Internet Sales Tax

[dave]

Originally Posted by cmitch

It'll never pass as it's written. It will take a national collector entity to get the tax money and distribute it to every city and state. A potential boondoggle. But, taxes on internet sales is representative of no government service. Businesses located physically in cities collect tax because it's a 'social' benefit. Taxes go for roads, police protection, schools, etc. The business gets the benefit of city services in exchange for collecting tax. Not so with internet sales. Where's the city and state services?

I suppose that if you're assumption is correct, it is still pretty easy to see how the FEDEX, UPS, USPS trucks, airplanes, trains, etc. all benefit from roads, police security, etc.

I know little about sales tax history and intent; however, I always envisioned them as a tax on the consumer (who does live in and benefit most directly from government services) vice a tax on the business.

There are coporate taxes for them - separate from sales tax. Isn't sales tax a consumption tax; -- NOT a production tax? If so, I think it is imposed on the consumer. It is simply up to the B&M business making the sale to collect and act as an agent for the respective tax juristdictions.

[DennisP]

Originally Posted by dave

I suppose that if you're assumption is correct, it is still pretty easy to see how the FEDEX, UPS, USPS trucks, airplanes, trains, etc. all benefit from roads, police security, etc.

I know little about sales tax history and intent; however, I always envisioned them as a tax on the consumer (who does live in and benefit most directly from government services) vice a tax on the business.

There are coporate taxes for them - separate from sales tax. Isn't sales tax a consumption tax; -- NOT a production tax? If so, I think it is imposed on the consumer. It is simply up to the B&M business making the sale to collect and act as an agent for the respective tax juristdictions.

That is true. And in reality all this bill does is require the consumer to pay taxes they are legally obligated to already pay, just most break the law and do not.

[Subvet642]

Originally Posted by DennisP

That is true. And in reality all this bill does is require the consumer to pay taxes they are legally obligated to already pay, just most break the law and do not.

U.S. Constitution, Article I, Section 9, Clause 5: No Tax or Duty shall be laid on Articles exported from any State.

U.S. Constitution, Article I, Section 10, Clause 2: No State shall, without the Consent of the Congress, lay any Imposts or Duties on Imports or Exports, except what may be absolutely necessary for executing it's inspection Laws: and the net Produce of all Duties and Imposts, laid by any State on Imports or Exports, shall be for the Use of the Treasury of the United States; and all such Laws shall be subject to the Revision and Controul of the Congress.

That's what they are trying to do and that's why it will take an act of Congress. Furthermore, they cannot expect foreign entities to collect it, either. Besides, like I wrote before, it'll never pass the House of Representatives.

[688sonarmen]

Originally Posted by Subvet642

[b][color="Red"]U.S. Constitution, Article I, Section 9, Clause 5: No Tax or Duty shall be laid on Articles exported from any State.

This. I have paid sales tax for any online purchase inside the state of VA. As far as the "Shoe instance" stated by Brad I'm not sure if they ordered them online from the same state. If not, no harm no foul IMHO. Also, I know my wife has paid sales tax on items ordered online from other states and I'm not sure where that fits in. What is missed by buying cigars online is the sales tax AND tobacco taxes. Which one are we talking about here? Both?

[shark]

Originally Posted by 688sonarmen

This. I have paid sales tax for any online purchase inside the state of VA. As far as the "Shoe instance" stated by Brad I'm not sure if they ordered them online from the same state. If not, no harm no foul IMHO. Also, I know my wife has paid sales tax on items ordered online from other states and I'm not sure where that fits in. What is missed by buying cigars online is the sales tax AND tobacco taxes. Which one are we talking about here? Both?

Sales taxes, although a good argument can be made regarding tobacco taxes as well.