Some States Push To Collect Sales Tax From Internet Stores
WSJ.com: "For years, states and online retailers have bickered over whether the retailers should -- and, if so, could -- collect local and state sales taxes on purchases made over the Internet. The states have said they should and could. The retailers have argued that the complexity of different tax rates and categories among states and localities made it very difficult to do so.
Hoping to put an end to that argument, 18 states tomorrow will implement a long-planned move to remove obstacles that the retailers have cited. Architects of the Streamlined Sales Tax Project are devising a computer program that tracks the tax rates of the 18 states and their localities and automatically adds that rate to the bill of every online purchase. The states will also entice online retailers to collect state and local sales taxes by offering amnesty on taxes the retailers haven't collected in the years since the Internet retail boom began."
1 Comments:
First, states are hardly in need of more of our cash -- state revenues have surged more than 13% recently; see http://rfs.rockinst.org/exhibit/9029/Press%20Release/SRR_61_PR.pdf
Second, small businesses would be socked with the expense of being the unpaid tax collector for 49 states from which they'd get no benefits or services. That's not fair; that's just another form of hidden taxation. And businesses wouldn't even be able to complain to the representatives of the other 49 states.
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