gamiziuk - 6:53 pm on May 13, 2006 (gmt 0)

I agree with "natural number" - the politicians are getting greedy - the only result is that they will kill the goose that lays the golden eggs.

I both work in a hotel, and the majority of my web sites are about travel (I.E. I promote hotel reservations via Hotels.com etc.) - so I have a unique perspective that I understand how the online companies work as I deal with them at both ends.

"Frank Rizzo" you are mistaken in your posting, on how the online companies collect tax. The hotel gives a company an allotment of rooms, with a price attached to them, and the tax requirement of 12.5% (or whatever it is). The online company will collect that amount, and usually $20 on top of that. (No they do not collect EXTRA tax - just the tax requested by the hotel.) If the room rate is more than $100, then the online markup will increase more than $20.

(Yes I am sure - I have watched selected transactions that originated from the hotel I work in)

As an affiliate, the online company will give me $10 or half of thier markup. Gee, guess what? I have to pay INCOME TAX on the commission I just made! The online company will have to pay income tax too!

Ever think about how much money disappears into the tax trough? (Local, State, and Federal) Last time I checked though, the internet world is still supposed to be sales tax-free. The online companies may be able to fight the suit on this basis.