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  (Source: allthingsd.com)
It even won backing from U.S. President Barack Obama

Legislation for the collection of online sales taxes took a major step forward in a Senate vote Monday evening. 

The legislation -- known as the Marketplace Fairness Act -- scored a big victory in a procedural vote of 74-20 Monday night. It even won backing from U.S. President Barack Obama. 

The Marketplace Fairness Act allows states to force out-of-state retailers to collect online sales taxes. Currently, states can only require merchants within their borders to collect sales taxes.

The legislation offers an exemption for merchants that generate less than $1 million in annual out-of-state revenue.

"It will level the playing field for local small business retailers who are undercut every day by out-of-state on-line companies," said Jay Carney, White House spokesman. 

Senate Majority Leader Harry Reid filed a motion in support of the new bill last Thursday. 

Many states are in favor of the Marketplace Fairness Act because the money from sales tax collection could help with financial deficits. For instance, the California Board of Equalization said it made $96.4 million in sales tax on internet commerce from September-December 2012, which is the first full quarter that the state started collecting.

Brick-and-mortar stores are also happy with the legislation, since stores like Wal-Mart and Best Buy have complained about the unfair advantage online retailers like Amazon have when it comes to the lack of sales tax collection in certain states. 

However, not everyone is in favor of the Marketplace Fairness Act. Sen. Kelly Ayotte (R-NH) strongly opposes the legislation, and plans to fight it until the end. 

"This is big retailers and big business lining up to put burdens on the Internet for small online business," said Ayotte. "It is so wrong and it is a precursor to other things they will try to grab using the Internet, including taxing the Internet."

Amazon CEO Jeff Bezos has said that he would comply with sales tax collection if there were some sort of federal legislation regarding the topic. It has been fighting U.S. states that force it to collect sales tax for years (except in Kansas, Kentucky, New York, North Dakota and Washington). Only recently has it started collecting in additional states (like Texas and New Jersey, for example). But in return, Amazon gets to create more distribution centers within these state's borders. 

Source: The New York Times



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Is this even a surprise?
By BRB29 on 4/23/2013 7:47:58 AM , Rating: 5
Politicians created massive debts
Politicians creates more ways to tax people to pay off debt
Politicians sees money and spend it instead of paying off debt
Politicians created massive debts
....and so on and so on

And please save the drama about Obama spending us to oblivion. I wish it was just him so we can someone to point the finger to but most or all politicians are to blame.




RE: Is this even a surprise?
By Da W on 4/23/2013 7:53:12 AM , Rating: 2
People hire accountants to hide money from taxes.
Corporations hide money offshore to hide money from taxes.
People buy on amazon to save money from taxes.
Government pile on huge debt.
Is it a surprise?


RE: Is this even a surprise?
By othercents on 4/23/2013 8:24:28 AM , Rating: 4
While both statements, for Politicians spending more and causing more debt to the country and Citizens hiding their money to keep from paying taxes, are true, I see this bill more of a change due to the market shifting from local to internet businesses. The original tax law was created when there was limited interstate commerce, but now you could purchase almost anything this way and avoid the tax.

FYI. Sales Tax is a State and Local Tax, which is where they get the majority of their money. 7 states collect no income tax and only collect sales tax. New Hampshire collects neither.


RE: Is this even a surprise?
By ebakke on 4/23/2013 11:13:14 AM , Rating: 3
quote:
New Hampshire collects neither.
NH doesn't collect personal income tax. But it does collect corporate income tax. Alaska does the same thing. No personal income, no sales, yes to corp income.


RE: Is this even a surprise?
By Samus on 4/23/2013 11:50:30 AM , Rating: 2
Oregon, New Hampshire, Delaware, Montana and Alaska all don't collect sales tax.

These states also have high corporate presence, above average economies and above average quality of life in comparison to many other states. Three of them are also incredibly wealthy states with huge surpluses.


