Why Internet Companies Shouldn't Have To Charge Sales Tax
reason's Nick Gillespie interviews Overstock.com's CEO, Patrick Byrne about the sales tax issue, what is "good regulation," and other issues:
From the reason link:
Raised in New Hampshire, Byrne describes himself as a former "Yankee Republican" who has never felt comfortable with anti-market Democrats and no longer recognizes the GOP as the party of small government and individual liberty.In this 10-minute interview, Byrne explains why school choice is the key issue of our day, how bad regulations contributed to the current economic crisis, and why "the government should pave the roads, run the Post Office, and stay off my porch."
He feels libertarians should transcend left and right, and I'm with him. Now, if only the Libertarian party would present a candidate who isn't a fucking joke.
A whole bunch of you have been really great, buying stuff from Amy's Mall when you needed something from Amazon, helping me stay afloat during the downturn in newspapers. Well, if California has its way and starts charging sales tax for Amazon purchases, I'll be rather screwed, since Amazon's likely to make good on its threat to pull out of this state, as it's already done in North Carolina. Regarding California's prospects, here's a piece from San Jose Biz Journal:
Amazon.com Inc. reportedly sent a letter to California legislators Monday warning that it will cease doing business with marketing affiliates in the state if it is forced to collect sales taxes there.The Wall Street Journal said the Seattle company called the move unconstitutional and quoted directly from the letter which said the proposed law "ultimately would require sellers with no physical presence in California to collect sales tax merely on the basis of contracts with California advertisers."







> if only the Libertarian party
> would present a candidate who
> isn't a fucking joke.
Now she tells us... I only voted for that one guy last year because you told us to! Well... Also because the thought of voting for Obama or McCain was intolerable.
Seriously now honestly, a Libertarian party is kind of contradiction in terms. It's not that libertarianism is supposed to be a rain gutter for all the world's piss artists —though having people like O'rourke and Gutfeld on board makes it a lot of fun. Politics in America goes best when you're beholden to no one and it's not practiced through reflexes other than a spirit of independence. A favorite take on the Blanche DuBois line: "I have always admired the spaces between people."
Crid [CommentCrid@gmail.com] at July 1, 2009 1:39 AM
I've never understood how you can charge tax on an internet purchase. When buying on Ebay, I do not buy from the sellers who charge tax. Nor will I order from Amazon if they start. Not giving more money to the government is one of the perks of internet buying, for me.
I have an Aunt who lived on the edge of a state in the northeast that didn't have state income tax (delaware? New Hampshire? I forget) and drove across the border to shop in the state that had income tax but no sales tax. That's the perfect set-up IMO. Too bad for her she had to move.
momof4 at July 1, 2009 5:37 AM
California is a model of what not to do. When will those politicians wake up?
Probably never.
I see the rest of us having to bail out California pretty soon unless they really do something drastic.
Chasing amazon out won't be a good move but that never stopped an egotistical politician.
David m. at July 1, 2009 6:02 AM
I've always disagreed on taxes on internet sales from additional overhead it would cause for a mom & pop trying to start an eBay business or something similar.
There are something like 350+ tax zones depending on your address.
If they are going to do it -- the way to do it is average everyone's sales tax -- including the 0% zones -- once a year. Then from there that is the internet sales tax. Then every tax zone gets an even distribution of the amount collected.
Jim P. at July 1, 2009 6:30 AM
Amy, you need to move. Seriously. You could live in Nevada and still maintain your contacts in California.
As for the Libertarian Party: I hear you, but that party has been what it is for as long as I can remember. I don't see much hope there. I think a better option is for libertarians to become dominant in one of the major parties. The current-day Democratic Party is far too authoritarian, so the best option appears to be the Republicans. There's already a non-trivial libertarian presence there.
