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   CONTROVERSIAL      Controversial Topics, current events, at      415 messages   

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   Message 162 of 415   
   BOB KLAHN to JEFF BINKLEY   
   Internet taxes   
   13 Mar 11 20:49:54   
   
    JB> Far be it for a Democrat to see a dollar that they didn't   
    JB> want to tax... The moving trucks continue to leave   
    JB> Illinois...  This is after their recent massive income tax   
    JB> increase...   
      
    Since ineternet sales cut sales taxes in the state, and I   
    believe you pushed the sales tax as the Fair tax, a replacement   
    for the income tax, think about it. Or was that Ross Cassell?   
      
    Either way, non-payment of tax on internet sales puts internet   
    business in a better position than local stores. Since when   
    should the government make policy that gives an advantage to one   
    form over the other?   
      
    ...   
      
    JB> Illinois Governor Signs Amazon Internet Sales Tax Law   
    JB> Mar. 10 2011 - 6:33 pm   
    JB> By JANET NOVACK   
      
      
    JB> After two-months of fence-sitting, Illinois Governor Pat   
    JB> Quinn today signed controversial legislation requiring   
    JB> Internet retailers like Amazon.com and Overstock.com to   
    JB> collect Illinois’ 6.25% sales tax if they have affiliate   
    JB> sellers in the state. House Bill 3659, the Mainstreet   
      
    JB> mortar retailers, who supported it, and Illinois-based   
    JB> Internet-only businesses, who warned that if Quinn didn’t   
    JB> veto it some of them would flee the state. Had Quinn done   
      
    ...   
      
    JB> Chicago-based CouponCabin.com called the Governor’s   
    JB> approval of the bill “deeply disappointing” and said he is   
    JB> “actively exploring” moving his seven year- old business to   
    JB> Indiana. Kluth, a long time resident of Chicago, had   
    JB> previously threatened such a move, telling Forbes, “I can   
    JB> see Indiana form the roof of our business.”   
      
    And how many employees will lose their jobs? If he can see   
    Indiana from the roof of his business then the answer should be   
    zero.   
      
    JB> But Quinn, a Democrat, described the law as necessary to   
    JB> put the state’s “main street businesses” on “a level   
    JB> playing field” with online retailers and to protect main   
    JB> street jobs. In a statement issued by Quinn’s office, David   
      
    Which happens to be true.   
      
    ...   
      
    JB> in 2008. While Amazon has been challenging (so far   
    JB> unsuccessfully) the constitutionality of that law in court,   
    JB> it has kept its New York affiliates and now collects New   
    JB> York sales tax on purchases shipped to the Empire State.   
    JB> (It also collects for shipments to its home state of   
    JB> Washington, as well as North Dakota, Kansas, and Kentucky.)   
    ...   
    JB> addition to California, the states of Arizona, Connecticut,   
    JB> Hawaii, Minnesota, Mississippi, and Vermont are all now   
    JB> considering Amazon laws.   
      
    IOW, as more states enact such laws either Amazon will collect   
    the tax, or Amazon will have no affiliates.   
      
    JB> As Forbes suggested here, Amazon’s days of sales tax   
    JB> collection free selling may be numbered for another reason:   
    JB> Amazon’s growing network of warehouse and fulfillment   
    JB> centers. Last year, the Texas Comptroller sent Amazon a   
    JB> bill for $269 million for four years of back sales taxes,   
    JB> based on an Amazon warehouse there. Amazon insists the   
    JB> warehouse doesn’t give it nexus. But last Month, it told   
    JB> its Texas employees that it would close the warehouse,   
    JB> throwing 110 of them out of work.   
      
    Let's see. 110 workers, at $25K/yr, (not an unreasonable   
    estimate for warehouse workers in Texas for an online retailer),   
    equals about $2.75mill/yr. Over the 4 years, that's $11mill. Now   
    $11mill against $269mill???? Hell, they can hire all 110 for a   
    state run warehouse for online retailers just off the sales tax   
    Amazon paid, with $250 mill profit. Well worth it.   
      
    JB> Thursday 10 P.M.  update: According to Amazon spokeswoman   
    JB> Mary Osako, the retailer has now sent an e-mail to its   
    JB> thousands of Illinois associates stating Quinn’s signing of   
    JB> the law  “compels” it to terminate them.  The message reads   
    JB> in part:   
      
    ...   
      
    JB> Amazon’s e-mail also invites the Illinois associates to   
    JB> apply for reinstatement should they relocate from the state.   
    JB>  * Origin:  (1:226/600)   
      
    Which may cost the state maybe a few hundred jobs, if they all   
    leave. OTOH, any that are not on the border already will   
    probably find it cheaper to run without Amazon.   
      
      
      
   BOB KLAHN bob.klahn@sev.org   http://home.toltbbs.com/bobklahn   
      
   ... "His death is irrelevant, Jim." - McCoy of Borg   
   --- Via Silver Xpress V4.5/P [Reg]   
    * Origin: Since 1991 And Were Still Here! DOCSPLACE.TZO.COM (1:123/140)   

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