OT: Internet Sales Tax Passes the U.S. Senate

Wed May 8 05:16:44 MST 2013

I'm calling a little BS on your over simplification Bryan; you certainly
DID NOT have to deal with more than one one state's sales tax rules unless
you had a physical presence there.   There are even  different rates for
different kind of sales; it is not a simple thing at all and is
disingenuous to pretend it is.  Just having to deal with periodic tax
updates alone on a national level is a burden unless you're a huge company
like Amazon.   Imagine having to pay More than you collected because it
wasn't up to date.   How would you send that money to each state?   Would a
business need a bank account for each State like they do for just a single
one?  It adds a lot business overhead that foreign competition selling
online won't have and it's second and third order effects will drive down
wages,  increase prices,  and frankly shut down a lot of business that has
a low margin of profit.  It is totally an American dream killer.  Those
same companies will be subject to other federal legislation that vastly
increases business overhead too.
Also 10M a month is a lot different than 1M a year.  Sales! = profit; this
will finally be the big push that causes people with no real skills to lose
their jobs to robots or to Foreign countries.
JD
On May 7, 2013 11:44 PM, "Bryan O'Neal" <
Bryan.ONeal at theonealandassociates.com> wrote:

> Ken. If you are not recording your sales you are already screwed. If you
> are then your accountant will have the software required to do your sales
> tax. If you are doing over a million in internet sales but can not afford a
> few K for an accountant you are also screwed. If you
> whole business will collapse because of a new $1500 fee, you should not be
> in this business  I was an accountant for a company that did 10mill in
> sales every month and 3 of us took care of everything including the
> consolidated statements on several dozen subsidiaries and investor payouts
> not to mention the thousands of vendor invoices we processed every month.
> The only thing we farmed out was payroll and you know what - it is not that
> bad.It is not going to be hard once it becomes common. I
>
> Regarding xen to quick books - again - weekend project for a friend who
> did far less then you apparently do. But I question what accounting
> software you do use if this is all way to much for you and you fear
> your current provider would not support you. Particularly when it is really
> not that big of a deal. Sure I would not write one from scratch for free -
> that is what peachtree, timberline, intuit, even freaking xTuple are for
> (the have a staff of professionals paid to make things easy for you).
> Don't freak out, don't fire people, don't close your doors, just be aware
> that you will need to talk to your accountant. And again, if you do over a
> mill in sales and you don't have one - god help you.
>
> And no if your margins are low you may not make much at all off of a mill
> in sales. The value is reasonable to separate a hobby from a business  And
> if you are in business you should be capable of having a part
> time accountant process your orders through their software and spit you out
> a report once a week.
> But I will also say if you are just scraping by, and you are not able to
> grow your unit sales or decrease your costs significantly year after year,
> then you probably should be looking for another job anyway because stuff
> like this happens. You get a spike in bad customers, a rash of lost items
> in the mail, a new set of international tariffs or additional customs
> procedures, or - some one else who is doing it better then you. That is the
> nature of business.
>
>
> On Tue, May 7, 2013 at 8:43 PM, keith smith <klsmith2020 at yahoo.com> wrote:
>
>>
>> This is interesting.  Most think a mill a year in sales is a lot.  It
>> really is not.  Not from my experience.  If you are doing a mill a year
>> online you probably have a lot of overhead.
>>
>> You talk about doing the reporting on line.  Who is going to do it and
>> how is going to ensure the right info is reported?  Someone will work more
>> or an additional person will be required.
>>
>> And I do not think we would " pipe xen cart on LAMP into quick books on
>> windows real time"  The correct amount of sales tax must be figure during
>> the sale based on local.
>>
>> I work with these issues on a daily basis. it is going to be a nightmare.
