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Obama enthusiastically supports higher taxes -- this time on your purchases online

Discussion in 'BBS Hangout: Debate & Discussion' started by bigtexxx, Apr 23, 2013.

  1. bigtexxx

    bigtexxx Contributing Member

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    The last thing this struggling economy needs is additional taxes. Obama, don't tax me bro

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    Internet sales tax advances after Obama endorsement
    By Brendan Sasso and Bernie Becker - 04/22/13 08:04 PM ET


    Read more: http://thehill.com/blogs/hillicon-v...vances-after-obama-endorsement-#ixzz2RHmsMkFu
    Follow us: @thehill on Twitter | TheHill on Facebook

    Legislation that would empower states to tax online purchases cleared a key hurdle in the Senate on Monday after winning an enthusiastic endorsement from President Obama.
    Senators advanced the bill in 74-20 procedural vote on Monday evening, just one vote short of the backing it received in a test vote last month. Twenty-six Republicans joined Democrats in moving forward with the bill.

    The Senate will now begin debate on amendments. The chamber is expected to hold the decisive vote on the bill — known as the Marketplace Fairness Act — later this week.
    Major retailers are putting all their lobbying muscle behind the legislation, arguing it would close an unfair loophole that benefits online merchants over brick-and-mortar stores. The National Retail Federation, which represents chains such as Best Buy, Macy’s and J.C. Penney, and the Retail Industry Leaders Association (RILA), which counts Target and others among its membership, announced it would score lawmakers’ votes.
    The White House gave the bill a ringing endorsement on Monday.
    “We have heard overwhelmingly from governors, mayors and the business community on the need for federal legislation to level the playing field for our businesses and address sales tax fairness,” White House press secretary Jay Carney said.

    But signs of trouble for the bill also emerged as Wall Street groups urged the Senate to slow down and eBay began marshalling its users in a massive campaign to kill it.
    The Securities Industry and Financial Markets Association and the Financial Services Roundtable said the measure could pave the way for financial transaction taxes on the state level, an idea that Wall Street and its supporters fiercely oppose.

    “It’s important for Congress to explore all the possible outcomes and costs of the proposal, especially the impact on consumers,” Scott Talbott, the senior vice president of public policy for the Roundtable, said in a statement.
    “A transaction tax on financial services products will hurt retail investors, retired Americans, and small businesses, effectively making it more expensive for them to invest and plan for the long-term. Without hearings, these implications and others will not be properly addressed.”
    Even if the bill clears the Senate, it faces an uncertain future in the GOP-controlled House. Conservative groups Heritage Action, Americans for Prosperity and FreedomWorks are rallying opposition against it, and have vowed to score votes in favor against lawmakers.
    The Marketplace Fairness Act would empower states to tax out-of-state online retailers, but would exempt small businesses that earn less than $1 million annually.

    Under current law, states can only collect sales taxes from retailers that have a physical presence in their state. People who order items online from another state are supposed to declare the purchases on their tax forms, but few do.
    The proposal has the support of a host of governors, including Republicans Chris Christie of New Jersey, Rick Snyder of Michigan and Bob McDonnell of Virginia. Passage of the bill could bring billions of dollars in new revenue to state governments.
    The bill has split the tech industry, pitting eBay against the retail giant Amazon.

    In email to eBay users, eBay CEO John Donahoe argued that the bill would “penalize small online businesses,” urging the site’s millions of users to contact their members of Congress and voice opposition.
    The company is lobbying for Congress to increase the small-business exemption from $1 million to $10 million.
    Donahoe also took a shot at Amazon, a key supporter of the legislation.
    “Amazon, for example, has fought harder than any other company to require all businesses to collect sales taxes online, while also seeking special tax benefits as it expands its warehouses throughout the country. It’s bad tax policy,” Donahoe wrote.
    Amazon argues that a single national framework for tax collection is preferable to a patchwork of state laws. The company reportedly has plans to expand its network of physical distribution centers, which would make it subject to state sales taxes under current law.
    The Senate’s move on the sales tax bill came abruptly last week after Senate Majority Leader Harry Reid (D-Nev.) shelved gun control legislation. Some senators said they were taken aback by the move to the bill and are asking for more time.
    Sens. Kelly Ayotte (R-N.H.), Ron Wyden (D-Ore.), Jon Tester (D-Mont.), Jeanne Shaheen (D-N.H.), Marco Rubio (R-Fla), Mike Lee (R-Utah) and Ted Cruz (R-Texas) sent a letter to Reid on Monday urging him to delay the legislation, which has not gone through the committee review process.
    They warned the bill would “erode” states’ rights and “result in crippling compliance costs on small Internet businesses.”
    “At the very minimum, we believe these concerns warrant a thorough vetting of the bill through regular order,” they wrote.
    Delaware, Montana, Oregon, New Hampshire and Alaska have no state sales tax.

    Sen. Max Baucus (D-Mont.), the chairman of the Finance Committee, criticized Reid for bypassing his committee, which has jurisdiction over taxes.
    “This bill is not ready for debate on the Senate floor. It has not been completely thought through. It is full of unintended consequences that could seriously harm America’s small businesses,” Baucus said.
    Supporters argue the bill would actually protect states’ rights. They say it would not force any state to collect taxes, and argue that states that choose to tax online purchases could lower other rates.
    Sens. Dick Durbin (D-Ill.), Lamar Alexander (R-Tenn.) and Mike Enzi (R-Wyo.) are the lead Senate co-sponsors of the legislation.
    “Thousands of local businesses are forced to do business at a competitive disadvantage because they have to collect sales tax and use tax, and the remote sellers don’t,” Enzi said on the Senate floor. “We should not be subsidizing some taxpayers at the expense of others.”
     
