Monday, June 13, 2011

Sales Tax - Who Cares what Amazon Thinks?

Raise your hands if you think there will eventually be an Internet Sales Tax? Of course there will be and Amazon.com and Jeff Bezos can't stop it. It is time the US Government earns some of the tax dollars we are paying them and enacts a sensible plan for managing Internet sales tax.

States need the revenue, consumers are conditioned to pay sales tax and it is fair to charge sales tax for purchases shipped to a state. Right now the States need to shut up and listen. You are better off with a reasonable Internet sales tax for all sales in your state then you are protecting your own sales tax percentage. A reasonable sales tax of 5% with .5% going to the Federal government for managing the program.

California will moan, but we get 8.75% and we can't make it at 4.5% and I say, quit bitching and take the 4.5% because your are fighting for the 8.75% and losing the battle and years of trying to get an additional 4.25% won't get you anywhere.

I say give every State 4.5% of the sales shipped to that state and be happy with it. Even states like Oregon and New Hampshire with no sales tax should charge 4.5%. Ecommerce needs a plan now so we don't play games for 2-3 more years and get stuck with a worse law.

Look, I don't have the lobbying budget that Amazon has but I do have a blog and I do have a voice. Congress wants to say this is an issue for the states so they need to figure something out but getting the States to agree on anything is like herding cats -- its impossible. Congress needs to enact a reasonable solution that is fair for every consumer and still give ecommerce the room to grow.

I say a 5% Internet Sales Tax managed by the US government is the quickest and smartest approach available and regardless how much money Amazon throws at this issue, a national sales tax must be enacted.


Just my 15%

29 comments:

David said...

I am tired of all these so called brick and mortar stores complaining about the unfair competition. Nothing is stopping these brick and mortar stores from going online.

David said...

Oh yeah and where I live the sales tax is 9.3%. Don't think for a second that this wouldn't hurt small business's adding another tax.

People don't have unlimited pockets.

Randy Smythe said...

David,

It is a foregone conclusion that there will be an Internet Sales Tax. I'm just proposing that we get ahead of the eventual tax with a program that will level the playing field for all online retailers, give states the much needed revenue and still give consumers an incentive to buy online because like in your case they would still save 4.3%.

If we don't get behind a sensible plan like this then we will get a complicated and much more costly plan eventually.

Marshall said...

There's been a move for a while to simplify the model so that the "undue burden" clause from the Quill vs. North Dakota decision is no longer relevant:

http://www.streamlinedsalestax.org/

There are a number of other proposals, but if the remaining states are willing to sign on, there's already a reasonable solution.

In order to get past the undue burden clause, the states will have to simplify their model and reduce the number of complex cases they define. Additionally, that 9.3% rate would decrease if there weren't exemptions for various classes of products and it was just universal across the board.

And if you want to go even further in addressing tax complexities, you can look at FairTax:

http://www.fairtax.org/

Randy Smythe said...

Thanks Marshall! Yes, I am aware of the streamlinedsalestax proposal and Amazon has mentioned that they would support that as well.

I am all for a solution that will get this done soon. Hopefully the states that have not yet signed on will do so soon.

David said...

I'm not arguing with you on whether it's going to eventually happen, although I don't think it's happening tomorrow.

My argument is that it's going to take money out of the pockets of small businesses that we are depending on to create jobs.

It's a joke that these big corporations like Target, WalMart, and Best Buy are fighting for the little guy. They've spent the last several decades putting the little guy out of business, and now when it benefits their profit margins they start fighting for the few little guys that are still in business.

I read the associated press article and here is something that stands out.

We get people all the time who come in, talk to a salesman for 15 minutes to half an hour ... and then go, and we know they are going to buy it online
because they can save money. In theory, they are stealing our time," Burger
said. "We're losing at least 15 percent to online, out-of-state, so we're losing
anywhere between $3 million and $5 million a year in business.


Here's my problem with that argument. What's stopping this person from starting a website and selling that camera online?

Maine said...

It's a big move. How can the Web sales tax be different with the local stores?

Tula said...

I would support a *simple* online sales tax option that would not require me to file a plethora of reports every quarter, have no layers of rules and exemptions, and not require me to interface my ecommerce system with yet another third party, whose performance and privacy issues I would not be able to control (sorry, TaxCloud people). Anyone who dismisses the current complexity of collecting taxes as they stand now does not know what they're talking about. I've seen it first hand in developing software for a big ecommerce player (*cough* Amazon *cough*). It is by no means easy and consumes loads of computer and storage resources.

I just wish the states would stop pushing these silly nexus laws because all those do is ruin small businesses who depend on affiliate revenue and decrease income tax revenue, because Amazon will just dump the affiliates when it happens.

And don't get me started on the "fairness" issues being touted by bricks and mortar businesses :-) Once you factor in shipping and handling costs (hey, all buyers want free shipping these days, so guess who pays?) any perceived advantage goes out the window.

Randy Smythe said...

Tula, thanks for your comments as always. You make some good points.

One clarification on fairness in regards to Brick and Mortar...fairness should only be a consideration regarding their online business, where they have S&H,Sales Tax and price competitive issues. Because many of these businesses are in every state they must collect and remit sales tax for every order.

ms.pat said...

