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Illinois enacts Internet sales tax law


Y2HH

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QUOTE (StrangeSox @ Mar 24, 2011 -> 12:53 PM)
Buying bottled tap water that may be subject to even less regulations than municipal water is still a dumb idea.

 

But I really do shake my head at people who buy case after case of bottled water even though they get Lake Michigan water at home.

We are so spoiled by our water. I lived in an area of southern ohio where sediment floating in tap water was the norm.

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QUOTE (RockRaines @ Mar 24, 2011 -> 03:46 PM)
How many small business are truly competing with big box online retailers?

 

two perfect examples.

 

1) I needed to get a new bulb for my Rear Projection Mitsubishi TV. Small electronics store (not a Best Buy) in downtown Batavia was the same price as on-line, except for the 7.5% sales tax. Since the need was immediate, I bought the bulb from them, however I now have a spare. Bought that one on-line.

 

2) This spring I need to get a new filter for the Hot Tub. So I have a choice of going to the local pool supply store in town, or on-line. Again, one's going to charge me tax, the other won't.

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QUOTE (jasonxctf @ Mar 24, 2011 -> 01:49 PM)
two perfect examples.

 

1) I needed to get a new bulb for my Rear Projection Mitsubishi TV. Small electronics store (not a Best Buy) in downtown Batavia was the same price as on-line, except for the 7.5% sales tax. Since the need was immediate, I bought the bulb from them, however I now have a spare. Bought that one on-line.

 

2) This spring I need to get a new filter for the Hot Tub. So I have a choice of going to the local pool supply store in town, or on-line. Again, one's going to charge me tax, the other won't.

 

For most people, a savings of 7$ isn't enough to justify buying online and having to wait, and then taking the chance that what you got is broken and now have to ship it back...for a mere 7$ savings, you could have bought it local, and returned it for a replacement the same day...now you have to wait, and take the time to ship the item back. This holds true for big items, too...

 

I bought my xbox 360 at best buy and when it broke, I brought it back and had a replacement unit in minutes, my friend bought his online and it took weeks to get it back. Local stores have a big advantage still, despite the taxes...people just tend to ignore it.

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Price alone isn't driving the switch to on-line purchases. Convenience and selection is also a big factor. Many of you live in or near a major city, that is not the case for many Americans. Finding the right item has people jumping on-line. Right in the comfort of your home, every possible item in the world is available. Try matching that anywhere else. Avoiding crowds has people jumping on-line. Unlike catalog and mail order sales, buying on-line is quicker and easier, there's an ap for that! But no matter what reasons people have for buying on-line, the sales tax laws in place are unfair to states and to businesses.

 

Currently companies have to collect sales tax on any "in-state" purchases. That is a great reason to not locate in large states. Sales taxes are a major source of income for states. The more people buy on-line, the less sales tax comes into a state. There needs to be a national sales tax that states share in. One single tax rate, one payee. Companies would have an easy time computing and remitting the payments. Consumers would all be charged equally. That would be simpler than brick and mortar stores that have to track state, county, and local sales tax rates.

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QUOTE (Tex @ Mar 24, 2011 -> 03:25 PM)
There needs to be a national sales tax that states share in. One single tax rate, one payee. Companies would have an easy time computing and remitting the payments. Consumers would all be charged equally. That would be simpler than brick and mortar stores that have to track state, county, and local sales tax rates.

 

This is what many have been suggesting since this law came about.

 

One advantage that I just thought of that brick and mortar stores have over Amazon is interest-free financing. It's something I always get when I buy a big ticket item. About a month ago I had to buy a dryer and got 18-months no interest from Lowes. I do the same thing when I buy a computer or a TV.

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QUOTE (Iwritecode @ Mar 24, 2011 -> 04:28 PM)
This is what many have been suggesting since this law came about.

 

One advantage that I just thought of that brick and mortar stores have over Amazon is interest-free financing. It's something I always get when I buy a big ticket item. About a month ago I had to buy a dryer and got 18-months no interest from Lowes. I do the same thing when I buy a computer or a TV.

 

Signing up for all these credit cards can f*** up your credit rating.

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QUOTE (Iwritecode @ Mar 25, 2011 -> 10:31 AM)
It's never been a problem for us. We make all our payments on time and have always had a really good credit score.

Applying for credit too frequently will lower it regardless of balance however.

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QUOTE (RockRaines @ Mar 25, 2011 -> 11:43 AM)
Applying for credit too frequently will lower it regardless of balance however.

At the time you sign up for them yes...but then within a year or two it'll go the other way, because the fraction of your available credit you're using will have gone down.

