Illinois wants Amazon to collect sales tax and send it back to the state

[mookiemookie]

Amazon gives Illinois a big middle finger in response.

http://arstechnica.com/tech-policy/news/2011/01/hell-no-we-wont-go-out-of-our-way-to-collect-sales-taxes.ars

As commerce moves more and more to the internet, I think the days are coming where we can escape sales tax by buying online are coming to an end. Current state budget problems are only speeding the process along.

[Sailor Steve]

Utah has proposed a similar tax. Fortunately for us the weenies here are cowards, and always wait to see how some other States' attempts turn out before actually trying their own.

[Armistead]

It's coming.....

[Skybird]

Wait - you guys in America don't need to pay sales taxes when buying online? Wowh. In Germany, the "Mehrwertsteuer" always must be payed, no matter where you buy.

There is also a difference in price tags, I learned. In Germany, usually shown prices include all taxes, where as in America prices usually get displayed without taxes, right?

[The Third Man]

I can't think of a better way to slow the only engine of growth in the US than to tax internet sales. The alternative of course is to move backward and use the telephone to make purchases from out of state vendors.

[The Third Man]

Wait - you guys in America don't need to pay sales taxes when buying online? Wowh. In Germany, the "Mehrwertsteuer" always must be payed, no matter where you buy.

There is also a difference in price tags, I learned. In Germany, usually shown prices include all taxes, where as in America prices usually get displayed without taxes, right?

Correct. In the US, without the VAT, all prices are shown without tax. The reason being each state has its own tax on goods sold. It is the basis of Federalism.

[TheDarkWraith]

It doesn't surprise me one bit that Illinois would be trying to do that. Just look at their roads and school systems. If the politicians would quit pocketing the money and putting it where it needs to be going (infrastructure, schools, etc.) the state would be much better. But being one of the most corrupt states in the US (how many governors have gone to jail? :06:) I don't see that ever happening.

[Gargamel]

Yes since sales tax is based per state, only states that have amazon facilities in them are allowed to collect sales tax. Recently Amazon and other large online merchants have started trying to consolidate their facilities to less populated states, in order to pay less tax.