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Discussion in 'Apple, Inc and Tech Industry' started by petrucci666, Sep 10, 2011.

  1. jav6454 macrumors P6

    jav6454

    Joined:
    Nov 14, 2007
    Location:
    1 Geostationary Tower Plaza
    #2
    Amazon will eventually be taxed... of this you can be sure off. A huge deficit needs a breathing solution soon. Amazon (although small in terms of US budget) will start looking sweater and sweater. This a cup of water in the middle of a desert.
     
  2. maflynn Moderator

    maflynn

    Staff Member

    Joined:
    May 3, 2009
    Location:
    Boston
    #3
    Agreed, its not if, but when. Both federal and state lawmakers are aching to find new revenue streams and for states taxing internet sales is a tempting solution. Especially when the consumer is technically on the hook to pay the the tax when its not collected
     
  3. CalBoy macrumors 604

    CalBoy

    Joined:
    May 21, 2007
    #4
    This does enter a legal morass which will take a while to play out.

    Legally, Amazon could create 2 entities: one which sells products exclusively to 49 states (let's call it Amazon 1), and another that sells products to the state which houses Amazon 1 (let's call this one Amazon 2).

    Under current law, it would be impossible for any state to charge sales taxes because the Amazon entity selling to that state wouldn't have a physical presence there.

    Use taxes are notoriously difficult to enforce and are essentially worthless for low value items because the bureaucracy would cost more than any potential revenue.

    The only way this can be worked out is if we get a federal statute that gives each state the right to collect those revenues. In the current anti-tax climate, that's probably very unlikely.
     
  4. Tiggs macrumors 6502

    Joined:
    Jul 6, 2011
    #5
    Seems like Amazon only getting started with their avoidance games. Don't see it ending anytime soon. :p
     
  5. Icy1007 macrumors 6502a

    Icy1007

    Joined:
    Feb 26, 2011
    Location:
    Cleveland, OH

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