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US Internet sales tax scheduled for a vote
US Internet sales tax scheduled for a vote
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Old 22nd April 2013, 02:00 PM   #1
jackinnj is offline jackinnj  United States
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US Internet sales tax scheduled for a vote
Default US Internet sales tax scheduled for a vote

Many probably received the emails from Ebay regarding legislation in the U.S. Senate requiring internet vendors to charge state and local sales tax. There are 9.600 sales taxing jurisdictions in the U.S. and a plethora of rules for each one. (NJ for instance, does not charge sales tax for non-luxury clothing items while NY does -- that's why the malls in NJ are full with NYrs every weekend.) It's estimated that the States and Municipalities lose $11bn annually as a result of internet sales.

This problem is brought to you courtesy of Wal-Mart and Amazon.

The big problem -- sales will move offshore. So will jobs.

The smaller problem -- but still significant -- the cost of compliance. Our bureaucrats, of the same genus and species of those in Strasbourg never factor in the cost of the regulations put into effect. One noted economist remarked a few weeks ago that in 1980 only 20% of the jobs in NJ required a government permit or license. In 2013 the number is 80%
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Old 22nd April 2013, 02:12 PM   #2
DF96 is offline DF96  England
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In Europe we have VAT which varies state by state but must be charged (at the seller's home state rate) to any EU customer. There is an exemption for small businesses; they don't charge VAT but can't recover VAT on their purchases either. In theory I believe non-EU customers can recover the VAT on EU purchases, but I don't know how many do.

What you describe just sounds like the US adopting a similar system to us.
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Old 22nd April 2013, 03:50 PM   #3
ByronInPortland is offline ByronInPortland  United States
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I'm skeptical that jobs will move offshore. Distributors want to have warehouses near their customers for fast shipping. Despite the inconvenience of collecting taxes, one has to admit that it's unfair to "brick and mortar" stores, with their American jobs, that internet retailers don't collect sales taxes.
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