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mansterfred - 3:12 am on Feb 9, 2003 (gmt 0)
I cannot see the states agreeing on a tax in my lifetime. First main issue will be mail order. Forget online sales. Mail order is much larger. Will they now pay sales tax in all states? I am sure what ever is eventually passed will get hammered at the court level. The only one that can charge a tax will be the feds, unless of course you have some connection in other states. Why should Wal-Mart and B&N Bookseller get out of online taxes, they have operations in all states and should pay the state taxes just like any other brick & mortar. Actually, I think they let Wal-Mart off easy, I think they owe the back taxes as do any stores that have in-state operations, representation or employee’s. Simply incorporating the online sales differently should be considered nothing more then tax avoidance by these retail behemoths.
As for the States whining about lost revenue from the Internet, they must be smoking dope. Services are not taxable, out of the country sales are not taxable, taxes are already paid within ones own state and good luck collecting from the zillions on the E-bay flee market. In the end the states will probably pay $1.20 in bureaucratic fees for every $1 they collect.