Internet Sales Tax.. Pro or Con?

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Karlsweldt
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Internet Sales Tax.. Pro or Con?

Post by Karlsweldt »

The idea of an Internet sale of any item being taxed is again rearing its fangs. This would allow any state that the goods are sold in or shipped to be taxed at the current rates. For large corporations, maybe a small effort at collecting and distributing the fees. But for small or "mom and pop" businesses, maybe a downfall to obscurity.
The Washington Post® site urges the Supreme Court to act, as Congress may not. But will the actions here in the United States affect all Internet transactions world-wide? Your thoughts...
https://www.nbcnews.com/politics/suprem ... ax-n864001
https://www.bloomberg.com/news/articles ... ales-taxes
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Roach412
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Re: Internet Sales Tax.. Pro or Con?

Post by Roach412 »

Haven't thought too much about this - but, realistically it's not plausible for small businesses to manage inter-state taxation schemes. It would be more ideal to have a federal tax on internet sales - after which the feds could reallocate the taxed valuations directly to each state as per their tax schemes/etc. For states with no (or lower state than hypothetical federal) sales tax, the extra tax could be handed back to them for their reallocation - whether they want to track individuals and provide it as a tax rebate program or something, or simply have it be put back into their social programming or general state budgets is up to them.

Mandating small businesses to handle this would be pretty onerous - and only increase the advantage big online players wield as it is. We already have the bureaucratic scaffold existing in our federal tax systems for small and large businesses to utilize.

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Karlsweldt
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Re: Internet Sales Tax.. Pro or Con?

Post by Karlsweldt »

The most painful "thorn" in this proposed plan is whether the state the goods are sold in, or the state the recipient lives in, gets the tax credits. Of course each side demands priority. But which entity is truly the 'boss' faction? Then possibly will there be Federal tax assessments?
The majority of Internet shoppers like the convenience of buying on-line, not having to travel and mingle [hassle?] with other shoppers. And the savings of no local or state taxes. Could be more than 8% of total cost of product. Only a few states do not impose a sales tax. But Internet shopping can incur shipping/delivery costs that may be massive.
https://taxfoundation.org/state-and-loc ... ates-2018/
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