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Not paying taxes is nice but that is not why I shop on the internet. For me it is the convenience from my home and having things sent to my home. I do not like to walk from store to store for things that I can order from my home.
When a business locates in a state, that states choice of taxing sales is there way of funding things like roads, bridges, and other things that the businesses use and depend on. So why should Minnesota tax a sale from Oregon or elsewhere. Why pay a tax when purchasing on-line from a company in Oregon, but it I travel there and buy the same thing I would pay no sales tax?
Brick and Mortor pay property taxes, have employees, on line company can be a basement, or a garage, and just broker its products by drop shipping to the customer, and have a 6.8% to 7.2% price advantage, fine have a basement business, just charge sales tax like everyone else has too.
It was inevitable. Government is always looking for more "revenue" (i.e. confiscating your money), so there was no chance any state would pass up this opportunity. Call it "fairness" or whatever else, it still means a government entity is taking more of your money.
Sales tax is paid by the pucrchaser, not the seller, so sales tax is collected where the product is bought.... Why else would we have an option for a sales tax deduction on our individual Minnesota state tax forms?
Thank goodness for the House. The only branch of government at the federal level with any common sense.
It was inevitable. Government is always looking for more "revenue" (i.e. confiscating your money), so there was no chance any state would pass up this opportunity. *** Here's the reason this bill has bi-partisan support: Other states besides MN have an equally un-enforceable mandate to pay taxes on internet purchases. Not many shoppers choose to pay them because taxes are not an elective philanthropy and most shoppers won't pay to feel like chumps. But this is NOT a new tax levy so it doesn't violate any politician's "no new taxes" pledge. When I purchased over the internet I paid no taxes but felt like a deadbeat. Hence I made fewer purchases. To tax internet purchases requires Federal participation as regulator of interstate commerce. Beyond this it will probably also call for a SCOTUS ruling upon an inevitable challenge to its constitutionality. Here's my take on internet shopping: It's a fairness issue. Why should interstate vendors without bricks and mortar presence in a state be able to offer products for tens of dollars less while harvesting hudreds of dollars more for each sale than the businesses and good corporate citizens of those states, thus driving them out of business? If this passes I definitely will consider making more internet purchases for the guilt free convenience factor alone. On the other hand if local businesses flourish the benefits to community may be so apparent that I decide to get out and shop more.
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