1. Advertising
    y u no do it?

    Advertising (learn more)

    Advertise virtually anything here, with CPM banner ads, CPM email ads and CPC contextual links. You can target relevant areas of the site and show ads based on geographical location of the user if you wish.

    Starts at just $1 per CPM or $0.10 per CPC.

Taxing Internet shopping

Discussion in 'General Business' started by Bazkaz, Dec 23, 2005.

0
  1. #1
    Looks like their trying to get serious with this again... two proposed bills at once.

    Senators propose taxing Internet shopping

    As an online store owner I would hate to see these go through. If it does go through I just hope that it's kept simple... though I doubt that'll happen.

    Your thoughts?
     
    Bazkaz, Dec 23, 2005 IP
  2. BILZ

    BILZ Peon

    Messages:
    1,515
    Likes Received:
    62
    Best Answers:
    0
    Trophy Points:
    0
    #2
    It's always been just a matter of time. It will be interesting to see how they implement these taxes and how international sales will be affected.
     
    BILZ, Dec 23, 2005 IP
  3. digitalpoint

    digitalpoint Overlord of no one Staff

    Messages:
    38,334
    Likes Received:
    2,613
    Best Answers:
    462
    Trophy Points:
    710
    Digital Goods:
    29
    #3
    Well *legally* the end user has to pay taxes on Internet orders. It's the use tax (which happens to be the same rate as sales tax).

    The problem is no one actually pays it. So in reality interstate sales tax on Internet orders is more about forcing people to do what they are legally supposed to be doing anyway.

    Here's a good explanation (from nolo.com):
     
    digitalpoint, Dec 23, 2005 IP
  4. lorien1973

    lorien1973 Notable Member

    Messages:
    12,206
    Likes Received:
    601
    Best Answers:
    0
    Trophy Points:
    260
    #4
    Its hard to believe such a tax could pass constitutional muster.

    Article I Section 9
    Seems rather cut and dry to me.

    It really makes no sense at all. People in states receiving the goods are the responsible party. They are not following the law, so put the burden on someone else?
     
    lorien1973, Dec 23, 2005 IP
  5. digitalpoint

    digitalpoint Overlord of no one Staff

    Messages:
    38,334
    Likes Received:
    2,613
    Best Answers:
    462
    Trophy Points:
    710
    Digital Goods:
    29
    #5
    Exported from "the State" is referring to the United States to another country I believe. You don't "export" goods from California to Oregon for example. :)
     
    digitalpoint, Dec 23, 2005 IP
  6. lorien1973

    lorien1973 Notable Member

    Messages:
    12,206
    Likes Received:
    601
    Best Answers:
    0
    Trophy Points:
    260
    #6
    It says "any state" and is intended for not taxing commerce across state lines. When the AOC was made, that was a problem and was impeding commerce, so it was changed in the Constitution specifically to prevent taxes on goods going from one state to another.
     
    lorien1973, Dec 23, 2005 IP
  7. Bazkaz

    Bazkaz Peon

    Messages:
    839
    Likes Received:
    34
    Best Answers:
    0
    Trophy Points:
    0
    #7
    Interesting. I didn't know that.
     
    Bazkaz, Dec 23, 2005 IP
  8. lorien1973

    lorien1973 Notable Member

    Messages:
    12,206
    Likes Received:
    601
    Best Answers:
    0
    Trophy Points:
    260
    #8
    Most people don't. A law firm I worked for back in '95 or '96 got hit with tons of fines because law tapes and books they had purchased from law suppliers were taxable. After that, it was my job to log in all the purchases and mark what was taxable and what wasn't. The line between the two was sometimes a matter of interpretation - but after the penalties, we erred on the side of caution.
     
    lorien1973, Dec 23, 2005 IP