RE: Is this even a surprise?
By Phoenix7 on 4/23/2013 4:01:02 PM , Rating: 2
I thought new Hampshire had the highest suicide rate for a state? Could be wrong


RE: Is this even a surprise?
By ebakke on 4/23/2013 9:12:02 PM , Rating: 2
NH is tied for 18th. Top 10:

Rank---State---Deaths---Rate per 10k people
-------------------------
1---Wyoming [M] (4)---131---23.2
2---Alaska [P] (1)---164---23.1
3---Montana [M] (2)---227---22.9
4---Nevada [M] (5)---547---20.3
5---New Mexico [M] (3)---413---20.1
6---Idaho [M] (11T)---290---18.5
7---Oregon [P] (9)---685---17.9
8---Colorado [M] (6)---865---17.2
8---South Dakota [WNC] (25T)---140---17.2
10---Utah [M] (15T)---473---17.1
10---Arizona [M] (8)---1,093---17.1
....
18---New Hampshire [NE] (29T)---196---14.9

http://www.suicidology.org/c/document_library/get_...


RE: Is this even a surprise?
By BRB29 on 4/23/2013 9:16:39 AM , Rating: 3
Economy still has not recovered and low GDP
Politicians sequestrated hundreds of thousands of federal employees to reduce spending but ended up reducing GPD, hurt local businesses tied with government, drastically reduced spending on a large number of people. Sequestration did not affect politicians but they did takes weeks and weeks of recess(vacations) fully paid.
Economy stops recovering and another hiring freeze had occurred.
Politicians sees low GPD, less tax revenue and need to raise more money.
Politicians finds more ways to tax and increase tax.
Makes tax on the one part of the economy that still creates jobs and growth.
Economy goes into further recession.
Economy still has not recovered and low GDP
Politicians sequestrated hundreds of thousands of federal employees again
Economy stops recovering and another hiring freeze again....
....and so on and so on.


RE: Is this even a surprise?
By RedemptionAD on 4/23/2013 12:23:09 PM , Rating: 3
The government is the one that made the loopholes that enables those tactics.
The don't want to fix said loopholes or adjust the tax code so it is "firm, but fair".
They pile on huge debt that they will essentially leave future generations to pay for, and one way or the other it will have to be paid.
They did it to themselves.


RE: Is this even a surprise?
By CZroe on 4/24/2013 12:27:51 AM , Rating: 2
You said it: Loopholes.

It still bugs me that online sales are considered any different than mail-order/phone sales. Online sales are just mail-order sales with the benefit of not needing a paper catalog or a cable shopping channel to show their wares and there's no need to call or mail in an order form.

Whether you are for or against taxing Amazon sales and the like, the debate should be over taxing out-of-state sales regardless of how the order was placed or if the Internet was involved. Don't threaten to tax one and not all.


RE: Is this even a surprise?
By Dr of crap on 4/23/2013 7:56:29 AM , Rating: 1
YES - ALL POLITICANS are to blame - no ONE party is above spending and taxing to much.
But you can't make a lot of people SEE this!


RE: Is this even a surprise?
By KCjoker on 4/23/2013 5:53:59 PM , Rating: 2
It's true both parties are to blame...However anyone that can't see that the Dems want to tax us more and spend FAR more than Repubs are blind. It's a simple case that Repubs are horrible and Dems are sadly worse.


RE: Is this even a surprise?
By BRB29 on 4/23/2013 10:44:07 PM , Rating: 2
There's no such things as a political party that wants people to pay less taxes. That's an oxymoron because the only reason these people have their jobs and influence is because we pay taxes. Without taxes, the government cannot function and therefore has no power.

The only time taxes are lowered is to stimulate economic growth or enough people calling out BS tax laws.


RE: Is this even a surprise?
By OoklaTheMok on 4/23/2013 9:10:41 AM , Rating: 3
Its funny... People want our government to do things, but they don't ever want to pay for it.

Does anyone even realize that these are state taxes, and not some sort of new federal tax? So I don't quite grasp the references to Obama and how that even applies.


RE: Is this even a surprise?
By BRB29 on 4/23/2013 9:28:33 AM , Rating: 3
This may be state taxes but it's at a federal level in the Senate. This is not the way to go to recover from a recession.

