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View Diary: Senate moves forward to close online sales tax loophole over Grover Norquist's objections (230 comments)

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  •  Could be a nightmare (2+ / 0-)
    Recommended by:
    white blitz, stevemb

    My wife is starting a small business on-line selling my books and audio-books and other items related to my work. As it currently stands, she has to track sales to Mass, since we're in mass, and charge tax on those.

    Sales taxes are regressive, but worse than those regarding this bill, I fear, will be the nightmare it can impose on businesses - yes, I know about the $1 million threshold.

    If they need to do this, then how about just making a straight, flat Federal VAT and then having that apportioned to the states based on contributions?

    •  Not necessarily (1+ / 0-)
      Recommended by:
      white blitz

      First, to participate in this, each state will have to consolidate all online sales taxes to a single rate that is to be submitted to a single address.

      Second, what will probably happen is that clearinghouse businesses will spring up that for a small fee disburse your tax receipts to the appropriate states. Send them a spreadsheet with your sales per state, they will let you know how much you owe, and then you write a single check for that amount at the end of the quarter.

      "A government that robs Peter to pay Paul can always depend on the support of Paul." - George Bernard Shaw

      by Drobin on Tue Apr 23, 2013 at 11:21:35 AM PDT

      [ Parent ]

      •  No.. that provision has been dropped (1+ / 0-)
        Recommended by:

        That was in the earlier version some years ago.

        This bill has no stipulation about states reforming their sales tax structure.

        A business owner selling online will be forced to determine under which of up to 10,000 taxing entities their client falls.

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