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Internet Sales Tax Bills Might Mean Big Things For Small Biz


Online/offline equalizer could be good or bad

One of the more interesting things about buying products on the Internet may soon cease to exist.  Legislators are expected to introduce bills that would create an Internet sales tax, making it less advantageous for consumers to order things online and save a few bucks.

If the bill passes, it could provide a huge boost to some small businesses; imagine some little shop that's trying to sell CDs getting put on more equal footing with Amazon.  Small businesses that carry big items might do even better.  Order something like a TV online and you've got to really worry about shipping times and the thing getting broken, after all.

But a lot of small businesses might also lose out due to an Internet sales tax.  Online-only small businesses probably depend on the pricing edge to some degree.  Plus there would just be the added nuisance of having one more thing to keep track of.

This is something that small business owners should definitely keep an eye on, then.  Consider writing your representatives to let them know how you feel about the issue.  (More information's available here if you need to brush up first.)

But it's not at all certain that an Internet tax will come into existence, so don't get too worked up and dedicate all your spare time to writing letters just yet.

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News Tags: Money, eCommerce, Taxes, Politics
About the author:
Doug Caverly is a staff writer for SmallBusinessNewz.

Comments

Never any sales tax for my shoppers...

I'm located in Delaware so any customers who shop at my safety and security web site will never pay any taxes since we are a sales tax free state. Even so, I'd be glad to write a few letter. It's just wrong to tax internet sales.

Internet sales tax

I'm sure the small business owners who sell online and use my small business finance websitewould love an Internet sales tax. I'm also sure consumers who buy on the Internet would think twice before purchasing.

Who wants tax?

I live in the UK and similar things have been suggested in the past here, luckily we don't have any internet specific taxes. I cannot believe that any internet business would welcome a tax. The only people that will want this tax are the people who don't have to pay it. I quite often find when I am speaking to someone about their opinions with regards to the law, they will say what they think should be done about XYZ, but not consider the fact that they will also have to obey the law that they are advocating. The previous comment is a pretty good example of blog spam by the way, anyone who wants tax for themselves needs their head examining. Peter Frank Johnson

Another Way To Get Into Our Pockets!

An Internet sales tax is just another revenue stream for the government. It has no benefit to sellers or buyers whatsoever. Anyone who claims a benefit is deluded or has a hidden agenda.

I live in Pennsylvania. The sales tax here is 6%. That's more than many businesses make in profit annually. In effect, the government becomes a business partner and takes their cut off the top without having any risk or investment.

Every politician should be wearing a ski mask when they vote for this because it's plain and simple robbery.

Jim DeSantis

AnswersPlusInfo

Maybe it isn't fair but

Maybe it isn't fair but neither is it fair to me having to pay sales taxes and them not. If all sales taxes were eliminated, that would be fair but how soon do you think that will happen. My biggest complaint is after people receive their internet goodies at discount prices, they come to me to learn how to operate or assemble their goods. Why not ask who you bought it from?  Reno McCormick

This is a reporting nightmare!!

This will put small businesses out of business. The person running the small business will need to be completely up to date on the sales tax laws in every state.  Each state has their own set of rules for how much to collect and then when and how to pay each state.  Many states require manual reporting with specific forms, many are online (so the user will need to set up 50 different accounts).  The small business will be forced to generate reports from their accounting methods and create reports or the necessary forms for each state then and pay the sales tax collected every month, quarter, or whatever is needed for each state.  This will absolutely be a full time job for any small business.

Anyone who thinks a small two or three person business can do this and stay in business is nuts.

Sales Tax

And what is government going to do to benefit the owners of an online business.

The purpose of a sales tax is to provide benefits to the public. In the case of offline stores, that includes roads, streetlights, police protection, and a host of other municipal benefits that are provided to businesses.

Just what the heck can the government provide in cyberspace. Obviously not security since government agencies and public computers are being hacked daily and records stolen.

This is nothing but another "power grab"...since we are already being taxed by the state to the tune of about 30% on our phone lines which run the internet.

States have to provide something in return for the tax - it cannot simply be applied to make up for their idiocy and the fact they have bankrupted themselves with their idiotic spending and government programs.

Any representative of mine that votes for it I will actively campaign against online and drive their sorry butts out of office.

It's time to put these public bureaucrats on notice, it's we the people that run the country, not these stupid bumbling slimy politicians that hold themselves above the law, are corrupt as a 3 time convicted felon, and think they can do anything they wish without ramifications.

It's time for politicians to remember their place - PUBLIC SERVANTS - it's us that have the stick, not them. They are not our lords and masters.

 

 

 

 

 

Internet Sales Tax

 I sell books through Amazon. I don't have a lot of sales in my home state of Georgia, but there are some. I am supposed to collect sales for these sales, but Amazon will not collect for me so I have to back out the tax, which actually means that I am paying the sales tax, not the customer. But, I don't know how else I can be compliant with the tax rules.  Since Georgia has many counties, figuring out the sales tax is a long process.

I agree that having to figure it out for multiple states would be an absolute nightmare!!  What if we had one low tax rate (maybe 2% or 3%) for every internet purchase? The government could then find a fair way to divide the money among the states. This would make life much easier for small internet business and more fair to local retailers.

 

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