Amazon sueing, claiming violation of Constitution!
Posted May 5th, 2008 by FreeManOnLand
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Internet retailer claims the new law, which requires New York residents pay sales tax on Internet purchases, unfairly targets Amazon and violates the constitution.
Amazon is suing New York over a law requiring out-of-state e-tailers to collect sales tax from the state's shoppers.
ALBANY, N.Y. (AP) -- Amazon.com is suing New York over a new law that requires out-of-state online companies to collect sales tax from shoppers in New York.
"We are challenging the constitutionality of the recently enacted legislation in New York," Amazon (AMZN, Fortune 500) spokeswoman Patricia Smith said.
Officials estimated the state would gain about $50 million by requiring Internet giants such as Amazon.com to collect state sales tax. New Yorkers are currently on an honor system to report their online spending when they file state tax returns.
The state Legislature and Gov. David Paterson passed the law as part of the 2008-2009 budget. It applies to companies that don't have a brick-and-mortar presence in New York but have at least one person in the state who works as an online agent -- basically someone who links to a Web site and receives commissions for related sales.
The suit argues the change unfairly targets Amazon, is overly broad and vague, and violates the commerce clause of the constitution because it imposes tax-collection obligations on out-of-state entities.
The suit also argues that the people linking to Amazon products are not agents, but are simply paid by the company for advertising. Hundreds of thousands of Web sites advertise for Amazon. New York now considers anyone who runs one of those sites from within the state an agent for Amazon.
New York state has argued that the law closes a "tax loophole."
Tom Bergin, a spokesman for the state Department of Taxation and Finance, said the change is a necessary update for modern times.
"Everyone in New York state either pays sales tax on articles that they buy or is required to pay sales tax on articles that they buy," he said. "This is not a new law, this is just amending the law to bring some of the new technology -- the Internet -- into compliance."
Bergin would not comment on the lawsuit.
Businesses with a physical presence in New York already collect the state sales tax on online purchases. The proposed law would apply to companies that have $10,000 or more in New York sales. To top of page.
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The powers that be have also been trying to push the
"Streamlined Sales Tax Project" in Congress which would basically make almost all internet sales taxable..unless you fell under a certain threshold.
This must be New Yorks way of trying to implement in their state.
eBay is one of the on-line companies spending allot of money fighting it.
I know because they sent me to DC in 2005 to lobby capital hill against it..along with 49 other people. Lucky me got to meet McCain when I was there..he was our guest speaker the last night we where there, if I hadn't known better I would have thought he was a democrat.
"if I hadn't known better I
"if I hadn't known better I would have thought he was a democrat."
Guess who wanted to run as a Democrat in 2004, against Bush, as John Kerry's VP?.....
http://www.usatoday.com/n...
You were right about McCain being a Democrat. Or maybe at this point he is a closet Democrat.
Instead of imposing more taxes.....
New York should be solving its own problems by stopping its horrific spending!
Instead of INCREASING the BILLIONS to the "schools" - that corrupt establishment of extortionists that want us to believe "its for the students" - they would do well to start DISMANTLING this behemoth, starting with the huge, overpaid administration and unions!
Instead of the outrage that is the chief judge of New York, Judith Kaye sueing the state on her own behalf and of all the NY judges for pay increases, they should be shown the door and told to get jobs in the private sector where they won't be feeding at the public trough.
Instead of monies spent on all kinds of extraordinary, unnecessary nonsense, overpaid legislators and public officials, too many public employees also feeding at the trough, the money should be cut, cut and cut some more in New York, then we would not have to be taxed, taxed and taxed some more!
So I don't blame Amazon for this....NY should learn a lesson!
Heh
If only Amazon carried a book that discussed fair taxation and following Constitutional law...maybe they could take a look at such a book and learn a few things...
:: suddenly imagines new sponsorship agreement -- "The Daily Paul, brought to you by AMAZON, official sponsor of the Ron Paul for President campaign!" ::
So what would NY do if Amazon fails to comply?
Send NY troopers to Amazon HQ, outside of NY state, where said troopers have no authority and said law has no jurisdiction???? Issue a warrant for the arrest of Jeff Bezos and then fight Amazon's home state and press for extraditing him to NY? I mean, SERIOUSLY? What would NY do????
If I were Amazon, I would just ignore the law and let NY try to force me to obey it. By suing NY, Amazon is ipso facto agreeing NY has jurisdiction over them.
Bingo! Just ignore them they
Bingo! Just ignore them they have no means to collect.
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Is life so dear, or peace so sweet, as to be purchased at the price of chains and slavery? Forbid it, Almighty God! I know not what course others may take; but as for me, give me liberty, or give me death. Patrick Henry