Subj : Internet taxes To : JEFF BINKLEY From : BOB KLAHN Date : Sun Mar 13 2011 20:49:54 JB> Far be it for a Democrat to see a dollar that they didn't JB> want to tax... The moving trucks continue to leave JB> Illinois... This is after their recent massive income tax JB> increase... Since ineternet sales cut sales taxes in the state, and I believe you pushed the sales tax as the Fair tax, a replacement for the income tax, think about it. Or was that Ross Cassell? Either way, non-payment of tax on internet sales puts internet business in a better position than local stores. Since when should the government make policy that gives an advantage to one form over the other? ... JB> Illinois Governor Signs Amazon Internet Sales Tax Law JB> Mar. 10 2011 - 6:33 pm JB> By JANET NOVACK JB> After two-months of fence-sitting, Illinois Governor Pat JB> Quinn today signed controversial legislation requiring JB> Internet retailers like Amazon.com and Overstock.com to JB> collect Illinois’ 6.25% sales tax if they have affiliate JB> sellers in the state. House Bill 3659, the Mainstreet JB> mortar retailers, who supported it, and Illinois-based JB> Internet-only businesses, who warned that if Quinn didn’t JB> veto it some of them would flee the state. Had Quinn done ... JB> Chicago-based CouponCabin.com called the Governor’s JB> approval of the bill “deeply disappointing” and said he is JB> “actively exploring” moving his seven year- old business to JB> Indiana. Kluth, a long time resident of Chicago, had JB> previously threatened such a move, telling Forbes, “I can JB> see Indiana form the roof of our business.” And how many employees will lose their jobs? If he can see Indiana from the roof of his business then the answer should be zero. JB> But Quinn, a Democrat, described the law as necessary to JB> put the state’s “main street businesses” on “a level JB> playing field” with online retailers and to protect main JB> street jobs. In a statement issued by Quinn’s office, David Which happens to be true. ... JB> in 2008. While Amazon has been challenging (so far JB> unsuccessfully) the constitutionality of that law in court, JB> it has kept its New York affiliates and now collects New JB> York sales tax on purchases shipped to the Empire State. JB> (It also collects for shipments to its home state of JB> Washington, as well as North Dakota, Kansas, and Kentucky.) ... JB> addition to California, the states of Arizona, Connecticut, JB> Hawaii, Minnesota, Mississippi, and Vermont are all now JB> considering Amazon laws. IOW, as more states enact such laws either Amazon will collect the tax, or Amazon will have no affiliates. JB> As Forbes suggested here, Amazon’s days of sales tax JB> collection free selling may be numbered for another reason: JB> Amazon’s growing network of warehouse and fulfillment JB> centers. Last year, the Texas Comptroller sent Amazon a JB> bill for $269 million for four years of back sales taxes, JB> based on an Amazon warehouse there. Amazon insists the JB> warehouse doesn’t give it nexus. But last Month, it told JB> its Texas employees that it would close the warehouse, JB> throwing 110 of them out of work. Let's see. 110 workers, at $25K/yr, (not an unreasonable estimate for warehouse workers in Texas for an online retailer), equals about $2.75mill/yr. Over the 4 years, that's $11mill. Now $11mill against $269mill???? Hell, they can hire all 110 for a state run warehouse for online retailers just off the sales tax Amazon paid, with $250 mill profit. Well worth it. JB> Thursday 10 P.M. update: According to Amazon spokeswoman JB> Mary Osako, the retailer has now sent an e-mail to its JB> thousands of Illinois associates stating Quinn’s signing of JB> the law “compels” it to terminate them. The message reads JB> in part: ... JB> Amazon’s e-mail also invites the Illinois associates to JB> apply for reinstatement should they relocate from the state. JB> * Origin: (1:226/600) Which may cost the state maybe a few hundred jobs, if they all leave. OTOH, any that are not on the border already will probably find it cheaper to run without Amazon. BOB KLAHN bob.klahn@sev.org http://home.toltbbs.com/bobklahn .... "His death is irrelevant, Jim." - McCoy of Borg --- Via Silver Xpress V4.5/P [Reg] * Origin: Since 1991 And Were Still Here! DOCSPLACE.TZO.COM (1:123/140) .