Amazon and eBay may become tax collectors
Filed under: Company News, Economy
As states get less and less money from their tax bases, there is more pressure than ever to begin to take a piece of e-commerce sales. That could turn Amazon (AMZN) and Ebay (EBAY) into tax collectors -- and make shopping online more expensive and less attractive.
One of the advantages online retailers have had over the decade since broadband brought millions of retail customers to the internet is that they could avoid paying local taxes. With the economy in trouble, that could change very soon. According to The New York Post, "This would be fiscal relief for the states that wouldn't require any money from the federal government," said Neal Osten, a senior policy analyst with the National Conference of State Legislatures.
The federal government has too many mouths to feed. Taking some state support off that list would be attractive. The odds that e-commerce will remain "tax less" becomes less likely by the month.
Douglas A. McIntyre is an editor at 24/7 Wall St.



























Reader Comments (Page 1 of 1)
4-19-2009 @ 7:46PM
James Raider said...
WALL STREET WIELDS INAPPROPRIATE INFLUENCE ON CORPORATE AMERICA
Big public companies have long been shills at the beck and call of Wall Street investment bankers. EBay’s acquisition of Skype is a perfect model for the abuse.
http://pacificgatepost.blogspot.com/2009/04/ebay-skype-goldman-morals-and.html
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4-19-2009 @ 3:48PM
Peg said...
I have no doubt that this will happen. Even though it has been fought for a number of years it will happen for the simple reason the economy is in such poor shape.
Wall street and government got us all into this mess and once again, we will have no choice but to give these people money they don't deserve.
They will take it from us however they can and this is just another way of fixing their mistakes at our expense.
They don't give a damn if the little guy is struggling, they are just taking care of themselves in any fashion suitable and profitable for them
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4-19-2009 @ 8:16PM
Lisa said...
So what about the other on-line sellers. All the big department stores sell on-line as well! Are they going to start making them collect state sales taxes too?
I'm getting tired of hearing about eBay & Amazon sales, when the conglomerates have been doing this much longer and make larger profits doing so! If this passes and the conglomerates are not included, this would be a disgrace to our government!
If you live in po-dunk anywhere and order from say, Macy's, you don't pay taxes, only shipping & handling. What about all the catalog sales? Are they going to pay taxes too?
If our government starts this, then they seriously need to look at doing away with income tax and just charge sales tax "across the board"...not just pick on Amazon & eBay!
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4-20-2009 @ 10:37AM
Sarah said...
And the malls will close down to only little self serving vendor booths; where you can see some merchandise, then order on line, maybe one employee will be there.
So what did everyone think was going to happen after Ross Perot warned of the "giant sucking sound" of jobs, and then was eventually forced to also compete in that way? What kind of dumb people do not listen to a man who went out of his way to pay for his campaign instead of taking special interest money that taxpayers would ultimately pay the price for? They ridiculed him. They thought they were so much smarter and knew it all! They didn't want a fight because they thought it wasn't their job. And now they'll have to accept having no or little control, because they handed the job over to someone else. If they were wrong, so what, what do they have to lose when they aren't men expected to support women and a family; they only have to support themselves, no big deal.
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4-20-2009 @ 10:48AM
Sarah said...
And instead of getting twice the lifestyle from expecting women to work FT in the best job possible, they will be forced to have at least one roommate, even as an old man!
Yep, they were real smart! NOT.
And women cannot stand living with other women.
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4-20-2009 @ 10:51AM
Sarah said...
They can rent a room in someones house, and have their mini fridge and microwave knowing they aren't welcome in the kitchen! Yep they were real smart. From leader of the home to in the kids seat.
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4-20-2009 @ 11:03AM
Sarah said...
Know your neighbor! Not just your minimum payment apparently well off neighbor. They don't know anything except how to appear like a winner; they lose it all when they lose a job. Talk with them when they're a loser, not a winner, or just to any "loser" who doesn't appear to have what they do.
And, it's very clear that those with more money are not smarter then the ones without it, when they lose it, by not securing it, and by being greedy and in the market when they are retired gleefully living off of bogus money. They'll probably blame Bush and reduce their lifestyle, very unexpectly; because they did not know their neighbor, their enemy, the losers, and they didn't know anything. It's a real eye opener for them even though YOU were in front of them the entire time; who did they think was NEXT?
Easy come, easy go!
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4-20-2009 @ 11:11AM
Sarah said...
If the older ones paid attention to what was happening to the younger ones, instead of thinking they were such winners and the others were winners they might have learned something.
I've always talked to anyone including many "losers". The most valueable advice came from total, mind-bending losers; saving me much money and heart-ache.
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4-20-2009 @ 11:17AM
Sarah said...
In fact, I've even taken advice from "mentally ill" people; some not yet classified as such but with obvious traits, of say a bipolar. I could tell they were much smarter then most people, it just comes across without them trying. Listening to one, I saved myself $50,000 in about two hours of my time, and with a situation of which that opportunity is not always there....I listened to her right away. I know alot of people would be scared of them.
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4-20-2009 @ 11:29AM
Sarah said...
And then I listened to another full fledged diagnosed (but real case, not a psychiatric victim) bipolar, but it took much longer to accomplish what he suggested, and in fact it's still in the works and there's no guarantee yet; but as hard as it is to obtain, the more it's worth. They've been in my company because I was out there on my own supporting myself, not being insulated from them, and they have a unique ability to connect with others. Look at how they improved my life. In a few seconds of their time.
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4-20-2009 @ 11:32AM
Sarah said...
They're the worlds brightest people! And it didn't cost them or me anything.
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