Online sales tax measure moves toward U.S. Senate vote

  • Article by: Jim Spencer , Star Tribune
  • Updated: April 25, 2013 - 5:26 PM

WASHINGTON – The Senate closed debate late Thursday afternoon on landmark legislation to allow states to force out-of-state online businesses to withhold sales taxes on products sold to their residents.

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wiseoracleApr. 25, 13 6:03 PM

So everyone moves their online storefront to Belize. More offshoring. Don't you get it? The internet is NOT an exclusively American institution/asset. Time for tax junkies to enter into treatment! Spending is the problem - not revenue/taxation.

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jd55604Apr. 25, 13 6:27 PM

Yeah, pretty easy to re-locate those Amazon distribution warehouses to Mexico and once the states get a taste for these online taxes their thirst will only grow.

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blahstateApr. 25, 13 6:32 PM

You know, with this awesome economy, I was just thinking what else should the democrats tax....and here we are!

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groover6Apr. 25, 13 6:32 PM

I am sure the DFL in the State of MN will not pass along this tax to the poor in MN. How can Ted Mondale afford this tax?

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dtmonkeyboyApr. 25, 13 6:44 PM

Wiseoracle...you aren't so wise. If I move my business to Belize I may avoid having to collect sales tax but my shipping costs skyrocket making my prices uncompetitive....so I won't be moving. However, without this legislation I may close my store and layoff my employees because as an online only retailer I can charge less since I won't collect taxes.

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dtmonkeyboyApr. 25, 13 6:46 PM

Even if the government cut spending in half...they still need this legislation. Not to get more money, but in order to create a fair tax system.

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rykytrApr. 25, 13 7:14 PM

This won't cost Americans just 7% tax on internet purchases; it will cost us another 7% on retail purchases. Retailers have long calculated and known the "convenience factor" percentage that Americans will pay to a store versus an internet seller. As an example, I can buy a pair of shoes over the internet for $100, or from Kohls for $120 plus tax. Kohls has cut costs & prices to an amount they know I, for convenience in returns, complaints, warranty, etc, will buy from THEM versus the hassle of an internet seller. Industry estimates of this are about 20%. Raising internet costs by 7% for tax, means Kohls, etc can now RAISE prices by that same 7%. End result is if you spend $5,000 on purchases on the internet and $5,000 purchases at stores, this Klobuchar/Franken inspired change will cost you $700 per year.

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totaltruthApr. 25, 13 7:20 PM

Let's see now.... My business is based in Minnesota, and I pay Minnesota taxes...

The government now wants me to collect the taxes for California, New York, Massachusetts, etc...

The government wants to subject me to tax audits for the states of California, New York, Massachusetts, etc...

The government wants me to deal with the 9,000 different national sales tax code details for California, New York, Massachusetts, etc...

The government expects me to take on the role of tax collector for the states of California, New York, Massachusetts, etc...

The government just cannot get any LOWER than this... Al and Amy are taking government greed to new LOWS every time they vote....

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totaltruthApr. 25, 13 7:30 PM

If I am forced to act as tax collector and collect taxes for a large number of states.... And am forced to pay these taxes to these large number of states....

I can only assume that this law will allow me to vote in each and every one of these states...

Otherwise it becomes taxation without representation....

Oh... That's right... This bill is being sponsored by Amy and Al... The Minnesota senators who exemplify the excess greed of our current bottomless pit of a government...

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spunkykleeApr. 25, 13 8:27 PM

c'mon, we sent a man to the moon, they can figure out a tax program to collect taxes, you people are complaining just to complain. Just think about the taxes collected, this revenue was there just 20 years ago, the states need this revenue again.

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