Flap’s California Morning Collection: June 1, 2011

Posted Posted in Amazon Tax, Flap's California Morning Collection, Internet Sales Taxes

An Amazon Tax Lesson for California Legislators – Businesses Move and Job Loss Occurs

Posted Posted in Amazon Tax, Internet Sales Taxes


Goerge Will’s column today illustrates the point that maybe the “Amazon Tax” may not be all that it is touted to be.
Tim Storm, an Illinois businessman until a few weeks ago, is now a Wisconsin businessman. Herewith a story about how states can reduce revenue by trying to increase them and about the economic benefits of federalism.

Storm, 42, is founder and chief executive of FatWallet.com. The company, until recently one of about 9,000 Illinois “affiliates” of Amazon.com, directs online shoppers to online retailers, which often pay affiliates commissions for referrals that result in sales. Storm’s company, which has 54 employees, used to be located in Rockton, Ill., but now is five miles up the road in Beloit, Wis.

One reason online sales are brisk is that the retailers are not required to collect state sales taxes. In 1992, the U.S. Supreme Court held that such taxes must be collected only by companies that have a “substantial nexus” — basically, a brick-and-mortar presence — in the state. Under this rule, Amazon collects sales taxes in only five states.

Illinois, comprehensively misgoverned and ravenous for revenue, has enacted what has come to be called an “Amazon tax.” It requires Amazon and other online retailers to collect the state’s sales tax. Amazon and many other retailers responded by severing their connections with their Illinois affiliates.

Storm responded by relocating to Beloit. No one knows how many other Illinois affiliates of the thousands of online retailers — transactions with Amazon are less than 1 percent of FatWallet’s business — will lose revenue, pay less in taxes, cut jobs or leave the state. When Texas sent Amazon a bill for $269 million because of the “nexus” of its Dallas warehouse, Amazon decided to close the warehouse.

Read all of the piece.

I understand that the California Democratic Party is voting on a resolution today that supports the “Amazon Tax” in California. It would be a mistake for this legislation to pass, as I have discussed many times before.

Look at Illinois and Texas…..

Previous:


eBay Says Let’s Make a Deal to California’s Internet Sales Tax Legislation

Democrat Senator Dick Duban to Introduce Bill to Tax Internet Sales

Poll Watch: 63 Per Cent Oppose Taxing Online Transactions

Video: California and the Amazon Internet Sales Tax

Video: How Amazon Internet Sales Tax Legislation Hurts California Small Business

Overstock.Com Threatens to Terminate California-Based Affiliates Should Internet Tax Legislation – AB 153 Passes

Amazon Internet Sales Tax WILL Require Super Majority in California Legislature

Video: California Board of Equalization Casts Doubt on Amazon Internet Sales Tax Legislation

The Amazon Tax Returns to California

eBay Says Let’s Make a Deal to California’s Internet Sales Tax Legislation

Posted 2 CommentsPosted in Amazon Tax, eBay, Internet Sales Taxes
Amazon.com et. al. should not feel bad – after all it is just business, right?
“Yes, I’ve met with eBay quite a lot,” said Assembly member Nancy Skinner (D), who introduced the bill. Skinner told Tax Analysts that eBay is concerned about the proposal’s impact on lower-volume sellers, and the two sides have discussed raising the $10,000 threshold.

Internet auction giant eBay Inc. is negotiating language in a proposed California “Amazon” law (AB 153) in hopes of reducing the number of its sellers that could be required to collect sales taxes.

The click-through nexus legislation would require remote sellers to collect state sales taxes if they make $10,000 or more in annual sales through California affiliates that receive a commission. Much of the attention has centered on Amazon.com, but eBay — a California-based company — also receives commissions from its sellers, who could then be required to remit California sales taxes.

“We hope to come to a threshold that they feel good about,” Skinner said. “But I’m certainly not going to be making the law ineffectual.”

This entire exercise which will lose California jobs and provide NO new measurable tax revenue is looking more and more like a “JUICE BILL.”

The divide and conquer of business interests, the campaign contributions, the never ending amendments and tweaks to the bills. My God, no wonder American business is so fed up with the political process – particularly the Democrats in the California Legislature.

