Internet taxes—share your view

[one1]

I got this message from ebay a couple weeks ago,

Dear Cleonjr,

You may have heard that Congress is considering an Internet sales tax bill called the "Marketplace Fairness Act" that is anything but "fair" for small online businesses. If you want to help us protect small businesses and entrepreneurs from new tax burdens, please
get involved now.

If the Marketplace Fairness Act is allowed to become law, it could require online sellers like you to collect sales taxes nationwide from the more than 9,600 tax jurisdictions. You could also face the prospect of being audited by tax collectors from other states. On behalf of our eBay community, we are pushing Congress to include meaningful protections for small businesses.

Earlier this year, the Senate passed a bill now being considered by the House of Representatives. The good news is that hundreds of thousands of consumers and small business owners contacted Capitol Hill to express their concerns. This public outpouring has resulted in the House taking time to ask much-needed questions about how this bill will impact e-commerce and small businesses like yours.

Despite this positive development, the bill's supporters and their Washington lobbyists still want to get the bill through Congress by attaching it to important pieces of legislation that Congress must pass, such as the government funding and debt ceiling bills. Congress must fix the Senate bill by significantly increasing the small business exemption. That is why we need your help. If you oppose attempts to force an unfair Internet sales tax bill into law, raise your voice and let your representatives in Congress know.

Thank you for helping to keep the Internet a fair and open marketplace for all.

Sincerely,


Tod Cohen
Vice President & Deputy General Counsel, Government Relations
eBay Inc.

[one1]

I knew it was a matter of time.how can the government tax you on stuff you have already bout and paid taxes on. and i was under the impression that if you sold a item you purchased and sold it for less than original price then it was not considered taxable.i know they are also trying to figure out a way to go after yard/garage sales.
WERE DOES IT STOP!!!!

[Rajoo]

Why should sellers on eBay get a sales tax exemption? That's unfair advantage over established retailers offering online purchases. Yet another tax loophole and if this goes through, would like to see the eBay definition of a small business.

eBay is a dumping ground for Chinese made goods even evading customs, since they are shipped directly to the buyer and not to a retailer.

[one1]

Originally Posted by BeamOn

Why should sellers on eBay get a sales tax exemption? That's unfair advantage over established retailers offering online purchases. Yet another tax loophole and if this goes through, would like to see the eBay definition of a small business.

eBay is a dumping ground for Chinese made goods even evading customs, since they are shipped directly to the buyer and not to a retailer.

yes but what of the small sellers that are selling there household items.

[Rajoo]

I am not familiar with how eBay operates, reports or are required to report sellers income to IRS, how they classify/qualify sellers, etc. In principle I do agree that used goods should not be taxed a second time, yet here in CA, all sales are taxed except food and medicine if I am not mistaken. Even newspapers!

[one1]

well a guy told me that it is like a car sale no matter how many times it is sold and regardless of loss or gain it gets taxed.and on ebay if someone from the same state as me buy's an item it is taxed.just like anything bought from wal-mart online is taxed because of the fact there is a wal-mart in every state.

the tax enforcement for ebay will most likely become a reality.i guess i just have to look at it like i got away with it for awhile.

[one1]

another point i am really not clear on is ,does ebay pay taxes on there revenue they get for there fee's and such paypal too a lot of money goes through paypal. will ebay have to revise their fee's if tax law's are implemented?

[d-ray657]

Originally Posted by one1

I knew it was a matter of time.how can the government tax you on stuff you have already bout and paid taxes on. and i was under the impression that if you sold a item you purchased and sold it for less than original price then it was not considered taxable.i know they are also trying to figure out a way to go after yard/garage sales.
WERE DOES IT STOP!!!!

You have confused income tax with sales tax. Sales tax applies to retail transactions, such as those that take place on e-bay. If you sell something for less than you paid for it, there is no profit, so there is no income tax. Most of the thrift stores around here are not-for-profit. Nevertheless, they are required to collect sales tax. The sales tax pays for our roads, police and fire protection, schools and other government services. E-Bay sellers also enjoy the benefit of those services wherever they may be located.

Regards,

D-Ray

[Rajoo]

Originally Posted by one1

another point i am really not clear on is ,does ebay pay taxes on there revenue they get for there fee's and such paypal too a lot of money goes through paypal. will ebay have to revise their fee's if tax law's are implemented?

eBay is a San Jose, CA based company and are subject Federal and CA taxes. Since they are only a marketplace, they will not be subjected to sales taxes. I wonder if eBay is griping about sales taxes since they would be required to collect sales tax (for a simplified collection point) instead of each individual seller. IMO, eBay is a necessary evil.

[piece-itpete]

In Ohio they have a spot on your income tax form for internet purchases you didn't pay tax on. I always put a little in there.

Pete