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View Diary: Amazon's Global Tax Dodge (14 comments)

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  •  Look I Love Not Paying Taxes (5+ / 0-)

    when I buy something from Amazon. But alas I also live in a small town and I think there should be fair competition. If I want to spend $500 on something, pay no taxes to Amazon, but I would have to at my locally owned store, well that just doesn't seem right to me.

    •  In California, the old law required the resident (5+ / 0-)

      to report all sales that the seller was exempt from reporting. As consumers and residents, we were always obligated to pay our sales taxes, but the seller was not required to collect them for the state.

      That is really all the new law changed: it shifted the responsibility for reporting the sales to the seller instead of the buyer (as well as collection of the sales tax). Which made sense, since most California buyers didn't even know they had the burden.

      I don't know what state you are in, but it may also be expecting you to report and pay sales taxes on your purchases.

      •  Yes, in most states you're supposed to report (1+ / 0-)
        Recommended by:
        Susan from 29

        out of state/online purchases for which the state sales/use tax was not collected and pay the tax yourself. But almost no one does, and there's no practical way for the states to track those sales and enforce it.

        I agree, tax free online purchases are unfair to local merchants, and also to other online retailers that must collect sales tax. I buy from Amazon, but I buy more from other online retailers that have a physical presence in my state & have to collect tax - BestBuy.com, Walmart.com, Target.com, etc. Amazon just started collecting sales tax in AZ, they've had a large distribution center in Phoenix for years and even the Republicans finally said "enough of the free ride".

        David Koch, a teacher and a Tea Partier sit down a table with a plate of a dozen cookies. Koch quickly stuffs 11 cookies in his pockets, leans to the bagger and says "watch out, the union thug will try to steal your cookie".

        by Dave in AZ on Sat Jul 20, 2013 at 04:14:03 PM PDT

        [ Parent ]

    •  One of the many tricks regarding (1+ / 0-)
      Recommended by:
      Richard Lyon

      regulatory burdens is to look at who is required to meet the burden (eg the buyer or the seller) as well as issues like does it have any enforcement mechanism with teeth

      if not, no matter how great a regulation sounds, its practically meaningless in daily business operations

      •  At one point I had regular dealings (0+ / 0-)

        with the CA state legislature on social service programs. Their favorite trick was to pass a bill that endorsed the philosophy of the program but just never get around to appropriating and money to fund it.

        •  One of the first thing I do when someone i (1+ / 0-)
          Recommended by:
          Richard Lyon

          blathering about reforms these days is to look for enforcement and implementation mechanisms

          They tell  the tale about the seriousness of the law

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