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Two thoughts: 1. This news makes me very happy. 2. Most states don't have the economic clout that would make a retailer like Amazon hurt more from the loss of t

Two thoughts: 1. This news makes me very happy. 2. Most states don't have the economic clout that would make a retailer like Amazon hurt more from the loss of their affiliates than they would by charging sales tax. It's not only the potential loss of revenue they might incur if sales taxes were no longer part of the price comparison between local and internet sales, it's the huge, possibly inestimable, cost of complying with the wacky tax codes rates set by random politicians in every dinky municipality, county and state, which change faster than leaves fall in an Autumn windstorm. If Illinois wants to squeeze more tax revenue out of its citizens, let it join with other states and demand a single, uniform, federal sales tax. Until then, lotsa luck.

pagekalisedown 15y ago
I would go as far as saying that all form of income tax should be abolished in favor of one large federal sales tax. One that's already included in all advertised prices. I think it would make most people's lives that much simpler.
- lachyg 15y ago
  Not sure why you're getting downvoted. This is the system that works fantastically in Australia, and I assume other countries in the world.
  - potatolicious 15y ago
    The problem with this idea is that it's a regressive taxation system, as opposed to a progressive tax system. Which is to say, the poor are taxed disproportionately compared to the rich. A person who makes $10M a year spends a much lower percentage of his income than someone who makes $40K a year. So now we're taxing the $40K person heavily, while the $10M person pays comparatively almost nothing, even accounting for lavish and expensive lifestyles. It reinforces a negative cycle - the rich get richer, the poor get poorer, and social mobility is removed. When the poor lose all hope of improving their lot because the system is so stacked against them, instability and unrest results and... well, the rest of this story might get a little violent. This is probably a worse idea than, say, the flat-rate income tax that is practiced in Hong Kong and elsewhere.
    - pagekalisedown 15y ago
      Several states have no income tax. Including Washington, which is fairly progressive. How do they make it work? A sales tax can vary depending on the type of good. Luxury goods can be more taxed than essential goods. Wouldn't this even the playing field?
      - aptwebapps 15y ago
        For most taxpayers in the US state taxes make up a much smaller portion of their total tax burden than federal taxes. So, overall, the tax burden in Washington isn't so much more regressive than a state with income tax. You can have luxury taxes, but it's hard to match income tax if your goal is to have a fairly progressive tax.
    - danboarder 15y ago
      Perhaps counter intuitive, but regressive tax scaling provides better incentives: people will want to make _more_ money in order to take advantage of the lower effective tax rates. Tax policy can reward or dissuade achievement.
    - megaman821 15y ago
      If there is a sales tax, an inheritance tax, and a property tax, who cares? If you are a millionaire that lives like you make minimum wage, those are the type of taxes you will pay. The rich secretly like the progressive tax code and all the exemptions. The thicker the tax code the more loop-holes for them.
jrockway 15y ago
New York managed to get Amazon to collect taxes.

pagekalisedown 15y ago

I would go as far as saying that all form of income tax should be abolished in favor of one large federal sales tax. One that's already included in all advertised prices. I think it would make most people's lives that much simpler.

lachyg 15y ago
Not sure why you're getting downvoted. This is the system that works fantastically in Australia, and I assume other countries in the world.
- potatolicious 15y ago
  The problem with this idea is that it's a regressive taxation system, as opposed to a progressive tax system. Which is to say, the poor are taxed disproportionately compared to the rich. A person who makes $10M a year spends a much lower percentage of his income than someone who makes $40K a year. So now we're taxing the $40K person heavily, while the $10M person pays comparatively almost nothing, even accounting for lavish and expensive lifestyles. It reinforces a negative cycle - the rich get richer, the poor get poorer, and social mobility is removed. When the poor lose all hope of improving their lot because the system is so stacked against them, instability and unrest results and... well, the rest of this story might get a little violent. This is probably a worse idea than, say, the flat-rate income tax that is practiced in Hong Kong and elsewhere.
  - pagekalisedown 15y ago
    Several states have no income tax. Including Washington, which is fairly progressive. How do they make it work? A sales tax can vary depending on the type of good. Luxury goods can be more taxed than essential goods. Wouldn't this even the playing field?
    - aptwebapps 15y ago
      For most taxpayers in the US state taxes make up a much smaller portion of their total tax burden than federal taxes. So, overall, the tax burden in Washington isn't so much more regressive than a state with income tax. You can have luxury taxes, but it's hard to match income tax if your goal is to have a fairly progressive tax.
  - danboarder 15y ago
    Perhaps counter intuitive, but regressive tax scaling provides better incentives: people will want to make _more_ money in order to take advantage of the lower effective tax rates. Tax policy can reward or dissuade achievement.
  - megaman821 15y ago
    If there is a sales tax, an inheritance tax, and a property tax, who cares? If you are a millionaire that lives like you make minimum wage, those are the type of taxes you will pay. The rich secretly like the progressive tax code and all the exemptions. The thicker the tax code the more loop-holes for them.

jrockway 15y ago

New York managed to get Amazon to collect taxes.