Illinois enacts Internet sales tax law

[Balta1701]

Though I agree that the state will probably throw some money at them just to make sure.

Which is probably exactly what is going on here...other people are getting money by making an empty threat, so why can't we?

[southsider2k5]

LOL, yeah, because the electronic trading tech gurus are really going to want to move to Indy when there are lots of jobs for them in Chicago. Not gonna happen, unless you are suggesting the whole derivatives world is going to up and move out, which is also a non-starter.

 

Though I agree that the state will probably throw some money at them just to make sure.

 

That's just it. If you took most of the CME out of Chicago, there wouldn't be nearly the reason for many firms to be here. There is a reason these industries are clustered around Chicago and NY primarily, and now San Fran and Atlanta secondarily. I think the ICE actually proves better than anyone that if you have work, people will come to you. That is a financial powerhouse HQ'd in the deep south. If you can do that, you can do it anywhere.

[Jenksismyhero]

"But company executives said any extra costs firms would face for moving that equipment would quickly be repaid by state eager to get CME. The company is believed to be looking at New York, New Jersey, Texas and Indiana."

That could play a part.

Edited June 9, 2011 by Jenksismybitch

[NorthSideSox72]

That's just it. If you took most of the CME out of Chicago, there wouldn't be nearly the reason for many firms to be here. There is a reason these industries are clustered around Chicago and NY primarily, and now San Fran and Atlanta secondarily. I think the ICE actually proves better than anyone that if you have work, people will come to you. That is a financial powerhouse HQ'd in the deep south. If you can do that, you can do it anywhere.

Works both ways. CME needs the firms as much as they need CME. And they aren't going to up and move en masse. Starting an entirely new operation is a different deal, and that they MIGHT do as a test - start some new, smaller venue for a specific type of trading somewhere else, and see how it works out. But its not an extensible model, the talent won't be available to go very far with it. CME's main business and most of their people will still be here, no doubt.

 

 

[NorthSideSox72]

That could play a part.

NJ/NY are possible, but keep in mind the taxes there will be just about as bad as IL all-told. Plus cost of living increases to those places would be dramatic, which means losing talent (again), and/or major increases in salaries that take away some of the savings.

 

Texas may actually be the most realistic - doesn't have the costs of NY/NJ, but there is some degree of finance and tech knowledge down there.

 

I still say the chances of them moving anything of note are miniscule, and that IL will throw some money at them just to make sure.

 

[Texsox]

Texas? Hmm, I wonder if the zero state income tax would be attractive to guys earning multiple seven figures?

 

[RockRaines]

Good luck finding just out of HS girls to be runners and sleep with highly paid traders in Indiana.....Well at least attractive ones.

[southsider2k5]

NJ/NY are possible, but keep in mind the taxes there will be just about as bad as IL all-told. Plus cost of living increases to those places would be dramatic, which means losing talent (again), and/or major increases in salaries that take away some of the savings.

 

Texas may actually be the most realistic - doesn't have the costs of NY/NJ, but there is some degree of finance and tech knowledge down there.

 

I still say the chances of them moving anything of note are miniscule, and that IL will throw some money at them just to make sure.

 

Lots of those reasons are why NWI could be perfect. There are already plenty of established transportation options, so not much of a talent-loss. Heck a sizable amount of CME workforce already comes from NWI on a daily basis. Cost of living is cheaper, and they would get an incredible TIF package in addition to the $100ish million in income tax savings. Add in all of those factors and the CME could be looking at hundreds of millions in saving per year for the foreseeable future.

 

I do still think they aren't going anywhere.

[StrangeSox]

And where exactly does this policy leave us here in this great state of Illinois? Essentially "big" companies have the state by the balls - they can merely threaten to leave and they'll be thrown tax breaks left and right. They've managed the storm of the recession, and now get an even bigger break just for being a big employer.

 

Hey why are you making such great arguments against Republican plans for a "race to the bottom"?

[Jenksismyhero]

Hey why are you making such great arguments against Republican plans for a "race to the bottom"?

 

Well, i'm mostly pointing out that it's also a liberal plan. But yeah, i'm much more moderate than you think. If he had given these "deals" to small to mid size companies, I would have been all for it. The big companies (and rich people) can suck a nut, at least in times like these.

[Y2HH]

Well, i'm mostly pointing out that it's also a liberal plan. But yeah, i'm much more moderate than you think. If he had given these "deals" to small to mid size companies, I would have been all for it. The big companies (and rich people) can suck a nut, at least in times like these.

 

Don't you realize that on the Internets (esp Soxtalk), if you don't agree with the Liberal POV, that automagically makes you a Republican in the tank for the GOP?

 

I've repeatedly shown disdain for both parties in numerous posts, yet I'm still considered a Republican here by many.

