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Senate Majority Whip Dick Durbin (D-Ill.) says he plans to introduce a bill, called the Main Street Fairness Act, mandating that all businesses collect the sales tax in the state where the consumer resides.
Amazon will rejoice when half of US online businesses close because of the bureaucracy involved.
“It was supported by big-box retailers, most of which are based outside Connecticut, that seek to harm the affiliate advertising programs of their competitors. Similar legislation in other states has led to job and income losses, and little, if any, new tax revenue.”
The "main street fairness act" is proposing something illegal.
At least you could file all those tax reports in english and not in 23 different languages like here in the EU.</slightly OT >
This I don't understand, IME here in Europe , we only file VAT returns in our own language, even when we sell cross border within the EU
Distance selling means that a supplier sells goods to private individuals or customers established in another Member State who do not apply VAT to their intra-Community acquisitions of goods.
the least they can do is make it less costly for businesses to collect it for them
Wait a second, this is all wrong anyway, law exists prohibiting the collection of taxes from out of state. The "main street fairness act" is proposing something illegal.
[edited by: bakedjake at 8:36 pm (utc) on Jun 15, 2011]
But be careful what you wish for. A federal clearing house is an "easy" excuse for the federal government to implement a federal sales tax. ;-)' "
If I'm a physical presence for Amazon, why am I not an employee?
In the 1960 U.S. Supreme Court Case Scripto v. Carson , the Supreme Court upheld a Florida court’s ruling that the difference between regular employees and independent contractors was “without constitutional significance” when it comes to nexus
Then, in the 1987 case Tyler Pipe v. Washington, the U.S. Supreme Court ruled that hiring an independent representative in a state to solicit sales and conduct other activities that helped an out-of-state corporation create and maintain a market for its products was no different from having an employee in a state engaged in the same activities. The court ruled that using an independent contractor, such as a manufacturers rep, established business activity tax “nexus” for the out-of-state corporation
It's absurd to suggest we're agents of any company we affiliate with
I would suggest that affiliates are the internet-equivalent of the "manufacturers rep" concept, modified to reflect the fact that the agent is representing a "store" instead of a manufacturer, and the presence is dual: physical location in the state, and presence on the internet.
pageoneresults: I foresee a Government Tax API that ALL ecommerce platforms will be required to use. You can't do business without it. Taxes will be collected and paid at time of purchase. Simple process. Minimal paperwork. Put the burden on the Government, not the Merchant. Just like Credit Card fees are collected at time of purchases, so will taxes. It's coming, mark my words.
Webwork: Advances in computing and networking have provided the foundation and often easier/more efficient solutions to business process issues. ...It's about time that Main Street regain a bit of competitive . . fairness . . i.e., everyone pays their fair share of whatever the taxes are
Is this going apply to B&M stores as well? If a California resident buys something in a store in Montana (no state sales tax), are they going to have to charge me almost 10% sales tax because of being a CA resident?
If so, that's yet one more reason to move outta the state...
It is not good for the people. It is not good for small business. Just because big fat corporate cats call it "fairness act" - you need to read it just opposite, it is "kill small e-retailer" act. [
Why do you say it has something to do with Big Box stores?
Some of the world's biggest, most profitable corporations enjoy a far lower tax rate than you do--that is, if they pay taxes at all.
The most egregious example is General Electric ( GE - news - people ). Last year the conglomerate generated $10.3 billion in pretax income, but ended up owing nothing to Uncle Sam. In fact, it recorded a tax benefit of $1.1 billion.
Avoiding taxes is nothing new for General Electric. In 2008 its effective tax rate was 5.3%; in 2007 it was 15%.
(2) it would level the playing field between Main Street and “e-street;”
(3) it would help to close the enormous budget gap that is growing daily as a result of the disparity between taxes due and taxes actually collected.