posted on Mar, 4 2004 @ 02:43 PM
If you bought a computer from Dell, or books from Amazon, the government wants its
tax money that you failed to pay during your online purchase. Two more states, California and New York have added lines to their tax forms for
taxpayers to declare their online purchases. New York says that it will have audits to uncover credit card purchases and mounting tax debt.
Faced with the loss of billions of dollars in telephony taxes because of the ban on Internet-access taxes, some states are now moving to collect
sales tax on goods purchased over the Internet.
The nation's two largest states--California and New York--have added lines to their state income-tax forms this year requiring taxpayers to declare
sales taxes owed on out-of-state purchases. Dan DeVeronica, 21, who owns an Internet cafe in Rochester, says most New Yorkers, including himself, will
likely leave "line 56" blank "as sort of a protest." DeVeronica said "The Internet is not a government service. It's privately owned so it
shouldn't be taxable."
Evidently the government sees the
Internet as a huge tax field just waiting to be developed and mined for riches. Some members of the Senate are fighting to have your Internet service
taxed. They reasons that since you are getting services (downloading music, video, news), you should be paying taxes on those services. Notable are
the heroes Sen. George Allen, R-Va., who with Sen. Ron Wyden, D-Ore are pushing for a permanent ban on internet service tax.(Hip, Hip, Hurrah!)
Since the states are losing that war, now they are pushing to enforce taxing items purchased over the Internet. The main hurdle for them is the
difficulty of tracking every purchase made and the difficulty of auditing millions of people to find this information. States would like for vendors
to collect the tax at purchase time, but since different states collect tax at different rates, its very difficult to control. What about the
purchases you make when you are vacationing? Who keeps track of these items, and are we to pay taxes on these as well?
So, is it possible for them to enforce this law and have everyone pay taxes on their Internet purchases. Most likely the RIAA will stop illegal
downloads before this happens. Most people just don’t know that they are supposed to pay the taxes, and if they do know, they don’t want to pay the
Related ATS Discussion:
FCC starts rewriting Internet rules
[Edited on 4-3-2004 by SkepticOverlord]