Internet purchases soon to include sales tax
If you're planning a major purchase via the Internet, you might want to do it quickly. Congress is expected to introduce a bill this week that would require Amazon.com, L.L. Bean, Cabela's and other online merchants to collect sales tax on all online purchases and return that money to the state in which the purchaser resides.
For those used to buying $.99 iTunes or other more tangible items, this will be an immediate price hike. Californians, for example, will pay an extra 7.25%. We'll see when the bill is introduced it if also included local sales taxes, which can bump this up to 8% or more for many of us.
Although the bill is strongly opposed by online merchants, the states have suffered a reported 6.1% decline in sales tax revenue due to the recession. Because of this, states are in dire straits. I wouldn't be surprised to see this measure fly through Congress, so don't delay that major purchase too long. You might even consider doing your Christmas shopping now. Where else can you put your money that will bring an 8% return in eight months?
For tips on relieving your money madness, check out Send in the Clowns, the stress management episode from WalletPop's video series, Loose Change:



Reader Comments (Page 1 of 10)
4-20-2009 @ 12:27PM
Wes said...
Shame on BO and Congress for wanting to tax in recession like this. Here are some products and how much they will go up with this new tax.
http://www.butasforme.com/2009/04/20/obama-and-congress-poised-to-end-tax-free-internet-shopping/
Reply
4-20-2009 @ 7:54PM
TF said...
Don't worry, if you don't make $250K there won't be any extra taxes or fees that are imposed upon us. BO and company promised!! They wouldn't 'fib' would they??? Just the 'rich people' will pay more! BOHICA is the name of the politicians game! Do a search and read the BOHICA rules.
4-22-2009 @ 8:44AM
Sue said...
I knew it would only be a matter of time! Well, this shopping tool I got for free STILL is the best thing to help consumers get the very best prices available.........on the internet and off. You can check it out if you want........ www.geniesavesmoney.com
Oh, it searches the internet faster than anything I've ever seen:)
4-21-2009 @ 5:54PM
bork said...
While I hate to see this happen it was just a matter of time.
And to be clear, this is State sales tax -- not a federal Tax. It's the federal government stepping in to enforce state sales taxes online.
If you've not been paying sales tax voluntarily on catalog and internet orders, you're a dirty tax evader.
4-20-2009 @ 2:15PM
Tom said...
I thought that Congress was suppose to look out for the people, but here again it looks out for govt., business and itself again. and again.
How's that hope and change going? right down the drain just as b4. Doesn't matter who you elect we still get it in the end. just another "let them eat cake" attitude by congress.
Reply
4-20-2009 @ 5:16PM
Lynn said...
To all citizens,
You need to start reading the US Constitution and hold ALL Public Servants, especially Congress to the LAW, period! In Article 1, Section 8, it specifically states:
"No tax or duty shall be laid on articles exported from any state."
The sad fact is, the politicians have been very adept at keeping you so busy pointing fingers at each other, so they can continually get away with breaking the Supreme Law of our Land! They cannot LEGALLY sign this bill into law without formerly amending this provision, and this requires a Majority 2/3 Vote by Congress AND a Majority vote of 3/4 of ALL STATES (38 of them)!
It's time to WRITE your congressmembers and tell them if they break the US Constitution and try to push this bill through the House and Senate, they will be FIRED and voted out of office pronto! It's high time you, as citizens of the United States of America, started to tak your legal duties and responsibilities seriously, which includes making sure every single "public servant" who takes the oath to honor, obey and support the US Constitution does so, and if they do not, then they are not fit to serve this great country!
Thank you.
4-20-2009 @ 7:19PM
Josh said...
I can't find that article in the constitution, not in those words. besides, even if "No tax or duty shall be laid on articles exported from any state."
they could just reword it to say that the tax is on the customers and said customer is importing the item to their state.
So it's not a tax on the exporter, but a tax charged to the person having it imported.
4-20-2009 @ 11:50PM
SpiritUSA said...
It's in Section 9; not 8 ...
4-21-2009 @ 5:44AM
Dodged5 said...
Lynn needs to go back and reread the Constitution. It's Article 1, Section 9, paragraph 5. It states that "No Tax or Duty shall be laidon Articles exported from any state." In other words, no state can impose an export tax. The proposed change is not an export tax. It is a sales tax imposed by the state in which the purchase was made the same as if you bought the item locally. It is not a violation of the Constitution, unfortunately. That doesn't mean we have to like it or accept it without complaint. Write your representatives. Tell them what you think.
