[quote]countingbeans wrote:
[quote]phaethon wrote:
[quote]tmay11 wrote:
It’s only fair and less distorting to the market if all of the retailers are tax at the same level BUT, if that was what it was about they would make it revenue neutral ( or at least try ). ie . raise the tax of online retailers and lower the tax traditional merchants. That’s not what is happening so this is nothing but a tax grab with a fancy name. [/quote]
My understanding is that it is not a tax grab or increase at all. When you purchase something online you owe a sales or use tax on it (depending on your state+store location). Remember sales tax is an end user tax. The problem is people never pay it and it is really hard for the government to enforce. So the change would be to force online retailers to collect the tax up front like local businesses do. All fine and dandy as an idea.
The problem with it is the unfair regulatory burden it places upon online businesses. Online businesses will be forced to calculate, collect, and deliver state and local sales tax based upon the customers location. Brick and mortar businesses only have to collect based upon where the business is located.
A bricks and mortar small business with a turn over of 2 million is going to be located in only 1 state, and in all likelihood a single county. So they have one or two different sales taxes they need to be aware of. An online store set up in the same area with a similar turn over will have to collect taxes for thousands of different local governments.
The only way for this law to be fair is if we also force local businesses to check where all their customers live and collect sales tax based on where the customers live. Oh you are on holiday from California? Which county? Updating the registers etc to calculate sales tax depending on location would be a nightmare.
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Good post.
As for:
This does happen, but to a relative small degree with relatively expensive purchases. If I buy a sofa in NH and have ti shipped to my house, the store needs to collect the sales tax because of the terms of delivery. If I pick it up in my father in law’s truck, they don’t have to collect sales tax.
Likewise if I buy a car in NH, and they don’t collect the sales tax (often bundled in your loan) then i will have to pay it when I register the car in MA. Somewhat different, but accomplishes the same goal.
Now if someone is driving to NH and buying $200 worth of cigars every week, 52 weeks a year, the government is unlikely to catch them. Having the same cigars shipped to their home, can get them caught. [/quote]
unless your governor is devil Patrick, the duke of deadbeats, he’s trying to connect the tax regardless, there are a couple of incidents where ties where purchased and tge devil sent tax bills to the people. good ole devil never saw a tax he didn’t like