***** Internet Sales Tax *****
***** Internet Sales Tax *****
I was just reading an article on the AP Wire that the United States Senate with the backing of the Obama Administration is working on a bill which will require internet vendors to collect state sales tax. You- the customer will be charged a sales tax rate based on where you reside. According to the article, businesses that gross $1,000,000 or less will be exempt from having to collect the sales tax. It’s anyone’s guess if this bill will get through the Senate and if it does-through the House of Representatives.
What do you guys think of internet purchases being subject to sales tax?
Jeff,
Not good for us because we aren’t paying taxes. Good for the brick & mortar stores because it levels the playing field in that now online will not have an advantage.
This one is a no brainer.
If we have to pay sales tax we are paying more for the item.
This helps the states and the stores on the ground but isn’t good for us consumers.
Putting sales tax on internet purcahses could actually ruin the internet.
Big Brother scores more coins from my pocket
we got a good thing going and now these Washington clowns are trying to cost us 6% more on every thing we purchase on the internet.
these guys are worthless and they will cause the internet companies to start to fail. why cant they just leave well enough alone?
Jeff,
Huge mistake if this bill becomes law.
Only the best Buys of this country want this law.
Just robbing us people again of our money.
Leave this as it is.
Let me get this straight.
I buy a wallet online for $100.
Under the new law I would pay $106.00
I’m not happy.
Like so many others, I would rather not pay sales tax on internet purchases, but it does seem fair.
So we only buy from Internet companies doing under a million.
Terrible idea and a pure tax grab. The idea of this “leveling the playing field” is pure BS. It’s not designed to help brick and mortar businesses. It’s all about grabbing more tax dollars.
How come nobody mentions that online businesses need to charge their customers shipping charges? That sounds like a disadvantage to me.
There is a Federal Law right now ( I believe its the National Bellas Hess Act. It states if I buy from an out of state merchant and have the merchandsie shipped to my residence and the merchant does not have a physical facility in my state then he cannot charge me my state sales tax. If he does have a facility in my state then he has to collect and remit the taxes.
This new law would seem to be in conflict with that because it would collect the taxes on each sale whether or not the vendor had a presence in my state.(Other than real small businesses.
Does it stink? Yes. Will it kill the internet, of course not. It will force us to become better shoppers.
Internet sales are so good because to the no sales tax,
Charging taxes will kill off internet sales, because of the shipping charges.
Very bad move if Congress approves this.
Imposing across the boards sales tax on internet sales will destroy online shopping.
we have a 6% sales tax. just imagine the impact with those with 8-9%
if this becomes law it will be just another tax on the common guy.
hopefully the House of reps will not let it go into law.
So let me get this one. Something that now cost 1 will now cost us in 1.06.
This happens why would I be running to buy something on the Internet where there are shipping charges?
Congress should just leave things as they are.
Pass the law and you’ll kill the Internet.
Amazon’s annual sales are $75BBBBBBBillion, and they support the tax. I don’t believe that they share your thoughts……
hey gary, CEO Bezos of Amazon isn’t in favor, here’s what he said.
“This is actually a pretty big issue. It makes sense that companies shouldn’t have to collect sales tax in states where they have no employees. Not only does it create a massive bureaucratic nightmare (especially for smaller e-commerce players), but it actually acts as disincentive to sell into those states. On top of that, the point of the sales tax is supposed to be about supporting the local infrastructure for those retailers (roads, and such). But if you have no local presence, there’s a much weaker argument that such taxation is needed. Still, I have no doubt that eventually sales tax will be standardized at the federal level in some format or another, just because the government can’t resist a chance to tax — especially a tax that can be seen as regressive, like a sales tax.”
Gary, you are wrong. Look at the deal Amazon cut with the state of California when they were “asked” to collect state sales taxes on each sale. Of course one of the main reasons there are so many wealthy people moving out of high taxed states (like California and Taxachusetts, New York) is the cost of living and those state legislators that are increasingly trying to mug the wealthy in their states to pay for spending waste and social services that are unneeded…….
Needed parts for a whirlpool tub, shopped many local stores, including the big discount stores, Home Depot, Lowes, and Sears. The average asking price was $589.plus tax, did a search on the internet, found same part for $306.. Shipping was $12. and no sales tax. I would have gladly paid tax on the $306.
( $336. including Tax and shipping ) vs $634
The recent payroll tax increase is killing the economy. Having internet sales subject to sales tax will be just another nail in the coffin.
The Congress and the President just don’t get it.
While the 6% discount is nice, more often than not I’m shopping on line because I can find better prices, better selection, and delivery right to my door. Would the tax dissuade me from shopping on line? Probably not. I don’t think a 6% increase in price — given the already low prices charged by savvy on-line sellers — would make much of a difference.
If Publix was selling milk for $2.12 a gallon, and Winn-Dixie was selling it for $2.00 a gallon, you’ll probably shop at whichever store is on the correct side of the road on your way home from work.
whack, good points.
however do it this way.
a number of brick and mortar retailers are now advertising that they will match online prices. that means that there will no longer be an incentive t shop on line if tax is charged. dont forget online also has shipping charges. by charging taxes the internet will get destroyed.
Larry —
If I’m buying a flat screen television, I’d expect to find similar prices from Best Buy’s or BrandsMart’s brick and mortar stores, and Amazon’s providers. But, to shop at Best Buy and BrandsMart, I have to get into the car, use gasoline and incur wear and tear on my car, and struggle the television box into the car and then the elevator. And, I’ve probably already done my comparison shopping on-line. Amazon’s similar low price, even with shipping — and without shipping if I spend over $25! — provides the 6% tax saving, and I can shop in my pajamas and not drive my car.
But more to the point, internet shopping allows me to buy things, by merely searching on-line, that I would have to spend hours driving around or telephoning to find locally, if I could, indeed, find them locally! Odd rubber couplings for the air conditioning system? Bicycle racks? Spare batteries for my cell? Right angle HDMI adapters? All found on line, and purchased in comfort and — BONUS!! — without the 6% tax.
The convenience of internet shopping will certainly survive the relatively minor 6% increase.
they pass this and they destroy retail sales on the internet
This morning Gates and Buffet on CNBC came out in favor of the internet levying sales tax on purchases.
Hope the House of Rep stops this proposed law in its tracks.
Senate passed
Hope House doesnt