In a recession/depression, the government is supposed to bite the bullet and increase spending, decrease taxes, create jobs, work on infrastructure for economic growth. Fed Reserve is supposed to decrease interest rates, increase money supply, and maybe(probably not) change reserve ratios.
These are basic macro economics principles.

Instead we got increase in tax, sequestration, hiring freeze, even less money invested in infrastructure.

It has been done in the past and we have recovered from much worse recessions/depression. WTF are these politicians thinking? that they know better than what history has taught us over and over again?

Seriously, the government should be doing huge public projects like laying fiber optics across the nations. Linking every cities with high speed train tracks. Improving our water systems, electric grids, sewage/waste disposal systems, recyling systems, etc...
These are all things we need in the near future that will boost our economy. No, we'd rather have people sitting around collecting unemployment.

SMH, and honestly it's all because of the party systems. It's a drama fest instead of getting results for the country.


RE: Is this even a surprise?
By superflex on 4/23/2013 1:42:14 PM , Rating: 2
I'd like to know how a tax bill gets originated in the Senate. The Constitution states all tax bills must originate in the House.


RE: Is this even a surprise?
By OoklaTheMok on 4/23/2013 3:14:42 PM , Rating: 2
quote:
In a recession/depression, the government is supposed to bite the bullet and increase spending, decrease taxes, create jobs, work on infrastructure for economic growth.


In my state, we have to have a balanced budget. We can't spend money we don't have. This leads to a stupid feast/famine cycle because we are dependent on consumer activity to fund our state government operations and we don't have personal income taxes to provide some semblance of revenue stability. We can't go into deficit spending to pay for things. Collecting all applicable sales taxes seems like a no-brainer to me.
This legislation is at the federal level, because states don’t have the authority to unilaterally collect taxes across state lines. Federal law needs to change in order to permit this, which is why this is in the Senate.

quote:
It has been done in the past and we have recovered from much worse recessions/depression.


Um… when? The great depression is the only previous economic period that was worse than what we had to endure starting in 2008, and that recovery was much more painful and drawn out than what we have right now.

Huge projects should have been done at the beginning, but because states over inflated their lists of “shovel ready” projects, and conservatives dragged their feet and demanded a more laissez-faire economics approach, we got what we did.


RE: Is this even a surprise?
By PontiusP on 4/23/2013 1:03:29 PM , Rating: 2
No, we don't want our government to do things. Especially things like this:

http://www.voiceofsandiego.org/public_safety/pavem...

We have an out of control welfare state which feeds the parasitic rich at the top, as well as the lazy, stupid, parasitic leeches at the bottom.

So no, I don't want my government to "do things", and I'm sick and tired of having to pay for this crap.

Wake up!


RE: Is this even a surprise?
By OoklaTheMok on 4/23/2013 3:26:21 PM , Rating: 2
So because a city government does something stupid, that was apparently 20 years in the making, we shouldn’t expect government (city/state/federal) to do anything. I guess then you think it was a good thing then that we didn’t waste any money on OSHA inspectors. I’m sure the people in West, Texas will totally agree with you on that.

I trust then that you will do your part to avoid using any of the paved roads you despise so much.


RE: Is this even a surprise?
By PontiusP on 4/23/2013 6:10:02 PM , Rating: 2
You use the usual "you want roads, don't you?!?" strawman argument that every liberal welfare state pumper uses.

Look at the expenditures of every level of government, a minuscule portion actually goes toward infrastructure development. The bulk of the money goes toward crap like the article I linked mentions, yet you casually dismiss it as a one off event. No, these aren't one off projects, they are long term systemic problems with an out of control welfare state that is sucking the taxpayer dry.

Cease projects like that and I'll be happy to pay internet taxes. But as long as fraud, waste and abuse like that continues at the hands of progressive do-gooders, then I won't be supporting any additional taxes. Ditto that for government employees making 2, 3, 4... 800k per year as well.


RE: Is this even a surprise?
By shaidorsai on 4/27/2013 8:32:03 AM , Rating: 2
The only thing I want government to do is stop spending money they have to borrow to use and stay out of my life.

Federal Government doesn't "do" anything for me except national defense...and I don't want it to either.


"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997














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