Internet Sales Tax

[tartuffe]

There are over 41,000 zip codes and if you search the web there are FREE spreadsheet databases that tie zip code into sales tax rate for that zipcode. Any local computer guy could customize that database to tie into your accounts payable/receivable database for less than what you pay for your general accounting software.

[Monkey Butler]

Originally Posted by tartuffe

There are over 41,000 zip codes and if you search the web there are FREE spreadsheet databases that tie zip code into sales tax rate for that zipcode. Any local computer guy could customize that database to tie into your accounts payable/receivable database for less than what you pay for your general accounting software.

Not so easy. Tax jurisdictions are not as simple as zip code. In some locales there are state, county, city, parish, school district, etc, etc taxes to collect.

Sometimes the defining line can be the even/odd side of the street.

Even if you have software to calculate the tax (and there are providers licking their chops hoping) the issue of remittance and auditing is huge. Suppose someone from Illinois places a ten dollar order with a New Hampshire company? New Hampster (Live Free or Die) doesn't have a sales tax. Illinois has state tax, county tax , local tax, etc... We are talking pennys of tax due but the seller needs to keep track of what jurisdiction is due what. How often does each tax jurisdiction want to get paid? Some monthly, some quarterly? What if any jurisdiction thinks an online seller is under reporting? Can a county in Peoria audit a seller in New Hampster?

The obvious solution would seem to be a Federal agency to act as a clearing house to make reporting and remittance simpler.

Do you see where this is going?

[RidgeRunner]

States need to simplify. 50 States/50 Sales Tax rates.. Those opposed to the sales tax are painting the issue into seemingly unsurmountable amounts of work. It is not.
As a buyer, you will get used to sales tax soon enough. Then you will be paying "your share" like those of us who don't buy off the internet. Why were you getting a break in the first place? Ridiculous really, how about keeping books? Paying for a Business License? etc. What other breaks do internet based businesses get?

[Destroyer]

You guys still don't get it. Monkey Butler pointed it out beautifully, but I guess there are none so blind as those that will not see. The taxes due to different places (states, counties, parishes, etc) are going to become so confusing that the Federal Government is going to have to step in to help sort out the confusion, (as only they can). So they will become the collectors of the taxes, keep a portion for themselves for their trouble (administrative costs) and pass the rest along to the various states etc.

But you know, it's going to be soooooo hard to keep track.... wouldn't it be easier and more efficient if the tax was the same throughout the entire Country? I know...lets have a value added tax instead of a sales tax..that way it will be fair for everyone.... And they'll start off with a small VAT, but in a few years, after people get used to paying it, they'll start raising it.. 1-2% per year. Pretty soon it will be 10% of the cost of ANY item you buy, internet or in person. And we will NEVER get rid of it, it will simply be another yoke around our necks. Another source of revenue for the Government. I tell you, they are licking their chops, salavating over the thought of a national VAT. Don't believe me? Look at Europe, look at their VAT's. How they came into being, what they started with and where they are now... You're playing with fire guys, and we're all gonna get burned as a result..

[Monkey Butler]

Maybe going a bit off base here but since this IS the political forum I think anything is fair game.

List your favorite taxes... In order of most regressive to leastregessive.


I'll start:

Gas Tax
Sales Tax
Income Tax
Wealth Tax

The last one on the list is not currently taxed. You can have a bazillion dollars invested in municiple bonds, real estate, etc... and they have their own tax rules.

What if we said that we need to look at your portfolio of holdings and then tax you at say 1% of your net worth.?

Me, with debts like mortgage, credit cards, student loans, etc. I'd be negative. Look at any high level government official.. Obama, Kerry, Clinton, Franks, Dodd... See what thier wealth is and see what they pay on income.

We are getting f***ked.