How about this for revenue enhancement/deficit cutting/ paying for healthcare etc.

[Phoebe Loosinhouse]

I know that there is a lot of activity brewing to get internet sales taxed, by states mostly who are missing sales tax revenues that they might have received if Internet sales were taxed like any other sales.

It's possible that the train is too far down the tracks to propose something else, but I was just thinking, what if instead of state sales taxes on Internet sales, instead we had a small value added tax that would go directly to the Federal government to help with the deficit, funding Social Security, Universal health, etc. Say, 1% on every transaction.

Now you ask, who will collect it? I would say it could be an automatic function on any credit card/Paypal transaction which is how most internet transactions are paid anyway. That would make it less onerous for small Ebay sellers, one or 2 time sellers, small websites and the like.

Is this a good or a bad idea?

[lumberjack_jeff]

1. Sales. Taxes. Suck. n/t

[aquart]

2. Regressive taxes are just what Republicans adore.

And so do you. Be sure to take the most from those with the least.

Go have dinner with Steve Forbes.

[Phoebe Loosinhouse]

4. This idea is better and less regressive than state sales taxes which is

what I suggested be replaced with this. Don't bother reading what I wrote or anything like that - more effective to call me a Republican(!) than to address what I actually wrote.

Once more, someone who would rather hurl insults than have a discussion.

[CTyankee]

3. Since sales taxes are inherently regressive, I usually oppose them.

However, if we can get more progressive on our income tax and lift the cap on SS taxes, I wouldn't object too much to the 1% dedicated tax to something that benefits all, such as health care.

[shraby]

5. One huge problem..new taxes may start small

but soon turn into 5, 6 and 7 percent ones, and the taxes they are supposed to replace never seem to replace anything, but are in addition to them. I remember when the state sales taxes were "just a little bit" to help out. Now they are a significant amount to be considered when making any large purchase in most of the states.

[Phoebe Loosinhouse]

6. I'm really trying to stave off the state sales tax on Internet sales with something

that would be more beneficial to more people and not put an incredible burden on small sellers/retailers to become state sales tax collectors.

I do get your point though. Taxes, user fees, permits, etc. always start off reasonable so that they will get passed but then they inevitably get raised.

[hfojvt]

8. I think states already have sales taxes on internet sales

I know that Amazon.com charges me tax, and if they didn't, Kansas has a line on their state income tax for me to pay that sales tax to Kansas for internet purchases. I am not sure about ebay, except that Kansas would collect sales taxes on ebay purchases, and I cannot believe we are the only state that does so.

[Phoebe Loosinhouse]

9. Some information on what is and isn't taxable

http://www.nolo.com/article.cfm/pg/1/objectId/87F6DD43-E6F2-4DFE-BCDB8E2E85DFF80B/catId/4EE6A6F9-FECA-4AF7-A0E454029D2AEA58/111/277/167/ART/
snip
If an online retailer has a physical presence in a particular state, such as a store, business office, or warehouse, it must collect sales tax from customers in that state. If a business does not have a physical presence in a state, it is not required to collect sales tax for sales into that state. This rule is derived from a 1992 Supreme Court decision which held that mail-order merchants did not need to collect sales taxes for sales into states where they did not have a physical presence.

http://www.newrules.org/retail/rules/internet-sales-tax-fairness

Interesting commentary. I don't know anything about the organization. Seems recent because they are quoting stuff that occurred in 2008.


Most national chains charge sales tax. Also some state updates.

[Skink]

10. If you live in Texas and buy from an Ebay seller that has a retail store in Texas

you have to pay the sales taxes. If not the seller probably has to pay them at tax time.

[Skink]

7. This is a must.

The internet has become the ultimate tax dodge. States need the revenue. Here's another example, in order to attract shoppers from surrounding states for decades New Hampshire had no sales tax. Driving through New Hampshire, stop at the state liquor store and buy ten cases of beer. Pay no tax.

[Phoebe Loosinhouse]

11. evening kick.