Originally Posted by Vagrant Storm
As long as the taxes go to my own state...I'd hate to buy something online and have the tax go to some state I don't live in.
Though I think it would be an inefficient system to pay the tax to Newegg and then have Newegg's financial employees figure that they have to send $12.54 to the state of Minnesota because I bought something. I am sure we'd see a substantial rise in the price of online items even before the tax was applied.
That's how Canada did it when half the provinces changed to a harmonized tax. Now anything you buy online you pay full 12%-15% tax that goes to the federal governement, who then redistributes to each province.
Residences of British Columbia pay 12% sales tax to the Canada Revenue Agency (Distribution: 5% federal, 7% provincial) when buying something from outside of British Columbia.
Originally Posted by Just a nickname
I was really wondering why federal taxes were not applied at least. In canada only federal tax is applied and that's 5% vs 15% enough to prevent my to buy local (most of the time they try to milk you with price-match including shipping).
That's the other half of Canada. Only paying 5% federal tax for out-of-province shopping.
This is the same as the US sales tax system- except that the US federal rate would be 0%.
Originally Posted by Starbomba
While i do understand that without taxes the government can't do anything so they're needed, i'd hate them to be applied to the US.
Why? Because i don't even live there. And i flatly refuse to pay taxes to someplace that i won't ever benefit from.
I can describe how it would work based off our system.
Potential US state tax reform:
- Federal government collects all of the out-of-state online shopping sales tax.
- You pay your own state tax rate, regardless of where the product is from.
- The federal government redistributes the tax to each state
This way business will only have to pay one entity: the federal government. They will not have to pay each individual state. Also, this system ensures that each consumer pays tax to their own
state.Edited by SkillzKillz - 3/22/13 at 10:34am