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Old 08-18-2011, 02:12 PM   #35
ProfCrash
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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.
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