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Shakedown artist NY Governor Steam-roller Spitzer.
Joe Goldstein of NY Sun reports today that NY Guv. Elliot Spitzer is going to require major internet stores like Amazon.com to be his tax collectors . He wants to impose an 8.375% sales tax on internet purchases of those of us who have the "privilege" of living in NY .
I'm interested on the Constitutional questions involved in this . If I purchase goods from a sales tax free State ,am I to assume that I owe the state of NY 8.375 % on the goods I purchased out of state ?
Quote:
The very purpose of the Commerce Clause was to ensure a national economy free from such unjustifiable local entanglements. Under the Constitution, this is a domain where Congress alone has the power of regulation and control.
Tom- I don't know. However I do hope it is found unconstitutional, otherwise it will hurt small and even to some degree large businesses. I don't see how this promotes the American entrepreneur-ism spirit or capitalism.
Let me tell you how it will be;
There's one for you, nineteen for me.
'Cause I’m the taxman,
Yeah, I’m the taxman.
Should five per cent appear too small,
Be thankful I don't take it all.
'Cause I’m the taxman,
Yeah, I’m the taxman.
(if you drive a car, car - I’ll tax the street;
(if you try to sit, sit - I’ll tax your seat;
(if you get too cold, cold - I’ll tax the heat;
(if you take a walk, walk - I'll tax your feet.
Taxman!
'Cause I’m the taxman,
Yeah, I’m the taxman.
Don't ask me what I want it for, (ah-ah, mister Wilson)
If you don't want to pay some more. (ah-ah, mister heath)
'Cause I’m the taxman,
Yeah, I’m the taxman.
Now my advice for those who die, (taxman)
Declare the pennies on your eyes. (taxman)
'Cause I’m the taxman,
Yeah, I’m the taxman.
First, this is not new law. The sales tax laws generally state that sales taxes are owed for any purchases made by residents of the state. So NY is well within their rights to collect those taxes. The problem has always been that contrary to that law, its also hedl (as indicated inthe court ruling) that a company that does not have a physical presence in a state is not required to forward taxes collected from that state.
NYS has tried to get around this issue, by requiring NY residents to list the amount of taxes owed on Internet or mail order purchases on their tax returns. This has been going on for at least 2 years so its not Spitzer who was responsible.
If, Amazon maintains any presence in NYS, then Spitzer is right. If they don't then he will lose.
Physical presence ? By what right does NY state have to require it's residence to pay sales taxes on any item sold outside of the state by a merchant with no affiliation with the state ? I know that NY officials will park outside of New Jersey malls and take down NY license plate #s because the shopper dare take advantage of the sales tax exclusion on clothing .
I'm not a lawyer ,but a quick read of the NATIONAL BELLAS HESS case tells me that interstate commerce decisions is a congressional matter and not up to the individual states .
EDIT : never mind . I just read up on the concept of a "use tax" .
EDIT : never mind . I just read up on the concept of a "use tax" .
Yep, like I said, its long been held that residents are required to pay sales tax on anything they purchase. The problem has always been getting the merchants to collect it and forward it. The merchants have always claimed the sales tax laws were too complex so they left it up to the purchaser to pay.
1. I'm not 100% certain that the Constitution still matters to career politicians.
2. Like ScottGem said, if Amazon, etc. maintain a physical presence in the state, then yeah, they can charge. But is it all that inconceivable to envision a long, drawn-out legal argument over what constitutes "physical?" Your computer is physically in the state, and by lawyer logic, whatever is displayed on the screen could very well be construed as a "physical" presence as well. Unthinkable? Anyone remember a hearing on the definition of "is?"
3. A politician talking about taxes....the term BOHICA mean anything?
Yup, it's stupid and it sucks, but I don't think it's unconstitutional.
But it is multiple taxation.
We are taxed for the purchases we make.
The seller it taxed for his profits.
The manufacturer is taxed both for his profits and for purchases of raw materials to make the goods.
Employees of the manufacturer are taxed on their personal incomes.
How many levels of taxation are there?
If the government just came in and told me they were going to take an honest 50% of everything I make, I'd be happier than this multi-level ponzi scheme that our tax system currently is.
On the other hand, acording to this morning's NY Post, it looks like the "Steamroller" has run out of gas on the immigrant drivers license issue. So breath a sigh of reliefe and take the good news where you can get it.
- I’ll tax the street; 
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