Democrats push for taxing internet sales

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Gatekeeper said:
Speaking as a small business owner with a Brick-and-mortar storefront AND an internet presence both based in a state without sales tax, this bill would force me out of business. I don't have the time to manage tens of thousands different sales tax amounts, nor do I have the money to hire someone to do it for me. State tax amounts would need to be drastically streamlined across the country to give small businesses like mine a chance to keep up.

If you don't have a problem paying the tax, maybe you should just be paying the use tax your state probably has on the books rather than supporting convoluted legislation.

Don't let companies like Amazon feed you the BS that you simply cannot handle this. Do you manually calculate shipping costs? Do you manually accept credit card payments? There are companies that have developed this kind of software.

Fuzzery said:
shipping is basically already like an internet tax :(

You do realize that you're already paying for shipping when you buy from a B&M retailer, right? The product doesn't teleport to shelves. There are warehouses, truck drivers, inventory employees, etc. It's already built into the price.

bggrthnjsus said:
you know if they did this on amazon and always included the interweb tax in the displayed price, i probably wouldn't even notice :lol

Few would. If they had been doing this all along, would the internet really be a giant boycott like everyone claims it will be? I really believe everyone that says people will stop buying goods (completely) if this happens. :lol
 
If there was an internet tax in place right now, GAF would have completely eradicated the national debt during the Summer and Holiday Steam sales. :D
 
gcubed said:
prices are kept competitive because there is no sales tax on one side? How does this even make sense? If you slap on an extra 6% the original price of the product isn't going up. What it will do is push more sales to b&m stores.

I don't get the competitive pricing thing comment either.

However, regarding the driving of more sales to B&M, I have my share of concerns about that. The very nature of the tax-free low-priced e-tail environment has spurred a lot of extraneous shopping over the years that's often want and not need based. I think there's going to be a sizable drop off of overall demand before you see any considerable shift of sales from the internet to B&M.

It certainly will spur tax revenue, but I have to wonder how much real gains B&M retailers will see from this, particularly smaller retailers.
 
Monroeski said:
If there was an internet tax in place right now, GAF would have completely eradicated the national debt during the Summer and Holiday Steam sales. :D

I feel we should go back to the pirating thread we had and see if the same people who were arguing for piracy (or that it wasn't stealing because it is a digital item) are some of the same people arguing for a tax here.

But yeah, those Sales are brutal. Discipline!
 
Off topic but a topic that is still about taxes:

http://www.atr.org/sixmonths.html?content=5171##ixzz0sufQOAwQ

Six Months to Go Until The Largest Tax Hikes in History

Personal income tax rates will rise. The top income tax rate will rise from 35 to 39.6 percent (this is also the rate at which two-thirds of small business profits are taxed). The lowest rate will rise from 10 to 15 percent. All the rates in between will also rise. Itemized deductions and personal exemptions will again phase out, which has the same mathematical effect as higher marginal tax rates. The full list of marginal rate hikes is below:

Higher taxes on marriage and family. The “marriage penalty” (narrower tax brackets for married couples) will return from the first dollar of income. The child tax credit will be cut in half from $1000 to $500 per child. The standard deduction will no longer be doubled for married couples relative to the single level. The dependent care and adoption tax credits will be cut.

The return of the Death Tax. This year, there is no death tax. For those dying on or after January 1 2011, there is a 55 percent top death tax rate on estates over $1 million. A person leaving behind two homes and a retirement account could easily pass along a death tax bill to their loved ones.

Higher tax rates on savers and investors. The capital gains tax will rise from 15 percent this year to 20 percent in 2011. The dividends tax will rise from 15 percent this year to 39.6 percent in 2011. These rates will rise another 3.8 percent in 2013.

Small business expensing will be slashed and 50% expensing will disappear. Small businesses can normally expense (rather than slowly-deduct, or “depreciate”) equipment purchases up to $250,000. This will be cut all the way down to $25,000. Larger businesses can expense half of their purchases of equipment. In January of 2011, all of it will have to be “depreciated.”

More tax info at link.
 
Hopefully this doesn't go through. Fuck democrats and their tax shit. But fuck republicans too, they are just as bad in different ways.

The only logical choice is for me to be an independant.

