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Thread: Proposed online sales tax draws criticism

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    Proposed online sales tax draws criticism

    I would think looking for things to cut or was to save money might have better long term results than trying to seek revenue from something that may shrink up.


    Proposed online sales tax draws criticism lawmakers are eager to harpoon the great white whale that is Amazon.com to force it to collect sales tax on every HDTV and Kindle it sells here. But those efforts could ensnare scores of smaller fish: mom-and-pop Internet businesses that rely on Amazon and other e-tailers for their livelihood.
    The e-commerce behemoth has avoided paying sales tax in California because it has no offices, stores or warehouses in the state.

    But California contends that Amazon does have a presence here.

    This week, the state Legislature is considering a bill that says California Web sites known as affiliates that send customers to Amazon and other e-commerce companies in exchange for a commission constitute a sales force, giving Amazon and others a physical presence, or "nexus," here. Under a 1992 Supreme Court decision, only retailers with a nexus in a state can be compelled to collect sales tax from its residents.

    Cash-strapped California says it could garner $150 million a year from the so-called Amazon bill if out-of-state retailers collected tax on every laptop, Cuisinart and best-seller they peddle to folks here. Consumers are supposed to pay that tax themselves, but it's a rare shopper who does.

    Scores of mom-and-pop California Web sites that drive traffic to e-tailers say they would be unfairly ensnared by the state's attempts to force Amazon to pay up. Meanwhile, brick-and-mortar retailers say Amazon's use of the Internet as a sales-tax haven is unfair to them.

    Amazon (which did not return calls), Overstock and other large out-of-state e-tailers say they will cut off their California affiliates to duck the sales-tax obligation. The affiliates say that means they'll lose their income and the state still won't get the sales tax revenue.

    California has more than 25,000 affiliates, ranging from part-time Web-masters earning a few bucks to large enterprises pulling in millions, said the Performance Marketing Association, their trade group. In 2008 they had revenues of $202.7 million and paid $18.9 million in state income tax, the group said. Industry reports say e-tailers generate about 10 percent of their sales through online affiliates.

    Read more: Proposed online sales tax draws criticism
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    Re: Proposed online sales tax draws criticism

    Well there isn't a transaction amongst the populace that the federal govt doesn't think needs taxing. In fact if they find something that hasn't been taxed, they are aghast at the oversight on the part of govts. I mean what a horrid, horrid idea that citizens could conduct business without the govt getting its fair share.
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    Re: Proposed online sales tax draws criticism

    Interstate commerce is alive and providing jobs.

    Of course that has to be taxed. The government doesn't want jobs and growth.

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    Re: Proposed online sales tax draws criticism

    Quote Originally Posted by jamesrage View Post
    I would think looking for things to cut or was to save money might have better long term results than trying to seek revenue from something that may shrink up.


    Proposed online sales tax draws criticism lawmakers are eager to harpoon the great white whale that is Amazon.com to force it to collect sales tax on every HDTV and Kindle it sells here. But those efforts could ensnare scores of smaller fish: mom-and-pop Internet businesses that rely on Amazon and other e-tailers for their livelihood.
    The e-commerce behemoth has avoided paying sales tax in California because it has no offices, stores or warehouses in the state.

    But California contends that Amazon does have a presence here.

    This week, the state Legislature is considering a bill that says California Web sites known as affiliates that send customers to Amazon and other e-commerce companies in exchange for a commission constitute a sales force, giving Amazon and others a physical presence, or "nexus," here. Under a 1992 Supreme Court decision, only retailers with a nexus in a state can be compelled to collect sales tax from its residents.

    Cash-strapped California says it could garner $150 million a year from the so-called Amazon bill if out-of-state retailers collected tax on every laptop, Cuisinart and best-seller they peddle to folks here. Consumers are supposed to pay that tax themselves, but it's a rare shopper who does.

    Scores of mom-and-pop California Web sites that drive traffic to e-tailers say they would be unfairly ensnared by the state's attempts to force Amazon to pay up. Meanwhile, brick-and-mortar retailers say Amazon's use of the Internet as a sales-tax haven is unfair to them.

    Amazon (which did not return calls), Overstock and other large out-of-state e-tailers say they will cut off their California affiliates to duck the sales-tax obligation. The affiliates say that means they'll lose their income and the state still won't get the sales tax revenue.

    California has more than 25,000 affiliates, ranging from part-time Web-masters earning a few bucks to large enterprises pulling in millions, said the Performance Marketing Association, their trade group. In 2008 they had revenues of $202.7 million and paid $18.9 million in state income tax, the group said. Industry reports say e-tailers generate about 10 percent of their sales through online affiliates.

    Read more: Proposed online sales tax draws criticism
    California needs to be told no and then be repeatedly ridiculed for this act of absolute stupidity.

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    Re: Proposed online sales tax draws criticism

    I am sorry to have to say that the once great State of California has fallen off the edge of reality and has been taken over by a band of idiots on the left and those who are in office on the right are afraid to tell the truth about.

    California before it became totally controlled by very educated ignorant individuals who lack integrity and intelligence was a thriving state woth so much to offer it was like a giant magnet that would draw people and business from every other State and nations from around the world.

    Today the atmosphere for business is toxic and people from 3rd world countries find it appealing while business leaves because of over regulation and taxing the idiots think that a short lived gain is worth having when the long term effect is to kill or stifle growth in business.

    If you did a little checking you would find that in politics very few in office have any practical experience running a business. Obama and Schwarzenegger are two perfect examples of the inept leading the stupid and making monumental errors at every turn.

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    Re: Proposed online sales tax draws criticism

    Welcome to the US of tomorrow.
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    Benjii likes the protests...he'd be largely irrelevant without them. So he needs to speak where he knows there will be protests against him and that makes him responsible for the protests.
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