Quote:
Originally Posted by RDaneel54
What is this massive tax break that Amazon has? The taxes are paid by the consumer, not Amazon. Were Amazon to charge the taxes, they would only be a funnel for the consumer, not the payer of the taxes.
I can see why we should readdress the issue, but I would rather not have the US Congress meddling further in state affairs. Let the states and the retailers fight it out.
Personally, I pay my state sales taxes for internet purchases on my tax form every year. Anyone who objects to Amazon not paying their taxes can take the same route.
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You should be commended for paying online sales taxes but most people do not and are not even aware they owe anything. The state of Illinois has now added a section to their state's tax forms to try to collect the 5-6 million it believes it is owed.
In Massachusetts, the online sales tax exemption is estimated to give online businesses a 6.25% income advantage over brick & mortar stores.
And the U. of Tennessee estimates that states overall have lost $52 Billion in potential sales tax income over the past 6 years to internet sales:
Examine these documents:
http://cber.utk.edu/ecomm/ecom0409.pdf
Read about Amazon's deal with the state of California here:
http://www.sfgate.com/cgi-bin/articl...BUBT1L9K5I.DTL
And look at the state by state figures here:
http://www.thestreet.com/story/11052...-by-state.html
I can understand that you do not like taxes but my statement is really fairly simple: What are the consequences of lost state income to the future of citizens if online business like Amazon are given a pass on their responsibility to collect and disperse sales tax efficiently? Can a state go bankrupt? Will the online advantage close more brick & mortar shops? I'd like to know.
I am unaware of any interference from the US Congress in this issue. What is it?
And finally, do you consider the implementation of a VAT like system for the US a possible solution?