EDIT: Holy shit at Game Analyst's link WTF WTF WTF
 
Not only do i hope this goes through i hope it applies to digital goods as well. They should also make it two or three times as high for the next ten years to make up for people evading taxes.
 
scorcho said:
How is this a slippery slope if all it does is close a tax loophole? This could affect smaller online retailers, but could likewise help smaller brick and mortar businesses that are forced to collect sales taxes on purchased goods. It seems a push between the two while also giving local and state governments a solid way to help close budget deficits.

Yea I don't understand it. It's a loophole, one which costs local businesses and local governments sizable amounts of revenue. It costs my fathers business money (thankfully his store is multi-purpose), and while it saves me money on an individual level it isn't at all good for him or his employees.

Sorry if you can't get your stuff tax free anymore, but I'm sure only retailer pricing will be competitive with B&M regardless. Even if this goes through I'll still be ordering all my games from Amazon, saves me time and money driving to the store and they'll still be a few bucks cheaper.
 
:lol
The return of the Death Tax. This year, there is no death tax. For those dying on or after January 1 2011, there is a 55 percent top death tax rate on estates over $1 million. A person leaving behind two homes and a retirement account could easily pass along a death tax bill to their loved ones.
Welp, if you own two homes and a retirement account better hurry up and die.
 
MoxManiac said:
55 percent! What the fuck!
All part of Obama's very clever plan. First he used TARP money to stimulate home purchases, then he puts a 55% tax on any American who dies with 2 or more homes.

Brilliant, Barry. Just brilliant.
 
I understand if there is a sales tax for online sales, but since I already had a taste of "no sales tax", it kinda makes me sad that it will be gone (if this passes). selfish? yes. do I care? no
 
MoxManiac said:
Hopefully this doesn't go through. Fuck democrats and their tax shit. But fuck republicans too, they are just as bad in different ways.

The only logical choice is for me to be an independant.

EDIT: Holy shit at Game Analyst's link WTF WTF WTF

Game Analyst is a conservative troll shilling for the continuation of Bush's infamously tax cuts from earlier in the decade with dubious sources (you know, those cuts for rich people that helped propel our debt to astronomical levels near the outset? Yes, those). He's not to be taken seriously.
 
Macam said:
Game Analyst is a conservative troll shilling for the continuation of Bush's infamously tax cuts from earlier in the decade with dubious sources (you know, those cuts for rich people that helped propel our debt to astronomical levels near the outset? Yes, those). He's not to be taken seriously.

Fair enough, are you saying the information in his link is false? I see tax hikes for everyone in there, not just the rich.
 
Did everyone's brains just shut off in this thread? Seriously, I haven't seen a segment of GAF self implode like this in a while. I'd almost rather read a NPD thread from start to finish at this rate.
 
Game Analyst said:
Off topic but a topic that is still about taxes:

http://www.atr.org/sixmonths.html?content=5171##ixzz0sufQOAwQ



More tax info at link.


The Bush tax cuts.

This shouldn't really come as a surprise. Democrats have said all along that they plan to let the Bush tax cuts expire.

What may come as a surprise to most people is that these tax cuts were not just "for the rich" as Democrats have characterized them in their talking points for years. A lot of Americans and small businesses will be getting tax increases next year.

The only way this doesn't happen is if Republicans get control of Congress this fall and that's not very likely to happen.
 
MoxManiac said:
Fair enough, are you saying the information in his link is false? I see tax hikes for everyone in there, not just the rich.

It's a Grover Norquist institution. And in case you don't know who that is, he's a fanatical anti-tax, anti-government far right zealot of the type you would find in the depths of the Tea Party movement (albeit richer and more knowledgeable of politics since he's been financing the establishment on the Right for three decades or so).

His source is the equivalent of me linking to a Jack Thomspon website showing clear studies of how violent video games increases acts of aggression by 62% and first degree murders by teenagers by 13%. There's so much crap laying on top of the actual relevant facts he's spinning, that it makes the depths of BP oil spill look positively shallow in comparison.

EDIT: The administration is not tone deaf to the needs of small business and has made numerous attempts to alleviate their burden; we saw that in the stimulus bill, the health care bill, and so on. If the expiration of the Bush tax cuts provide an undue burden on small business, exemptions can be made as necessary, especially given the fragile economy. It's nonsense to suggest that only Republicans will do so; if anything, it'll be Republicans in the Senate who would likely hold up any such bill, since we can't have the administration and Congress get anything done that may have political positive ramifications ahead of the election.
 
