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    Amazon and eBay battle in Washington over Internet sales tax

    Earlier this week, both Amazon and eBay had a public debate in Washington in front of the House Judiciary Committee about the creation of a standard Internet sales tax that could be adopted by any state seeking increased tax revenue according to CNNMoney. Recently on the opposite side of the argument, Amazon is currently arguing in favor of a standardized tax in order to simplify the tax collection process. It’s likely that Amazon wants to avoid further litigation with states like California as well as cutting off affiliates in states that attempt to launch a statewide Internet sales tax. Online auction company eBay is arguing against the creation of an Internet sales tax and believe that the creation of that tax would put a financial burden on small businesses that use eBay as a storefront.

    Paul Misener, Amazon’s vice president of worldwide public policy, argued that Amazon could easily help sellers integrate a tool to calculate state tax rates on the internal Amazon Marketplace. Tod Cohen, eBay’s deputy general counsel and vice president of government relations, argued that this discussion is no longer a case of online sites versus big-box stores as nearly all big-box retailers have an online component to the business. Cohen believes that a national standard for an Internet sales tax will further tip the scales in favor of the big-box retailer and harm small retailers.

    As of right now, federal law dictates that online sellers don’t have to collect tax on sales if they have no physical presence in the state. This has allowed online retailers to sell goods at discounted prices and undercut stores like Walmart and Target. California recently attempted to broaden the definition of “physical presence” to include any sites collecting affiliate revenue and operating within the state. After a legal spat with Amazon, California backed off and Amazon agreed to pursue an Internet sales tax regulated at the national level.

    This article was originally posted on Digital Trends

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    29 comments

    • Timothy  •  Tokyo, Japan  •  5 mths ago
      Keep government's greedy paws out of internet sales!
      • Lucixir 5 mths ago
        Timothy... of Japan (LOL in itself) go learn about economics followed by business.

        You might understand why this is long overdue and how it helps you instead of crying over those who are really screwing you over.
    • Thomas  •  5 mths ago
      Why not tax the sales tax and then add a tax on top of the tax which is on another tax.

      Why not take every dime that we have and sign IOU's for all of our future earnings and hand it to the government. In the end, that is what they want.
      • Arys 5 mths ago
        You already do. It's called student loans and a mortgage. We're never out of debt.
      • james g. 5 mths ago
        they do now. I buy a car, I pay tax.. i sell the car.. the buyer pays tax again. and again..... I work (used to, retired now) I paid income tax... guess I still do... but any way... the product we made got taxed... partly on the cost of employment... etc....
    • wade  •  5 mths ago
      my thinking is the feds and the states need to learn to live within their budgets just like the average person does.brick and morter stores need to figure out how to bring their prices in line with the internet.
      • kj 5 mths ago
        yeah, sure. your thinking is fantasy. History dictates that your thinking won't happen until it completely falls apart like the Euro zone.
    • Arys  •  5 mths ago
      It's not just the tax part that sends us shopping online. It's the fact that many websites (Amazon, etc) have products much cheaper than in local stores (chains or otherwise). #$%$ Best Buy, if I can save $5-10 on a movie, and $20 on an electronic device, I'm not going anywhere near you.
      • Vander javen 5 mths ago
        I bought a new Sony BRAVIA XBR55HX929 55-Inch 1080p online for $2,469 october 30, best buy is still asking $2,900 plus tax, good thing i searched online
      • Vander javen 5 mths ago
        the money is still being spent, just at a smarter deal, its not like its hurting the economy to save some money you spend
    • tony  •  Dallas, United States  •  5 mths ago
      "undercut stores like Walmart and Target."

