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  • iTunes May Be Forced to Charge Local Tax if New Federal Law Passes


    The tax man may be coming for US consumers of digital content and other goods purchased online. US Senator Richard Durbin (D-IL) is taking direct aim at the likes of iTunes and Amazon in an effort that could force them to begin collecting local sales tax on all online transactions.

    Durbin, the second longest serving Democrat in the US Senate, isn't dishing many details on the proposal for now. It's believed the measure will be formally introduced sometime next week - you know, after Tax Day comes and goes. Still, the breadth of the anticipated proposal is seemingly in line with the longstanding remarks Durbin and some of his colleagues in Congress have made in recent months regarding online transactions and the process of collecting local taxes. "Why should out-of-state companies that sell their products online have an unfair advantage over Main Street bricks-and-mortar businesses?" Durbin said in February. "Out-of-state companies that aren't paying their fair share of taxes are sticking Illinois residents and businesses with the tab."

    Unfortunately for lawmakers, however, simply passing a bill demanding Apple, Amazon, and others to charge local taxes will not be uncomplicated. With 7,500 different taxing jurisdictions in the United States today, no one has the slightest clue as to how Congress might smoothly implement or mandate such a sweeping overhaul.

    According to CNET, The Direct Marketing Association, which filed suit against the state of Colorado in 2010 to impede a similar law from taking effect, says it will fight Durbin. "You're just giving the states a blank check to make changes without any congressional oversight," says Jerry Cerasale, the DMA's senior vice president for government affairs. "We oppose that...We think that's abrogating the authority of Congress."

    Source: CNET
    This article was originally published in forum thread: iTunes May Be Forced to Charge Local Tax if New Federal Law Passes started by Michael Essany View original post
    Comments 125 Comments
    1. rayochoa's Avatar
      rayochoa -
      Quote Originally Posted by mr117 View Post
      Fair tax? You mean flat tax? Right, Donald Trump and I both pay 20% of our gross income. After taxes, he has $200 million left and I have $50-60 thousand. How about if we raise taxes on the rich and make them pay their fair share? No more hiding the money, no more write offs, no more sweetheart deals, no more corporate tax benefits, no more corporations paying nothing in taxes, no more corporations that make a billion dollars in profit getting tax refunds? This isn't about liberals and conservatives, this is about business. Do they run us or do they answer to us? If they pay a fair share, no more issues. But they can vote with their $, and politicians and judges dance to their tune. While the media whips people up, and people call themselves red or blue, business just keeps getting richer and we (all of us) keep getting poorer. It used to be said that a Republican is just a Democrat who made some money. Soon, as the vast majority of Republicans find that their leaders have sold them and their children out to big business, they may find themselves looking in a different direction.

      Just the same as it ever was.
      if you tax the rich (business owners) they won't pay for it.. you will, you see if the rich have to pay more taxes they will get the money from theyr customers to make sure they don't lose profit.
    1. Joedogg2112's Avatar
      Joedogg2112 -
      Quote Originally Posted by alexevo View Post
      I think he meant tax everyone the same amount as in a flat % tax. 10% of 80,000 is only 8k whereas 10% of 250,000 is 25,000 which means that person is paying more in taxes than you are, literally.

      It's simple, no tax breaks, make a flat tax, and be done with it.
      I agree flat tax but she is right thay will just go up on the things we buy to pay for it
    1. Villebilly's Avatar
      Villebilly -
      I don't have a problem paying taxes. But I do have a problem with the way they are spent. There is way too much government waste. When businesses waste money they usually go out of business. When government does, they just ask for more money. If we had leaders in government who got replaced more often they might use this money more effectively - instead of just asking for more tax money and spending more.
    1. nebnostod's Avatar
      nebnostod -
      Quote Originally Posted by bowserm View Post
      I have been paying taxes on my purchases for a few years now in Canada.

      If you are buying a 0.99 app/game what is another 0.15?
      15%. If you are paying $1000 in taxes, what's another $150? Pay up!
    1. NCMacMan's Avatar
      NCMacMan -
      In NC, you pay tax on all iTunes purchases. Apple tacks (or Tax) it on. This law would really effect Amazon here as you all may know that Amazon was fighting the state of NC. Since Amazon has no physical presence here and wouldn't agree to collect NC tax, the state attempted to require Amazon to give up who was making purchases from NC in order for the state to go after individual tax payers. This federal law would require Amazon to do that.
    1. mr117's Avatar
      mr117 -
      OK- last time around this track:

      [Constitution for the United States of America][1]

      We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.