Really, it's just been a matter of time until internet sales get taxed. Why should they not be taxed like any other sale? There's no real argument for internet sales not being taxed. You can argue that no sale of any kind should be taxed if you want, but it doesn't really make a lot of sense for internet sales to be excluded. Does it suck? Yes. But does it make sense? Yes.
 
Forget this. We wouldn't have to be worrying about schools, police, and firefighters if local and state governments would properly finance those immediate areas at the top of their budgets with the money they already have. Everything else on their budget should be secondary and they should evaluate spending less on those programs. They keep using this excuse that they don't have enough money for schools, police, and firefighters just to get more money out of people. Total BS.

Take California for example. There is a $20 billion deficit in the state budget. That seems like a lot of money. However, the estimated revenues the state is bringing in is around $88.1 billion, give or take a few billion. Don't tell me a state can't provide immediate, important services with that amount of money.
 
Macam said:
Game Analyst is a conservative troll shilling for the continuation of Bush's infamously tax cuts from earlier in the decade with dubious sources (you know, those cuts for rich people that helped propel our debt to astronomical levels near the outset? Yes, those). He's not to be taken seriously.

1. I am for anyone who is honest and is actually trying to protect US citizens.
2. I saw the article on Drudge last week.
3. Thank you for slandering me for no reason.
 
Let me just say when I see the Welfare People walking through Newark, there's no effing way I think they should get a couple bucks out of everything I buy from Amazon. Pretty much all that needs to be said right there. If more people got real jobs instead of living off the state or "working" for government we wouldn't even be having this discussion.
 
Game Analyst said:
Off topic but a topic that is still about taxes:

http://www.atr.org/sixmonths.html?content=5171##ixzz0sufQOAwQ



More tax info at link.

Dude I am not even American and I know some of that info is not only misleading, it's incorrect.

For example, with the 55% taxation on estates over a million, you're only taxing everything over a million, so if your estate is worth exactly 1million, you're not getting taxed. If it's worth 1.1 million, you're getting taxt on 100k.
 
Macam said:
It's a Grover Norquist institution. And in case you don't know who that is, he's a fanatical anti-tax, anti-government far right zealot of the type you would find in the depths of the Tea Party movement (albeit richer and more knowledgeable of politics since he's been financing the establishment on the Right for three decades or so).

His source is the equivalent of me linking to a Jack Thomspon website showing clear studies of how violent video games increases acts of aggression by 62% and first degree murders by teenagers by 13%. There's so much crap laying on top of the actual relevant facts he's spinning, that it makes the depths of BP oil spill look positively shallow in comparison.

This is straight from Kiplinger...

http://www.kiplinger.com/businessresource/forecast/archive/tax_hikes_coming_in_2011_090424.html

Here’s what’s rising to the top of the list of probable hikes for individuals:

* Boosts in top marginal rates from 33% and 35% to 36% and 39.6%. No change in the other marginal rates seems likely.

* A higher rate on capital gains and dividends, but only for those in the top brackets. They will probably be hit with a 20% rate, though it could go a little higher.

* Caps on itemized deductions for top earners. Obama’s push to limit the value of deductions at 28% ran into a wall of opposition from charitable groups, but he’s not giving up. Some way of curtailing the tax break still seems likely by 2011.

* No repeal of estate taxes, but count on an exemption of at least $3.5 million, and it could be set as high as $5 million if the Senate prevails. Estate tax legislation will include spousal transfers, making the exemption $7 million or more for couples. The estate tax rate will be capped at 45%, the same as it is now.

* More easings for the alternative minimum tax, but no repeal.

Businesses can expect a mixed bag of hikes and cuts, but with a higher total tax bill. Among the changes:

* Higher SECA taxes for owners of S firms and partnerships by blocking them in the future from skirting payroll taxes by taking their compensation as dividends instead of salary.

* New restrictions on worker classification to make it easier for the IRS to crack down on firms that treat workers as contractors who are really employees.

* And elimination of some tax breaks for big corporations, including the deduction for domestic production, accelerated depreciation and incentives for foreign income and oil production.

But there may be a silver lining, at least for big corporations: Congress will consider lowering the 35% top corporate tax rate by several percentage points.

Longer term, tax hikes will go even further and hit more people and businesses. The only other option is deep cuts in spending, including Social Security, Medicare and defense, and the public won’t buy that. As a result, anyone making more than $100,000 a year will be at risk for higher taxes. The most likely option is to raise the cap on income subject to payroll taxes. It now stands at $106,800.

The main problem with the other link was that some of the increases only apply to people in upper income brackets. Certainly some differences from the previous link, but still a lot of BS.
 