      Are you serious? Nobody gets junk made cheaper than walmart. I had a friend that was a Pharmacist, he said, Walmart can sell Meds to public cheaper than he could get them from the Drug manufacturers.
    • Peter  •  Knoxville, United States  •  5 mths ago
      Small Business will be HURT in more ways than listed ... Not only will you have to pay "shipping" but also collect sales tax as well.... This is just a method to get people to buy locally.... Anyway, something that most people don't seem to realize is that the profit made online often ends up locally... when was the last time you ate out online or bought tires, oil changes etc, etc online.... I wager that most online profit gets spent "LOCALLY" not online... The states simply want it ALL..... Call or write your rep in congress asap --- this is absolutely not fair
    • Koninklijke Philips  •  5 mths ago
      I'm an international amazon customer and i import almost every month or two. If amazon is going to introduce sales tax, I will reduce my purchases to less than half. PLEASE KEEP SALES TAX OUT OF INTERNET SHOPPING. Why is amazon vouching for this? And yes this will have a direct impact upon small businesses, like the marketplace sellers on amazon.
      • Robert M 5 mths ago
        A tax everyone collects will have no impact if you are competing against other internet sellers. So what you're saying is you like that advantage over retail stores collecting sales tax.
      • Lucixir 5 mths ago
        Exactly Robert...people are just too dumb to understand the "whole picture".
      • Blind Mice 5 mths ago
        @Robert, the problem is not collecting sales taxes for where the seller resides. The problem is collecting sales taxes for where the buyer resides. If you live near the border of FL and GA, they both have very different taxes. If you go in Florida you pay FL taxes, if you go in GA you pay GA taxes. Lets say, you have a GA business deliver to you. With this, you will have to pay FL and GA taxes because you went across the border. Which is why the Constitution prevents it. Its not the sellers fault that every state has exemptions for the seller to not collect local taxes if the buyer is not in the state.
    • Vince  •  Los Angeles, United States  •  5 mths ago
      If Amazon wants to keep me as customer, they'd better shut up and mind their own business.
      The minute they start collecting sales tax I'm outta there.
    • Blind Mice  •  5 mths ago
      The problem is with the Constitution.Section. 9. Clause 5: No Tax or Duty shall be laid on Articles exported from any State. And since the Supreme Court ruled that the States can't tax exports either. And there no way Congress is going to amend the Constitution.

      Only way to legally tax internet sales is if the package never cross the state lines. Which already happens. If the seller and buyer lives in the same state, sales tax is charged.
    • Vander javen  •  5 mths ago
      what i have saved in online tax i have usually used that as a shipping fee. maybe they could just standardize it as a 1percent instead of 9
    • tuan  •  Houston, United States  •  5 mths ago
      let say tax tax tax everything untill people getting poor. Than we can have another uprising in America. That is what goverment want
    • JP  •  5 mths ago
      This is garbage you don't have to be affiliated with any party no more taxes. There are small American manufacturers who actually provide American jobs that do direct online sales are able to make enough of a profit margin to keep the manufacturing here taxing internet sales will ruin these businesses. This is obviously a bill going against the small businesses and is pro large corporation to sweep the small American business and manufacturers. Any congress member that votes for this should be voted out. The internet is the true free market and these politicians will destroy it anyway they can limiting freedom of choice. Ron Paul for President
    • michael m  •  5 mths ago
      the hell with the internet sales tax what about people who are just selling personnell belonging's or cleaning out the garage they already paid the tax on it when they first bought it and now you are asking us to pay the tax again no that is double dipping shame on you our government the biggest double dippers going
    • KosmicRealm  •  New Ulm, United States  •  5 mths ago
      Do not tax the Internet my god it's the only last thing we have for survival in this country. Tax Tax Tax Legalize pot already and tax that crap you smoke it anyway.
    • rustybore  •  Perkiomenville, United States  •  5 mths ago
      Back in the 1920's and 1930's those same kinds of arguments were used against chain stores (like A&P, FW WOOLWORTH etc) putting the smaller shops out of business. Way back in 1935, Texas Congressman Wright Patman introduced legislation to tax each chain store. This failed, and consumers continued to benefit from lower costs at chain stores. These tax proposals and the arguments by bricks and mortar firms represent the same flawed thinking that failed 70 years ago.
    • Yahoo  •  Los Angeles, United States  •  5 mths ago
      We know the government needs to make spending cuts and increase tax revenues for the excessive deficit and are using two giants to battle and introduce this new tax into the economy. You know its just a matter of time, give it a few years tied up in the court system, meanwhile just spend your dollars elsewhere, that's what their asking for.
    • lARRY  •  Yokosuka-shi, Japan  •  5 mths ago
      #$%$&&& the fed government, all they do is figure out new ways to screw the american people, tax spend tax spend.....time for all of us not to pay taxes and get our country back.
    • Sean  •  New York, United States  •  5 mths ago
      we all need to fight this somehow. This is a ploy by brick and morter stores to hurt online retailers and everyone will suffer.
    • Jake  •  5 mths ago
      They'll get arount to taxing it soon enough, why speed up the process?
    • Richard  •  5 mths ago
      What people seem to not understand is that it won't only be Amazon collecting sales tax. ANY on-line store will have to collect it. You can leave Amazon because they charge tax, but wherever you go, THEY will be charging the same tax, too! This issue is not a question of "if", but "when". The "who" will be ANY on-line retailer.
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