      Article. I.

      Section. 1. All legislative Powers herein granted shall be vested in a Congress of the United States, which shall consist of a Senate and House of Representatives.

      Section. 2.The House of Representatives shall be composed of Members chosen every second Year by the People of the several States, and the Electors in each State shall have the Qualifications requisite for Electors of the most numerous Branch of the State Legislature.

      No Person shall be a Representative who shall not have attained to the Age of twenty five Years, and been seven Years a Citizen of the United States, and who shall not, when elected, be an Inhabitant of that State in which he shall be chosen.

      Representatives and direct Taxes shall be apportioned among the several States which may be included within this Union, according to their respective Numbers, which shall be determined by adding to the whole Number of free Persons, including those bound to Service for a Term of Years, and excluding Indians not taxed, three fifths of all other Persons [Modified by Amendment XIV]. The actual Enumeration shall be made within three Years after the first Meeting of the Congress of the United States, and within every subsequent Term of ten Years, in such Manner as they shall by Law direct. The Number of Representatives shall not exceed one for every thirty Thousand, but each State shall have at Least one Representative; and until such enumeration shall be made, the State of New Hampshire shall be entitled to chuse three, Massachusetts eight, Rhode-Island and Providence Plantations one, Connecticut five, New-York six, New Jersey four, Pennsylvania eight, Delaware one, Maryland six, Virginia ten, North Carolina five, South Carolina five, and Georgia three.

      The 3/5ths rule meant that the South could count slaves as citizens at the rate of 3/5ths of a White person, in order to have more political power in Congress (the House sets representation based on each state's population, while the Senate only allows two senators per state). It (the South) refused to ratify the original Constitution until this was agreed to. In much the same way the original draft by Jefferson said "All men are equal.." was changed, after pressure from the South, to "All men are CREATED equal."


      "The constitution declares, that a capitation tax is a direct tax; and both in theory and practice, a tax on land is deemed to be a direct tax... The provision was made in favor of the southern states; they possessed a large number of slaves; they had extensive tracts of territory, thinly settled, and not very productive. A majority of the states had but few slaves, and several of them a limited territory, well settled, and in a high state of cultivation. The southern states, if no provision had been introduced in the constitution, would have been wholly at the mercy of the other states. Congress in such case, might tax slaves, at discretion or arbitrarily, and land in every part of the Union, after the same rate or measure: so much a head, in the first instance, and so much an acre, in the second. To guard them against imposition, in these particulars, was the reason of introducing the clause in the constitution."

      Actual Income TAX came in with the 16th Amendment in the 1800's. Now, unless you hold that Amendments are NOT part of the Constitution.....


      As to flat tax, again, it is patently unfair for everyone to pay the same, when the burden of taxes falls more heavily on the have-nots than the haves. It can"t be stated any more plainly. It's not fair for a millionaire to pay 10% and have $900,000 left over and a person working at Walmart paying 10% and having $30,000 left over. Who works harder? If you folks would read any of the Enlightenment writers (Locke, in particular), you'd see that the framer's of the Constitution were well aware of the need for the more well-off to shoulder a bit more of the burden, because that's who THEY were reading. We all live here together, we all share the same country, we are all responsible for keeping the county going. Unless, of course, you believe in, I got mine, **** you, Jack. The idea of paying no income taxes is ludicrous, and the belief that sales taxes and/or gas taxes would make up the difference is as well. The costs would just go up and you'd be paying $40.00 for a gallon of gas and $28.00 for a burger. The money to run the cities, counties, states and country has to come from somewhere. We pay for our country to exist. To believe that taxes are slavery is, to use the same word, ludicrous. You are paying taxes because you LIVE here and you enjoy that which the country gives YOU. I can't think of a single place on earth where there are no taxes. If you can, I suggest you go there and check it out. Report back to us. Oh, wait, I bet there's no mail service there, because no one is willing to pay for it.