4-20-2009 @ 2:20PM
jack11 said...
This is what you get when Democrats run things!
Reply
4-20-2009 @ 5:06PM
Cheryl said...
Actually, this is what happens when the Republican administrations run the economy into the ground and somebody else has to fix it. All the tax money we've been paying is sitting as "profits" in CEO and big corporation bank accounts.
4-20-2009 @ 9:13PM
mitzi said...
Some-one has to clean up Bush's mess along with the rest of the Republicans.Speaking of Republicans our Governor of California is breaking the tax payers back's with all his new taxes.Try blaming him on the Democrats. After all he is in his last term of office and he is the cause of our problems for refusing to sign the budget last year because if passed it would have hurt him and his wealthy friends by making them pay their fair share of the taxes and quit hiding behind their tax loops. I am a 79 year old widow with limited income and I have to pay both state and federal taxes every year, so why shouldn't they have to pay?
4-28-2009 @ 2:43PM
Tom said...
I think its more that someone has to clean up after the government, democrat and republican alike. You cannot lay blame on one political party for the massive amounts of money that our government has spent over the last 4 years. Unfortunately it seems like the relentless drive to overspend will not come to an end any time soon.
It is sad however that we are loosing the last bastion of tax sanctuary. I am sure this is not the path our forefathers intended for us. King George the third is laughing in his grave.
4-20-2009 @ 11:06PM
laughingcossack said...
Actually ALL politicians do this. If we vote them out of office, we will get another one cut from the same bolt of cloth. The only way to re-estabilsh our voting rights is to amend the U.S. Constitution to allow voters to vote for "None of the Above" and then hold elections every two weeks, if necessary, until someone we are willing to take a chance on garners more than 50% of the vote.
4-21-2009 @ 1:44AM
china said...
No Cheryl, this is what you get when you sleep through American Government class in school and give a president a Democrat controlled congress his last year in office, they cause a flood in the market place with loans to people who can't pay for them in the name of "fairness" and then make the middle class pay for it through sales taxes....telling them they are going to lower your taxes. It's called "backdoor".
5-10-2009 @ 1:22AM
Quandry said...
Cheryl and mitza -Typical women sheep.I am not saying al women fall intto this category but more then 50% just fall for whatever the NEWS MEDIA tells them and believe everything they say. Umm things started going downhil mitzi and chertly when the DEMONCRATIC senate took over Also we took a nosedive when Democrats realized they coud boost Osamas ratings and get him elected by trashing the Economy with no thought or caring of what it would do to the little people,because you know as BO says "they just cling to guns and religion.in othr words WE don't give a damnn aboutt THOSE people. BO and the MEDIA went havd in hand FEAR MONGERING everyone into a panis.RUNS on the BANKS much? LOOK into who PUSHED the panic into CODE RED on that, DEMONCRAT WHO pushed for loans to all saying it would be discrimination and unfairly affected minorities IF the lenders didn't relax rules and let more people BUY houses IT is a RIGHT as an AMERICANFfannie and freddie and all You better give loans out even if someone can't afford or ELSE.Blame your buddies on the far left for abusing the system I guaranteee you a lot of the defauts were by people that were not Moderate or Conservative with their money!!!Wasn't people that worked 2,3 and 4 jobsat a time and saved for years to afford a modest house IT is people like you buying as big of a house as you can and not caring that you couldn't afford it if anything should go wrong GIMME GIMME GMME I am Entitled HARRY REID and MICHAEL MOORE said so Idiotssss
4-20-2009 @ 9:40PM
JVan said...
thanks Mr Obama one of many to start
Reply
4-20-2009 @ 2:30PM
Patriot Games said...
AWESOME, FUNNY short cartoon film explains the current economy! http://www.break.com/usercontent/2009/4/SubPrime-Slime-705089.html
Reply
4-20-2009 @ 2:29PM
ann weller said...
I think this is way overdue. Local merchants--the backbone of our communities--have to collect and pay sales tax while they also support local charities, events, etc., and then they get undercut by online retailers who have no overhead or commitment to anyone but shareholders and corporate execs.
Reply
4-20-2009 @ 2:53PM
myvoice said...
I can tell you don't use internet for shopping. and I'll bet you don't look at the price when you do shop .