Sunday, April 24, 2011

You're Not Paying Taxes for Illinois? Soon, You Will!

Well, that's one way to think of it.

Illinois, one of the three fiscally-sickest States in the Union, imposed an 'internet-sales' tax.

Then Amazon and Overstock pulled the 'affiliate' agreements they held with Illinois folks--because if those Illinois affiliates sold an Amazon product, Amazon would have to collect the new Illinois sales tax, yadayada.

Amazon's thought: "Why bother with all that? We can just cut off the Illinois affiliates instead."

So they did.

But of course, that meant that Illinois affiliates were no longer making money on their Amazon/Overstock deals. Some made enough money so that now they're thinking of relocating to Wisconsin, just like FatWallet did.

Well. Can't have too much of that, or Illinois will be to Wisconsin like California is to Texas. (Hint: it ain't good.)

Enter Slimebag Durbin.

As early as this week, Sen. Dick Durbin (D-Ill.) told The Post he will propose sweeping legislation to tax all online purchases — in a move aimed at closing state budget shortfalls.

Should this go through, Wisconsin residents will be bailing out Illinois.

No wonder we call them F.I.Bs.

Yes, Wisconsin is trying to force 'net retailers to pay Wisconsin's onerous sales tax, too--mistakenly. There are good reasons for shopping at "brick-and-mortar" stores and pay the tax, just as there are good reasons to shop the 'net and NOT pay the tax. It's foolish to purchase some items on the 'net; better to pay the tax and have a retailer 'on the hook' for post-sale service and/or warranty obligations, no? On the other hand, a $12.00 book---meh. You don't need a warranty and won't require service.

6 comments:

Deekaman said...

There's a reason Durbin's first name is "Dick".

Adrienne said...

Our music business is primarily mail order (since 1974) (now mostly internet order)and we've lived through threat after threat of this happening. I think it will happen eventually and a business like ours would be almost driven out of business trying to comply. How exactly does that help the economy??

And how do you enforce such a thing? Do I see the strong arm of the government coming down on the internet? Why yes, yes I do!

Adrienne said...

...and if only some of the states do this it would be simple for someone to operate a remote computer in another state just like setting up your corporation in another state.

Anonymous said...

"...and if only some of the states do this it would be simple for someone to operate a remote computer in another state just like setting up your corporation in another state."

AKA, The Cloud.

Dad29 said...

Well, if it were that simple, that business would not have moved from Illinois to Wisconsin.

There are technical issues--tax home, stuff like that.

RAG said...

The sales tax is generally a stupid and regressive means of taxation anyway.

The ideal place to retire, IMHO, is Vancouver or Camas, WA. Washington has no state income tax. Oregon has no sales tax. Care to guess why those malls are located in Portland, 90 seconds south on the other side of the bridge?

Oregon business flourishes because of no sales tax.