[Balta1701]

I don't know if their tax is structured the same way as in Illinois, but the dirty stinking hippies in Texas voted overwhelmingly today to add in an internet-based sales tax structure into their budget deal. This moved comes after their Governor vetoed another attempt to add in an internet sales tax.

 

[bmags]

Good luck finding just out of HS girls to be runners and sleep with highly paid traders in Indiana.....Well at least attractive ones.

 

I enjoyed this.

[mr_genius]

Chances of CME moving anything significant out of state are

 

it's just a bluff, but I'm sure Quinn will fold and give into their demands.

[mr_genius]

They won't move either way. CME Group is made up of a whole lot of very skill and knowledge-specific individuals, many of which are not willing to move to Indianapolis, or commute to Gary or the like. The brain drain would hit them real, real hard. This isn't some simple manufacturing business.

 

they would lose top talent. no one wants to sell their house in a down market and move their family to Indiana. they would be retaining a lot of employees that tried to find something else and couldn't.

[southsider2k5]

it's just a bluff, but I'm sure Quinn will fold and give into their demands.

 

No doubt.

[Balta1701]

In the past week, Amazon.com has cut off Arkansas and Connecticut from states that it exists in. Louisiana appears next.

[Balta1701]

Add California to the list.

 

Personally, I want to see Amazon.com shut out California.

[Balta1701]

Amazon.com is cutting off all of its affiliates from California.

 

With Illinois, New York, and California now on the list in addition to a number of smaller states, Amazon' affiliate program pretty much must be close to no longer existing. A number of them have jumped to other retailers and there's been talk of Walmart making moves on a lot of them.

[Y2HH]

Amazon.com is cutting off all of its affiliates from California.

 

With Illinois, New York, and California now on the list in addition to a number of smaller states, Amazon' affiliate program pretty much must be close to no longer existing. A number of them have jumped to other retailers and there's been talk of Walmart making moves on a lot of them.

 

Until Amazon can't hide from this, it won't affect them, just the businesses they cut off. Amazon won't skip a beat, they'll still sell the same stuff, they'll just ship it from farther away, which means nothing to them because their shipping contracts give them flat rates.

 

In the mean time, these small businesses are hurting, because a huge avenue for sales was chopped off on them. And while it's nice that Walmart and others are talking, they're not doing...so the small businesses in question continue to suffer. Also, even after Walmart (if they do it), begins an affiliate program of their own, it has to be built, programmed into their website, the inventory system has to exist, etc...and then the company in question needs to learn all over again how to use it.

 

If anything, they (the states) should have said, while we are enacting this sales tax law, we will grandfather all businesses that would be affected by it for 6 months so they can plan a viable a transition, and/or find other retailers to affiliate with...I think that would have been much more acceptable to me.

Edited June 30, 2011 by Y2HH

[Texsox]

Day 25: State lawmakers passed an amendment during the special session to force online retailers like Amazon.com to collect sales taxes. The rule takes effect on Jan. 1, 2012, but the online giant is fighting to keep things as they are.

 

Texans are supposed to pay sales taxes on goods they buy from out-of-state online retailers, but who are we kidding? It rarely happens. People don't know they're supposed to do it or they don't care, says David Kruger, the owner of Kruger's Jewelers in downtown Austin. The fourth-generation businessman says he and other Main Street-type retailers have to collect sales taxes from their customers directly. They're tired of appearing as though their wares are more expensive than those of online competitors who don't include sales taxes in their prices. Kruger says he and other brick-and-mortar shops think it's time for the Internet sellers to play by the same rules. (Watch the Tribune's interview with Kruger.)

 

Needless to say, Kruger supports the Legislature’s decision to require out-of-state online retailers with a physical presence in Texas to collect sales taxes from their Lone Star customers. That includes companies that have distribution centers, warehouses, sales or sample rooms, and storage units in Texas.

http://www.themonitor.com/articles/texas-5...-featuring.html

 

Maybe Amazon will want to move out of Texas . . .

[Balta1701]

Amazon has supposedly struck a deal with the state of California to begin collecting sales taxes starting a year from now.

[Balta1701]

An internet company has announced a new program...they will set up a system to collect and process state level tax fees for a variety of internet merchants and distributors. They will charge 2.9% of the total collected tax to process this fee for merchants, thus making themselves a profit and saving smaller merchants the headaches of dealing with multiple state tax systems.

 

The company setting this system up to enable payment of state taxes while profiting itself?

 

Amazon.com.

[mr_genius]

An internet company has announced a new program...they will set up a system to collect and process state level tax fees for a variety of internet merchants and distributors. They will charge 2.9% of the total collected tax to process this fee for merchants, thus making themselves a profit and saving smaller merchants the headaches of dealing with multiple state tax systems.

 

The company setting this system up to enable payment of state taxes while profiting itself?

 

Amazon.com.

 

seems fair to me

[Balta1701]

seems fair to me

It's an incredibly smart business move.