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View Diary: Senate takes up bill to close the online sales tax loophole (131 comments)

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  •  Regressive Tax which will Exacerbate Inequality (27+ / 0-)

    No other way to describe it.

    Instead of cutting the sales tax, this will increase it.

    Think about it.

    This tax is projected to raise as much as 25B a year.

    And I'd be willing to bet that 80% of that incremental 25B will come from working and middle-class households.

    States and municipalities want more revenue?

    Why don't they spearhead an effort to tax wealth?

    So much easier to target the working and middle-class instead.

    Learn about Centrist Economics, learn about Robert Rubin's Hamilton Project.

    by PatriciaVa on Mon Apr 22, 2013 at 01:33:33 PM PDT

    •  But (7+ / 0-)

      They haven't finished squeezing every last dime out of us yet. Won't someone think of the poor rich people?

      "The scientific nature of the ordinary man is to go on out and do the best you can." John Prine

      by high uintas on Mon Apr 22, 2013 at 01:55:16 PM PDT

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    •  I would have no problem cutting all sales tax (7+ / 0-)

      to states but since that is not going to happen a fair system needs to be in place. brick and mortar shops must pay sales tax in my state and there is no sales threshold, I pay property tax, Signage fees, Building code enforcement fees, Utilities.Where as the only advantage B&M has over online is shipping costs, which on line retailers force the customer to pay. The current system has all but destroyed the Mom & pop stores and this legislation is a decade late.
       If Govt really wanted to create jobs they would exempt B&M from sales tax under a million per year sales, exempt property tax for under million a year in accessed value of property, and exempt utilities for retail shops that meet certain efficiency codes. then you might see the return of the neighborhood grocer, meat shop and others in most of America that does not live in cities of a Million or more population.

      •  Would You Have A Problem... (0+ / 0-)

        ...replacing every progressive income tax with a regressive sales tax?

        If not, this bill is right up your alley, considering how it rewards states for doing exactly that.

        On the Internet, nobody knows if you're a dog... but everybody knows if you're a jackass.

        by stevemb on Tue Apr 23, 2013 at 07:05:45 AM PDT

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        •  I have a problem with being undercut in price (0+ / 0-)

          because of unfair sales tax laws by business that already have the advantage of no property tax, no utilities, and various other advantages.  Plus the states that do not have sales tax are also creating an unfair advantage. national sales tax standards for states, I am in favor of whether they be 0% or 7%. the best solution would be to eliminate sales tax in all the states but that again is not reality.

    •  this is about fairness (8+ / 0-)

      brick and mortar stores have it tough when dealing with an out of state seller that doesn't charge sale tax.

      It is also not hard to set up taxes for each state.  Every software has the capacity to set multiple tax rates.  At the end of the month, just generate a report and fill in the forms.

      If a company is doing 1 Million a year in sales, then this is not an issue.

      "The only person sure of himself is the man who wishes to leave things as they are, and he dreams of an impossibility" -George M. Wrong.

      by statsone on Mon Apr 22, 2013 at 02:08:56 PM PDT

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      •  State would be one thing.. (2+ / 0-)
        Recommended by:
        Just Bob, Odysseus

        think about Counties, Municipalities, townships, transit authorities, Waterway authorities, and every other kind of authority.

        If it was just: you're shipping to Oklahoma: 6%. (Example, not actual number) that would be different

        •  In Calif. the sales tax varies by county (0+ / 0-)

          and city.  But it all gets paid by the retailer directly to the state, then redistributed by the state to the various counties and cities.

          My Karma just ran over your Dogma

          by FoundingFatherDAR on Mon Apr 22, 2013 at 03:02:23 PM PDT

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          •  Paid to the state, but is it one percentage statew (1+ / 0-)
            Recommended by:

            In some areas, one side of the street is a different rate..

            I can imagine how many rates there would be in MY for example..

            If they say, Anywhere in the state = 1 percentage, Not much of a problem.

            If it's a hodgepodge like now? Different

            •  Where I am, tax rates don't line up with zip code (1+ / 0-)
              Recommended by:

              boundaries. A city may have its own additional tax, but a zip code may span the city border.  I think I've actually been overcharged sales tax at a too high rate at times due to this.

        •  It's not hard to program tax rates for ... (1+ / 0-)
          Recommended by:

          ... States, Counties, Municipalities, etc because I've done it. In fact, such location based look-up of applicable rates is one of the most basic tasks in the IT field. Plus, taxing authorities publish their rates in electronic form and are already in position to accept filing & payment electronically.

          The OMG, this will be TOO HARD and will HURT BUSINESS meme is, quite simply, nonsense.

          Penn State - Rug too small, dirtpile too big, not enough brooms.

          by WereBear Walker on Mon Apr 22, 2013 at 05:47:59 PM PDT

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          •  Actually, It's Extremely Hard (0+ / 0-)

            BackOfNowhere exempts food from its sales tax. "Food" includes honey.

            SouthFortyville exempts food from its sales tax. "Food" does not include honey.

            NorthByNothewest Beach exempts clothing from its sales tax. "Clothing" includes batching suits.

            CowpatchJunction exempts clothing from its sales tax. "Clothing" does not include batching suits.

            Multiply several thousand jurisdictions by several thousand idiosyncratic patchworks of exemptions.

            On the Internet, nobody knows if you're a dog... but everybody knows if you're a jackass.

            by stevemb on Tue Apr 23, 2013 at 07:04:04 AM PDT

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      •  My paying more sales tax online is not going to do (6+ / 0-)

        one bit of good for brick and mortar stores.  In fact, it will give me less money to spend there.

        •  but local stores (1+ / 0-)
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          would be on the same footing.  So now local stores would be able to be competitive with out of state online stores.

          "The only person sure of himself is the man who wishes to leave things as they are, and he dreams of an impossibility" -George M. Wrong.

          by statsone on Tue Apr 23, 2013 at 01:39:19 PM PDT

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        •  It most certainly will effect more fair (1+ / 0-)
          Recommended by:

          competition on prices, B&M stores ( Indiana) are at a 7%  price disadvantage, then must calculate into their price property tax and utilities.  Not being pushed out of business because of unfair taxes is very good for B&M shops.  

    •  You've nailed it, PatriciaVa. And at the same (5+ / 0-)
      Recommended by:
      PatriciaVa, akmk, Losty, WheninRome, Just Bob

      time that Democratic Senator Mark Warner has proposed an Amendment to eliminate, or cut 'the inheritance tax!'

      I've posted the Warner Amendment a couple of times, but will post it again along with a roll call vote, if I can find it

      We need to hold the lawmakers accountable in 2014 (who voted for an expanded 'sales tax,' just weeks after voting for Warner's amendment).


      "Only he who can see the invisible, can do the impossible."-- Frank L. Gaines


      by musiccitymollie on Mon Apr 22, 2013 at 04:02:46 PM PDT

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