eBay takes aggressive stance on Internet tax issue
I see that eBay is trying to mobilize its army of users in the growing debate over taxes and Internet shopping. I wrote a little about it last month, looking at how cash-strapped governments would like to tax more of your Internet purchases.
Like the rest of you eBayers, last night I received a message from the company, urging me to take action to keep things the way they are - as in, most of the things you buy on eBay aren’t taxed. They’ve even included a link to make it easier to complain to Congress.
The letter:
Tell Congress, “No New Net Taxes”
Internet Sales Taxes–Your costs go up. Your buyers’ costs go up. You are required to comply with the same tax laws as the nation’s largest retailers. This scenario could soon become reality.
The sales tax laws governing today’s Internet and catalog retailers are simple: If you sell something to a person living in your state, you collect sales tax. If that customer doesn’t live in your state, you don’t collect the tax. However, a number of state governments and the biggest retail giants in America are planning an aggressive lobbying campaign to change the law. They want to require small retailers to operate like the biggest retail chains, collecting taxes everywhere.
We all know times are tough and state governments are looking for more tax money. Likewise, big retailers see an opportunity to gain a competitive edge by imposing new costs and higher prices on their smallest competitors. Luckily, the tax ground-rules can’t be changed without congressional action. There’s still time to stand up and be counted. If you think adding a new tax burden on small Internet retailers is a bad idea, now is the time to make your voice heard. Click here to send a letter to your U.S. Representative and Senators today.
It won’t be easy. But together, Internet retailers like you can stop these new taxes.
Sincerely,
Tod Cohen
VP and Deputy General Counsel, Government Relations
The last time I wrote about this, a reader made the argument that whenever I do my tax-free Internet shopping, I’m essentially robbing local governments of the money they need for schools, roads, etc. It’s a compelling argument. And yet I just can’t bring myself to that way of thinking. I guess I’m just in love with that simple line on an Internet sales receipt that says: Taxes: Zero.
Tim has covered a wide range of topics, including tourism, crime, aviation and gambling, since becoming a reporter in 1990. The Oklahoma native joined the Post-Dispatch in 2007 after spending nine years in Orlando. In his spare time, he's often exploring one virtual world or another. He can be reached at tbarker@post-dispatch.com. 
Leave it to the government to figure out some way to squeeze the humble American citizens out of every last hard earned dollar. Is that poster really serious: “essentially robbing local governments of the money they need for schools, roads, etc.” Compelling argument I think not. I could probably be considered an internet shopaholic, so I have plenty of experience picking up packages off the porch when I go to get my mail. If I could figure out a real way to rob the government of the money they rob from me every paycheck I would do it in a heartbeat. So much wasteful spending and the recent rash of government corruption at every level leaves me looking for cheap property in New Zealand, just looking for a way to pay myself for the 40+ hours of work a week I put in INSTEAD of the government. I know we Americans take a lot for granted when you look at the rest of the world, but one thing I definitly think American Citizens AND our wonderful government can both do without is Internet sales tax.
If the buyer feels the state they are in needs the tax revenue and that if it is not collected there is something wrong then they should pay it as they are suppose to with their taxes that they file at year end. There is a line on every tax form that askes you to pay the tax on untaxed purchases made via the internet or by mail on every state tax form. So why should this burden be placed on the sellers? If states want to squeeze someone than squeeze their residents….not sellers that have been legally paying their taxes to the states they live in.
And as far as what I sell…..used, antique and collectible items…..it’s hard for me to feel guilty reselling something and not collecting the tax on an item that has been taxed who knows how many times already! What state and the feds should be doing is cutting their spending for stupid pork projects and leave us alone. It’s hard enough right now to make a living. That’s my opinion!
If I buy something at Target in Brentwood, I’m paying Brentwood sales tax even though I don’t live in Brentwood. So if someone from Minnesota buys something from an eBay seller that lives in Brentwood, is the seller supposed to be collecting sales tax for Brentwood, or for the place in Minnesota? If it’s the latter, it doesn’t make much sense and seems like a burden. If it’s the former, it makes more sense, but I’m sure there will be places that make favorable tax laws for people to set up shop in and avoid these (like how all big banks are in a few states).
While in general I am against high taxes, I will say this: These governments are going to try to get the money regardless. I would rather the income come from sales taxes than property or income taxes. Why? Because then I choose whether to pay them or not.
Charging different internet sales taxes for every locale will put an undue burden on the backs of brick & mortar consignment and resale shops who also sell online on eBay.
Unless the online seller has sophisticated software, it will be too laborious to calculate each tax.
However, if it’s coming, congress MUST resolve the issue above before enacting it into law. Don’t repeat the CPSIA fiasco!
As a PowerSeller, I received the notice from eBay. I laughed out loud when I read their opening line, “Your costs go up. Your buyers’ costs go up.”
If you aren’t an eBayer, then you may be missing the irony. eBay has recently raised selling fees to all-time highs, forcing many sellers out of business, others to choose to leave and those of us who remain to do equal (or more) work for less profit. I read between the lines of their email, “Don’t let the government steal your time and money! That’s OUR job!”
I hate to side with eBay on any issue right now, but on this one I must. Forcing the average internet retailer to collect taxes will be the final nail in the coffin of the last remaining frontier for entrepreneurs. Those of us struggling to claim our take here simply can’t stand one more burden on our time.
For ebay to ask for anyone’s help is pure comedy. I know I sure won’t help them, unless they want to pay me back the money I got scammed out of on their fraud-filled site and apologize. Glad they got theirs though. They can consider that the closest thing to my contribution they will ever see. Crooks!
Beyond that, what was that old quote about 2 unavoidable things… death & taxes? Seems that applies here as well.
The government could clean ebay motors up a bit before they get out of hand like the banks and wall street did.Ebays rules in policies sure dont follow the laws of our land is about time the us government step in.Ebay is full of fraud in there vpp and there pay pal is a joke when you have honestly earned money taken by so called great ebayers!Sick them uncle sam and god bless the usa.Leave the nit wits to try to keep the government out there the same ones who didnt want the government watching banks or wall street in the first to complain the government didnt intervene sooner.