Quote:
Originally Posted by Skip Wyona
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? |
I didn't say I don't like paying taxes, but rather that I do it when required. Lost state income is a state by state issue and should be addressed by each state. What California and Amazon agreed on is outside my concern as it is not my state (Ohio).
Can a state go bankrupt? If so, I don't see it as the U.S. as a whole responsibility, although our government will probably assume it if it happens.
My concern is not with any current US Congress action, but future interference into what is a state issue. The more the line is crossed, the less autonomy the states have.
I would not want to see a VAT in the US because I think it would supplement rather than replace our current income tax system. I wouldn't want to see a national sales tax supplementing either.