4 ms·

This post is idiotic for at least 3 reasons I can think of: 1. The tax is not "specific to the internet" but is designed to make it so that internet-only busin

by ojbyrne 14y ago

This post is idiotic for at least 3 reasons I can think of: 1. The tax is not "specific to the internet" but is designed to make it so that internet-only businesses are required to collect the same taxes that bricks'n'mortar businesses are required to. 2. EasyDNS's right to sell to US customers is regulated under a giant freaking, bureaucratic law known as NAFTA. If they every got large enough to compete with large US corporations, they could become subject to all sorts of mechanisms to ensure that US corporations can compete with them (countervailing duties for starters). They should shut the hell up. 3. Everything they say also applies to US companies selling to Canadian customers.

dangrossman 14y ago
Brick-and-mortar businesses collect, at most, two sales taxes. Even if a customer from every single state walks in their door. They can engage one local accountant and pretty much have all their questions about tax classification of different products/services, filing requirements, etc. covered. Online retailers will have to collect, at most, 53 different taxes, under 53 different tax codes, remitted to 53 different entities all with audit rights. That's not really the same.
- dragonwriter 13y ago
  > Online retailers will have to collect, at most, 53 different taxes, under 53 different tax codes, remitted to 53 different entities all with audit rights. More than that, actually; I have no idea where you get 53 from; the relevant entities ("states" as defined in the MFA) include the 50 states, the District of Columbia, 5 named territories, and "any other territory or possession of the United States." But its not just "online retailers", its any remote seller. Including anyone who does online and/or mail and/or phone sales, which includes lots of entities that are also brick and mortar outlets. But only if they choose to sell into each of those jurisdictions: you choose where you will accept orders from, and as a consequence of that choice you choose which tax laws you will deal with. Just like with a brick and mortar business, where you choose where you open outlets, and as a consequence of that choice you choose which tax laws you will deal with. And each of those jurisdictions is required to provide free-of-charge software to calculate tax rates and hold retailers harmless for any errors due to the software.
StuntPope 14y ago
re: #2 I'm not sure what you mean "if we ever got large enough to compete with large US corporations". It's not like we don't already and at some point we magically hit a point where we have to compete with Godaddy, Verisign et al. We have to compete with them already and ... #3 yes, you are absolutely correct. Taxes here impede our competitiveness.

by ojbyrne 14y ago

dangrossman 14y ago

Brick-and-mortar businesses collect, at most, two sales taxes. Even if a customer from every single state walks in their door. They can engage one local accountant and pretty much have all their questions about tax classification of different products/services, filing requirements, etc. covered. Online retailers will have to collect, at most, 53 different taxes, under 53 different tax codes, remitted to 53 different entities all with audit rights. That's not really the same.

dragonwriter 13y ago
> Online retailers will have to collect, at most, 53 different taxes, under 53 different tax codes, remitted to 53 different entities all with audit rights. More than that, actually; I have no idea where you get 53 from; the relevant entities ("states" as defined in the MFA) include the 50 states, the District of Columbia, 5 named territories, and "any other territory or possession of the United States." But its not just "online retailers", its any remote seller. Including anyone who does online and/or mail and/or phone sales, which includes lots of entities that are also brick and mortar outlets. But only if they choose to sell into each of those jurisdictions: you choose where you will accept orders from, and as a consequence of that choice you choose which tax laws you will deal with. Just like with a brick and mortar business, where you choose where you open outlets, and as a consequence of that choice you choose which tax laws you will deal with. And each of those jurisdictions is required to provide free-of-charge software to calculate tax rates and hold retailers harmless for any errors due to the software.

StuntPope 14y ago

re: #2 I'm not sure what you mean "if we ever got large enough to compete with large US corporations". It's not like we don't already and at some point we magically hit a point where we have to compete with Godaddy, Verisign et al. We have to compete with them already and ... #3 yes, you are absolutely correct. Taxes here impede our competitiveness.