US Senate Passes Internet Tax Bill 69 To 27

schwit1 quotes The Washington Post: "The Senate aimed to help traditional retailers and financially strapped state and local governments Monday by passing a bill that would widely subject online shopping — for many a largely tax-free frontier — to state sales taxes. The Senate passed the bill by a vote of 69 to 27, getting support from Republicans and Democrats alike." schwit1 adds "Unfortunately online businesses could be in for a rude awakening when it comes to the law's interpretation." Passage in the House is not certain, and companies like eBay are lobbying to raise the minimum sales required to collect state sales tax to $10 million instead of $1 million per year.

Re:bollocks

[gstoddart]

if you dont spend your money you got people claiming you are not paying your fair share

That's because the entire school of thought which is trickle-down economics requires it.

If people aren't spending their money, then the entire theory behind Reagonomics is a fiction, and tax cuts for the rich don't work. ;-)

Since the entire justification for those tax cuts is to get people out spending, you need to do your patriotic duty and get out there and spend like a mad fool or risk invalidating an entire economic theory. It's your job to stimulate the economy and get us out of this down turn by buying stuff.

If they cut taxes and people didn't spent, people might start to think economists don't have a clue.

If you're not gonna spend it, they'll need to tax it. So start spending, or we'll have to try Socialism. :-P

Re:bollocks

[ganjadude]

there is a large difference between filling out a tax form for every location that has its own tax. and typing in a zipcode on a package. I have seen numbers from anywhere between 1500 and 3000 different tax locations. As such thats 1500-3000 different tax forms needed to be filled out by the business

this is an unreasonable cost to any business.

Re:bollocks

[tompaulco]

There is not internet loophole. you still have to pay your use tax. it is probably the exact same as your sales tax rate. It is not the company's fault if you don't pay your tax. Nor is it the company' obligation to collect and pay that sales tax. Not unless your state is going to send the police or fire department over to their warehouse three states over when there is an emergency.