      As to the seeming hatred of some of the writers above towards the American people, I have nothing to say. Self-hate is an ugly thing.
    1. Joedogg2112's Avatar
      Joedogg2112 -
      Quote Originally Posted by Villebilly View Post
      I don't have a problem paying taxes. But I do have a problem with the way they are spent. There is way too much government waste. When businesses waste money they usually go out of business. When government does, they just ask for more money. If we had leaders in government who got replaced more often they might use this money more effectively - instead of just asking for more tax money and spending more.
      I agree and the first one that needs to go is Obama, he has spent more money in the first 2 years of his term than bush did in 8 including the war,,, but the left don't want to see that


      Sent from my iPhone using ModMyi
    1. Villebilly's Avatar
      Villebilly -
      I'm not in favor of the flat tax - I don't mind paying more percentage-wise as I make more. But we do need a more simplified tax code. This does not mean I am in favor of raising taxes when we have a spending problem. 40% of the budget already goes to entitlement programs - many of which are not even effective.
    1. Essenar's Avatar
      Essenar -
      A lot of you sure love using public services in this country without paying for them.
    1. SRPrentice's Avatar
      SRPrentice -
      Amazon and iTunes aren't public services. I'll happily pay for public services.
    1. Essenar's Avatar
      Essenar -
      How do you think police officers get paid? Magic dollars from the magic tree?
    1. SRPrentice's Avatar
      SRPrentice -
      So you're saying if we don't pay taxes for purchases online, police men and women won't get paid? Perhaps here in Illinois we cut the corruption to help pay these people. My problem is based in Illinois where I live. I'm a diehard liberal but this tax I don't agree with. You should see the corruption here. There are better ways of raising money than this is all I'm saying.
    1. SRPrentice's Avatar
      SRPrentice -
      For example, stopping the Bush tax cuts, enacting a progressive income tax, and legalizing marijuana and taxing it are ways to earn money. This isn't the place to get into a political duel so I'll leave it at that.
    1. Essenar's Avatar
      Essenar -
      Quote Originally Posted by Villebilly View Post
      I don't have a problem paying taxes. But I do have a problem with the way they are spent. There is way too much government waste. When businesses waste money they usually go out of business. When government does, they just ask for more money. If we had leaders in government who got replaced more often they might use this money more effectively - instead of just asking for more tax money and spending more.
      The problem with our society is too many people whine about things and have no justification to. Why? Next time someone complains to you about Obama or the government wasting money, ask them if they even vote. I'll bet they give you some "why should I vote? The system is broken" bullcrap excuse.

      The truth of the matter is the so-called "smarty pants" of this society only talk about what they don't like about our government.

      A lot of these problems could be fixed if we stopped supporting this system. Stop paying for cable TV, stop shopping at Walmart, stop buying pay per view sports events. Start supporting local companies. Start educating your children. Help support teaching unions, but vote in performance standards because tenured teachers with a union behind them don't perform well.

      No one wants to do their part.
    1. SRPrentice's Avatar
      SRPrentice -
      Quote Originally Posted by Essenar View Post
      The problem with our society is too many people whine about things and have no justification to. Why? Next time someone complains to you about Obama or the government wasting money, ask them if they even vote. I'll bet they give you some "why should I vote? The system is broken" bullcrap excuse.

      The truth of the matter is the so-called "smarty pants" of this society only talk about what they don't like about our government.

      A lot of these problems could be fixed if we stopped supporting this system. Stop paying for cable TV, stop shopping at Walmart, stop buying pay per view sports events. Start supporting local companies. Start educating your children. Help support teaching unions, but vote in performance standards because tenured teachers with a union behind them don't perform well.

      No one wants to do their part.
      Agreed. See, we are on the same side.
    1. Joedogg2112's Avatar
      Joedogg2112 -
      Quote Originally Posted by KartRacer View Post
      Sorry mr117, but Democrats are guilty of every single thing you put on Republicans. They voted for war, they voted for raises on Congress, they voted for the Patriot Act, they voted for the TSA, they've started wars and not ended them, shall I go on? Both are guilty, both are liars. If you believe anything otherwise you're trying to justify your hatred. I hate Republicans, just like I hate Democrats in Congress. Putting more blame on one side than the other is laughable considering what's happened over the past 60 odd years in this country. It drives me insane when people vote or are opinionated along party lines. It tells me they are both close minded and ignorant. Ignorant by choice, not by opportunity. I don't disagree with what you've said because you're both right and completely wrong at the same time. I would urge you to look inward on your own party and discover that they are absolutely no different than the Republican party. No one bit different.
      Amen


