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

  1. jav6454 macrumors P6


    Nov 14, 2007
    1 Geostationary Tower Plaza
    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


    Staff Member

    May 3, 2009
    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


    May 21, 2007
    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

    Jul 6, 2011
    Seems like Amazon only getting started with their avoidance games. Don't see it ending anytime soon. :p
  5. Icy1007 macrumors 65816


    Feb 26, 2011
    Cleveland, OH

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