Where is the US economy headed?

@H2O MAN,

Two quick comments: First, the Senate bill under consideration is NOT a National Sales Tax. Opponents of the bill are trotting out that argument. It is not true. Second, businesses with less than $1M in out of state sales are exempt from collecting any taxes for non-local jurisdictions.
Agreed?

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http://1.bp.blogspot.com/-GOBysuwVk2o/T-NnrBDRPxI/AAAAAAAAE2I/sngzrBX1GdU/s1600/big_government_367015.jpg

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@H2O MAN,

You wrote,

Quote:

complying with a national internet sales tax combined with compliance with Obamacare will kill off many small businesses and I think this is exactly what Obama and his ilk want.

It's not a "national internet sales tax." Your premise is wrong as well as your assumption about Obama. BOTH are way off being factual.

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@realjohnboy,

realjohnboy wrote:

the Senate bill under consideration is NOT a National Sales Tax

NEVER said it was.
Obama apologists throw this out in an attempt to mislead the under informed.

Do you have a link to the < $1M exemption or must we pass the bill to see what's in it?

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@realjohnboy,

Well, my comment won't be related to the economy.

I do not use Amazon and other internet merchants because of price. Often, their price + shipping is equal to, or greater than local merchant + sales tax. I use them because of rude and ignorant sales people, and lack of merchandise inventory.

Here's an example of all three from one store. I needed small cloth bags for a special reason. I have worked in three industries where they are simply called parts bags. I went to our largest industrial supplier and asked for parts bags. The counterman said, really slowly like he were talking to a moron "p-a-r-t-s b-a-g-s", thereby assigning his ignorance to me. I went home and put the same item into the Amazon search window and had the item in five minutes. It did take a week for shipping.

I used to go out of my way to buy locally, and from locally owned businesses whenever possible. No more! Tell me why I should spend hours hunting for an item that isn't stocked by somebody who doesn't seem to care about my business, anyway.

Oh, I still deal with the local bike shop. Small inventory, but nothing but help, advice, and good feelings all around.

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realjohnboy wrote:

H2O MAN wrote:

Do you have a link to the < $1M exemption or must we pass the bill to see what's in it?

Various news reports from last week provided details of what is in the bill, including the <$1M threshold.
By the way, the bill got bi-partisan support in the Senate, passing by something like a 72-28 vote.

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I see a problem with the internet sales tax, and I don't know if its been addressed.

If I buy something on line, what sales tax is getting collected?
Will I have to pay the sales tax in the state I live in, or will I pay the sales tax in the state the seller is in, or will I have to pay both?
And what if they have different sales tax rates, which rate will I pay?

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@mysteryman,

The sales tax that applies to you as a resident of your state, city and county.

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@mysteryman,

You would pay only one sales tax. A problem might arise on the birthday present you send from KY to me in VA. You would only pay in one jurisdiction but whether it is to VA or KY, I don't know.

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@roger,

roger wrote:

Well, my comment won't be related to the economy.

I do not use Amazon and other internet merchants because of price. Often, their price + shipping is equal to, or greater than local merchant + sales tax. I use them because of rude and ignorant sales people, and lack of merchandise inventory.

Here's an example of all three from one store. I needed small cloth bags for a special reason. I have worked in three industries where they are simply called parts bags. I went to our largest industrial supplier and asked for parts bags. The counterman said, really slowly like he were talking to a moron "p-a-r-t-s b-a-g-s", thereby assigning his ignorance to me. I went home and put the same item into the Amazon search window and had the item in five minutes. It did take a week for shipping.

I used to go out of my way to buy locally, and from locally owned businesses whenever possible. No more! Tell me why I should spend hours hunting for an item that isn't stocked by somebody who doesn't seem to care about my business, anyway.

Oh, I still deal with the local bike shop. Small inventory, but nothing but help, advice, and good feelings all around.

Well said.

