Prepare to be Taxed Online
They've been working on it since 1999, and they now have the backing of the largest online retailer. Yes, your online purchases may soon be subject to a sales tax, which means as an online business owner, you may be privileged enough to collect them for good ole Uncle Scam.
Blame Amazon for the Online Tax Proposal Getting Somewhere
Congress has been talking about this for quite some time, with the rationale that requiring an online sales tax would help level the playing field with all the mom and pop shops. Plus, as an added bonus, which I'm sure is just a serendipitous coincidence, they could collect $12 billion a year in additional revenue to the state and local governments.
This whole idea has really gone nowhere, until the worlds largest online retailer, Amazon, decided they could get behind it. That, and the fact that states are starving for new revenue streams, has now allowed it to gain more traction.
Why Would Amazon Endorse a New Online Tax?
I don't think Amazon is too concerned about the local coffee shop competing online with their wares. They can basically throttle anyone in this realm, whether as online retailers we want to admit it or not.
Also, it seems Amazon has developed some proprietary software that would allow online retailers to keep track of thousands of sals tax rates from one ZIP code to another.
Amazingly, Amazon is willing to make its technology available as a service to online retailers that would help them collect online tax for them.
That was awfully nice of them.
Oh wait, there's more.
What Amazon failed to mention is that they would do it for a 2.9% surcharge. So, rather than being hit by these new sales tax regulations, they have now turned them around to potentially profit.
Leave it to big business to find a loophole to keep its lions share of the online revenue in their den.
At this point, there's no timeline for when this all may occur, but consider yourself notified. It's all part of a wave of new taxes and weird fees that is cropping up around the country...one desperate to take more from you to fill its black hole budget gap.
Online Tax is Only the Beginning
When the government refuses to cut any meaningful spending programs, it has no choice but to find ways to increase revenue.
Think about it for for your own household, and how difficult it is to even suggest downsizing to one vehicle, skipping dinner out with the family, or putting a stop on all credit card purchases. It goes over like a lead balloon.
The only option becomes, we have to find more ways to make money. Someone needs to pick up a job or start a small business so we can afford what we won't give up.
The government is no different. They don't want to cut spending programs - that's political suicide. So instead, they go after the revenue side and come up with all sort of crazy hidden fees and taxes (think airline tickets...near half of the value goes to taxes and fees).
So consider yourself forewarned. This will only be the beginning of new taxes and fees for you, regardless of whether you are in business or not.
Stay tuned...
Blame Amazon for the Online Tax Proposal Getting Somewhere
Congress has been talking about this for quite some time, with the rationale that requiring an online sales tax would help level the playing field with all the mom and pop shops. Plus, as an added bonus, which I'm sure is just a serendipitous coincidence, they could collect $12 billion a year in additional revenue to the state and local governments.
This whole idea has really gone nowhere, until the worlds largest online retailer, Amazon, decided they could get behind it. That, and the fact that states are starving for new revenue streams, has now allowed it to gain more traction.
Why Would Amazon Endorse a New Online Tax?
I don't think Amazon is too concerned about the local coffee shop competing online with their wares. They can basically throttle anyone in this realm, whether as online retailers we want to admit it or not.
Also, it seems Amazon has developed some proprietary software that would allow online retailers to keep track of thousands of sals tax rates from one ZIP code to another.
Amazingly, Amazon is willing to make its technology available as a service to online retailers that would help them collect online tax for them.
That was awfully nice of them.
Oh wait, there's more.
What Amazon failed to mention is that they would do it for a 2.9% surcharge. So, rather than being hit by these new sales tax regulations, they have now turned them around to potentially profit.
Leave it to big business to find a loophole to keep its lions share of the online revenue in their den.
At this point, there's no timeline for when this all may occur, but consider yourself notified. It's all part of a wave of new taxes and weird fees that is cropping up around the country...one desperate to take more from you to fill its black hole budget gap.
Online Tax is Only the Beginning
When the government refuses to cut any meaningful spending programs, it has no choice but to find ways to increase revenue.
Think about it for for your own household, and how difficult it is to even suggest downsizing to one vehicle, skipping dinner out with the family, or putting a stop on all credit card purchases. It goes over like a lead balloon.
The only option becomes, we have to find more ways to make money. Someone needs to pick up a job or start a small business so we can afford what we won't give up.
The government is no different. They don't want to cut spending programs - that's political suicide. So instead, they go after the revenue side and come up with all sort of crazy hidden fees and taxes (think airline tickets...near half of the value goes to taxes and fees).
So consider yourself forewarned. This will only be the beginning of new taxes and fees for you, regardless of whether you are in business or not.
Stay tuned...
Source...