So, the legislation will linger on and Assemblywoman will have all the attention and PAC money the business interest will provide.

In the meantime, the Amazon.com and other business sales affiliates will sweat out whether they will have a job or not.

How disgraceful…..

Previous:

Democrat Senator Dick Duban to Introduce Bill to Tax Internet Sales

Poll Watch: 63 Per Cent Oppose Taxing Online Transactions

Video: California and the Amazon Internet Sales Tax

Video: How Amazon Internet Sales Tax Legislation Hurts California Small Business

Overstock.Com Threatens to Terminate California-Based Affiliates Should Internet Tax Legislation – AB 153 Passes

Amazon Internet Sales Tax WILL Require Super Majority in California Legislature

Video: California Board of Equalization Casts Doubt on Amazon Internet Sales Tax Legislation

The Amazon Tax Returns to California

Democrat Senator Dick Duban to Introduce Bill to Tax Internet Sales

Posted 2 CommentsPosted in Amazon Tax, Internet Sales Taxes, Value Added Tax

Senator Dick Durbin (L) and Senate Majority Leader Harry Reid listen to a fellow senator speak about the budget in the Capitol in Washington April 7, 2011

Yeah, this is all the American economy needs – more taxes.

A Democratic senator is preparing to introduce legislation that aims to end the golden era of tax-free Internet shopping.

The proposal–expected to be made public soon after Tax Day–would rewrite the ground rules for Internet and mail order sales by eliminating the ability of Americans to shop at Web sites like Amazon.com and Overstock.com without paying state sales taxes.

Here we go for a national sales tax and/or a Value Added Tax (VAT) like in Europe. The Democrats are tax and spend socialists who cannot resist taxing Americans blind.

And, for what?

Get this: FAIRNESS

“Why should out-of-state companies that sell their products online have an unfair advantage over Main Street bricks-and-mortar businesses?” Durbin said in a speech in Collinsville, Ill., in February. “Out-of-state companies that aren’t paying their fair share of taxes are sticking Illinois residents and businesses with the tab.”

Fair share of what?

This is a tax grab, plain and simple. And, a disaster for the economy.

What Democrats like Durban really want is MORE tax revenue that they can redistribute to their constituents in order to buy votes.

Just say NO to internet sales taxes at the state and federal level.

Previous:


Poll Watch: 63 Per Cent Oppose Taxing Online Transactions

Video: California and the Amazon Internet Sales Tax

Video: How Amazon Internet Sales Tax Legislation Hurts California Small Business

Overstock.Com Threatens to Terminate California-Based Affiliates Should Internet Tax Legislation – AB 153 Passes

Amazon Internet Sales Tax WILL Require Super Majority in California Legislature

Video: California Board of Equalization Casts Doubt on Amazon Internet Sales Tax Legislation

The Amazon Tax Returns to California

Poll Watch: 63 Per Cent Oppose Taxing Online Transactions

Posted Posted in Amazon Tax, Internet Sales Taxes
According to the latest Rasmussen Poll.
Americans are used to being taxed for good and services they purchase in person, but they remain opposed to carrying that over to the online world.

A new Rasmussen Reports national telephone survey finds that 63% of American Adults oppose the federal government taxing goods and services on the Internet. Twenty-four (24%) favor online taxation, while 13% are undecided about the idea.

Findings have not changed much from a year ago, when 61% opposed such taxes, while 20% approved. 

Majorities of Americans across all demographic categories oppose taxing goods and services on the Internet. But Democrats (31%) like the idea more than Republicans (19%) and adults not affiliated with either of the major political parties (22%).

This is not too shocking and why the California Legislature is struggling with Democrat sponsored legislation to tax online sales, the so-called Amazon Tax.

Previous:

Video: California and the Amazon Internet Sales Tax

Video: How Amazon Internet Sales Tax Legislation Hurts California Small Business

Overstock.Com Threatens to Terminate California-Based Affiliates Should Internet Tax Legislation – AB 153 Passes

Amazon Internet Sales Tax WILL Require Super Majority in California Legislature

Video: California Board of Equalization Casts Doubt on Amazon Internet Sales Tax Legislation

The Amazon Tax Returns to California