The trick is going to be to reach a new accommodation with the social-conservative wing of the party. For our part, we need to acknowledge that most of the things that the social conservatives worry about -- cultural breakdown, slut chic, degenerate education -- are legitimate things to worry about. My problem with them is that I don't agree with many of their proposed solutions; they keep wanting to use law to address things where law really just doesn't work very well, and has lots of bad side effects. We need to think up some better solutions to show them. I think there's a lot of important issues where we are in agreement, such as the threat to the West posed by Islam, and the internal threat of socialism.
Cousin Dave at July 1, 2009 7:03 AM
I see the rest of us having to bail out California pretty soon unless they really do something drastic.
Our government here in California is a model of incompetence and buck passing. The citizens, the legislature and the governor all share in the blame. The legislature and the governor for their incredible stubbornness in failing to make deals and for failing to do anything but put band-aids on serious fiscal problems. The citizens for the ballot measures and for re-electing the fools who fail to pass a budget every year on time.
A while back, I offered a modest proposal of two ballot measures that I think would help:
1. If the legislature doesn't pass a budget on time, they forfeit their annual salaries.
2. If revenues decline year over year, all programs mandated by ballot measure see their funding decrease by that percentage.
Cheezburg at July 1, 2009 7:39 AM
Amy, you need to move. Seriously. You could live in Nevada and still maintain your contacts in California.
I would NEVER. Life isn't about "maintaining contacts." For somebody like me, there are two cities in the USA, and New York is too expensive. There's a dinner I go to once a month for writers, for example. This couldn't exist anywhere but New York or LA -- with the kind of writers who go...screen, TV, pundits, journos, novelists, biolgraphers, all successful in their fields.
Amy Alkon at July 1, 2009 8:57 AM
Amy, what you're missing is that LA might not exist as you presently experience it for much longer.
Most of the production work can be off-shored. And if the tax situation gets out of hand, all the workers will be forced out of the state anyhow.
brian at July 1, 2009 9:00 AM
The thing I find most frustrating about "use taxes" is that reducing or eliminating sales tax is such an effective way for a state to improve its economic situation.
Pseudonym at July 1, 2009 9:26 AM
When I hear libertarians say they support legalized polygamy and eliminating the home mortgage interest tax deduction, then I might take them seriously.
Really, and automatic weapons for everyone on demand? No SEC? No FDIC?
Sexual harrassment? You mean your boss says "Put out or get out" and you have two choices? Better hope your boss is sexy...
And restaurants say "No blanks allowed?" And the Jonathon Club says "No Women Allowed?"
Okay, libertarians, bring it on.
And brothels in every airport, well-lit and advertised?
i-hole at July 1, 2009 9:48 AM
> Life isn't about "maintaining
> contacts."
Word! So word. Amy Alkon, Amy Alkon. Los Angeles needs more attitudes like this.
> Okay, libertarians, bring it on.
Review the first comment... We get the sense that you're not only want to be a dickweed, you want to cuddle naked with lots of other dickweeds. This isn't what libertarians are in your life to do.
Crid [CommentCrid@gmail.com] at July 1, 2009 10:04 AM
I do support polygamy, I think there should be brothels on EVERY street corner, and anyone with internet accsess can buy a "kit" to build an AK47 or an M16A2 rifle at home, after that it take less than 5 minutes to convert them to full auto
lujlp at July 1, 2009 10:54 AM
"For somebody like me, there are two cities in the USA, and New York is too expensive. There's a dinner I go to once a month for writers, for example. This couldn't exist anywhere but New York or LA -- with the kind of writers who go...screen, TV, pundits, journos, novelists, biolgraphers, all successful in their fields."
I believe that could be cut + pasted into Websters dictionary as The definition for Elitist.
I can picture them chortling over glasses of Chardonay about the Rubes in "flyover country".
sean at July 1, 2009 11:00 AM
"I can picture them chortling over glasses of Chardonay about the Rubes in "flyover country"."
I live in one of those flyover counties. The one issue I have here is that I cannot attend KKK ,"Kill Korean Klub", meeting if I wanted to.
