Obama backs Internet sales tax bill

Started Apr 22, 2013 | Discussions thread
jayrandomer
Contributing MemberPosts: 626
Like?
Re: Hypocrisy
In reply to Rick Knepper, Apr 23, 2013

Rick Knepper wrote:

jayrandomer wrote:

James Cricket wrote:

Suave wrote:

This tax is demanded by the states, and the states, by a large margin are governed by the Republicans.   If you count governors and exclude states with no sales tax you endup with 2:1 ratio.

jcampy wrote:

Democrats have never seen a tax they didn't like.

Exactly. They trumpet tax cuts and freedoms but try to get you through the back door while catering to corporate interests and "defending" marriage.  'Merica

First off, this isn't a tax, it's simply an improved mechanism for collecting existing taxes.  If you're lucky enough to already live in New Hampshire you're still going to get most things tax free because there's no sales tax in New Hampshire.

And many states offset a low or non-existent income tax with sales tax, so being able to properly collect sales taxes is something they would like.   To collect taxes outside of their state, however, likely requires the intervention of the federal government (a legitimate use of the "interstate commerce clause").

Please post the relevant section regarding sales taxes.

Article One of the United States Consitution

Section 8: Powers of Congress

The Congress shall have power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;

To borrow Money on the credit of the United States;

To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes;

...

This bill specifically address commerce among states, in particular the collection of taxes when a product is sold from one state to a resident in a different state.  Commerce is clearly defined as the "activity of buying and selling." And, in order to be applicable to these provision the product must cross state lines.  This is a legislative action where Congress has power specifically enumerated in the Constitution.

Digression: One wonders how this will impact those states who host large mail order & Internet sales retailers when sales dry up.

I think it's silly to blame Obama or Republicans for this; it's a deficiency in the sales-tax structure that wasn't really important until large-scale shipping of products across state lines became common.

I think it is silly not to.

It's one of the very few "loopholes" that folks of all economic classes have and will cease to enjoy. (I'm calling it a loophole at the moment for lack of a better word. If I think of something better, I'll type it in before posting.) This legislation should be left alone. The Republicans support this action because it is a less visible way to increase tax revenue than considering the income tax for those states who do not have such a tax or raising the income tax rate for states that already have an income tax. Republicans, just like Democrats, can't help but spend money and need more. It's the hypocrisy of their party and philosophical platform.

I agree, it's a great not having to pay taxes.  Unfortunately, it's not technically a loophole as much as it's poor enforcement of existing laws.

Texas Sales Tax :

3. Do I owe tax on goods purchased via mail-order catalogs or Internet merchandise?

Yes. A seller who uses catalogs or the Internet to sell goods is treated the same as any other seller of taxable items. If you purchase merchandise through a catalog or the Internet from a seller located in Texas, you owe Texas sales tax on the purchase. If you purchase merchandise through a catalog or the Internet from a seller located outside of Texas and use the taxable item in Texas, then you owe Texas use tax on the purchase. An out-of-state mail-order company or an Internet company may hold a Texas Sales and Use tax permit and collect Texas tax. If the out-of-state seller does not have a Texas permit or does not collect Texas use tax, the use tax is due and payable by the purchaser.

I think it's better to have laws spelled out and enforced rather than just selectively prosecuted.  Why not support that your state legislate an exception for internet-based retailers or simply remove the sales tax altogether?

Speaking of hypocrisy. I wonder how many folks who post pro taxation or pro brick and mortar screeds (incredulous on its face) in these types of threads have taken advantage of Internet and Mail order purchasing to save thousands of dollars in sales taxes on their own purchases.  I suspect that such folks posting in these threads do so despite their own actions to the contrary because they have some need to belittle folks, to vent frustrations in their private lives and topics like this seem like easy pickings. I am not pointing fingers at any specific poster by the way.

Yes, it's great that we aren't forced to pay taxes on many internet purchases.  It would also be great if the government forgot to collect income taxes on people who's last name begins with "K"--at least as long as your last name begins with "K"--but everyone else might get a little upset.

If there's a legitimate reason for exempting a certain class of sales then codify that and convince everyone else, otherwise be thankful that you were able to exploit an enforcement oversight for so long.

-- hide signature --

Rick Knepper, photographer, non-professional, shooting for pleasure, check my profile for gear list and philosophy.

Reply   Reply with quote   Complain
Post (hide subjects)Posted by
DuhNew
Keyboard shortcuts:
FForum PPrevious NNext WNext unread UUpvote SSubscribe RReply QQuote BBookmark post MMy threads
Color scheme? Blue / Yellow