Originally Posted by bratas
There are numerous States that have no sales tax on anything or certain items. This is where the problem is. There are reasons both to support having taxes on eCommerce and not to.
There are many States that have either recently gone into bankruptcy and some that are in very near too it. A sales tax on eCommerce may be able to generate the revenue to help the State overcome that situation. On the flip side for the consumer this will mean things may cost more or less via the internet depending on where you live. Thinking just locally; Maryland has no Sales tax on Food products, Delaware has no Sales tax what so ever, Pennsylvania has no Sales tax on clothing (I think consumable goods in general). However other states have Sales taxes as high as 10% some 5% and everywhere in between. The way the proposal is written is to have the Sales tax imposed on where the consumer lives based on that States Sales tax. Another side to this 3 sided coin is the bricks and mortar stores lose business which supports local jobs and economy also too.
States that don't have sales taxes usually have their own income taxes (separate from Federal income taxes) instead. That's what Oregon does, for example.
Anyhow, it's not really about new taxes on e-commerce, it's basically a way of enforcing existing "use taxes" for people who bring things into a state that haven't had sales taxes levied on them previously in the state of sale/origin.
When was the last time that someone reported to their state government buying something expensive out-of-state and actually paid the "use tax" they're supposed to? The state governments currently have no way to monitor that kind of thing, so it's well-nigh impossible to enforce it without this new law.
I'm not thrilled about the prospect of paying sales tax for out-of-state purchases, but the government will do almost anything to get "their" money.
Originally Posted by boot318
A little less spending on "protecting the world" would even things out. Honestly, if they do it would cut me shopping online by 75%. This sucks.....
National defense is a Federal responsibility paid by Federal taxes. State sales taxes have nothing to do with that. I hope that you're not an American, because that's Civics 101 right there.