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  1. #1
    Affiliate Network Rep JCrooks - AffiliateWindow's Avatar
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    Is Washington Chasing a Ghost on Internet Tax Revenue?
    This article, Washington is Chasing a Ghost on Internet Tax Revenue offered some different statistics on the Marketplace Fairness Act, ones I've never heard before. Specifically:

    In 2012, according to the U.S. Census Bureau, online retail sales were $225 billion — a number that still represents only 6 percent of total retail sales. Of that $225 billion, big-box retailers accounted for more than 83 percent of those sales. These are companies such as Wal-Mart, Best Buy and Amazon — some of the most recognizable names in commerce. These online companies have brick-and-mortar stores in many or all states, and as a result they are currently required to collect sales taxes in those states. Were those sales to remain untaxed as proponents claim, that could certainly represent a problem for state and local coffers. The fact is, however, that the majority of Internet sales are being taxed, which is precisely why the Marketplace Fairness Act is a solution in search of a problem that does not exist.

    Sometimes I wonder where we would all be if that very flawed University of Tennessee study had never been released.
    Jeannine Crooks - Always happy to share what I know! - Voted Best Network Rep 2013 & 2014
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  2. #2
    ...and a Pirate's heart. Convergence's Avatar
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    Interesting. So roughly 20% or $50 Billion in online sales from non-big box retailers.

    Roughly an average of $1 Billion in sales per state

    So each state is fighting for roughly $100 million in sales tax

    More populous states would collect more, less populous less

    Don't know a State that wouldn't want to collect $100M

    [Rounded up/down to keep the math simple - haven't had my first cup of coffee yet]

    Lots of money up for grabs...
    Salty kisses, Sandy toes, and a Pirate's heart...

  3. #3
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    Lots of money up for grabs, but not nearly the windfall for the states that politicians would have us believe. Another example of politicians bending and distorting the truth to their own needs. Estimates are inflated, and the politicians come across as fighting the glorious battle for the good of the average citizen (even though the average citizen would pay more taxes).

    Everything is a mess in Georgia right now, with a sweeping tax reform package that had an essential element of collecting Internet sales taxes from amazon and all of the other big bad retail monsters. This was effective 1/1/13 but amazon and zappos and other online retailers are still not collecting sales tax. Go figure.

  4. #4
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    Online revenue is an untapped money 'stream' for Washington, not the waterfall they think it is. If they ever learned to manage money properly, taxing yet another area of life wouldn't even be an issue.

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  6. #5
    Affiliate Network Rep JCrooks - AffiliateWindow's Avatar
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    During testimony in Colorado a year after our modified version of this law passed (affiliates do not establish nexus in Colorado), the State Budge Office had to admit that instead of collecting the $5MM they'd forecast in the budget, only $20,000 came in. Ouch!
    Jeannine Crooks - Always happy to share what I know! - Voted Best Network Rep 2013 & 2014
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  8. #6
    ...and a Pirate's heart. Convergence's Avatar
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    Yep, and I forgot how much it cost to implement it, but the annual cost to maintain it was more than they collected...
    Salty kisses, Sandy toes, and a Pirate's heart...

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  10. #7
    OPM and Moderator Chuck Hamrick's Avatar
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    Classic big government!

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  12. #8
    ABW Ambassador JoyUnltd's Avatar
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    Quote Originally Posted by MattSanti View Post
    Online revenue is an untapped money 'stream' for Washington, not the waterfall they think it is. If they ever learned to manage money properly, taxing yet another area of life wouldn't even be an issue.
    It's called, "Let's empty the cookie jar."
    Renée
    Pay no attention to that woman behind the curtain. -Wizardress of Oz

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