>>
>>
>> ------------------------
>> Keith Smith
>>
>> --- On *Tue, 5/7/13, Bryan O'Neal <Bryan.ONeal at TheONealAndAssociates.com>
>> * wrote:
>>
>>
>> From: Bryan O'Neal <Bryan.ONeal at TheONealAndAssociates.com>
>> Subject: Re: OT: Internet Sales Tax Passes the U.S. Senate
>> To: "Main PLUG discussion list" <plug-discuss at lists.phxlinux.org>
>> Date: Tuesday, May 7, 2013, 6:31 PM
>>
>>
>> Data exchange can be done - If I can pipe xen cart on LAMP into quick
>> books on windows real time after a weekend of playing around I am sure some
>> one like intuit will have way to cover you. That said - it will take a year
>> or two for the dust to settle and it will cost people to comply. But if you
>> sell $1M/year and you can not afford a $1500 bump in expenses I would say
>> your margins are too thin to survive. As far as remittance most states
>> allow you to do the monthly remittance online. I wrote a simple script for
>> the sate of AZ so again, I think biger software companies can handle making
>> it very simple for you. And again, if you are doing a mill in sales and you
>> are not using some form of software that has active development you will
>> have problems.
>> What I am trying to say is the concept is not as daunting as it may
>> sound. The problem is not in the concept, however the execution will be
>> very painful. And this will cause a lot of problems for a lot of people.
>>
>>
>> On Tue, May 7, 2013 at 6:19 PM, keith smith <klsmith2020 at yahoo.com<http://mc/compose?to=klsmith2020@yahoo.com>
>> > wrote:
>>
>>
>> It will not be as simple as tying one software package into another.
>> What if the provided software runs on Win8 and your cart is running on a
>> LAMP server?
>>
>> ------------------------
>> Keith Smith
>>
>> --- On *Tue, 5/7/13, Bryan O'Neal <Bryan.ONeal at TheONealAndAssociates.com>
>> * wrote:
>>
>>
>> From: Bryan O'Neal <Bryan.ONeal at TheONealAndAssociates.com>
>>
>> Subject: Re: OT: Internet Sales Tax Passes the U.S. Senate
>> To: "Main PLUG discussion list" <plug-discuss at lists.phxlinux.org<http://mc/compose?to=plug-discuss@lists.phxlinux.org>
>> >
>> Date: Tuesday, May 7, 2013, 6:11 PM
>>
>>
>> The real problem is internal US internet sales will be less competitive.
>>  The regulations will be difficult at first but within a few years they
>> will just tie the sales software into the tax software and it will be easy
>> to calculate and deal with in real time with very little additional cost.
>> The solution to competition is either use of an import tax or forcing
>> compliance on any one who sells inside the us. And our sales to the outside
>> will not be effected because other countries are not doing this... So
>> purchasing from the US if you happen to be in some non US company looks
>> just the same. In all truth... Sales tax is more progressive then income
>> tax, so.... I am not sure I have an issue with it more then the
>> predefined statement that TAXES ARE TOO DAM HIGH!
>>
>>
>> On Tue, May 7, 2013 at 5:41 PM, Jason Poulter <polt at snaptek.com<http://mc/compose?to=polt@snaptek.com>
>> > wrote:
>>
>> It will just force people to buy things from sites and countries where
>> they don't collect taxes , so really justs hurt the economy more losing out
>> on sales that make economy better
>>
>>
>> Eric Cope <eric.cope at gmail.com <http://mc/compose?to=eric.cope@gmail.com>>
>> wrote:
>>
>>
>> http://blog2.easydns.org/2013/05/07/go-ahead-pass-the-internet-tax-your-foreign-competitors-thank-you-in-advance/
>>
>>
>> On Tue, May 7, 2013 at 1:55 PM, Stephen <cryptworks at gmail.com<http://mc/compose?to=cryptworks@gmail.com>
>> > wrote:
>>
>> I also envision allot of quote building instead of online direct
>> purchase.
>> On May 7, 2013 1:43 PM, "keith smith" <klsmith2020 at yahoo.com<http://mc/compose?to=klsmith2020@yahoo.com>>
>> wrote:
>>
>>
>> Great idea.  Phone orders only, placed through a local terminal not the
>> website.  Excellent!!
