CA group boycotts Amazon over tax issue - Page 3

MrsJoseph · 08-18-2011, 10:40 AM

The problem I'm seeing is that Amazon is fighting the states on the tax issues, period. The states have no way of collecting the required taxes and no way of knowing (other than the honor system) who spent what where.

I'm not ok with the state having a list of my purchases - but I also don't want to pay for the state to fight Amazon in court.

anamardoll · 08-18-2011, 10:47 AM

Quote:

Originally Posted by MrsJoseph

The problem I'm seeing is that Amazon is fighting the states on the tax issues, period. The states have no way of collecting the required taxes and no way of knowing (other than the honor system) who spent what where.

I'm not ok with the state having a list of my purchases - but I also don't want to pay for the state to fight Amazon in court.

The states know for a fact that Amazon isn't collecting taxes on purchases in state because they can easily have a task force order from Amazon from, say, a Texas address and -- look, no taxes. They can fight Amazon on that rather than needing a full list of how many people in Texas spent how much at Amazon -- heck, they don't even need a task force because Amazon is admitting they don't collect the taxes.

If the choice is between "don't fight Amazon" and "fight Amazon", I prefer the latter. It's entirely possible that the fight will cost more than it brings in (i.e., Amazon loses and moves to another state) BUT if all the states stay firm in this, then Amazon can't do that.

Still, a national solution is the way to go, long-term. Alas, that's not likely in the near-term. Look how many people on this thread are against their purchases being taxed. It's a complicated issue.

MrsJoseph · 08-18-2011, 10:50 AM

Mention national taxes in public? I hope you've your tetanus booster shots lately.

anamardoll · 08-18-2011, 10:56 AM

Quote:

Originally Posted by MrsJoseph

Mention national taxes in public? I hope you've your tetanus booster shots lately.

Ha, precisely.

ProfCrash · 08-18-2011, 02:12 PM

If you are worried about your state government collecting the proper amount of sales tax, fill out the internet purchases section of your state income tax form and pay your taxes then. It is not difficult to do.

I think, I could be wrong here, that the Federal government is prohibited from collection a national sales tax. There is an amendment to the Constitution that allows for income tax but I don't think that can be read to allow a national sales tax.

States are allowed to tax businesses that exist within the states borders. Many internet stores get around that by not having brick and mortar stores in any state and limiting their corporate offices to as few states as possible. This way they can legally avoid charging sales tax.

We all know that Amazon is capable of paying state sales tax, they are required to collect the sales tax as part of the Agency model. Meaning it would be easy enough for Amazon, and other companies doing the same thing as Amazon, to charge state sales tax. We all know why Amazon doesn't, it has nothing to do with personal freedoms or anti-big government whatevers, it is about a pricing advantage. It is cheaper for me to shop at Amazon then it is the store down the street.

Since the Federal Government regulates inter-state commerce, Congress would probably have to pass a law that forced internet companies to collect state taxes. Does anyone here really think that any Congress person is going to suggest such a law? Just think of the political backlash that would come from such an attempt.

MrsJoseph · 08-18-2011, 02:41 PM

I'm not worried about my state gov. collecting tax (well, city government, I have no state) nor am I concerned about what they want to do with the money (since I have state I have no representation, anyway) - but what I don't like is my local stores not having the same advantage of Amazon.

I understand their (amazon & other net retailers) point of the legality of the situation - but catalog sales and internet sales are as different as oranges and zebras.

ProfCrash · 08-18-2011, 03:00 PM

I am not disagreeing with you. I don't think that there is an easy solution and the solutions that are available are highly unlikely to be implemented in this current political climate.

MrsJoseph · 08-18-2011, 03:07 PM

Quote:

Originally Posted by ProfCrash

this current political climate.

You mean Antarctica?

Or just when hell freezes over?

ProfCrash · 08-18-2011, 03:09 PM

hehehehe

pidgeon92 · 08-18-2011, 03:15 PM

If we're going to force Amazon to collect state taxes for purchases, we're going to have to force every online/mail order retailer to do the same.

anamardoll · 08-18-2011, 03:45 PM

Quote:

Originally Posted by pidgeon92

If we're going to force Amazon to collect state taxes for purchases, we're going to have to force every online/mail order retailer to do the same.

I've not yet seen one that didn't... if they had a physical presence in my state.

Amazon DOES have a physical presence in my state. Key difference.

