got that right.

in the usa are at a severe disadvantage because they have to compete against online presences that are not charging sales tax. What is fair for the goose is fair for the gander.

winners and losers in the sales taxing game. But it can be said that online presences have to pay shipping, an increasing cost over the years. Most small items, for example, sold on eBay are either not profitable or have been priced out of the market by shipping costs. Shipping small items via USPS is about 2.4 times the 2002 cost, and much more than that on Priority Mail or heavy packages. USPS has used flat rate gimmicks to retain business over the years but reduce the size of the boxes so much as to make them not very useful at all.

What has become really expensive is coast to coast. Over 2 pounds or so to California is $12 to 16 if it's not eligible for Regional Rate or Flat Rate. So merchandise is not moving like it did.

And that sales tax idea of unfair is not true here in Pennsylvania. We have to pay sales tax on items and on shipping! Yes, we pay tax on USPS postal rates for items bought out of state. It's a charge on income tax forms at the end of the year.

Of course, states differ so won’t that be fun!

Many companies do it already.

Last edited Wed Jul 25, 2018, 11:42 AM - Edit history (1)

So, for example in QuickBooks, you have to create an item and a group for every sales tax in every area (and those rates change a lot). Here's a small example so people can understand (I'll just make this up using North Carolina and ONE county)...

Items to create...
NC Sales Tax: 4.5%
NC Mecklenburg County Sales Tax: 2.0%
NC & Mecklenburg (Group): 6.5%
Mecklenburg Transit Tax: 0.5%


So, that's one county in one state. NC has 100 counties so you would create around 301 sales tax items for North Carolina only. You must do that for every county in every state and I think some states go one layer further (city/town sales taxes).

Then you have to file the sales tax report (usually online for small businesses) for each state (so 50 state returns each month).

I know this because I decided to stop selling any products outside our state because the volume wasn't great enough and I was killing our accounting department just filing returns (which you have to do even if you don't sell anything).

I have no idea how many items programmers/users have to create to be ready to sell products in any state at any moment. Or how they even keep up with the rate changes (although they do mail rate changes. sometimes only days in advance).

I'm tried of business crying wolf when it comes to taxes. In my county they want to add a 1% to the sales taxes and business are crying that people won't shop in their stores any more. People are not going to drive 50 miles to avoid a 1 cent per dollar additional sales tax.

a month...

So yeah, not feasible...

Maybe a national online VAT with funds shelled out to states by population would be a simple solution... The farther we get into the 21st Century, the more arbitrary and painful the Federal System seems...

It was a small business with 12 employees. Computers do wonders if you know how to use them.

you already have to have computers to deal with that...

But, why not a national VAT for online sales that kicks money to the states and a certain % to take care of the national infrastructure that feeds those businesses. Ear mark it ONLY for infrastructure.

I've watched the sales taces in my state nearly triple in my lifetime. It's the old "it's only a penny" routine. The real reason I'm against them is that they are regressive taxes. Luckily, in my state groceries and clothing are exempt, which helps a little. Therer is something plain weird about paying nearly seven per cent sales tax on a used car.. States and municalities like them because it's an easier sale than income taxes in our political environment and they revenue is more predictable than income tax. Ditto with property tax. I hope we never ee a national value added tax. It's another regressive tax.

when, in North Carolina, there wasn't a sales tax on used cars, the reasoning being that the state had already collected taxes on the original sale.