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ecstatic

(34,316 posts)
Wed Oct 3, 2012, 09:43 AM Oct 2012

The new "Amazon" tax goes into effect this week

What do you all think? I'm pissed! I rely on Amazon for a lot of things, like diapers, etc. Wealthy people don't go online searching for deals. This is just another regressive tax imposed by republicans!

http://www.ajc.com/news/news/state-regional-govt-politics/georgians-torn-over-tax-on-internet-sales/


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I like the new tax
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I'm against the tax
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The new "Amazon" tax goes into effect this week (Original Post) ecstatic Oct 2012 OP
It's about time Sekhmets Daughter Oct 2012 #1
Walmart put brick and mortar stores out of business, and when the tables ecstatic Oct 2012 #2
Nothing on this green earth Sekhmets Daughter Oct 2012 #10
We have no sales tax in NH, so nothing changes for me... bunnies Oct 2012 #3
I would like to click both of those options...... meti57b Oct 2012 #4
GA needs the money, but they won't get it--the retailers will simply cut off their GA affiliates ecstatic Oct 2012 #8
Are they going to be allowed to get rid of their affilate marketers? Sekhmets Daughter Oct 2012 #11
Oh please! Get serious... Proud Public Servant Oct 2012 #12
That's what they've done so far ecstatic Oct 2012 #13
Long overdue Proud Public Servant Oct 2012 #5
Post removed Post removed Oct 2012 #14
as more and more biz is done online, it really is only fair as a sales tax, states need the money graham4anything Oct 2012 #6
And one other thing: labor Proud Public Servant Oct 2012 #7
Your "poll" questions are misleading - I don't LIKE any tax groundloop Oct 2012 #9

Sekhmets Daughter

(7,515 posts)
1. It's about time
Wed Oct 3, 2012, 09:53 AM
Oct 2012

States need the revenue, sales taxes are their main resource, and Amazon has put a lot of brick and mortar stores out of business. And yes, I shop at Amazon and will continue to do so.

ecstatic

(34,316 posts)
2. Walmart put brick and mortar stores out of business, and when the tables
Wed Oct 3, 2012, 10:14 AM
Oct 2012

turned and Amazon started to cut into their sales, they went on a national campaign to tax Internet sales. Once online ecommerce is neutralized, we'll be stuck with Walmart.

Sekhmets Daughter

(7,515 posts)
10. Nothing on this green earth
Wed Oct 3, 2012, 12:58 PM
Oct 2012

Can lure me into WalMart. WalMart is now using their Chinese junk as loss leaders for high end items. 3 weeks ago my son was in the market for a new 60" flat screen t.v. While chatting on the phone with him I went on line looking for product reviews and prices....We found a 60" at Best Buy for $1,000. A few days later he went to Best Buy, purchased it and made delivery arrangements...after ascertaining he could cancel the order. Then off to Costco and the WalMart...nothing at Costco interested him, but at WalMart he found the exact same television for $100. more.

I do most of my shopping on line because I drive an 8-year-old gas guzzling SUV...it gets 8 miles to the gallon, now that I'm retired I really don't like to put $40 a week into the tank. While I always check the Amazon site, what I want is not always available there...(the newest models of a product are frequently not available on Amazon). I find I don't mind paying the sales tax when it is collected. I think it is a false comparison to say Amazon with sales tax = WalMart. But I could be wrong.

 

bunnies

(15,859 posts)
3. We have no sales tax in NH, so nothing changes for me...
Wed Oct 3, 2012, 10:16 AM
Oct 2012

& I dont really know how I feel about the subject. Your link, however, is dead.

meti57b

(3,584 posts)
4. I would like to click both of those options......
Wed Oct 3, 2012, 10:17 AM
Oct 2012

I like the low prices, ... on the other hand, my state needs the bread.

ecstatic

(34,316 posts)
8. GA needs the money, but they won't get it--the retailers will simply cut off their GA affiliates
Wed Oct 3, 2012, 11:43 AM
Oct 2012

The way the law works is that only retailers with "affiliate marketers" in GA will have to add tax. The way Amazon and other retailers have dealt with this is by terminating their relationships with affiliates in states with the sales tax. There are 6,000+ affiliate marketers in Georgia.

from potpiegirl.com:

In the middle of that brawl, the ones hurt the most, will be the Georgia Affiliates – like me and who knows how many other thousands of other Georgia Amazon Associates.