They just don't have it here.
I am pretty sure I can find one in LA.
It is not the elitism but the variety of choice what LA offers.
Chang at July 1, 2009 11:14 AM
Amy Alkon
https://www.advicegoddess.com/archives/2009/07/why-internet-co.html#comment-1656688">comment from seanI believe that could be cut + pasted into Websters dictionary as The definition for Elitist. I can picture them chortling over glasses of Chardonay about the Rubes in "flyover country".
Why would you assume that, because people are accomplished and interesting? Interesting and accomplished writers who are in town from all sorts of places come to this dinner. Cathy Seipp got me invited long ago.
And the reason this couldn't exist outside of New York or L.A. is that these places are cultural centers, where many, many accomplished and interesting writers and thinkers live or visit. Elmore Leonard lives in the Detroit suburbs, for example, but there aren't a whole lot of writers of a national caliber there.
What's interesting is the propensity to declare a dinner you have never been to and know almost nothing about some snobfest.
And yes, I need a certain level of conversation and thinking to find an evening satisfying. I have friends from around the country and around the world, but they aren't meeting up in Boise.
Amy Alkon
at July 1, 2009 11:17 AM
I am currently in the process of creating product that I plan to sell over the internet. Because collecting sales tax is such a hassle, I'm not going to sell to anyone in Texas. I know that sounds like an elimination of a huge portion of the market, but the 80/20 analysis doesn't pan out to make it beneficial. If I sell to no one in Texas, I don't need a Texas Business license, since I am not operating in Texas!
In my last side business enterprise, I was billed (and forced to pay before they would look into it) hundreds of dollars in error, and only received a refund of part of it because they kept all 'late fees' on the monies that they weren't owed to begin with. I love living in Texas, but until Kinky takes over, FUCK Texas Government! If I could combine Florida's gun laws with California's drug laws, I would be one happy stoned camper!
-Julie
Julie at July 1, 2009 11:30 AM
"I believe that could be cut + pasted into Websters dictionary as The definition for Elitist. I can picture them chortling over glasses of Chardonay about the Rubes in "flyover country".
Why would you assume that
Oh, I don't know. I guess I pulled it out of thin air:
"For somebody like me, there are two cities in the USA"
sean at July 1, 2009 12:13 PM
Will Joe the plumber be flying in to meet with all his fellow authors?
sean at July 1, 2009 12:30 PM
I love it when the parties intersect and cause a bunch of popcorn. I used to be strict libertarian, Ayn Rayn acolyte to the max. But I have been influenced by my career and age. I believe in the concept of a new "Manhatten Project" to get us off Saudi dick, and that makes me a socialist. I also believe that people who dress like gangbangers deserve to be treated accordingly, think that gay pride parades are hurting the cause of equal rights, and just want to live in peace and tranquility, dammit.
It is all about the fight between community and individuals. I like to say in cocktail parties that I am not a humanist, because I have distain for humainity, but a great deal of love for certain people. To hell with globalism and the internet...makes me nuts.
liz at July 1, 2009 1:47 PM
Amy Alkon
https://www.advicegoddess.com/archives/2009/07/why-internet-co.html#comment-1656707">comment from seanWill Joe the plumber be flying in to meet with all his fellow authors?
No idea. I don't do the invites. Ann Coulter shows up every couple of months, though. I think Mickey Kaus brings her.
Why so determined to hate a dinner you've never been to, and why get so upset that I like to talk to smart writers who have something to say? Many of the people in my blog roll are invited to those dinners -- for the same reason I link to them and find them interesting...because they are.
Amy Alkon
at July 1, 2009 1:48 PM
Ann Coulter shows up every couple of months, though.
Is she as much of a nut job in real life as she appears on TV?
Jim P. at July 1, 2009 1:51 PM
A while back, I offered a modest proposal of two ballot measures that I think would help:
1. If the legislature doesn't pass a budget on time, they forfeit their annual salaries.
2. If revenues decline year over year, all programs mandated by ballot measure see their funding decrease by that percentage.
