Topic: Sale Tax on Internet Commerce

[RickZ]

Libertas, wait until some schmuck in Nebraska has to file a quarterly NYS Sales Tax Return, listing all sales by county, and sometimes breaking out a city within a county; same with California and others.

Oh, and I haven't gone into ordering/destination states and their sales tax treatments.  That's real fun in states like Kansas.

If this law passes, buy Vertex stock!  Their Sales & Use Tax Rate Guide will become a staple in every business across the country, not just the larger multi-state companies' tax departments.  My best guess memory from around a decade ago was that a 1 year subscription to Vertex was about $750 per year, with monthly updates provided.

And I haven't gone into the time constraints of sales tax compliance.  For example, sales from the month of January are to be reported and taxes paid to most states by the 20th.  Now with EFT becoming the norm (with more costs in the form of bank fees), that filing is the 19th; every day matters when you have a shytload of returns to file.

Totally unrelated, I found this website for FastTax, a software compliance company.

Latin much?

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[Weisshaupt]

I know this is a gross understatement...but they know not what they do!!!

They know perfectly well. They are driving the small businesses out of business because a few big companies are easier to control.  Its fascist economics at its finest.  The funniest part is the 99% crowd think it will go away if you give politicians MORE power.

[Glock32]

Come on guys, don't you see all these problems, all this hassle that you speak of from experience, it's just proof that we have an archaic system that needs to be done away with. We just need to have the Federal government become the sole taxing entity. Just centralize everything, duh!

[Libertas]

The government will probably nationalize Vertex too, lock it all up, no escape!

What a crock!  Huge blowback with angry mobs going after politicians is the only thing that could change anything.

Plus, it is the only way they can go after these folks -

http://www.cnbc.com/id/100668336

[Glock32]

I like that even that CNBC article uses the word "Obamacare".  This is one instance where they lost control of the narrative.

[Libertas]

Poor editing, bit them in the arse this time, usually its us.   

[charlesoakwood]

Read Latest Breaking News from Newsmax.com http://www.newsmax.com/Newsfront/Internet-Sales-Tax/2013/04/25/id/501415#ixzz2RWnM1qyQ


[blockquote]Enzi and Durbin say the bill doesn't raise taxes. Instead, they say, it gives states a mechanism to enforce current taxes.[/blockquote]

He is saying the Federal Government, by this law, is giving states the authority to collect sales tax.  He said that on TV and NO ONE queried Durbin. NO ONE asked, Senator Durbin WTF are you saying!  Have you read the Constitution?  

Well, sure he has and surely he knows that if he can say this and get away with it then the Demon hoard has proved once more that they can say or do whatever they want.

[Libertas]

States already have their own taxing authority, right?

Same as that other thing, CISPA, the Feds assuming they have power to do something they never had and people never call them on any of it...well, we do, but where is the leadership for our point of view?  Are there any?

[RickZ]

States already have their own taxing authority, right?

Correct, and are legally allowed to go after businesses doing in business in their state, per the established rules of nexus.  In the past, I've received fishing expeditions from states asing for information to prove no nexus.  Giving the states carte blanche to go after everybody means that any state hearing about a business, or finding out about one through another company's audit, that may be shipping internet sales to their state will send them paperwork to prove to the state they aren't 'doing business' in the state.  Of course, those forms take time away from the business.

What'll happen if this thing passes is that business owners will be screaming bloody murder.  So to fix the bad legislation, they'll creat a national internet sales tax by which companies file to the federal government their internet sales by state, with the government then redistributing the tax collections to the states.  Then the states will scream bloody murder.  Finally, we'll end up with real bloody murder.

[Libertas]

States already have their own taxing authority, right?

Correct, and are legally allowed to go after businesses doing in business in their state, per the established rules of nexus.  In the past, I've received fishing expeditions from states asing for information to prove no nexus.  Giving the states carte blanche to go after everybody means that any state hearing about a business, or finding out about one through another company's audit, that may be shipping internet sales to their state will send them paperwork to prove to the state they aren't 'doing business' in the state.  Of course, those forms take time away from the business.

What'll happen if this thing passes is that business owners will be screaming bloody murder.  So to fix the bad legislation, they'll creat a national internet sales tax by which companies file to the federal government their internet sales by state, with the government then redistributing the tax collections to the states.  Then the states will scream bloody murder.  Finally, we'll end up with real bloody murder.

Ding! Ding! Ding!  We have a winner!

Just like Obamacare!  Create a solution for a problem that does not exists, to solve a problem of lesser dimensions, and then wham!  Government takeover of an entire enterprise!

And you know what their greatest defense against accusing them of this very act?  "You're crazy, that's not what this is about, this is about 'fairness', about 'right', about protecting family businesses and 'children', blah blah blah"!

And feckless Pubbies will grab ankles again!

 

Let's just skip to bloody murder already, all this fartin' around just aggravates me!  

[RickZ]

Something I haven't mentioned, or even read, on this is that when a company has satisfied nexus and registers with a state, there are two actions for the business, one a pain in the @ss, the other legal protection; some companies voluntarily register to do business in a state without nexus.  Why would a company voluntarily go through the hassle of sales tax collection/compliance/audits?  Because registering to do business in a state provides that company with access to state courts.  A business will have a difficult time suing, for whatever reasons, in a state where they are not registered to do business.  At least that's the current law.