How much do Georgia affiliates make? I’ve read a number of $483 million dollars generated by Georgia affiliates – and TAXED by the State of Georgia.

That’s less income tax money for Georgia – and that much less money circulating and being spent in the State of Georgia.

So the “solution” looks more like this:

Georgia causes Amazon to fire me.

I don’t have that revenue stream anymore.

I make less money each year.

I pay LESS INCOME TAX to the State of Georgia.

I spend LESS money here in the State of Georgia (meaning less tax revenue generated by me).

Read more: http://www.potpiegirl.com/2012/08/affiliate-nexus-tax-law-coming-to-georgia/

Sekhmets Daughter

(7,515 posts)
11. Are they going to be allowed to get rid of their affilate marketers?
Wed Oct 3, 2012, 01:03 PM
Oct 2012

Of course the answer would be for all states to begin taxing Amazon purchases....which will happen eventually....

Proud Public Servant

(2,097 posts)
12. Oh please! Get serious...
Wed Oct 3, 2012, 01:59 PM
Oct 2012

45 of the 50 states have a sales tax. Do you really think Amazon is going to dump their affiliates in every state except Alaska, Delaware, Montana, New Hampshire and Oregon? Does that really strike you as a viable business model?

ecstatic

(34,316 posts)
13. That's what they've done so far
Wed Oct 3, 2012, 04:03 PM
Oct 2012

I know Cali just reached a compromise with Amazon after 10,000 affiliates lost their incomes for several moths. Amazon is for a federal tax solution for online retailers. But Amazon isn't the only retailer who has been dropping affiliates. Also, Illinois saw their tax revenue go down after passing the very same law. I wasn't aware of this when I made the OP.

Proud Public Servant

(2,097 posts)
5. Long overdue
Wed Oct 3, 2012, 10:20 AM
Oct 2012

There's absolutely no logical reason to exempt the internet from sales tax. And I completely disagree with your analysis that it's regressive; I get to go on-line and order sales-tax-free from Drugstore.com, for example, while my poorer neighbors who may not have a computer or a credit card have to go down the road to CVS and pay sales tax. E-tail has been a way for the middle class -- not the poor -- to opt out of consumer taxation, and that's just wrong; no Democrat should be supporting that.

Response to Proud Public Servant (Reply #5)

 

graham4anything

(11,464 posts)
6. as more and more biz is done online, it really is only fair as a sales tax, states need the money
Wed Oct 3, 2012, 10:25 AM
Oct 2012

and money is only achieved from taxes as we democrats know

I would rather streets are paved, bridges repaired, schools have money and people buying online are getting freebies.

and there is less and less in person shopping for items (and if you go to a book store, you pay sales tax).

Probably the deficit could be cut with all this extra money

Proud Public Servant

(2,097 posts)
7. And one other thing: labor
Wed Oct 3, 2012, 11:16 AM
Oct 2012

The labor practices of e-tailers like Amazon tend to be absolutely horrendous. If buying from them now means that more money gets put into state coffers, maybe that will translate into a more secure safety net for the very workers e-tailers exploit.

Here's an awesome Mother Jones expose of conditions in warehouses used by e-tailers; long but worth the read: http://www.motherjones.com/politics/2012/02/mac-mcclelland-free-online-shipping-warehouses-labor

Bottom line: on-line "bargains" come from stiffing the government and exploiting the working poor. They're a Republican wet dream.

groundloop

(12,172 posts)
9. Your "poll" questions are misleading - I don't LIKE any tax
Wed Oct 3, 2012, 11:52 AM
Oct 2012

However, it's necessary. As many others have pointed out state and local governments depend on sales taxes to function. As more and more commerce has moved online those revenue streams have begun to dry up, forcing cutbacks that are hurting not only the employees of state and local governments but the citizens. Georgia is in a hell of a mess right now (granted, much of it is self inflicted by our GOP government cutting taxes for big business) and that tax revenue is critical so the state can continue provide services that are needed.

As far as the premise that taxing online sales is regressive, I see a tiny sliver of validity to that argument. However, the fact that online sales are getting taxed isn't the problem, we've always had a sales tax and buying stuff online was merely a temporary way to avoid that. What's regressive is when sales taxes are increased while income taxes, property taxes, and business taxes are cut, with the net result being a shift of the tax burden from the more well off to those who are less fortunate.

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