Game Analyst said:
1. I am for anyone who is honest and is actually trying to protect US citizens.
2. I saw the article on Drudge last week.
3. Thank you for slandering me for no reason.

these two things don't go together. I'd point you over to the gulf oil spill thread for "lets post bullshit news"


Javaman said:

so basically it is exactly what has been stated for two years. If you make over 250k a year, when the Bush tax cuts expire, you will be hit
 
Macam said:
It's a Grover Norquist institution. And in case you don't know who that is, he's a fanatical anti-tax, anti-government far right zealot of the type you would find in the depths of the Tea Party movement (albeit richer and more knowledgeable of politics since he's been financing the establishment on the Right for three decades or so).

His source is the equivalent of me linking to a Jack Thomspon website showing clear studies of how violent video games increases acts of aggression by 62% and first degree murders by teenagers by 13%. There's so much crap laying on top of the actual relevant facts he's spinning, that it makes the depths of BP oil spill look positively shallow in comparison.

EDIT: The administration is not tone deaf to the needs of small business and has made numerous attempts to alleviate their burden; we saw that in the stimulus bill, the health care bill, and so on. If the expiration of the Bush tax cuts provide an undue burden on small business, exemptions can be made as necessary, especially given the fragile economy. It's nonsense to suggest that only Republicans will do so; if anything, it'll be Republicans in the Senate who would likely hold up any such bill, since we can't have the administration and Congress get anything done that may have political positive ramifications ahead of the election.

Everything he posted was factual.

Here's a link to the actual bill if you'd like to read it.

http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=108_cong_bills&docid=f:h2enr.txt.pdf
 
bill0527 said:
The Bush tax cuts.

This shouldn't really come as a surprise. Democrats have said all along that they plan to let the Bush tax cuts expire.

What may come as a surprise to most people is that these tax cuts were not just "for the rich" as Democrats have characterized them in their talking points for years. A lot of Americans and small businesses will be getting tax increases next year.

The only way this doesn't happen is if Republicans get control of Congress this fall and that's not very likely to happen.

The Democrats are not going to let all of the cuts expire and are even going to make the ones they don't like more generous (like the Estate tax) than before the cuts. Further a Republican controlled Congress is not going to be able to hold onto all the cuts. If anything has been showbn this past year is that the minority party in Congress is still able to hold things up and block things quite effectively.

On topic, internet sales should be taxed.
 
MoxManiac said:
EDIT: Holy shit at Game Analyst's link WTF WTF WTF
Historical+top+tax+rates.jpg



HOLY SHIT EVERYBODY PANIC 40% TAX RATE OH MY GAWD BAILOUT BAILOUT
 
JGS said:
On topic, internet sales should be taxed.


Dumb question, but is the tax kept by the state of the seller or does the seller have to send the tax money back to the state of the buyer?
 
AstroLad said:
Let me just say when I see the Welfare People walking through Newark, there's no effing way I think they should get a couple bucks out of everything I buy from Amazon. Pretty much all that needs to be said right there. If more people got real jobs instead of living off the state or "working" for government we wouldn't even be having this discussion.

Something something no jobs... something something economy...

Do you think most of the people on welfare at the moment WANT to be on welfare? Of course not, but where are they going to find a job?

There are always people cheating the system, but to just say "I see some people on welfare here, so EVERYONE must be a lazy bastard" is just plain ignorant.
 
I love the idea that repealing the largest gift to the wealthiest Americans in history is somehow a bad idea--which is exactly what they intended when they ran up deficits on increased Medicare spending and two unfunded wars. The strategy is called "starve the beast," and it fucking works.

I just wish conservatives could think past their own nose for a minute and consider more than their wealthy forbears that they think need propping up.
 
gcubed said:
its akin to saying that we will spend $0 on defense spending next year, because the bill isn't passed yet.

I don't think we're on the same page.

The bill I linked was the Bush tax cuts from 2003. This is what will expire at the end of this year.
 
bill0527 said:
I don't think we're on the same page.

The bill I linked was the Bush tax cuts from 2003. This is what will expire at the end of this year.

we are on the same page. most of the things that will affect people below the 250k threshold will be extended, as has been said for the last 2 years. Just because, at this very moment in time, thats what is going to expire doesn't mean that's whats going to happen next year
 
Game Analyst said:
1. I am for anyone who is honest and is actually trying to protect US citizens.
2. I saw the article on Drudge last week.
3. Thank you for slandering me for no reason.

