US Citizens: Internet Sales Tax?

[Lucradia]

I may support net neutrality myself, too, but I'd support an Internet Sales tax for US Companies, or companies that sell to the USA.

Related article: http://news.cnet.com/8301-31921_3-20052999-281.html

Having no sales tax for many online companies gives them an unfair advantage. Fortunately for the government, if I buy computer parts, it's via a local computer store, so I still get taxed. (Even if they buy from newegg or ebay.)

[3Miro]

I don't like being taxed and I would rather see other taxes razed first (lets not go political), but i don't see this as infringement on net-neutrality.

You have the right to write and speak, violation of it is against the US constitution. However, if you sell a book of your thoughts and speeches you pay taxes.

You have the right to spread information on the Internet and nobody should be stopping you. However, if you run an Internet business, you should pay taxes.

Some states already have sales tax on the Internet, I wouldn't like it, but it is not different than regular taxes.

[Lucradia]

I don't like being taxed and I would rather see other taxes razed first (lets not go political), but i don't see this as infringement on net-neutrality.

You have the right to write and speak, violation of it is against the US constitution. However, if you sell a book of your thoughts and speeches you pay taxes.

You have the right to spread information on the Internet and nobody should be stopping you. However, if you run an Internet business, you should pay taxes.

Some states already have sales tax on the Internet, I wouldn't like it, but it is not different than regular taxes.

I remember when a state nearby had sent a warning to all people who purchased Amazon items within 30 days back and forward of the warning they sent. Amazon would send out extra tax collection bills for all purchases.

[KegHead]

In Illinois, there is going to be an internet tax soon.

When that happens companies will be leaving in droves.

KegHead

[1clue]

Taxing sales from the Internet has nothing to do with net neutrality.

However, some states (Illinois for example) insist that you pay taxes on those things. For example, if you build a boat and then try to license it in Illinois, they insist you either show proof of Illinois sales tax paid for every component, or that you pay that tax before being given the title. Which you need before buying the license.

I'm sure they feel the same way about everything else you might buy over the net, but probably can't enforce it.

[Frogs Hair]

My state enacted a sales tax for internet purchases last year and some sites don't allow a purchase to proceed until a sales tax box is checked.

[pricetech]

When I order online, sales tax is assessed if the company I buy from has a presence in my state. Otherwise, it's not.

<might be construed as political>
I'd much rather be taxed on my consumption than on my productivity.
</might be construed as political>

[eriktheblu]

Not a fan of sales tax in general, but I fail to see how a state can assess a tax on a product purchased out of state.

If I buy something in state A from a company located in state B, state B can require a "sales" tax, but state A has no such jurisdiction. A purchase tax, or consumption tax maybe, but it can't really be considered a sales tax. I see no difference between requesting a purchase on a website, on the phone, on a mail in form, or driving across the border and doing it in person.

The only reasonable taxes I can see are an individual flat fee tax (e.g. everyone pays $1000) or a land/mineral tax.

The broad categories of taxes and the variety of rates and exemptions creates an unbelievably confusing system.

[NMFTM]

Let's say someone homebuilt a higher end computer and bought all his components online. True, he's not paying sales tax on his parts unless he actually declares the purchase, which almost nobody does.

But they're forgetting that the money he saved by not spending as much on sales tax may have resulted in him buying more than he would have otherwise. So, the companies he's buying from will reap more profit and end up paying more on their corporate income taxes as a result.

So, it's not exactly like nobody is paying taxes on all this money spent on online transactions.

[1clue]

Let's say someone homebuilt a higher end computer and bought all his components online. True, he's not paying sales tax on his parts unless he actually declares the purchase, which almost nobody does.

But they're forgetting that the money he saved by not spending as much on sales tax may have resulted in him buying more than he would have otherwise. So, the companies he's buying from will reap more profit and end up paying more on their corporate income taxes as a result.

So, it's not exactly like nobody is paying taxes on all this money spent on online transactions.

By that same logic, I could not pay income or property tax at all, then spend all that money buying things either online or in person. Technically SOMEBODY is paying those taxes, just not me.

I seriously doubt that the IRS will see it that way.

[theicyj]

I am just plain sick about hearing of more/higher taxes. The government already has there hand so deep in my wallet already (what's left of my wallet). In my case, almost 7% sales tax, about 2.5-3% of my income goes to property taxes (and I have a cheap house), and then all the state and federal income tax, social security (of which I will prob. never get back), around 50 cents per gallon of fuel,.... The list goes on and on. I bought a bike for alternate transportation to work (30 mile round trip commute), I paid over $60 in taxes on it (so much for "green" tech incentives)?

[doorknob60]

I live in Oregon, no sales tax, so doesn't affect me anyways :) (at least I don't think so, if it somehow made it so I did have to pay sales tax, even though there's none in the state, that would be an unfair advantage the other way, and I'd be quite pissed).

[MisterGaribaldi]

What? Are we not already being taxed plenty here in the U.S.? Is the government going to suddenly go broke without even *more* of our own money going to it?

[Elfy]

Closed. Should have kept it within the CoC.


Discussions on religion and politics are not allowed, except for politics directly related to free and open source issues.