Congress looking to make you pay taxes for online purchases

United States
April 20, 2009 3:15pm CST
Yep more taxes. The days of buying online without paying sales tax maybe limited. A bill could make it way to congress next week that will put sales tax on ALL internet transactions. What do you think? Should this be done? If not how are you going to stop it?
3 people like this
12 responses
@coolcoder (2019)
• United States
20 Apr 09
That's odd...I thought people already had to pay taxes for shopping online. In any case, that's the government for you, doing anything and everything it can to squeeze the average American taxpayer drier than they currently are.
2 people like this
@Taskr36 (13923)
• United States
20 Apr 09
Some do, some don't. It depends on the state you reside in and the state that the business you purchase from resides in. When you do pay taxes on internet purchases you are paying state taxes, not federal sales tax.
1 person likes this
@anniepa (27280)
• United States
21 Apr 09
This is something thats been discussed since there has been an internet. It's the states that have a sales tax that are complaining because they're losing tons of revenue. Most people probably don't know this but it's been the law all along that you're supposed to report any purchases you made online or elsewhere that you didn't pay the sales tax on when you file your state income tax return. Obviously it would be pretty tough to enforce but technically if you buy something online and don't pay the sales tax (if your state has one) you're a tax cheat. http://www.msnbc.msn.com/id/23351894/ I haven't been able to find any info about a bill coming before Congress next week but the above article said the government can't make retailers act as its tax collector for out of state purchases. Annie
1 person likes this
@xfahctor (14126)
• Lancaster, New Hampshire
21 Apr 09
Technicly in many states, the federal government cannot enforce state laws, there are some with such provisions but in many others it is either not described or is out right forbidden. It gets even stickier when it involves states with no sales tax, like mine. We have people all the time comming over here to shop, for every thing from cigs, to liquer to cars and christmas shopping. I am at a loss as to how they are going to work this, since our state laws do not allow for us, as you said, to act as a tax agent for another state and our state laws actually forbids other states attempting to collect revenue from purchases here, though it has been tried. We had some Massachusettes state officials nosing around in one of our liquer store parking lots a few years ago, taking licence plate numbers of people from Mass who were purchasing liquer here, the officials were aressted for it. So what we have now is a problem where as this may actualy interfere with state laws and may not even be valid or recognized in some states. It seems to me the solution for this is for states with sales tax to begin enforcing this at the state level, there is perfectly solid ground for them to do so in states with sales tax. Even if you are shopping from a state with no sales tax, if you are making a purchase in a state with sales tax, you are obligated to pay said tax. When I am physicly in Maine or Vermont, as I am frequently, and I make purchases in those states, I pay what ever sales tax is aplicable to the item. So it would just seem to me that the same would be required if I were to be shopping online for goods in one of those states. I just hate to see everything being handed over to the federal government, especialy when it is more appropriate as a matter of state law.
@xfahctor (14126)
• Lancaster, New Hampshire
21 Apr 09
I did a little more thinking on this and I'm back with a little more analysis. Technicly they may actually have some authority in this. When a person in one state purchases something in another state for use in their state of residence, it is considered interstate commerce, so this is actually an area the federal government has constitutional authority over. However, there are a few problems. One, the federal government does not have specific authority to take part in state revenue collection. And there is a bigger problem, what of states that do not have sales tax, such as my state of New Hampshire. If a person purchases something online or in person in a state with no sales tax, then there is no tax aplicable. New Hampshire has actually arrested officials from other states who have been caught in our state lines trying to collect taxes from their residents who purchased goods in our state. There is also no legal base for a state to collect revenue from such out of state purchases.
1 person likes this
@Taskr36 (13923)
• United States
20 Apr 09
Well I knew this would happen. They've been wanting to tax internet sales for a while. When Second life became popular there were morons in congress trying to tax video game money as income. Honestly I think taxing internet transactions is legitimate so long as they don't start taxing ebay sales or sales of second hand goods. That's double taxation and I'm already pissed at the way they do it with cars and homes.
1 person likes this
• United States
20 Apr 09
I figured this would be coming. The internet is a billion dollar business that American industry has. Think of 6 or so percent sales tax on all internet purchases and think of how much that'd bring. Granted, everyday "Joes" and "Janes" wouldn't see any of this new money, but 0bama would have extra money for his croonies up in Washington and the like. The sad part is that man preached no new taxes and he's finding ways each and every day to stiff the American tax payer. Nothing changes.
@Taskr36 (13923)
• United States
20 Apr 09
He also said he would only raise taxes on those earning over $250K and yet people believed that lie. Sales tax, both online and off, are regressive meaning that the less you earn, the higher percentage of your income you pay.
1 person likes this
• United States
20 Apr 09
And not to mention slashing the mortgage interest credit for people who own a home and reducing charitable contributions. I don't own a home. Land prices here in the Bay area are out of control, so my DH and I rent a nice townhome, but there are many people who count on that interest to lower their income to get more taxes back. 0bama just shafted them and then broke it off inside them.
@xfahctor (14126)
• Lancaster, New Hampshire
21 Apr 09
Wait, maybe I spoke too soon. Is this what you are talking about? http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=104424 It seems to be a bill that allows federal level enforcement of state sales tax, now THAT is something I can get pretty angry over.
• United States
21 Apr 09
yep that would be the one. Sorry about your blood preasure.
1 person likes this
@jend80 (2068)
26 Apr 09
looks like you're going to join the UK/England where most internet sales from this country (like from amazon) are charged VAT (Value Added Tax)
@PrarieStyle (2488)
• United States
21 Apr 09
What the heck! We already pay the government high prices for shipping. I heard the Post Office is next for a bail out. I also heard that they are trying to pass a bill so they can shut the internet down any time they want.
@xfahctor (14126)
• Lancaster, New Hampshire
21 Apr 09
So essentially they want a national sales tax, though right now it's just "online. Great. So much for 95% of americans not seeing a dime of taxes increase or those making under 250K, though I suspect the only ones who will be suprised are those that voted for him and the majority in congress. But, they will find some way to excuse, overlook, explain or ignore it like everything else. I'm going to go looking in to this bill to see who sponsored it and who is on board with it and what the devil in the details are, these investigations usualy turn up some pretty interesting things. I'll be back with my results later.
@missybal (4492)
• United States
20 Apr 09
Oh great... what next? Getting out my pen and paper and writing yet again to my representatives who don't listen to me as is... Hopefully we can get these idiots voted out asap who actually think this is how we fix the economy by taxing Americans more and spend more than those tax dollars can pay for.
@gewcew23 (8011)
• United States
20 Apr 09
This will kill all Internet business because the big reason for purchasing products on the Internet is so you do not have to pay sales tax. I leave right down the road from a Wal-Mart like most of us. I can go pick up a product, pay for it and walk out with it in my hands. When I purchase off the Internet I have to wait for it to be shipped to my home. Some times it is never shipped and I have to file a complaint and wait for my money to be put back in my PayPal account.
• United States
20 Apr 09
it don't bother me any because i always paid taxes for the things i bought on line the only thing i don't pay taxes for is on food unless it's pre cooked , i figure it this way taxes is a part of life.