Posted by: Cheezburg at July 1, 2009 7:39 AM
==================================
Brilliant!
If voters would ever hold politicians accountable this would work.
Dvaid M. at July 1, 2009 2:35 PM
"Will Joe the plumber be flying in to meet with all his fellow authors?
No idea. "
Ding DING DING!!!!! I can hear the bullshit detector going off 3,000 miles away. I think you have a "pretty good idea" that JTP is not invited.
"Ann Coulter shows up every couple of months, though."
How did you know I was in love with Ann? I'm even willing to overlook that creepy Guicione guy she dated. Tell her I said Hi.
"Why so determined to hate a dinner you've never been to, and why get so upset"
Who's hating and upset??? Not me. I just pointed out your elitist statement.
To quote Homer Simpson: "Me thinks the lady doth protest too much". (That was a great episode, do they show The Simpsons in LA + Manhattan?)
sean at July 1, 2009 3:04 PM
Amy Alkon
https://www.advicegoddess.com/archives/2009/07/why-internet-co.html#comment-1656714">comment from seanIt's "elitist" to want to socialize with interesting and accomplished writers and thinkers?
Okay, then I'm an elitist. But, I sure don't think it's a negative.
As for this: ""Will Joe the plumber be flying in to meet with all his fellow authors?"
He isn't an "author," he's a guy who came into the public eye who had a book ghostwritten by an actual writer.
And no, I don't respect "writers" whose books are ghostwritten by others.
Amy Alkon
at July 1, 2009 3:36 PM
"...and anyone with internet accsess can buy a "kit" to build an AK47 or an M16A2 rifle at home, after that it take less than 5 minutes to convert them to full auto."
Uhh, no. Although the AR-series clones can be converted - in most cases - to select-fire with a new sear (and the sear is registered with BATFE if legal), the AKS, whether in 5.45 or 7.62mm, uses a different receiver.
Full-auto shooting is fun, but you run out of ammo immediately (never good), and you really don't gain effect over aimed fire (when your target's location is known).
-----
On-topic: hey, state morons! What do you think an Internet business based in your state would do with its income? Burn it? You might want to actually encourage business to open in your state. What a radical idea!
Radwaste at July 1, 2009 3:53 PM
I don't know about other states, but Connecticut seems to be deliberately chasing businesses out of the state.
I think they just want the whole state to be a suburb of Manhattan.
brian at July 1, 2009 3:57 PM
If voters would ever hold politicians accountable this would work.
We actually could, with a ballot measure tying their income to job performance. My hope is that voters here get mad enough at the fools who can't get off their asses and pass something that holds legislators' feet to the fire. And vote them out of office en masse. I love living in California; wouldn't want to be anywhere else in the US. But our government is broken.
Cheezburg at July 1, 2009 4:06 PM
"I've never understood how you can charge tax on an internet purchase. When buying on Ebay, I do not buy from the sellers who charge tax. Nor will I order from Amazon if they start."
OK, quick tax lesson: if you live in CA, NONE of those purchases are tax-free. If a CA resident buys from a CA vendor, the sale incurs "Sales" tax, the collection responsibility for which lies with the vendor. If a CA resident buys from a NON-CA vendor, the sale incurs "Use" tax, the collection responsibility for which lies with the purchaser - i.e. you. Only the current lack of an efficient enforcement mechanism prevents a tidal wave of state audits against individuals avoiding use taxes on internet purchases.
With technology advancing and state budget shortfalls growing, I wouldn't count on this benign denial lasting much longer.
snakeman99 at July 2, 2009 10:56 AM
OK, fine. I'm the only one in this room right now. Nevertheless, if you want to learn more about this topic -
http://money.cnn.com/2009/07/02/technology/internet_sales_tax.breakingviews/index.htm
snakeman99 at July 2, 2009 3:57 PM
Leave a comment