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Should Amazon or any internet company collect sales taxes for any State?

Sales taxes are punishment for the poor. While they may not actually pay more net tax individually than the more affluent they pay a higher percent of their income.

Many people shop on line because they can not afford the same goodies or needs from local sales tax collecting stores.

Is this not just another State grab to collect more money from the poorer citizens of their state. This from a state that if they collected a reasonable tax from corporations incorporated in the state would be the richest state in the nation.

Amazon has decided for now not to ship to Rode Island. Right on Amazon!!!

2 Answers

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  • 1 decade ago
    Favorite Answer

    I don't know Rhode Island, but Amazon is fighting having to collect sales tax in California (predictably) and North Carolina.

    A company is required to collect sales tax for the state if they have a "business presence." So, Washington-based Amazon has to collect sales tax in Washington state. But not other states.

    BTW, the people who purchase items from Amazon are still required to remit sales tax to their state. Some states have been issuing summons to get the information of who purchased product from them.

    California et al. are trying to define "marketing affiliates" as a business presence. Amazon will either 1-fight this in court (similar laws have gone to the supreme court before) and/or 2-sever connections with the state.

    Stay tuned.

  • MadMan
    Lv 7
    1 decade ago

    I think that all internet retailers with a turnover greater than, say, $10 million per year, should collect sales taxes for all states they sell to. Whatever you think of the way in which the State of Rhode Island raises its revenue, one of the ways it uses is a sales tax. allowing out-of-state internet retailers to avoid collecting the tax just means that the taxes have to be higher for people in other ways.

    And why is it fair that Amazon, for example, has a tax advantage over my local book seller? If they cannot compete fairly, i.e. by being more efficient or providing a better product, then they do not deserve to be in business. What do you think your high street would look like if all your local stores closed and everything was bought over the internet?

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