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  • gintowin gintowin Mar 23, 2013 11:47 AM Flag

    Would an internet sales tax hurt Amazon?


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    • Yes, because Amazon margins are already razor thin to non-existent. I will quit buying on-line unless I cannot find the item at a local store or if the price is much lower. That says it all, in my opinion. Similar reasons are why Sears and Penny's catalogs became little used as local stores stocked most of the items. The primary advantage of buying online will be gone. Don't let anyone tell you different. AMZN is a screaming SELL.

    • Mar 22, 8:13 PM EDT



      WASHINGTON (AP) -- Advocates of an effort to help states collect taxes on Internet sales won a symbolic but important victory Friday as the Senate signaled solid bipartisan support for the proposal.

      Senators voted 75-24 for a nonbinding measure that endorses giving states more power to collect existing sales taxes on purchases their residents make from out-of-state Internet companies.

      Though the vote was merely a show of sentiment, the one-sided outcome showed that supporters of collecting the levies could prevail should the Senate consider binding legislation later this year.

      A congressional battle over the issue has been simmering for years, pitting Internet companies against traditional retail stores.

      Part of what is at stake is potential revenue for cash-starved state governments across the country. An estimated $20 billion in sales taxes go uncollected annually by out-of-state online merchants.

      Supporters also argue that not collecting the levies is a competitive disadvantage for retail stores, which must collect local sales taxes.

      One sponsor, Sen. Richard Durbin, D-Ill., said Internet sales taxes should be collected "so those local businesses will have a fighting chance."

      Sens. Mike Enzi, R-Wyo., and Lamar Alexander, R-Tenn., were other chief sponsors.

      Opponents said the plan would be unworkably complicated, would pressure states without sales taxes to adopt them and would encourage companies to move overseas, where they said sales taxes could not be enforced.

      "It tramples on states' rights," said Sen. Kelly Ayotte, R-N.H.

      Online businesses with less than $1 million i

      • 1 Reply to gintowin
      • Good question. It improves their competitive advantage in states where they have already lost the fight, since their smaller internet competitors would now have to collect tax also. However, in the other states they would no longer have the advantage over B&M stores. Since they are now collecting taxes in the big states (California, Texas. NY, NJ, etc.), my guess is that they are better off with the new legislation.

        Sentiment: Sell

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