      Sent from my iPhone using ModMyi
    1. alexevo's Avatar
      alexevo -
      Quote Originally Posted by mr117 View Post
      It's not fair for a millionaire to pay 10% and have $900,000 left over and a person working at Walmart paying 10% and having $30,000 left over. Who works harder? If you folks would read any of the Enlightenment writers (Locke, in particular), you'd see that the framer's of the Constitution were well aware of the need for the more well-off to shoulder a bit more of the burden, because that's who THEY were reading.
      Who are you to judge how hard someone works to earn theirs? Just because the millionaire isn't sweating over manual labor or other menial jobs doesn't mean he isn't working as hard as the wal-mart worker or has more to lose based on his decisions. That millionaire could easily not be a millionaire the next day if he doesn't make the right calls but if he does make the right ones then he has every right to be a millionaire. I'll flip it on you and say it is patently unfair for the millionaire to have worked harder than anyone he knows to become a millionaire just to have to pay more than the lazy person who might have chose the easier route and didn't want to put in the work and is instead content with working at wal-mart.

      I'm completely for a flat tax with thresholds at certain levels but there won't be much of a difference. I'm completely against 40 or 50 percent taxes against the wealthy because of the fact that they made smart business decisions to accumulate that wealth. It's like punishment for being successful. Where is the justice in that?

      Now, I'm not by any means rich, but I can afford my house and a couple cars(no Bentleys in my driveway) and I don't use any loopholes to escape paying my fair share of taxes because I don't live an extravagant lifestyle that encourages evading my taxes. Could I easily hire an unscrupulous accountant or otherwise find ways to pay less and have a nice german or italian car in my driveway and take vacations to europe? Sure, but I choose to save/invest my money so I won't have to work past my retirement age and worry about whether or not my kids(when I eventually meet a girl/get married/start a family) will be able to go to college or if they choose not to then to at least be able to pursue their goals.

      A flat tax would literally mean I'd probably pay half as much as I do now but consider the other side of that, if I'm paying half as much then that guy working hard paying his 23% or whatever it is is also going to be paying half as much and as lame as it sounds, that puts a smile on my face to know that someone working as hard as I am just to earn less can at least keep more of what he does earn.
    1. hogcia's Avatar
      hogcia -
      I already pay taxes @ apple & amazon.com I live in NY. Do they think this will help the economy? How about they stop playing politicks and stop the government & wall street corruptions? They have been f*ucking the people for years, and know they want more? I'm so sick of this country, I feel sorry for all the good people in it. Hope all of you are ready, next year the dollar will fall and I hope god has mercy on us.
    1. Villebilly's Avatar
      Villebilly -
      As I stated before, our politicians have a spending problem - not a revenue problem. Most of them don't know how to say the word "NO" to their constituents or entitlements. Most of these politicians have never run a business so balancing a budget seems optional - just look at this past week's events. The tragedy is insisting on raising taxes will fail everytime we have a downturn in economy because no adjustment will be made when the revenues are less than previous years. This is the same problems facing states like AZ and CA right now.

      Apparently someone doesn't realize we already have a progressive income tax. The Tax Foundation - Who Pays What on Tax Day
      Each year the federal government asks for larger and larger sums from a gradually depleting pool of taxpayers. In 2004, some 42.5 million Americans filed a tax return but had no tax liability after taking advantage of their credits and deductions - up from 32 million just four years earlier. Non-payers account for 32 percent of all tax filers, a 160 percent increase in the number of non-payers since 1985.

      In addition to these non-paying filers, roughly 15 million individuals and families earned some income in 2004 but not enough to be required to file a tax return. When these non-filers are added to the non-payers, they add up to 57.5 million income-earning households who paid no income taxes.

      Even 57.5 million is not the actual number of people because one tax return often represents several people. When all of the dependents of these income-producing households are counted, roughly 120 million Americans - 40 percent of the U.S. population - are outside of the federal income tax system.

      In addition, a recently released Tax Foundation study revealed that 60 percent of American households are now net consumers of government spending. That is, a significant majority now receive more in government spending than they pay in taxes. In all, over $1 trillion is redistributed from the top 40 percent to the bottom 60 percent.

      It is no wonder people feel the tax code is unfair. The ones paying most of the taxes see little for their return.

      While some may applaud the fact that millions of low-and middle-income families pay no income taxes, there is a threat to the fabric of our democracy when so many Americans are not only disconnected from the costs of government but are net consumers of government services. The conditions are ripe for social conflict if these voters begin to demand more government benefits because they know others will bear the costs.


      The italicized paragraphs come from a 2007 document.
    1. randyg734's Avatar
      randyg734 -
      There charge me taxes on app store ,I'm from Michigan it sucks ifu ask me