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QUOTE (Balta1701 @ Mar 25, 2011 -> 11:19 AM)
At the time you sign up for them yes...but then within a year or two it'll go the other way, because the fraction of your available credit you're using will have gone down.

 

Plus it's not like I'm opening a new line of credit every time I buy something either. I just get a few small things every so often to keep the card active and when it comes time to make a large purchase, I have the no interest financing available already.

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QUOTE (Iwritecode @ Mar 25, 2011 -> 11:33 AM)
Plus it's not like I'm opening a new line of credit every time I buy something either. I just get a few small things every so often to keep the card active and when it comes time to make a large purchase, I have the no interest financing available already.

My point was more towards people that open new cards or lines frequently. For example if you want to get an auto loan and decide to apply to 10 different banks, your credit will actually lower as you apply. Its a catch-22, you can go out and look for rates, but the more you look, the worse your rates COULD get.

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QUOTE (Tex @ Mar 25, 2011 -> 01:05 PM)
I was just reading a different article about the same thing. It reminds me that the tax rates mean nothing if there are enough ways to reduce the rate.

Most of the companies I work with around the area (Huge ones) are tax exempt on all purchases.

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You know what, f*** this tax law and f*** any of you defending it, and furthermore, f*** the government worried about piddly little people like us and mom and pop shops paying sales tax on Internet sales...

 

When meanwhile...

 

General Electric (GE), reported worldwide profits of $14.2 billion, and said $5.1 billion of the total came from its operations in the United States.

 

Its American tax bill?

 

Zero. In fact, G.E. claimed a tax benefit of $3.2 billion.

 

For more: http://www.nytimes.com/2011/03/25/business...tml?_r=2&hp

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QUOTE (Jenksismyb**** @ Mar 25, 2011 -> 02:00 PM)
While I'm in favor of tax BREAKS for companies, I dunno that I'd go THIS far. What a joke.

 

http://www.nytimes.com/2011/03/25/business...tml?_r=1&hp

This is what we mean when we say that anyone who complains the U.S. corporate tax rate is too high is a bald-faced liar.

 

The nominal rate is too high. The effective rate goes down correlated with your firm's size and lobbying power.

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  • 2 months later...

I'm sure it won't go anywhere, but Dick Durbin (D-IL) has a bill proposal coming forward today that would set up a national system where the Federal Government would collect sales tax from internet retailers on behalf of states and then pass along those sales taxes back to the states.

The idea behind Durbin’s bill is that states would be able to require online retailers to collect sales tax if the states first agree to a streamlined sales tax. So far, 24 states are members of the Streamlined Sales and Use Tax Agreement, which would simplify and harmonize sales tax nationwide. Some states have rankled at aspects of the sales tax agreement and have been reluctant to sign on, until they have been sure that Congress will step in and force online retailers to collect sales tax.

 

Amazon has indicated it supports the streamlined sales tax effort. “A national resolution, involving tax simplification evenhandedly applied, is the legally permissible path for states to follow,” the company said in a letter to a California tax official earlier this year.

 

Read more: http://www.politico.com/news/stories/0611/...l#ixzz1OcBis2Yr

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QUOTE (Balta1701 @ Jun 7, 2011 -> 01:08 PM)
I'm sure it won't go anywhere, but Dick Durbin (D-IL) has a bill proposal coming forward today that would set up a national system where the Federal Government would collect sales tax from internet retailers on behalf of states and then pass along those sales taxes back to the states.

 

Lol, god I couldn't even come up with a better way to show how completely inefficient and wasteful government really is. What a f***ing joke. How much does Dick think that'll cost, to set up a federal office to collect the taxes and then distribute them out to the states? America everybody. Ugh.

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QUOTE (Jenksismyb**** @ Jun 7, 2011 -> 06:18 PM)
Lol, god I couldn't even come up with a better way to show how completely inefficient and wasteful government really is. What a f***ing joke. How much does Dick think that'll cost, to set up a federal office to collect the taxes and then distribute them out to the states? America everybody. Ugh.

 

how much do you think it costs to not be able to collect sales tax that states rely on.

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QUOTE (Jenksismyb**** @ Jun 7, 2011 -> 01:18 PM)
Lol, god I couldn't even come up with a better way to show how completely inefficient and wasteful government really is. What a f***ing joke. How much does Dick think that'll cost, to set up a federal office to collect the taxes and then distribute them out to the states? America everybody. Ugh.

 

 

Your looking at it all wrong. Think about how many jobs will be created?

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QUOTE (StrangeSox @ Jun 7, 2011 -> 06:28 PM)
We have giant deficits across the nation, but trying to repair those by coming up with measures that create even more bureaucracy and waste even more money to enforce existing tax code is EVIL!

 

Agreed.

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