

State thinks online giant owes them millions of back taxes









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RE: The Gov Needs To Back Down
By bhieb on 5/14/2008 11:36:50 AM , Rating: 2
No it shouldn't. Amazon has a 6.25% advantage over sales in TX because they do not collect the tax. How does that encourage a free market when someone is going in with a built in advantage?

RE: The Gov Needs To Back Down
By 16nm on 5/14/2008 11:44:25 AM , Rating: 2
Like it or not, that's the way the law is today. Had Amazon not filed incorrectly, they would not owe the tax as per the law. As the article states, Amazon filed incorrectly so they owe unless their lawyers can work it all out.

RE: The Gov Needs To Back Down
By bhieb on 5/14/2008 12:13:28 PM , Rating: 2
True and if they did screw up then your right.

I was speaking to the bigger issue of Etailers having a competitive edge. Should that be "left alone", IMHO it should be addressed.

Problem is how. If you have company XYZ in OK, and I buy something from them in TX. How does a TX law apply to them? Now you are talking about one state regulating business in another, and that is not how it is done here, states cannot regulate other states. The only way it could work would be at a Federal level, but then who gets the money? Should TX just cause I live here, what about OK they have created a favorable place for XYZ to do business so why don't they get anything?

And take the Amazon or any other Etailer out of the picture, what happens if I just drive accross the border and buy it. OK has no sales tax they rely on income tax. So if i don't file the use form I get off tax free.

Again no perfect answer.

By Johnniewalker on 5/14/2008 5:45:50 PM , Rating: 2
Amazon also has a few disadvantages. They have to pay shipping and the consumer has to wait to get their order. Those two disadvantages can easily outweigh the 6.25% advantage. Still with those disadvantages, Amazon has build a successful business is able to offer the consumer something that is very underappreciated. Another choice. If you think Amazon is bad for a free market, you must be crazy.


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