|Quoting TransIsland (Reply 12):|
I am not quite sure why a sales tax for an online purchase should be paid at the recipient's shipping address, instead of the retailer's HQ or warehouse of origin
The problem comes when states offer highly advantageous tax rates for businesses to relocate. You then run the risk of having a huge on line retailer domiciled in a small state, in order to take advantage of the low tax rate. The host state is very happy, but not the states losing out on revenue.
|Quoting Flighty (Reply 18):|
Quoting GuitrThree (Reply 15):
Tax collected should be from the location where the item was bought, not shipped to.
|Quoting AirframeAS (Reply 25):|
No, it should not. It matters where the goods either 1) Are shipped from or.... 2) The state where the HQ is collecting the money. The sales taxes, IMO, should go to the State where the company has their HQ base to support THAT State's economy.
We have a similar situation developing here in the UK, and Europe. Amazon Europe are officially domiciled in Luxembourg, the smallest fully functioning EU state, where they have less than 500 staff. Meanwhile the vast majority of customers are in Germany, the UK and France, as are the distribution warehouses with thousands of staff and millions of pounds of stock. Its an absoloutely blatant example of tax evasion. Though EU laws insist that sales taxes are paid according to the rate at the destination, all profits are taxed at the very low Luxembourg rate.
These sort of practices have always been around, but the internet age makes them so much easier to carry out.
This thread is about online retailers seeking out the best tax deals from the individual US states, in a way the US economy is still getting the revenue somewhere. Just bear in mind that the next step is to take the computer operation offshore to the carribbean or similar, then the US treasury will receive nothing. Amazon etc know how to do it as they have tested it out in Europe.