"It's virtually certain that a number of websites need Amazon more than Amazon needs them and will therefore look unkindly on the state's legislation." Well said. If these state governments do find a way to get Amazon to pay state taxes, how much will that tax money really help balance these state's budgets? Not much, in my opinion. Cut spending, tax large businesses and wealthy individuals.
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I have to say that the sales tax works effectively well or consumers if it's a low priced item; I hate the california sales tax for anything above $250; mainly the reason why I don't shop at newegg.
omegadoom13:Cut spending, tax large businesses and wealthy individuals.
The government is thinking of doing that already.
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To be honest with you I am surprised we don't have a flat federal government sales tax that then would get distributed to the states how they see fit. Anything is better than the VAT tax in Europe though.
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This has been going on for years (IE: states trying to get or figure out how to get taxes from web sales), Amazon is the biggest so there bear the brunt of it. One of the reasons the US as well as the world economy is like it is is due to this. I do not know the amounts versus other sales in a state or country. I would imagine just like everything web based it has been creeping up for a decade.
The big part is world wide computing is going mobile as is commerce. I hate to say it but if you cut 5% of a municipalities tax ratio out of the picture, that will hurt there budget considerably, being as a areas positive tax ratio Vs. the services they provide (which are very many generally), then it will hurt that state.
The government has not dealt with this issue in the US in any real way therefore the national budget, debt, and everything else financially is partially in the current status because of it at least to a percentage. Think about our national debt and say 1/2 a percent of our GDP is not there because of these things. The number you come up with would be very large especially extended over multiple years.
Don't get me wrong I am not saying the internet is to blame for the worlds budget woe's. I am saying unless they adapt the tax practices in this country, and this being some part of that it will continue to grow. The IRS should have been dead 20 years ago. The taxes period should be one of the retail based models, and if it was we would not see what we see today in the US I can almost promise you. On top of that everyone here legally or illegally would be paying there taxes which would be another very large amount of money.
People really don't understand how "big businesses" pay their taxes, do they. Businesses DON'T pay taxes. They past the cost onto the consumer. Period. And it doesn't matter if it's a property tax or a sales tax. The consumer is the one who ends up paying. So raising taxes on "big businesses" does nothing but hurt the consumer.
What needs to be done, is that the current tax structure in the US needs to be tossed. That means eliminate the business tax. Eliminate the death/inheritance tax. That means eliminate the IRS and the wasteful spending they do and move to a Federal sales tax on sales of NEW items only.
One thing not mentioned in this article is that Amazon has cancelled the planned expansion of their facility in Irving, TX because of this issue. Not only that, they are now planning on shutting the facility down entirely. About 800 people are going to lose their jobs. It's sad because the expansion would have added like 800 jobs..
"Cut spending, tax large businesses and wealthy individuals."
I don't agree, just because you have money, doesn't mean you should be shelling it out. The only time I feel like the wealthy should be taxed more than others is when they are purposely keeping others poor.
nhwynter:Eliminate the death/inheritance tax. That means eliminate the IRS and the wasteful spending they do and move to a Federal sales tax on sales of NEW items only.
While I have to somewhat agree with you... The IRS does waste tons of money and the people in this country illegally don't pay taxes as Rapid1 pointed out. A model solely built on sales tax might not work. Take into consideration the current world recession we are going through people are spending a lot less money. Granted without income taxes and everything else taxes people would have quite a bit more money.
The other consideration is that more than 1/2 of the "taxes" that come out of my check each week go to Social Security and Medicare so I am not quite sure how they would work that.
I think that a 10% tax on all income. No matter the amount, no matter who you are, how rich or poor, a citizen or a corporation, is the way to go. No loopholes, no way to avoid the tax. (everything is reported) If you're a corporation and try to go offshore to avoid taxes, then a 50% tax on any goods shipped into the US please,.........Any US corporation making money in another country, pay the tax.
After this is in place, a standard 2% or 3% State tax on all retail sales, anywhere in the US, would be more than fair. No exemptions, for anyone should be tolerated.
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Def going to start writing letters to Governor Quinn. Big business will not be pushed around by the states. They can and will say "screw you" in a second. And the only ones that get hurt are the little guy.
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