Post: #1

Amazon must be pissed. Still, even with state taxes included, online in general (even excluding Amazon) is so convenient that I don't think this ruling will make a big dent in online sales. This is definitely something to consider for those of you here thinking of starting your own online business.

Quote:With Billions At Stake, Supreme Court Rules States May Tax Online Retailers

The Supreme Court ruled Thursday that states can collect state sales taxes from online retailers on consumer purchases. The decision overruled a decades-old precedent that had protected out-of-state sellers from being required to collect such taxes.

States stand to gain billions of dollars with the ruling, which marks a new era with an Internet economy that has boomed over the past decade and become a dominant force.

The decision will also have dramatic consequences for small online retailers that do business in many states.

"The Internet's prevalence and power have changed the dynamics of the national economy," Justice Anthony Kennedy wrote for the majority.

The 5-4 decision defied the usual conservative-liberal lineup with Kennedy joined by liberal Justice Ruth Bader Ginsburg, and conservatives Samuel Alito, Neil Gorsuch and Clarence Thomas. The conservative chief justice, John Roberts dissented along with liberals Stephen Breyer, Sonia Sotomayor and Elena Kagan.

Forty-five states rely on sales taxes for revenue, and for those states that have no income tax, sales taxes are very important. Estimates of how much money the states are losing vary dramatically, ranging from more than $200 billion over five years to a recent estimate from the Government Accountability Office of between $8 billion and $13 billion per year.

Indeed, Justice Gorsuch once called the current system "a judicially created tax shelter."

And, in 2015, Justice Kennedy suggested he was prepared to overrule the Supreme Court's 1967 and 1992 decisions in light of modern realities.

For much of the last decade, states have been pressing Congress to fix the problem, to pass a bill that levels the playing field. But Congress, buffeted by anti-tax groups, has walked away from the issue.

Post: #2

(06-21-2018 12:05 PM)Sumanguru Wrote:  Amazon must be pissed. Still, even with state taxes included, online in general (even excluding Amazon) is so convenient that I don't think this ruling will make a big dent in online sales. This is definitely something to consider for those of you here thinking of starting your own online business.

I just posted this in the entrepreneur thread.

/thread-54749...pid1805657

Amazon is already paying taxes in most states. It won't affect them nor will it particularly hurt the bigger online retails. It will hurt the small businesses since they don't have the same resources to comply.

As stated in the other thread, I expect most states to jump on this wagon before the end of the year. It's going to be a shit show since Congress can't seem to to set common sense guidelines for states to follow making it easier for businesses to collect and remit sales taxes.

Post: #3

Amazon won't give a shit and this will do nothing to their power.
The way Amazon scales can afford anything thrown at them.
Also Amazon is not just an online selling platform, their portfolio of products is vast.

Post: #4

(06-21-2018 12:11 PM)worldwidetraveler Wrote:  ...
Amazon is already paying taxes in most states. It won't affect them nor will it particularly hurt the bigger online retails. It will hurt the small businesses since they don't have the same resources to comply.
...

This.

For some reason most people don't understand, big businesses want more regulations, because they can handle the overhead.

The world will make a lot more sense if people had this perspective. Makes things a little simpler to understand. It's one of those, "even if you don't believe it and are super pro-government, having this perspective will make the world make a lot more sense".

It's sort of like Conservative Christians medical professionals. There are some who don't believe in speciation, but if you study biology, it at least makes a lot more sense of the world.

Post: #5

(06-21-2018 01:12 PM)heavy Wrote:  

(06-21-2018 12:11 PM)worldwidetraveler Wrote:  ...
Amazon is already paying taxes in most states. It won't affect them nor will it particularly hurt the bigger online retails. It will hurt the small businesses since they don't have the same resources to comply.
...

This.

For some reason most people don't understand, big businesses want more regulations, because they can handle the overhead.

The world will make a lot more sense if people had this perspective. Makes things a little simpler to understand. It's one of those, "even if you don't believe it and are super pro-government, having this perspective will make the world make a lot more sense".

It's sort of like Christian medical professionals. There are some who don't believe in speciation, but if you study biology, it at least makes a lot more sense of the world.

(I must have accidentally replied to my own post. I tried deleting and it won't let me. Please delete this.)

Post: #6

This actually WILL affect Amazon, their Fulfilled by Amazon program to be specific. FBA sellers (third party sellers who list on Amazon to sell products, whether their own it someone elses) store their goods in a few Amazon distribution centers, and pay Amazon rent fees and fulfillment costs. Those sellers don't charge sales tax in most states because they don't have a tax nexus in most states. Of course they can easily comply and simply charge sales tax across the board. But the states (and Trump) were right to single Amazon or for tax avoidance. FBA alone generates 30 billion in revenue per year. You can see how lucrative FBA is for Amazon when you note a third party seller is often designated "Amazon's Choice" over Amazon's own listing.