TimW · 08-18-2011, 04:00 PM

Quote:

Originally Posted by anamardoll

I've not yet seen one that didn't... if they had a physical presence in my state.

Amazon DOES have a physical presence in my state. Key difference.

Amazon has distribution centers in my state therefore I'm accustomed to an additional 6% added to nearly all purchases. There are no local sales taxes...that simplifies things quite a bit.

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08-18-2011, 10:40 AM	#31
MrsJoseph Loves Ellipsis... Posts: 1,554 Karma: 7899232 Join Date: Dec 2010 Location: Washington, DC Device: Kobo Wifi (broken), nook STR (returned), Kobo Touch, Sony T1	The problem I'm seeing is that Amazon is fighting the states on the tax issues, period. The states have no way of collecting the required taxes and no way of knowing (other than the honor system) who spent what where. I'm not ok with the state having a list of my purchases - but I also don't want to pay for the state to fight Amazon in court.

08-18-2011, 10:50 AM	#33
MrsJoseph Loves Ellipsis... Posts: 1,554 Karma: 7899232 Join Date: Dec 2010 Location: Washington, DC Device: Kobo Wifi (broken), nook STR (returned), Kobo Touch, Sony T1	Mention national taxes in public? I hope you've your tetanus booster shots lately.

08-18-2011, 02:12 PM	#35
ProfCrash Tea Enthusiast Posts: 8,554 Karma: 75384937 Join Date: Jul 2010 Location: Somewhere in the USA Device: Kindle1, Kindle DX Graphite, K3 3G, IPad 3, PW2	If you are worried about your state government collecting the proper amount of sales tax, fill out the internet purchases section of your state income tax form and pay your taxes then. It is not difficult to do. I think, I could be wrong here, that the Federal government is prohibited from collection a national sales tax. There is an amendment to the Constitution that allows for income tax but I don't think that can be read to allow a national sales tax. States are allowed to tax businesses that exist within the states borders. Many internet stores get around that by not having brick and mortar stores in any state and limiting their corporate offices to as few states as possible. This way they can legally avoid charging sales tax. We all know that Amazon is capable of paying state sales tax, they are required to collect the sales tax as part of the Agency model. Meaning it would be easy enough for Amazon, and other companies doing the same thing as Amazon, to charge state sales tax. We all know why Amazon doesn't, it has nothing to do with personal freedoms or anti-big government whatevers, it is about a pricing advantage. It is cheaper for me to shop at Amazon then it is the store down the street. Since the Federal Government regulates inter-state commerce, Congress would probably have to pass a law that forced internet companies to collect state taxes. Does anyone here really think that any Congress person is going to suggest such a law? Just think of the political backlash that would come from such an attempt.

08-18-2011, 02:41 PM	#36
MrsJoseph Loves Ellipsis... Posts: 1,554 Karma: 7899232 Join Date: Dec 2010 Location: Washington, DC Device: Kobo Wifi (broken), nook STR (returned), Kobo Touch, Sony T1	I'm not worried about my state gov. collecting tax (well, city government, I have no state) nor am I concerned about what they want to do with the money (since I have state I have no representation, anyway) - but what I don't like is my local stores not having the same advantage of Amazon. I understand their (amazon & other net retailers) point of the legality of the situation - but catalog sales and internet sales are as different as oranges and zebras.

08-18-2011, 03:00 PM	#37
ProfCrash Tea Enthusiast Posts: 8,554 Karma: 75384937 Join Date: Jul 2010 Location: Somewhere in the USA Device: Kindle1, Kindle DX Graphite, K3 3G, IPad 3, PW2	I am not disagreeing with you. I don't think that there is an easy solution and the solutions that are available are highly unlikely to be implemented in this current political climate.

08-18-2011, 03:09 PM	#39
ProfCrash Tea Enthusiast Posts: 8,554 Karma: 75384937 Join Date: Jul 2010 Location: Somewhere in the USA Device: Kindle1, Kindle DX Graphite, K3 3G, IPad 3, PW2	hehehehe

08-18-2011, 03:15 PM	#40
pidgeon92 Wizard Posts: 3,144 Karma: 8426142 Join Date: Jun 2008 Location: Chicago, IL Device: Kindle PW2, Kindle Voyage, Kindle DXG, Boox M90, Kobo Aura HD	If we're going to force Amazon to collect state taxes for purchases, we're going to have to force every online/mail order retailer to do the same.

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