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  1. #1
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    Nexus no more? Internet sales tax bill re-introduced.
    Internet sales tax bill re-introduced in Senate. Only time will tell...

    ow.ly/KoeZj

  2. #2
    OPM and Moderator Chuck Hamrick's Avatar
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    I see this languishing for another year or two. This sums up some of my sentiment:

    Critics charge that the coalition's "level the playing field" rhetoric is less about fairness and more about raising taxes and stifling competition and that requiring online merchants to navigate the multiple tax rates in every locality would be an unfair burden. The critics note that while taxes are rarely applied to remote online sales, customers often pay shipping and handling costs, which usually erase any tax advantage.

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  4. #3
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    Even assuming that it would pass the Senate with the change in power, the house leadership will never move it and tea party power base would never vote for it.

    It will not happen until there is a major change in Congressional makeup.
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
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  6. #4
    Affiliate Manager AffiliateWarrior's Avatar
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    There's a lot of push from the state level to get it done as the states want that revenue. I'd love to see it get done, especially if they would just come up with a simple to collect and remit flat rate online sales tax. The real issue with the difficulty in collecting and remitting comes from the hundreds of tax districts in each state that have to be reported to and paid.
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  8. #5
    OPM and Moderator Chuck Hamrick's Avatar
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    I agree and it should be the states responsibility to divvy up the tax revenue, let them hash it out.

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  10. #6
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    Plus the significant difference in tax rates. CA is 8.5% but there is an additional .5% in LA county for a total sales tax rate of 9%. Govs here would not stand for a lower rate. But, in WY it's only 5.5% and they would not stand to see their rate significantly raised.

    Also, if a dual system was in effect, one rate for B&M sales and another for internet sales, that would be a significant advantage to B&M stores in states where the walk-in rate is lower than the internet rate, and conversely, a detriment to them where the internet rate is lower.

    And, that S&H fee is always in the background. I generally figure what I might save in tax is wiped out by the extra S&H fees, and overall bottom line cost decisions need to reflect that. Could a nation-wide internet tax result in more free shipping offers to compensate?
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
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  12. #7
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    Quote Originally Posted by Chuck Hamrick View Post
    I agree and it should be the states responsibility to divvy up the tax revenue, let them hash it out.
    That would be even more of an impediment to getting a national tax law passed. Even more outraged state and local politicians banging at the doors of their Congressmembers won't help.

    But that raises another point that I've mentioned in the past. A national law cannot usurp state and local tax laws that pertain to intrastate commerce. Congress does not have that power. The Fed gov can impose a new national tax law regarding interstate commerce, but the states might have to change some of their own laws to avoid double taxation.
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
    "If you don't have time to do it right, when will you have time to do it over?" -John Wooden;
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  14. #8
    Affiliate Network Rep JCrooks - AffiliateWindow's Avatar
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    The original federal proposal was for a flat amount, but this does lead to countless questions. Do the states with a higher tax amount, like California or Illinois, settle for the lower rate? Do states without a state sales tax, like Wyoming, be forced to now tax their citizens? How will the money be divided at the state level? There are thousands of taxing authorities, each with a different collection footprint. As Chuck & Phil mentioned, how will this lead to marketplace fairness, the supposed idea behind this, if the tax rates are still so different?

    Then there's the whole threshold question - is $1 million too low of a threshold for most small businesses? Is $5 million a better amount, or would that leave too much money on the table for tax-hungry states?

    I'm not in a rush for this to be passed, until so many of these questions can be negotiated, but honestly, how can these ever be resolved? Will it just come down to which state has the most members? Which lobby donates the most? I don't want another "you've got to pass it to see what's in there." We all know the trouble that got us into.
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