I collect california state sales tax. I wouldn't mind collecting for all state - IF they make it an easy thing to do. As it is, california's tax drives me up a wall with its different sales taxes and add ons....its downright stupid. I cannot imagine having to do that for each state! If they want us to collect sales tax across the country then they have a responsibility for making it an easy thing to do and not a life long chore!

kevin21 said...
This comment has been removed by a blog administrator.
Anonymous said...

Drop dead scumbag, you'll get no tax and like it.

push buttons said...

tax should b paid

Tommy Eastman said...

The states have already proven that they can not use their tax dollars efficiently, why should we give them more to throw down the drain?

Guerrilha Urbana said...

http://guerrilhaurbanajb.blogspot.com.br/

blog said...

You are able to one Office 2010 on one Phrase This year and also embed the picture involving grab display screen, rapidly and easily with your help designs. Word The new year can Office 2010 Key de-stress a person's using the performs of how. Surpass This year have an exhilarating innovative screening process device to check forward Microsoft Office 2010 to greatly enhance functionality, are able to use within rocker kitchen table. Exceed The year of 2010 cannot be location as well as the boundaries on the system, to provide Microsoft Office 2010 Key you with astonishing spread sheet practical experience.

Geoff Granfield said...

We are all aware the taxes in California and Illinois seem to be outrageous, and so in an attempt to sustain total tax rates from escalating, these two states seem to be in a battle over exactly who can implement the silliest tax laws on the oddest products. And that is exactly how you obtain a candy tax! The only real plausible method to make up the income is to require a candy tax. You read correctly, certain candies will probably be susceptible to sales tax while others are perceived as "nutritional." Find out how these states label Americans' most liked sugary treats. http://www.tax-defense-network-tax-laws.com/tax-defense-network-fruits-candy-blueberry-taxed/

packers and movers in mumbai said...

thanks for this it very nice
packers and movers nashik
packers and movers in Mumbai
packers and movers kalyan
packers and movers vashi

Amy Archer said...

If they lessen the Sales tax then does this mean to say that the price of ticket going from Singapore to manila flights will be lessen. I've been really planning to spend my summer to an Asian Tour.

permacrisis said...

I'm with ya Randy.

For the Feds to have forced everyone in the country onto health insurance, and not fixed this itty bitty little problem first, sure is lopsided.

Handle the sensible stuff first, do the goofy stuff later. Too hard for Congress, eh?

Chăm sóc sức khỏe said...

uống gì mát gan đẹp da
chữa cận thị không cần phẫu thuật
những thực phẩm tốt cho mắt cận thị
cách mọc tóc nhanh cho nam

trị sẹo lõm lâu năm bằng phương pháp tự nhiên
cách mọc tóc nhanh cho nam
cách bôi kem chống nắng đúng cách
đông trùng hạ thảo nhật bản
tiêm trắng da có an toàn không
cách trị mất ngủ đêm

manhkha said...

Bệnh khó ngủ hay mất là bệnh mà khiến chúng ta gắp rất nhiều khổ sở và bị khó ngủ phải làm sao ? Có nhiều cách giải quyết vấn đề khó ngủ này như dùng thuốc , châm cứu ,... Chúng ta đã nghe nhiều về collagen nhưng có nhiều vấn đề mà ta còn thắc mắc như uống collagen có tác dụng gì ? Có an toàn không ? ..., uống gì mát gan đẹp da, bệnh tai biến mạch máu não có chữa được không, thoai hoa dot song co uong thuoc gi. Để có một trí nhớ tốt có nhiều cách .làm thế nào để có trí nhớ tốt ? Như dùng thuốc , ăn nhiều trái cây ,.. sẽ giúp bộ não hoạt động tốt và trí nhớ sẽ rất tốt .

Kute Mini Thu said...

Cách dưỡng lông mày đẹp tự nhiên chia sẻ những bí quyết để bạn gái nhanh chóng sở hữu cặp lông mày đẹp tự nhiên. Những cách dưỡng lông mày đẹp tự nhiên, bạn cần kiên trì...

Mỹ Linh said...

Địa điểm vui chơi http://diadiemvuichoi.tumblr.com/
Tìm việc làm nhanh http://timvieclamnhanhtamga.tumblr.com/
Giải pháp số http://giaiphapso.tumblr.com/
Tâm Gà giải pháp số http://tamgagiaiphapso.tumblr.com/
Quản trị nhân sự http://quantrinhansu.tumblr.com/
Tuyển dụng nhân viên http://tuyendungnhanvien.tumblr.com/
Bệnh đau xương khớp http://benhdauxuongkhop.tumblr.com/
Phần mềm bán hàng pro http://phanmembanhangpro.tumblr.com/
Kiếm tiền phần mềm crm http://kiemtienphanmemcrm.tumblr.com/
Căn hộ quận 2 http://canhoquan2dkc.tumblr.com/
Bán căn hộ cao cấp quận 2 http://bancanhocaocapquan2.tumblr.com/
Địa điểm ăn uống http://diadiemanuongblog.tumblr.com/
Rạp chiếu phim imax http://rapchieuphimimax.tumblr.com/
Công nghệ imax http://congngheimax.tumblr.com/
Đau xương khớp http://dauxuongkhop.tumblr.com/
Bổ sung canxi http://bosungcanxi.tumblr.com/
Khu vui chơi trẻ em http://khuvuichoitreem.tumblr.com/
Đại siêu thị http://daisieuthi.tumblr.com/

Mai Dung said...

