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ALERT! Small Business Owners About To Get Shafted With Online Sales Tax

Four months after the Senate approved a controversial bill requiring online merchants to start collecting sales tax, a pair of lawmakers have opened the debate in the House, but with one major change from the original legislation — no exemption for small businesses.

House Judiciary Committee Chairman Bob Goodlatte (R-Va.) and Rep. Spencer Bachus (R-Ala.), a subcommittee chairman, recently released an outline of principles for online sales tax legislation, citing input from taxpayers, trade groups and state and local governments. In it, they argue that lawmakers should take action to level the playing field for brick-and-mortar and Internet retailers.


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Who Is Funding Internet Sales Tax Efforts?


Tweeting occasionally as himself @cudnoski on the twitter.

Let Me See Now

...for many years whether you were buying online, or making a purchase from a retailer (that's correct), and the merchandise was shipped/delivered/mailed to another state...NO SALES TAX.

That's right...NO SALES TAX, even from a RETAILER.
.......SHIPPED to ANOTHER STATE...............
You might pay shipping, or you might not, it was up to the merchant.
I know this because I was in sales for a very distinctive, upscale store that did this regularly.
Retailers don't pay sales tax to obtain said merchandise...a tax exempt number is used, as it is "understood" that "local sales" will pay sales tax.

Today many merchants are in contact with suppliers who transact business online...Yes ONLINE!
Whether it's a smaller merchant or a person looking to re-sell at local flea markets,sales tax isn't charged if purchased online and delivered to another state........The trade off?
.............. SHIPPING CHARGES...................

You see, shipping charges aren't added normally to a retail sale, but can be incurred in an online sale.
And if you shop around online you can cut a deal sometimes for free shipping.....in this way a savvy shopper could save some dough.
As far as the "Level playing field" being touted here by these Congressman?...They are simply adding to everybody's already unbelievable tax burden.
House Reps Bob Goodlatte (R-Va.) and Spencer Bachus (R-Ala.) need to be told that this strangles consumers and smaller merchants alike.
I wonder how they do their shopping?

"Beyond the blackened skyline, beyond the smoky rain, dreams never turned to ashes up until.........
...Everything CHANGED !!

You want to end taxes? Simple - no more w2 all 1099

My wife never paid attention to taxes-I always made triple what she made(we are both second marriages so established coming in) - she would always just ignore my bitching.

Then I "went out on my own" as a consultant - then I had to remind her to pay that quarterly check. Then she got pissed. Then she at least started to pay attention.

When you are writing out very large check to the government four times a year - people wake up very quick. When it is "only" a few hundred dollars a week - well that's much easier to take.

If we ended w2 and 1099'd everyone - we would have a revolution in six months - right about the time that second check is due.

I'm in the same boat.

I'm in the same boat. Quarterly taxes are like a bloodletting. You get to see your business being slowly killed by vampires up close and personal.

Online merchants have always

Online merchants have always been required to collect sales taxes just like offline businesses.

This article is quite misleading when the author states that online merchants will be required to "start" collecting sales taxes.

The fact of the matter is that the government is trying to force businesses to collect sales taxes for states that they are not located in, where the business does not have nexus established and where the states have zero jurisdiction.

For example, a business in NJ collects NJ sales taxes. That goes for both online merchants as well as offline merchants. But this new law would force NJ merchants that do business online to collect sales taxes for every other state as well.

Why should a NJ business have to collect and submit taxes for the state of California? Or better yet, why should a business in Delaware, which has no sales tax, be forced to collect any sales taxes at all for any other states?



more taxes are on the way. no way around it.

here's a list of the scumbags.

RIP businesses

That could shut down my business. Those tax-happy jackasses out there don't understand, because they have never run a successful business and don't understand how dramatic something like this can be when a business owner is running on thin margins.

I wonder how many businesses would be shut down by this.

Most of us already pay around 40-70% of our income in various forms of taxes, mostly hidden, and even more if we try to save a lot of money and get hit with inflation. Even a 5% increase in tax will be the last straw for me.

Remember, the more we are taxed, the more devastating each successive tax is. If you have only 30% of your income left after taxes, another 5% of your income is 17% of what you have left.

Taxes pay interest on the National Debt.

To raise the debt ceiling, they need to raise taxes to afford it.

They want to spend $4 Trillion which means they want to borrow $4 Trillion.

Which means they have to pay interest on $4 Trillion.

Since 1893, Congress has borrowed to pay its bills.

The lie is that taxes pay for services. They only service the ever increasing debt.

Free includes debt-free!

Those of us

who own small businesses are constantly getting the shaft. If we haven't learned by now to keep our heads down and trade in person as well as online, we sure will if this goes through.

Personally I've started focusing much more of my efforts on face to face transactions including as much or more barter as cash. I've entirely discontinued working with credit cards these days.

It was a refreshing feeling to sell items in person over the weekend and receive real value in return. One transaction yielded a $5 gold piece.

Liberty and sound money feel really good. :)

The Internationalists in the House will vote for it.

This would be brutal for all us small owners.

Where are OUR massive

Where are OUR massive lobbying efforts?

This is true.

I just don't have the time. As a new startup over the last 7 months, I havent' had a day off.

Worth it

After a while in business I finally took a weekend off. Knowing I don't have a boss, knowing I can operate with barter and in my community without having to worry about a business shutting down and suddenly being without a job, makes it all worthwhile. Sacrifices of free time end up meaning so little in the grand scheme of running your own business.

The sense of accomplishment is enormous. Just keep at it. :)

Thanks for the support.

I understand. Things are going very well. It's just my days average from 8 or 10 hours to 14 and sometimes more. lol.

I'm in it for under a decade

so far, and I still put in plenty of hours. It's just that I finally felt able to take a weekend off. I found I actually missed working for the weekend! It was one heck of a restful holiday though, unlike any holiday I've taken before.

Now that I've got things calmed down, my regular days run 12 to 14 hours. I try not to work more than that, but sometimes you just have to.

I'm glad to hear it's going well for you, the sense of fulfillment never does seem to stop growing, either. :)

I don't like vacations. I

I don't like vacations. I never know what to do!