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Whats amazing to me is these politicians and individuals that work in government forget that they are supposed to be in a position of public service and all of them feel that they are entitled  to strike it rich on the public.  If you are in a position of public service,  YOU SHOULD WORK FOR A FAIR AND MINIMAL SALARY AND IF TIMES ARE TOUGH, you should be willing to take a cut in your paycheck before any taxes are increased BECAUSE YOU CHOSE TO BE IN A POSITION OF PUBLIC SERVICE.  Doing otherwise isnt exactly looking out in the best interests of the public, now is it?

Posted this link in www.surfurls.com

The State of New York is in for a surprise - many people may not make a purchase at all if they need to add sales tax to the total price. Additional sales tax will price many out of the market as evidence of the popularity of sales tax holidays. Here in Missouri, many people wait to make a purchase until August when we'll have our tax holiday. Then they stock up. New York won't see the win fall they expect.

This is an interesting topic since current law handicaps my flower shop and that of every other LEGITIMATE flower shop that also has a website.

I am in the state of North Carolina, and -- as a "bricks and mortar" flower shop -- I am required by NC law to charge sales tax (currently 7.25%) on ALL orders including those that come in via my website. Most US states have similar rules, even if the final destination for the flowers is in another state or country!

National Floral Marketers (You see their ads on TV, hear them on radio, and find them anytime you search for "Florist In ANY CITY IN THE USA) do not have bricks and mortar shops. Instead, they take the order, add a HEFTY handling charge, deduct a HEFTY commission (these add up to as much as 40% - 50%!) and pass this discounted order on to a bricks and mortar florist that makes and delivers the order.

BUT these Phony Florists do not charge sales tax, and since many of the fees and commissions are "cloaked," the consumer is DUPED into thinking he/she is saving money!

A really great way to EXTINGUISH a once-thriving market segment. 10 years ago, there were 800 flower shops in NC. Today there are 600.

Bill Miller

The Flower Hut

www.flowerhut.com

We need to be careful about how online taxes are conducted.  If New York starts taxing non resident affiliates, That means those affiliates are being taxed by more than one state. That means the state that has a governing presence on the affiliate and a state that does not.  (I can't see where that should be considered legal.) 

Can you just imagine, if this is allowed, how it would destroy internet marketing?  The multiple taxation of different governments on one sale would destroy the profit of the sale. Not only that, but, being an affiliate of a company required to collect taxes on your sales for a state that has no governing presence over you.  That's called taxation without representation people.  And  wouldn't you terminate business with that company? I would!

I like the old way. Pay taxes to the state and local governments where your business has a physical residence. Pay taxes to the federal government. It's simple and common sense.

I agree that sales tax should be paid at the point of sale.

But beyond that, It seems that we have the whole tax thing upside down. All tax should be paid to our most local tax/government entity, probably the city or berg in which you live or work.

All "higher" tax entities -- state and federal -- should receive their share of that tax from the entity just below it. For instance, the cities would finance their counties, who would finance their states, and the states would finance the feds. All state and federal taxes should not be paid by invdividuals or companies directly, but through their constituent tax entities. This would contribute toward local democratic control of taxing.

States should not have to go to the feds for money, nor should cities have to go to the state. We have it upside down. Rather, the feds should have to go to the states, and the states should have to go to the counties, who would in turn go to the cities, who would go to the individuals and companies that reside therein. That way there would be no taxation without representation, which is what will happen when the Internet is taxed.

A totalitarian government is characterized by political authority, which is the authority to tax, that exercises absolute and centralized control. Real democracy requires decentralization.

Guys...let the economists figure out what should be taxed and what should not, so that commerce is not unduly affected and enough money is collected to do what we need it to do.  Anybody who thinks they can have any kind of reasonable life without paying taxes for roads, schools, law enforcement, medical oversight and care, etc, etc is just a d**ned fool.  Good economists understand the elasticity of demand with respect to price of different goods and services, and only falter when politicians get into the fray.

I love the internet, because I can shop at a plethora of retailers (even wholesalers) in a short time and not have to drive all over the countryside to waste time and fuel. Sales tax is a small part of the equation.  Freight (shipping) is getting worse and worse for a lot of reasons.  Also, some sellers use the shipping and handling line to make all of their money, like Sears did with the catalog before they lost their minds in the early 90's.

The internet also has allowed prices of a lot of the things I want to fall because so many people can see a lot more information about competitive pricing (like on eBay, Amazon, etc.) and because perceived scarcity is disproved, making some not willing to pay as much, since there are more available than was thought. 

I think New York will have a tough time collecting from out of state sellers, but all states will have to do something as internet sales continue to grow.  The question is obviously beyond most of us, and should be decided by impartial people who truly understand economics.  Fair and equal taxation is what is needed, and if we pay as we spend, rather than as we are paid, we won't have this big tax preparation business and so many tax cheaters and tax incentives (loopholes) that only the rich can exploit. Depends on the execution.

Do the Amazon affiliates in New York make that much money for Amazon?  If not, I could see Amazon just just restricting the affiliate program to every state except New York.