Majority of states pressing for taxing ALL Internet sales

[theearthisround]

http://www.9news.com/acm_news.aspx?OSGNAME=KUSA&IKOBJECTID=4468224e-0abe-421a-0052-6cec12cd9c70&TEMPLATEID=0c76dce6-ac1f-02d8-0047-c589c01ca7bf

DENVER - 9News has learned that 43 states have joined together in a coalition to collect sales tax on all Internet purchases.

...

The coalition is seeking expertise from Colorado's high tech industry to get the tax collection done electronically.

"The Internet Tax Freedom Act says that states cannot treat sales on the Internet differently than they treat any other kind of sale--and this system that we've created does exactly that," says Scott Peterson with the Conforming States Committee, which is spearheading the effort.

"It treats every sale exactly the same regardless if it's over the counter, over the catalogue, over the phone or over the Internet," he says.

[punpirate]

1. Well, this doesn't change too much...

... unless each state is willing to collect and transfer taxes for every other state. Right now, those reciprocal agreements don't exist--even for mail order.

Beyond that, it does indicate that the states are getting pretty desperate for funds--Bush's tax cuts and all the preferential tax cuts for big business are really starting to eat into every state's revenues....

[meow2u3]

2. These internet sales tax laws should be struck down as unconstitutional

As per Article I, Section 9, paragraph 5:


No Tax or Duty shall be laid on Articles exported from any State.

Also, refer to Article I, Section 10:
No State shall, without the Consent of the Congress, lay any Imposts or Duties on Imports or Exports, except what may be absolutely necessary for executing it's inspection Laws; and the net Produce of all Duties and Imposts, laid by any State on Imports or Exports, shall be for the Use of the Treasury of the United States; and all such Laws shall be subject to the Revision and Controul of the Congress.

[SoCalDem]

3. key phrase..."without the Consent of the Congress"

Congress might set a special ihternet sales tax that would be the same for all states.. say 9%, and it would be split between the state where the goods are shipped and received..
They could manadate that all states have a "special account" set up, and once a year, they would get those funds.. The consumer would just pay more for everything, and sales would probably drop off.