1. Norquist is not one of those people.
2. Nor is Drudge. Quite the opposite on both counts.
3. Perhaps it was undue (so, sorry if it's any consolation), but there certainly was a reason behind it. You certainly don't do yourself any favors by reposting tripe from some purely ideologically, biased sources in various threads. I stand by my original points nonetheless.

And this incessant chatter about government inefficiencies and budget problems is more of a side issue than anything; it's a closing a freaking loophole on standard sales tax. It streamlines the tax code a hair and makes competition a bit more level for retail in general. Hell, while sales taxes are regressive in general, this one may actually be the least regressive of sales taxes given the nuances of computer ownership, Internet access, and credit access.
 
Javaman said:
Dumb question, but is the tax kept by the state of the seller or does the seller have to send the tax money back to the state of the buyer?
EDIT- (Misunderstood) It's the state of the buyer.

In KY, I get taxed on most of my purchases, but that might have to do with Amazon being down the street from me.
 
If this bill/tax doesn't go through now, then it's going to happen eventually. I don't know how anyone with a brain could think otherwise. Personally, I'm surprised online sales aren't taxed already.

And yes, I'll be upset I'm paying more, but that's life.
 
This thread reminds me how brilliant of a strategy a 'temporary' tax decrease was.

Then: We are dropping the rates just for a bit.
Now: THEY WANT TO TAKE YOUR MONEY.
 
LosDaddie said:
If this bill/tax doesn't go through now, then it's going to happen eventually. I don't know how anyone with a brain could think otherwise. Personally, I'm surprised online sales aren't taxed already.

And yes, I'll be upset I'm paying more, but that's life.

Yeah, I'm loving everyone in the thread saying how "unfair" this is. These are the same debates people made during the heyday of music-sharing services. Just because everyone else is breaking the law doesn't make it right, and the government needs to find some way to fill in for all the lost revenue.
 
Game Analyst said:
1. I am for anyone who is honest and is actually trying to protect US citizens.
2. I saw the article on Drudge last week.
3. Thank you for slandering me for no reason.
You want to protect US citizens? Let's cut spending and/or increase taxes so we're actually paying for the services/goods the government provides us. And if we cut spending, don't even think of making your priorities for cuts be in education, veterans benefits and services, training, employment, and social services: Combined, they don't even make up 10% of our budget.

If you really want to cut spending, you're going to need to touch social security, medicare/medicaid, and the DoD + Department of Homeland Security, which, combined with the interest on the nation debt, account for more than two thirds of the federal budget.

Social Security and Medicare/Medicaid costs i nparticular have been outpacing economic growth for a while now. Simple changes for the three programs:

#1: Remove the social security wage base, making all income taxable for social security. As it currently stands, there are two brackets for social security: Income under the social security wage base (about $106,000 last year), and income over the social security wage base. The first bracket has a higher marginal rate than the second bracket. That means everyone who made more than $106,000 last year had a lower tax rate than everyone who made less than $106,000. If we removed the social security wage base and had a flat tax for social security, like medicare/medicaid, over 95% of the insolvency problems the social security fund is facing (due to the large population of the baby boomer generation) will be funded for. and unless you make more than $106,000 , it wouldn't affect your taxes at all.

#2: Health care reform: We already got this done: The cost curve should be significantly flatter over the next few decades, allowing for the economy to (hopefully) outpace health care costs in growth. Further reforms can be made (like single payer) to reduce costs even further.

#3: The US has, by far, military supremacy among all countries. And all but one or two of the next 15 or so largest powers are our allies. We could reduce the military budget by 33-50% without worry. And refocus our efforts on small operations against guerrila fighters rather than large scale military standoffs with nations (further reducing costs).


Furthermore, we can close some tax loopholes (~$200B in lost revenue per year, IIRC), let the bush tax cuts expire, and, yes, increase taxes, even if it were only to the levels under clinton or Reagan (~1-2% change for the average household iirc)

You're looking at trillions of dollars of savings here, and note that outside of refactoring and shrinking the military industrial complex, none of it involves reducing benefits or services to the people. It's almost all administrative changes.
 
GaimeGuy said:
That means everyone who made more than $106,000 last year had a lower tax rate than everyone who made less than $106,000.

Wait, what? How does that make any sense? Shouldn't the tax rate go up when you earn more money, or just have a flat tax rate? Crazy Americans.
 
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