Sadly, professional full-time countermen are not often encountered these days.
They've been replaced with minimum wage beginner trainee part-timers that report to under qualified management.
Amazon continues to earn my business...
My experience with Amazon is highlighted by excellent customer service and a common sense return policy.

I continue to support the local establishments that serve me well and make it worth the drive.

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@H2O MAN,

Quote:

I continue to support the local establishments that serve me well and make it worth the drive

there are not very many local establishments to deal with around here...is it different where you are? once you get past nails, hair, coffee, gas, restaurants and convenience stores where are you going to go that is not a branch of some mega-corp?

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@H2O MAN,

I am a bricks and mortar retailer and have been so for almost 40 years. I agree that we in the industry are struggling to adapt to changes. It is wrong to blame the sales tax, just as it is wrong to blame whoever is President.
But it still grates when a customer comes in and picks our brains about, say, drawing tables and then comments that "I can get it on-line and can save on the sales tax."
What they are asking is for my employee to break the law regarding collection of the tax. And, in Virginia, they are breaking the Sales and Use Tax laws by not reporting the out of state purchases.
It is estimated the states and localities are losing some $20Bn annually on out of state purchases. I've seen estimates that it might be lower than that, but it is a substantial amount and is growing rapidly.
The legislation pending seeks to recoup that lost tax revenue.

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@mysteryman,

I expect the tax will be for your residence, but how much? As it stands in New Mexico, if we purchase directly from a supplier in another state and have it shipped fob destination, NM tax applies, but only at the state compensating tax rate of 5%. They don't seem to include the 2.875% county and city tax. If we take physical possesion in the right part of Texas, we are stuck for their rate, which seems much higher. Texas has tax jurisdictions for different sides of the street in some towns, by the way.

I don't know if this is a clue to your answer or not.

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@roger,

The chairman of Overstock.com sputters that it took his IT people precisely 9,412 hours to write the sales tax program for just one state at a cost of $1.3M.
It seems to me that each state wanting to participate in tax collection on on-line out-of-state sales should be responsible for developing and distributing the appropriate programs. The state would be responsible for determining what the tax in Farmington, NM should be. Down to the tax in your zip code of 87401, 87402 or 87499. The state should include details such as whether the tax applies on pumpkins destined for carving (taxable in VA) or cooking (not taxable).
The bill addresses those concerns, I think.

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@realjohnboy,

Amazon has already developed, and is prepared to sell such software. By a truely remarkable coincidence, Amazon also supports national legislation on internet sales tax collection.

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@roger,

True. But couldn't/shouldn't NM write and distribute their own software for free?

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@roger,

Internet sales tax? Hell, they already collect taxes on phones, utilities, fuel, and income taxes.

Here's the list of federal taxes.

Quote:

Alternative Minimum Tax Capital gains tax Corporate tax Estate tax Excise tax Payroll tax Revenue Gift tax Income tax Internal Revenue Service IRS Code IRS Forms History Constitutional Authority Taxpayer standing Court Evasion

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@realjohnboy,

Yes, I think they should, not that you mention it.

I wonder if that would change Amazon's position.

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Anyway, I'm off to bed.
I've pretty much exhausted my notes on the issue. I am amazed at the number of views this thread generated in the past few hours.
I am quite convinced that the legislation will pass both chambers in Washington by wide margins. The states (with the exception of the five without a state sales tax) will be unwilling to forgo the taxes, the Main Street merchants favor it and the opposition is not making a very convincing argument against it.
You know, predating the internet there was something similar going on amongst the jewelry stores in NYC. Clients would select a bauble and ask that it be mailed to a home in Conn or wherever, thereby avoiding the NYC tax. An empty box would be sent via insured mail to complete the scam.

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@realjohnboy,

Ive recently done, on a whim, taken a few short contracts on gold futures stocks. So today, gold goes UP. JEZUZ Christ. I better get out now while Ive got some profits to be made

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Where is the US economy headed?

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