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At any rate, go out and get 06/29/00 copy of the Wall Street Journal. Heads up!
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[edited by: rcjordan at 11:40 am (utc) on Aug. 20, 2003]
Currently, states are due sales tax from most online purchases. But because of two U.S. Supreme Court decisions, the states cannot compel out-of-state merchants to collect taxes for them during remote sales. The court ruled that while the states are owed the taxes, the tangle of tax regimes made the task of determining how much tax to charge too burdensome for merchants.
>> The article talks about states working together.
I had a recent conversation with my state tax board and they are working on it big time. One of the big things I got from the conversation was that individual states could start an audit process of business in their states. Since business to business is a major part of the commerence it is a big piece of the tax. The seller is not required to collect the tax but the purchaser is required to pay it. So each business is required to pay the tax on all supplies,equipment,software,advertising art work, ect.
One way or another I guess they will find a way to get the $$$.
"The European Union is close to agreeing upon a tax on digital sales made over the Internet outside the EC to EU citizens....In other words, e-tailers in the US will have to charge and collect VAT on music and software downloads purchased by EU citizens on behalf of the European Union."
The Register [theregister.co.uk]
>there are literally 100s of thousands of us in their states who make a small but honest living using the web. Does anyone of them really want to destroy our livelihood and our economic contribution to their State, for the sake of a sales tax
The short answer is 'yes' -without sales tax, or revenue generation of some kind contributing (income tax) to the state coffers, you are a non-entitity to them... something that competes with their 'real' businesses that do generate sales tax, payroll taxes, income taxes, business property taxes.
>the CPA fees would eat up your profits because the payment part to the States requires human talent and work.
I'm involved in several businesses, one of them is wholesale/retail and has nexus in two states. Others are service businesses, with employees/payrolls. All of them have a huge burden of compliance that must be factored into the cost of doing business. Through them, I know what pain is. Then there's my web publishing business.... 100% virtual, no employees, no products -just me and the keyboard selling virtual real estate (ads in websites). Sometimes it's been very hard to stay virtual, but this thread reminds me once again of all the red tape I don't do.... I think I'll stay the way I am. Now if I could just figure out a way to legitimately get around the self-employment tax!