States To Vote On Internet Taxes

from the this-again? dept

Doesn’t it seem that every few months there’s a new discussion about whether or not to tax internet transactions? The latest is that representatives from various states, who feel they’re getting ripped off by losing out on tax revenue, are going to put together a “streamlined” plan to show how online sales taxes could work. They hope that by showing this plan to Congress, they’ll finally get approval to tax internet transactions. Update: The plan has been approved.

Rate this comment as insightful
Rate this comment as funny
You have rated this comment as insightful
You have rated this comment as funny
Flag this comment as abusive/trolling/spam
You have flagged this comment
The first word has already been claimed
The last word has already been claimed
Insightful Lightbulb icon Funny Laughing icon Abusive/trolling/spam Flag icon Insightful badge Lightbulb icon Funny badge Laughing icon Comments icon

Comments on “States To Vote On Internet Taxes”

Subscribe: RSS Leave a comment
Steve says:

No Subject Given

The current state of taxation is silly–the whole bit about having to charge sales tax if you have a physical presence in a state defintely discriminates against brick & mortar businesses. But a state does not and should not have the authority to charge tax on a company not doing business in their state. When I buy something online, the transaction is taking place on the server wherever that is, so my state has no claim to tax the transaction. And the federal government already collects too much taxes as it is, and has no business collecting sales tax for the states. Then again, why should they let the Constitution get in the way of squeezing every last penny out of us.

The other thing is that everyone thinks the internet is somehow this big loophole for taxation–but catalog orders follow the same rules and are a much much larger (though shrinking) amount than internet sales.

If the states or feds decide to tax internet sales, the companies will all just move their servers offshore and probably take jobs with them. People who purchase onlne tend to be extremely cost sensitive and will buy from the cheapest place they can find. If one supplier charges X and another charges X plus 5% tax, who are you going to buy from? The net effect is that it will be counter productive to charge taxes on internet sales and will result in lower tax revenues.

martrom says:

No Subject Given

The respresentatives feel like they’re getting ripped off, huh?

The problem with an internet tax is that consumers are easily going to notice that they have to pay that extra tax on every purchase, but unless the tax has a specific purpose, they will never notice any benefit. Put a lock on that tax towards say, education, and I’d be willing to consider that it has some benefit outside of more money in the government’s pocket for them to burn. Otherwise, it’s just going to breed contempt with the taxpayers.

I didn’t actually read the article.

Add Your Comment

Your email address will not be published. Required fields are marked *

Have a Techdirt Account? Sign in now. Want one? Register here

Comment Options:

Make this the or (get credits or sign in to see balance) what's this?

What's this?

Techdirt community members with Techdirt Credits can spotlight a comment as either the "First Word" or "Last Word" on a particular comment thread. Credits can be purchased at the Techdirt Insider Shop »

Follow Techdirt

Techdirt Daily Newsletter

Techdirt Deals
Techdirt Insider Discord
The latest chatter on the Techdirt Insider Discord channel...