Hiện nay, cùng một lúc tồn tại 2 tiêu chuẩn thép xây dựng Việt Nam. (TCVN) đều có hiệu lực về cùng một sản phẩm cốt thép bê tông là TCVN 1651 - 1985 và TCVN 6285 - 1997 được biên soạn từ ISO 6935 -2: 1991.
Sự tồn tại song song của 2 tiêu chuẩn thép xây dựng. này đã gây nhiều khó khăn đối với các đơn vị thi công trong khi thực hiện xây dựng công trình. Để biết thêm thông tin chi tiết các bạn vui lòng truy cập vào website: Thép Hòa Phát để tham khảo.

Nhan Nguyen said...

Mẹo đi tàu xe không bị say hiệu quả nhất
lợi ích của việc uống dầu cá
Người mất ngủ nên ăn uống gì?
Cách chữa mụn nhọt bằng lá cây
Cách làm rượu dâu tây
Những điều lưu ý khi uống thuốc tây
lá tía tô có nóng không

Hoàng Lê said...

ăn buffet ở đâu ngon
buffet thịt nướng
bbq buffet
Ăn buffet ở đâu ngon ấm lòng thực khách
Ăn buffet ở đâu ngon có đặc sản ẩm thực Nhật Ý Hàn
Ăn buffet ở đâu ngon điểm sáng trong ẩm thực Sài Gòn
Buffet thịt nướng lạ mà quen
Buffet thịt nướng đổi gió cho ẩm thực Sài Gòn
Buffet thịt nướng sự hợp ca đến khó tin
BBQ Buffet món ăn ngon cho mọi khách hàng
BBQ Buffet món nướng ngon bổ rẻ
Ấm lòng với BBQ Buffet ở Sài Gòn
Ăn ngon cuối tuần với BBQ Buffet Hàn Quốc
BBQ Buffet lựa chọn chưa bao giờ lỗi mốt
Bí quyết lựa chọn nhà hàng BBQ Buffet
Muôn mặt các nhà hàng BBQ Buffet Sài Gòn
Điểm ăn BBQ Buffet ngon cho tất cả mọi người
Hana BBQ Buffet & Hotpot nhà hàng lẩu nướng ngon khó cưỡng
hana bbq buffet

Nguyen Huu Bang said...

Dự án dự án nine south nhà phố nằm kế bên trục đường Nguyễn Hữu Thọ, quận 7, Tp.HCM. ở Nine South Estates Nhà Bè là tuyến giao thông huyết mạch trong trong thị thành Nam Sài Gòn, kết nối trực tiếp khu dự án nine south estates nhà bè thị thành Cảng Hiệp Phước - chủ Bè những các quận thành phố Tp.HCM, tỏa đi các tỉnh miền Tây, Đông Nam Bộ thông qua Đại lộ Nguyễn Văn Linh, cao tốc Tp.HCM - Long Thành - Dầu Giây. Dự án dự án nine south estates nghỉ dưỡng do VinaCapital quản lý gom vốn mục tiêu VinaCapital. khu giải trí xanh, tại BBQ ngoài trời ven sông, cho đến địa thế thể thao phức hợp (phòng gym, hồ bơi 360m2) khiến ngày cuối tuần thật trọn vẹn cùng tôi bè, tôi và tập đoàn dân cư cởi mở, bến du thuyền sang trọng, sân chơi trẻ em ngoài trời/ trong ông chủ, hồ điều tiết tạo cảnh quan lên đến 2.000m2… hứa hẹn mang lại sự trải nghiệm hoàn toàn mới mẻ cho cư dân du an nine south estates nha pho những dịch vụ trong Nine South Estates Nhà Bè bổ trợ mà nhà hùn hạp quan tâm sâu sắc đến cần được thuộc dân cư, giúp tôi tận hưởng cuộc sống: cửa hàng tiện ích rải đều nội ở - đáp ứng mọi yêu cầu thiết yếu phát sinh, địa thế dự án 9south nhà phố trường mẫu giáo quốc tế chiếm đến 5.236m2 - giúp những bé có không gian dự án 9south estates vinacapital sinh hoạt chuẩn 5 sao không thua kém khu vực vui chơi

Unknown said...


نقدم افضل خدمات تنظيف الكنب بالرياض فنحن نملك افضل اجهزة التنظيف بالبخار لاننا افضل شركة تنظيف كنب بالرياض
وبالمملكة واسعارنا في متناول الجميع
افضل شركة تنظيف بالمدينة المنورة
شركة شراء اثاث مستعمل بالرياض - شراء اثاث مستعمل
شركة تسليك مجاري بالدمام
شركة تسليك مجاري بالرياض