How does a tax bill originate in the Senate?
Let me get this straight: the Senate is passing a bill that the Supreme Court
already ruled unconstitutional, and they are voting on a tax bill that can
only come out of the House.
You have now entered the communist Twilight Zone, and your elected
government is giving you the finger.
???
lunacy.
Next they will be taxing the air you breath
Welcome to the TAX PARTY yanks ;-)
It's going to happen. Get ready, Mackin.
The SSTP is setting up a system by which Internet e-commerce companies can voluntarily pay state taxes to the states in which their customers reside. The incentive the SSTP is offering companies is rather than try to work out how much tax a company owes for each locality they can instead use a CSP (certified service providers). In addition, "the states that are in compliance with SSUTA (Member States) will offer advantages to those sellers who use a CSP. Six companies, SpeedTax, Avalara, Exactor, Taxware, AccurateTax, and Fed-Tax, have been designated Certified Service Providers for the SST project.
http://en.wikipedia.org/wiki/Streamlined_Sales_Tax_Project
As it now stands, I believe the law excludes merchants with less than $1 million in annual sales in the state unless they have nexus. This is a fairly high threshold --maybe even too high-- but seems like a reasonable start.
BTW, the way most -if not all- taxing states work, the sales tax is a misnomer. It's a USE tax and you are supposed to pay it as an individual even if the merchant didn't collect it.
In NC, it's on your state tax return.
Quote from: rcjordan on May 07, 2013, 02:49:43 PM
It's a USE tax and you are supposed to pay it as an individual even if the merchant didn't collect it.
I think one of the Senators from Wyoming mentioned this and said he only knows of 2 or 3 of his constituents who actually do this.
If this was a "new" tax I would be angry but it really is more about enforcement of what is already in place and making it easier for consumers by shifting the burden on to the merchants.
And I think the $1,000,000 threshold is just about right. For anyone smaller than this it could be a big headache but if you are selling that much you should have a good accountant already in your pocket who can handle this stuff.
As a business model looking at the impact of tax...
We (UK) have a small Island which is sort of French sort of UK called Jersey.
They had a crazy dispensation where by goods shipped from Jersey to the UK with a value of less than £15 were free of VAT, currently 20%.
That was removed http://www.bbc.co.uk/news/world-europe-jersey-20953357
They closed.
A business built on loopholes may not be one for the long term.