Internet Sales Tax Bill

[caseagainstfaith]

Just a few months ago, the giant retailer was filing lawsuits and dropping affiliates to combat states trying to charge online sales tax. Now, Amazon is on board.
Amazon dropped local affiliates in Connecticut, Illinois and elsewhere this year, to protest attempts to impose the sales tax, which were justified legally because the company had a physical connection to the those states. In California, the company threatened to overturn a similar provision in a voter referendum, and also went to court.

But now, the Los Angeles Times reports, the company is signing on to a bipartisan federal bill that will clear the way for states to more easily charge sales tax for online commerce, erasing an advantage online businesses had over brick-and-mortar competitors, and speeding a new revenue stream to cash-strapped governments without having to get a cent of new spending through a clogged Congress.

news.yahoo.com/amazon-along-internet-sales-tax-194928811.html

Looks like Amazon is finally throwing in the towel. I think maybe congress did a back door deal with them to get on board. (wouldn't surprise me)

Are you for or against the internet sales tax?

I am against it on the grounds that it would have a good chance of killing online shopping. Now that is a big claim but here is what is backing me up. When you go to say Amazon or Overstock to purchase something you don't have to worry about sales tax, however you do have to pay a extra fee in it getting to your house (shipping/handling). So my logic of this is simply, if say I wanted to buy a bed off overstock yet now I am going to have to pay for the bed, shipping/handing and now a sales tax, why would I want to shop there when I could go to a local furniture place and pay for a bed maybe they even have the exact same bed I wanted, pay the sales tax and most local furniture stores in my area at least offer free delivery to your house. Thus you would more than likely save money going local vs online because of that. But maybe my logic has some errors in it though?

[N. De Plume]

I can manage a sales tax as long as it is based on where the actual physical business is. What worries me are the states that want to try and get tax based on the user that made the purchase being in their state. That sort of thing would drive out small businesses that do not have the resources to track the tax law in all 50 states.

I would say that whatever the tax status, shopping online will retain advantages in product availability, especially of used and out-of-print items.

[canadian mojo]

Two errors, or perhaps one error and an oversight.

An online business still needs considerably less brick and mortar infrastructure which costs money and is taxed. This translates into savings. They are also able to offer 24 hour service for a pittance whereas a real store would have to pay significantly for that feature.

The other aspect is that this is exactly what is killing economies. Find a cheap place to do business or manufacture in and ship everything from there while trying to convince government that you shouldn't be taxed.

[caseagainstfaith]

Nov 14, 2011 12:40:20 GMT -5 canadian mojo said:

Two errors, or perhaps one error and an oversight.

An online business still needs considerably less brick and mortar infrastructure which costs money and is taxed. This translates into savings. They are also able to offer 24 hour service for a pittance whereas a real store would have to pay significantly for that feature.

The other aspect is that this is exactly what is killing economies. Find a cheap place to do business or manufacture in and ship everything from there while trying to convince government that you shouldn't be taxed.

Maybe you could give me more details about the whole 24 hours service? I mean I know the last few times I shopped online, yes I could order the item at any given time of the day however that still doesn't mean that it would get processed until a set time of working hours (usually monday - friday with hours varying from company to company) and then waiting on shipping. So how would that be any more convenient than going to the during their normal business hours and walking out with the item in hand? Unless I am misunderstanding the point of what you mean by 24 hour service?

and I do get your second point which is why I think full online companies like Amazon and Overstock would fail. However one thing I like to do a lot with Wal mart and those type companies is they do a lot of the time have stuff cheaper online and better deals, so I would do ship to store location for free. I could see that if this bill does pass becoming a lot more utilized. That is how I got my last bed frame was that I saved 80 bucks on laze boys furniture website vs going to the fiscal store location and buying it by ordering online and having it shipped to the store for free and I picked it up.

[Vene]

In general, I do not like sales taxes due to their regressive nature.

Also, CAF, it's a 24 hour service because it is hard for somebody working full time to get time off between 9-5/M-F business hours and it is far easier to put in an order at, say 7pm when you are lounging.

[caseagainstfaith]

Nov 14, 2011 13:21:35 GMT -5 Vene said:

In general, I do not like sales taxes due to their regressive nature.

Also, CAF, it's a 24 hour service because it is hard for somebody working full time to get time off between 9-5/M-F business hours and it is far easier to put in an order at, say 7pm when you are lounging.

While that is a valid point Vene, I have a curiousity to ask what stores are closed by 5pm during the week? I honestly can't think of any off the top of my head, most stores are open to like 8-9pm or later at night during the week and of course later hours on weekends at least around me that seems to be the norm. Even the malls stay open to 9:30pm where I live.

[Bezron]

Seems like retail stores are open until late, but service shops close at 5 or 6. Good luck finding a UPS store open after work around here...