse with loss of jobs and much more, while still giving a break to pure internet sales, but still funding school to do the best teaching possible.

Having had covid for 2 months I certainly do take it seriously, was as long a sickness as I ever had. Doesn't mean I want a collapse of bricks and mortar and for my state to still be giving a break to companies putting brick and mortar out of business. The no internet sales tax was done to give a break to a new industry (internet selling) more than 20 to 25 years ago. It was a pure break to a new industry and it stayed till recently in many places, yes, and not all places as mentioned. That industry of internet sales now dominates, but they still deserve a break and continuation of that even with an unprecedented collapse of bricks and mortar due to covid? Perhaps with so much apparent revenue for schools in that area, with no need for stores or taxations to pay for any of it or provide goods/services we should all be like that, just I don't know if that will work for very long or in most places.
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Old Yesterday, 12:19 PM
 
677 posts, read 223,359 times
Reputation: 1140
Quote:
Originally Posted by NJ Brazen_3133 View Post
Always baffled me how internet retailer is able to undercut brick and mortar. Brick and mortar no pay for delivery to consumer. E-commerce need to pay for delivery to each consumer. Delivery for single items has to be expensive unless you have lots of deliveries on route. But that can only happen once everyone starts ordering from single vendor.

We used to have mail in/phone in catalogs. Those did not eliminate Brick and Mortar. How is E-commerce any different?

Only way this model should work is for higher ticket items direct from manufacturer, cutting out middle man.

Like how Amazon start off selling and delivering single paperback books? People order single book, and pay for delivery as opposed to stopping at B&N on the weekends of hanging out with friends at the mall, and eating out. How can be more attractive option for consumers?
ecommerce is completely different than mail in catologues. it's not even in the same stratosphere.
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Old Yesterday, 12:36 PM
 
1,554 posts, read 733,795 times
Reputation: 2032
Quote:
Originally Posted by TestEngr View Post
For 20 years the government allowed tax free internet shopping to support a new business model (like Amazon), now the tide has turned so far the other way. Would it make sense to have an extra Federal tax for internet sales or companies? Perhaps help pay some of that Federal deficit off, and help support the collapsing brick and mortar stores of today. I am not connected to retail either way, or in any way other than as a consumer. Just what I observed was government support for internet companies for 20 years letting them be sales tax free (plus they didn't pay as much property tax without all the storefronts), now the opposite side needs support. Maybe like a 3% Federal internet sale tax? Seems like many malls and stores are near collapse from mom and pop size up to nationwide retailers.
That's a common myth, there was never internet tax free shopping. There was a period of time where the obligation to collect sales tax required physical nexus with a state, that has disappeared with the Wayfair decision last year.

Even now, not all online sellers have the obligation to collect sales tax in every state. In those cases, the buyer is supposed to be paying use tax if sales tax was not charged. Some states even made it a line item on their income tax returns so if you didn't self-assess, technically you are committing fraud when you file that income tax return. Of course not many people do, doesn't mean it isn't the law.
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Old Yesterday, 12:38 PM
 
Location: Niceville, FL
8,614 posts, read 17,189,278 times
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A lot of my favorite internet retailers are small businesses who make it by not having the overhead associated with physical storefronts. And while they are niche enough to make it with slightly higher costs to the consumer, it doesn't seem fair to make them pay more so that a physical Walmart gets a break.
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Old Yesterday, 12:46 PM
 
Location: Western NY
677 posts, read 723,428 times
Reputation: 795
Quote:
Originally Posted by beachmouse View Post
A lot of my favorite internet retailers are small businesses who make it by not having the overhead associated with physical storefronts. And while they are niche enough to make it with slightly higher costs to the consumer, it doesn't seem fair to make them pay more so that a physical Walmart gets a break.

I had a small engineering company for 20 years so if there is a way to exclude small internet company to still get a break that would be fine. Aside from brick and mortar, small business is really having a much harder time over big business last decade. So good point!
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Old Yesterday, 12:57 PM
 
4,531 posts, read 4,481,564 times
Reputation: 4843
Quote:
Originally Posted by TestEngr View Post
For 20 years the government allowed tax free internet shopping to support a new business model (like Amazon), now the tide has turned so far the other way. Would it make sense to have an extra Federal tax for internet sales or companies? Perhaps help pay some of that Federal deficit off, and help support the collapsing brick and mortar stores of today. I am not connected to retail either way, or in any way other than as a consumer. Just what I observed was government support for internet companies for 20 years letting them be sales tax free (plus they didn't pay as much property tax without all the storefronts), now the opposite side needs support. Maybe like a 3% Federal internet sale tax? Seems like many malls and stores are near collapse from mom and pop size up to nationwide retailers.
The gov did not allow anyone to get away with anything, online sales were following the laws. I have no idea why you have such a slavish view of "the gov let them get away with it". Is following the law now "getting away with something"?

Why should a consumer pay an extra tax so some brick and mortar can compete? That makes zero sense, how is it my concern a brick and mortar stays in business? Do I get a discount or something from them? Nothing stops you from giving more money than you need just because they are in a brick and mortar.

And what, give the fed gov even more money? The retards already take in too much, and spend even more. Oh yes, I just love seeing my tax money spent on BS year after year, makes me so motivated to give even more. maybe we can increase aid to some 3rd world hole, or more aid to Israel, or fund yet another redundant social program, or buy shiny new weapons to sit in storage.
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Old Yesterday, 01:02 PM
 
Location: Western NY
677 posts, read 723,428 times
Reputation: 795
Quote:
Originally Posted by SuiteLiving View Post
That's a common myth, there was never internet tax free shopping. There was a period of time where the obligation to collect sales tax required physical nexus with a state, that has disappeared with the Wayfair decision last year.

Even now, not all online sellers have the obligation to collect sales tax in every state. In those cases, the buyer is supposed to be paying use tax if sales tax was not charged. Some states even made it a line item on their income tax returns so if you didn't self-assess, technically you are committing fraud when you file that income tax return. Of course not many people do, doesn't mean it isn't the law.

I will let my accountant know that recent purchase I made on the internet of cat food, and had a line saying sales tax that it actually is a "use" tax not a sales tax.
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