Senate advances bill to tax Internet sales

[I AM NOT THAT GUY 5,715]

The Senate voted 63-30 Thursday to end debate on the bill, setting up a final Senate vote to pass the bill on May 6. The final vote will only require a majority to pass the bill, so 14 supporters would have to flip to stop it.

President Barack Obama supports the bill, but it faces an uncertain fate in the House, where some Republicans consider it a tax increase.

http://xfinity.comcast.net/articles/news-politics/20130425/US--Internet.Sales.Tax/

[TBoneTX 46,173]

Small-business owners might have to hire an extra person or two -- or a CPA -- to keep up with and comply with the wildly varying state, city, & local tax regulations everywhere. The money-grubbing greed of Congress and the President has probably prevented their consideration of the nuts & bolts of everyday realities.

[duraaraa 203]

This screws anyone who runs a small internet business. I'm completely against it.

[Mr. Big Dog 10,747]

This screws anyone who runs a small internet business. I'm completely against it.

But it unscrews those that run a small brick and mortar business. It levels the playing field.

[SMR 368]

I live in MA. If I travel to NH to buy something, I don't pay sales tax. (I'm not sure if I'm supposed to pay that sales tax later, but the reality is nobody does). On the other hand, if I lived in NH and traveled to MA and bought something, I would pay sales tax. (I believe that I could file with MA to have those taxes refunded, but that would be impractical unless the purchases where large and easy to document).

So the current defacto reality is that sales taxes in brick and mortar establishments are based on the location of the business, not on the residency of the customer (and at least this is how the business sees it). If you want to level the playing field, you have to require that all businesses collect and remit sales tax based on the residency of their customers. Lest you think this a technicality, consider that we are not just talking about states and places where the sales tax changes are doesn't exist. Most sales taxes have a local component and it's not at all uncommon for someone to make purchases in a neighboring county or municipality. We're talking about the very real situation where a store would be required to remit taxes to all of the neighboring municipalities and counties based on the residency of their customers. And when you start considering tourist heavy areas, it gets worse for brick and mortar establishments. This is the only situation where you could really consider the playing field to be level. Otherwise, you're talking about an enormous burden placed on internet small businesses but not equally born by brick and mortar establishments.

The problem, of course, is that this is a veritable situation of equality run-a-muck, where everyone is just equally miserable. We could, instead, make it the case where every business simply remit taxes to the jurisdiction in which it is located, regardless of the residency of the customers. Of course, then internet businesses would just set up subsidiary fronts in NH (or wherever else there is no sales tax), and the situation likely wouldn't change much in the long run.

The fact is, businesses have never been required to remit taxes to jurisdictions in which they are not located (and this precedent predates the internet, both because of phone and mail order, and because people don't always shop right next to their house). A change to that would have to be across the board in order to be fair. And I don't think an across the board change would help anyone.

[Teddy B 17,252]

This screws anyone who runs a small internet business. I'm completely against it.

Not really, it appears the small internet businesses are exempt, at least those with under a millin in sales.

Supporters say the bill is about fairness for local businesses that already collect sales taxes, and lost revenue for states. Opponents say the bill would impose complicated regulations on retailers and doesn't have enough protections for small businesses. Businesses with less than $1 million a year in online sales would be exempt.

I'm in favor of leveling the field, and with the taxes being charged based on the purchasers residence, that should prevent the retailers from setting up shop in those states with no sales tax.

[Mr. Big Dog 10,747]

I'm in favor of leveling the field, and with the taxes being charged based on the purchasers residence, that should prevent the retailers from setting up shop in those states with no sales tax.

That's the other dimension of leveling the playing field.

Not really, it appears the small internet businesses are exempt, at least those with under a millin in sales.

Dude, you should know better by now. Facts are not welcome around here.

[GandD 5,966]

I'm in favor of leveling the field, and with the taxes being charged based on the purchasers residence, that should prevent the retailers from setting up shop in those states with no sales tax.

In principle you're right.

I like cheating the system though so it sucks. But I'm greedy.

[Mr. Big Dog 10,747]

In principle you're right.

I like cheating the system though so it sucks. But I'm greedy.

You're against what you know is right in principal and you're greedy and you like to cheat. You're a Republican!

[GandD 5,966]

You're a Republican!

Sometimes. Especially with money.

[Mr. Big Dog 10,747]

Sometimes. Especially with money.

Sorry to hear. There are financial literacy courses available. You should consider them. Might help you get your finances in order.

[GandD 5,966]

Sorry to hear. There are financial literacy courses available. You should consider them. Might help you get your finances in order.

Big assumption to make. No debt here. My personal finances are typically handled in a conservative manor. I'm not paying financing charges on stuff like the majority of this country.

[Mr. Big Dog 10,747]

Big assumption to make. No debt here. My personal finances are typically handled in a conservative manor. I'm not paying financing charges on stuff like the majority of this country.

Well, then you're no Republican when it comes to money. They've not been as responsible as you seem to be.

[Teddy B 17,252]

Dude, you should know better by now. Facts are not welcome around here.

I have this silly habit of giving the benefit of the doubt. In this case it's not one of the usual players, so I give a lil slack.

[Mr. Big Dog 10,747]

I have this silly habit of giving the benefit of the doubt. In this case it's not one of the usual players, so I give a lil slack.

Makes sense.