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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. hfinmyblood's Avatar
      hfinmyblood -
      10% of $100,000 is $10,000.

      10% of $1,000,000 is $100,000

      It's not about what they have left over, it's about how much they are paying in taxes. I may not have 10 degrees, but I believe this is basic math. So how are the rich paying less in taxes than we are. Punish them for doing well? Besides, if you have 10,000, and they have 100,000, who is in a better position to create jobs? Why would I work for someone who makes less than I do? But my opinion doesn't matter because I am uneducated.
    1. Essenar's Avatar
      Essenar -
      Quote Originally Posted by hfinmyblood View Post
      10% of $100,000 is $10,000.

      10% of $1,000,000 is $100,000

      It's not about what they have left over, it's about how much they are paying in taxes. I may not have 10 degrees, but I believe this is basic math. So how are the rich paying less in taxes than we are. Punish them for doing well? Besides, if you have 10,000, and they have 100,000, who is in a better position to create jobs? Why would I work for someone who makes less than I do? But my opinion doesn't matter because I am uneducated.
      What?

      I'm at a university and you're wrong.

      Millionaires don't create more jobs if you cut their taxes. They outsource their labor to third world countries and use their tax incentives to write out bonus checks to their executive officers.

      When Bush gave out a $700 billion bailout, banks were already counting bonus checks instead of putting recovery on the front line.

      We've given billions of dollars in tax cuts from the time Clinton was in office until Obama was elected.

      In that nearly ten year span, more jobs were created overseas and more jobs in the states turned over.

      You think they're going to make more jobs? They're going to use tax cuts the same way they always have. More yachts, Ferraris and trips to Europe.
    1. hfinmyblood's Avatar
      hfinmyblood -
      Quote Originally Posted by Essenar View Post
      What?

      I'm at a university and you're wrong.

      Millionaires don't create more jobs if you cut their taxes. They outsource their labor to third world countries and use their tax incentives to write out bonus checks to their executive officers.

      When Bush gave out a $700 billion bailout, banks were already counting bonus checks instead of putting recovery on the front line.

      We've given billions of dollars in tax cuts from the time Clinton was in office until Obama was elected.

      In that nearly ten year span, more jobs were created overseas and more jobs in the states turned over.

      You think they're going to make more jobs? They're going to use tax cuts the same way they always have. More yachts, Ferraris and trips to Europe.

      I was just stating basic math for a flat tax. I don't like the fact that they are opening businesses in other countries either, but that doesn't mean if I were in the same position I wouldn't do the same thing. Doesn't it make sense that if you can go somewhere else and not be taxed as much, wouldn't you move there?

      So in a sense, the basis for tax cut works, but just not where we want it to. Maybe if we could somehow ban opening American businesses on foreign soil...
    1. Essenar's Avatar
      Essenar -
      What we need to do is charge businesses for manufacturing and laboring in other countries. Import tax so businesses have to pay the bill on all that cheap labor. But as long as these corporations have lobbyists, this won't happen.
    1. PorthosPirate's Avatar
      PorthosPirate -
      Quote Originally Posted by Go Gators View Post
      Typical liberal democrat. Spend Spend Spend, Tax Tax Tax.
      Oh yeah... like that George W. Bush who exploded the deficit, tripled the size of government (hello DHS), and spent hundreds of billions of dollars on foreign wars. That dubya, a typical liberal democrat. Oh wait, he left out the tax part, and just spent spent spent...