• Internet taxes

    From BOB KLAHN@1:123/140 to JEFF BINKLEY on Sun Mar 13 20:49:54 2011



    Far be it for a Democrat to see a dollar that they didn't
    want to tax... The moving trucks continue to leave
    Illinois... This is after their recent massive income tax
    increase...

    Since ineternet sales cut sales taxes in the state, and I
    believe you pushed the sales tax as the Fair tax, a replacement
    for the income tax, think about it. Or was that Ross Cassell?

    Either way, non-payment of tax on internet sales puts internet
    business in a better position than local stores. Since when
    should the government make policy that gives an advantage to one
    form over the other?

    ...

    Illinois Governor Signs Amazon Internet Sales Tax Law
    Mar. 10 2011 - 6:33 pm
    By JANET NOVACK


    After two-months of fence-sitting, Illinois Governor Pat
    Quinn today signed controversial legislation requiring
    Internet retailers like Amazon.com and Overstock.com to
    collect IllinoisÆ 6.25% sales tax if they have affiliate
    sellers in the state. House Bill 3659, the Mainstreet

    mortar retailers, who supported it, and Illinois-based
    Internet-only businesses, who warned that if Quinn didnÆt
    veto it some of them would flee the state. Had Quinn done

    ...

    Chicago-based CouponCabin.com called the GovernorÆs
    approval of the bill ôdeeply disappointingö and said he is
    ôactively exploringö moving his seven year- old business to
    Indiana. Kluth, a long time resident of Chicago, had
    previously threatened such a move, telling Forbes, ôI can
    see Indiana form the roof of our business.ö

    And how many employees will lose their jobs? If he can see
    Indiana from the roof of his business then the answer should be
    zero.

    But Quinn, a Democrat, described the law as necessary to
    put the stateÆs ômain street businessesö on ôa level
    playing fieldö with online retailers and to protect main
    street jobs. In a statement issued by QuinnÆs office, David

    Which happens to be true.

    ...

    in 2008. While Amazon has been challenging (so far
    unsuccessfully) the constitutionality of that law in court,
    it has kept its New York affiliates and now collects New
    York sales tax on purchases shipped to the Empire State.
    (It also collects for shipments to its home state of
    Washington, as well as North Dakota, Kansas, and Kentucky.)
    ...
    addition to California, the states of Arizona, Connecticut,
    Hawaii, Minnesota, Mississippi, and Vermont are all now
    considering Amazon laws.

    IOW, as more states enact such laws either Amazon will collect
    the tax, or Amazon will have no affiliates.

    As Forbes suggested here, AmazonÆs days of sales tax
    collection free selling may be numbered for another reason:
    AmazonÆs growing network of warehouse and fulfillment
    centers. Last year, the Texas Comptroller sent Amazon a
    bill for $269 million for four years of back sales taxes,
    based on an Amazon warehouse there. Amazon insists the
    warehouse doesnÆt give it nexus. But last Month, it told
    its Texas employees that it would close the warehouse,
    throwing 110 of them out of work.

    Let's see. 110 workers, at $25K/yr, (not an unreasonable
    estimate for warehouse workers in Texas for an online retailer),
    equals about $2.75mill/yr. Over the 4 years, that's $11mill. Now
    $11mill against $269mill???? Hell, they can hire all 110 for a
    state run warehouse for online retailers just off the sales tax
    Amazon paid, with $250 mill profit. Well worth it.

    Thursday 10 P.M. update: According to Amazon spokeswoman
    Mary Osako, the retailer has now sent an e-mail to its
    thousands of Illinois associates stating QuinnÆs signing of
    the law ôcompelsö it to terminate them. The message reads
    in part:

    ...

    AmazonÆs e-mail also invites the Illinois associates to
    apply for reinstatement should they relocate from the state.
    * Origin: (1:226/600)

    Which may cost the state maybe a few hundred jobs, if they all
    leave. OTOH, any that are not on the border already will
    probably find it cheaper to run without Amazon.



    BOB KLAHN bob.klahn@sev.org http://home.toltbbs.com/bobklahn

    ... "His death is irrelevant, Jim." - McCoy of Borg
    --- Via Silver Xpress V4.5/P [Reg]
    * Origin: Since 1991 And Were Still Here! DOCSPLACE.TZO.COM (1:123/140)
  • From BOB KLAHN@1:123/140 to SEAN DENNIS on Sun Mar 13 20:50:28 2011

    Far be it for a Democrat to see a dollar that they didn't want to
    tax... The moving trucks continue to leave Illinois... This is after
    their recent massive income tax increase...

    No offense to any Illinoisans in here, but I'm glad I
    moved. :/

    Couldn't deal with the superior quality of life?



    BOB KLAHN bob.klahn@sev.org http://home.toltbbs.com/bobklahn

    ... Let the flames begin! (Atlanta Olympics opening line)
    --- Via Silver Xpress V4.5/P [Reg]
    * Origin: Since 1991 And Were Still Here! DOCSPLACE.TZO.COM (1:123/140)