We’re from the government and we’re here to pick your pockets

From a Government’s perspective, there are only two things they want: your votes and your money. The rest is just rhetoric to get you to vote for them and to make sure you pay every last cent of your tax bill fully and on time. From Instapundit.

LAURENCE KOTLIKOFF: Did The Supreme Court Potentially Bankrupt Tens Of Thousands Of Small Online Businesses?

Small business is supposed to be the engine of economic growth and the internet is now the engine of small business growth. Today’s Supreme Court’s decision is potentially the engine of small business death. This plus the looming global trade war may be more than enough to pull the plug on our economic recovery.

Yes, we’ve very badly needed to rationalize state-business taxation. But what was and is needed is a system in which a company can file one and only one unified state sales and income tax return, pay one and only one tax bill and then have the states divvy up the proceeds. This will no doubt require federal legislation. Absent such a solution, the little engine that could — small online business — may immediately become the little engine that can’t.

The Powers That Be seem ready to rein in the Internet, whether it’s free speech or free enterprise.

What’s this word “free” I keep hearing? If it’s from the Government, the last thing it will be is free, as in there is no such thing as free lunches, health care or education.
 

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14 Responses to We’re from the government and we’re here to pick your pockets

  1. OldOzzie

    I had read that Articleand what stood out was this – struck me as the same as Australian Local Council Bureauvrats when doing Renovations or Building

    I have a small online business, http://www.economicsecurityplanning.com, which sells personal financial planning software. During our 25 years in business, I’ve lived in fear of today’s decision. We have employees and, thus nexus, in 6 states. Each time we hired someone in a state, we immediately registered to pay sales taxes.

    But doing so required further tasking our sales-tax processing company at, for us, a very high price, to process yet an additional state’s sales tax payments. It also led, as I discovered to my horror, to our needing to file a corporate tax or gross receipts tax return in each of the 6 states, annual reports in several of the 6 states, reports in several states about workers compensation and unemployment insurance and a variety of “small” fees. The compliance cost of hiring the sales-tax processing company, paying our accountant and responding to the weekly and sometimes daily letters about filing this form or that is already costing my company $50,000 a year.

    And, here’s the kicker. You have to file even if you have no tax liability. This is our case. We’d be forced, thanks to today’s decision, to pay our accountant to submit not 6, but 48 corporate or gross receipt tax returns. This will all be required in order to pay zero, nada, nichts, rien, niente, … in taxes since we are currently making zero profit! And to add icing on the cake, even if you have zero taxable income you are, it seems, forced to pay a basic filing fee. Multiply a small, say, $300 fee by 48 states, and you’re talking close to $15,000.

    And, here’s the kicker. You have to file even if you have no tax liability. This is our case. We’d be forced, thanks to today’s decision, to pay our accountant to submit not 6, but 48 corporate or gross receipt tax returns. This will all be required in order to pay zero, nada, nichts, rien, niente, … in taxes since we are currently making zero profit! And to add icing on the cake, even if you have zero taxable income you are, it seems, forced to pay a basic filing fee. Multiply a small, say, $300 fee by 48 states, and you’re talking close to $15,000.

  2. Egor

    Dance and shake all you like, but there can’t be privileged non sales tax payers alongside the sales tax paying street front plebs for the same item. Not a difficult concept in natural justice really.
    No sales tax anywhere would be best.

  3. Bruce of Newcastle

    Pretty good idea for a business is a website plugin middleman service which automatically calculates, collects and sends the sales tax/GST for every tax precinct on Earth.

    Charge a tiny fee and sign up businesses in the millions. The businesses would sign up too, since it would save them a lot of work and risk.

    The IPO would be epic. Instant billionaires.

  4. Tel

    But what was and is needed is a system in which a company can file one and only one unified state sales and income tax return, pay one and only one tax bill and then have the states divvy up the proceeds.

    That’s a terrible idea. Hasn’t this guy ever heard of moral hazard?

    Just put a polite note on your website saying you don’t ship to any state with sales tax. How hard is that?

  5. Tel

    Dance and shake all you like, but there can’t be privileged non sales tax payers alongside the sales tax paying street front plebs for the same item.

    Bollocks, of course there can be. Next you will be insisting that every country on Earth has identical labour laws. Globalist scum.

  6. BorisG

    Just put a polite note on your website saying you don’t ship to any state with sales tax.

    this will shrink your customer base dramatically

  7. Tel

    this will shrink your customer base dramatically

    And increase your profits dramatically once the massive compliance costs are taken into account.

    You also get a better class of customer which improves the overall tone of the business.

  8. Bruce of Newcastle

    Just put a polite note on your website saying you don’t ship to any state with sales tax. How hard is that?

    Doing business with only five out of 50 states isn’t an especially lucrative business model.

  9. Egor

    “Next you will be insisting that every country on Earth has identical labour laws.”

    Bwaaa….this idiot thinks shops in the high street are legally inferior tax wise to the warehouse next door that processes Amazon…like they’re in different countries. C’mon give us another one.

  10. Why not just put every American in prison when they’re born?

  11. OneWorldGovernment

    Steve,

    It’s called the “Harvey Norman Tax”.

  12. While this really is stupid from the compliance point of view, it’d be interesting to find out how many and what type of small business will be actually affected by this ruling.

    I was just pondering how many small businesses in our locality would be affected by a similar ruling in Australia, and I couldn’t think of any. Though that doesn’t mean no one would be affected.

  13. The thing that came to mind when I heard of this SCOTUS decision was this:
    If I live in LA, travel to Las Vegas for the weekend, the money I spend in LV is taxed at the LV rates, not LA rates. That is, sales tax is paid at the location of the business providing the goods or services.
    This ruling essentially says sales tax has to be paid depending on where the customer is.

    If the former was kept, i.e. sales tax at the origin of the goods or services, then on-line businesses would migrate to low taxing states, creating competition to lower taxes.
    This ruling means it doesn’t matter where the on-line business is located. Competition is wiped out.
    A cat may wish to correct me if I’m wrong.

  14. Dr Fred Lenin

    So the USA states have their own sales taxes haven’t they heard of the GST , no state sales tax just one huge federal tax ,then the feds can dole out the money to the states that voted for the deep staters , sounds like a good lesson from Australia to the American left

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