  2. Commodore

    Commodore Contributing Member

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    notice they pass this about as far from an election as they can

    regressive sales taxes hurt the poor most
     
  3. geeimsobored

    geeimsobored Contributing Member

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    Cleverly worded thread that doesn't mean anything close to the title.

    The Supreme Court ruled that states can't tax internet sales without Congressional authorization. The only way they could is if those companies had distribution centers or some presence on the ground in a state.

    It is completely illogical why Amazon gets to sell tax free but Best Buy (as much as I hate it) is punished because they have retail locations. Whether you want to admit it or not, businesses like amazon get a tax free subsidy thanks to our poorly designed laws.

    This bill does not raise taxes on anyone. It merely gives states the right to extend the sales tax to all e-commerce. This is an issue of federalism, plain and simple.
     
    1 person likes this.
  4. rhadamanthus

    rhadamanthus Contributing Member

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    And from a certain standpoint, Amazon is gearing up to take their business to the next level due to this change. Old thread on subject
     
  5. Rockets2K

    Rockets2K Clutch Crew

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    What???!!? Liltexxie took an article and twisted it to be anti-Obama? Say it aint so.

    :rolleyes:
     
  6. bigtexxx

    bigtexxx Contributing Member

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    So nobody cares about now having to pay tax on online purchases?

    That kinda sucks, guys

    certainly not good for the economy, either
     
  7. bigtexxx

    bigtexxx Contributing Member

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    Liltexxie?

    What's up with the name calling?
     
  8. SamFisher

    SamFisher Contributing Member

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    I've paid sales taxes on online purchases for years...tehre are still states that don't collect it? :confused:
     
  9. ROXTXIA

    ROXTXIA Contributing Member

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    No one LIKES the idea of paying taxes, but this is one loophole I'm surprised wasn't closed long ago.

    Still, when you already pay the shipping fee for Amazon purchases....

    Not fun, but again, when I buy something, unless it's the tax-free holiday (and how often is that? one weekend a year?), I can't complain about paying taxes.
     
  10. juicystream

    juicystream Contributing Member

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    This is one that absolutely should happen. Unfair advantage of Amazon over B&M retailers.

    Technically, you are required to pay the tax (use tax) when sales tax isn't collected. Some states you would file a use tax return, others allow you to report it on the state income tax return.
     
    1 person likes this.
  11. ROXRAN

    ROXRAN Contributing Member

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    I enjoy buying my knives on Amazon with free super saving shipping and no sales tax. Hope that doesn't change. Say no to this!
     
  12. geeimsobored

    geeimsobored Contributing Member

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    Great so go yell at the state governments (many of which are Republican controlled) that want to extend sales taxes to all e-commerce once this bill passes. They're the ones begging the federal government to allow them to extend sales taxes to all internet businesses.

    You're basically complaining about federalism. Have fun with that one.
     
  13. JuanValdez

    JuanValdez Contributing Member

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    I care. I hate that internet companies are still getting an advantage in the market place by skirting sales taxes. If there's a sales tax, there shouldn't be a loophole.
     
  14. underoverup

    underoverup Member

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    Amazon charges sales tax if you live in TX.
     
  15. ROXRAN

    ROXRAN Contributing Member

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    I'm in Tennessee,...no shipping if over $25, and no sales tax. There is a massive Amazon distribution center that has helped the local economy.

    I have made repeated purchases when there is a competitive buying opportunity on goods and products that caught my fancy. For example, a Gerber Prodigy knife sells for $76 plus tax at my local Academy, got it for $39.20 exactly on Amazon, no shipping, no tax...helped a distribution local based economy. What is there not to like?

    You liberals are way too much into these bans, restrictions and loopholes. Set yourself free..man..;)
     
  16. geeimsobored

    geeimsobored Contributing Member

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    That's fine and all but what is stupid is that the federal government is preventing states from making the choice whether or not to tax amazon. As it stands now, in many states, the state governments are prohibited from making that choice.

    After all shouldn't it be up to the local electorates and governments to decide how to implement a sales tax.

    I thought you guys were all for local control. This bill is the definition of local control for states. Its funny how you guys are all for states rights unless it involves the federal government preventing states from exercising taxing authority. In that case you're all for federal overreach.
     
  17. Rocketman95

    Rocketman95 Hangout Boy

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    Awww, someone's upset he's going to be taxed on his Mark Furman blow-up dolls. :(
     
  18. juicystream

    juicystream Contributing Member

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    It still would have been way cheaper on Amazon...

    I just bought a new TV, and I thought long and hard about ordering from Amazon to save the $50 or so in sales tax. Ended up buying it from Target though. 5% off cancelled out most of the sales tax.
     
  19. Commodore

    Commodore Contributing Member

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    hasn't this same dynamic existed with telephone/catalogue ordering forever?
     
  20. Commodore

    Commodore Contributing Member

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