A bit more complicated. Some states impose a sales and use tax. They are basically equivalent, the assumption being if you purchase an item to use in the state, you own a tax to the state for that item. If you purchase an item outside of the state and bring it in, you're supposed to pay a use tax on it. Most don't, however, because it's hard to keep track of what you bought and where.
When you buy something online, most likely you don't pay the state's sales or use tax, because it's extra work for the online store selling to collect that tax, and nobody itemizes their online purchases. There's been a push in some legislations to force these online stores to close this easy tax loophole and make sure they collect the taxes the states are owed, which anti-government types are against because "boo taxes." Of course, for most sellers, the infrastructure is already in place, since California has been imposing sales tax for online purchases for years now. But for some, anything the government does is bad, even if it's trying to better enforce laws they already have in place.
So it's not even a federal issue, just a state issue. Frankly, I'm for it because it makes filling taxes easier for me.
Please remember that the purpose of Editorial Explanations is to explain and to expand knowledge, rather than to engage in any partisan bickering. All cartoonists are completely correct, in their own worlds.
So the USA does not have tariffs or import duties; or do they not count because they go to the federal government ?
ReplyDeleteInquiring mind in Canada. (aka rgl)
A bit more complicated. Some states impose a sales and use tax. They are basically equivalent, the assumption being if you purchase an item to use in the state, you own a tax to the state for that item. If you purchase an item outside of the state and bring it in, you're supposed to pay a use tax on it. Most don't, however, because it's hard to keep track of what you bought and where.
ReplyDeleteWhen you buy something online, most likely you don't pay the state's sales or use tax, because it's extra work for the online store selling to collect that tax, and nobody itemizes their online purchases. There's been a push in some legislations to force these online stores to close this easy tax loophole and make sure they collect the taxes the states are owed, which anti-government types are against because "boo taxes." Of course, for most sellers, the infrastructure is already in place, since California has been imposing sales tax for online purchases for years now. But for some, anything the government does is bad, even if it's trying to better enforce laws they already have in place.
So it's not even a federal issue, just a state issue. Frankly, I'm for it because it makes filling taxes easier for me.