>>
>>
>>
>> ------------------------
>> Keith Smith
>>
>> --- On *Tue, 5/7/13, James Finstrom <jfinstrom at rhinoequipment.com<http://mc/compose?to=jfinstrom@rhinoequipment.com>
>> >* wrote:
>>
>>
>> From: James Finstrom <jfinstrom at rhinoequipment.com<http://mc/compose?to=jfinstrom@rhinoequipment.com>
>> >
>> Subject: Re: OT: Internet Sales Tax Passes the U.S. Senate
>> To: "Main PLUG discussion list" <plug-discuss at lists.phxlinux.org<http://mc/compose?to=plug-discuss@lists.phxlinux.org>
>> >
>> Date: Tuesday, May 7, 2013, 10:11 AM
>>
>> I predict "call to order" then the sale is not an "internet sale".
>>
>> Much like companies are cutting employee hours to avoid obamacare people
>> will find a way to avoid this.
>>
>> James Finstrom
>>
>>
>>
>> ಠ_ಠ **
>>
>>
>> On Tue, May 7, 2013 at 9:19 AM, JD Austin <jd at twingeckos.com<http://mc/compose?to=jd@twingeckos.com>
>> > wrote:
>>
>> Great.. one more way to KILL small business by making them less
>> competitive and increasing their overhead.  Companies will just adapt to
>> this BS (and regular employees will pay for it).. getting close to
>> 1M/year... time to SPLIT THE COMPANY.
>>
>> -- JD Austin
>> Twin Geckos Technology Services LLC
>> http://www.twingeckos.com
>> Voice: 480.269.4335 (480 2MY Geek)
>> jd at twingeckos.com <http://mc/compose?to=jd@twingeckos.com>
>> -=-=-=-=-=-=-=-=-=-=-=-=-=-=-
>> AZTelcom Solutions
>> jd.austin at aztelcom.com <http://mc/compose?to=jd.austin@aztelcom.com>
>>  -=-=-=-=-=-=-=-=-=-=-=-=-=-=-
>> The Open Tech Guy
>> http://www.opentechguy.com
>> jd at opentechguy.com <http://mc/compose?to=jd@opentechguy.com>
>> -=-=-=-=-=-=-=-=-=-=-=-=-=-=-
>> Xorcom USA
>> Technical Support
>> jd.austin at xorcom.com <http://mc/compose?to=jd.austin@xorcom.com>
>>
>>
>> On Tue, May 7, 2013 at 8:52 AM, Lisa Kachold <lisakachold at obnosis.com<http://mc/compose?to=lisakachold@obnosis.com>
>> > wrote:
>>
>> Keith:
>>
>> On Tue, May 7, 2013 at 8:48 AM, keith smith <klsmith2020 at yahoo.com<http://mc/compose?to=klsmith2020@yahoo.com>
>> > wrote:
>>
>>
>> The U.S. Senate passed the Internet Sales Tax Bill.  Jeff Flake's office
>> says he voted against it and John McCain's office said he voted FOR it.
>>
>> It is being reported there in some 9,600 taxing authorities in the U.S.
>> Add to that 560 or so Indian tribe taxing authorities. That is over 10,000
>> taxing authorities.  Yikes!!  Any company with 1 million in sales will be
>> required to comply.  I can tell you that a company that has 1 million in
>> sales is not a big company.  That online retailer might consist of 2 or 3
>> employees with some additional help from a number of consultants and
>> potentially a fulfillment center.
>>
>> From first hand experience, I would say this law, if passed by the U.S.
>> House, will cause a bunch of small online retailers to either go out of
>> business or reduce sales through raising prices or some other method.
>>
>> This may very well play out like ObamaCare where companies are reducing
>> the hours of their employees so they have less than 50 full-time
>> employees.   In other words we will experience the unintended consequences
>> of these laws.
>>
>> These polices effect each of us.
>>
>>
>> Yikes, yes!  And that will provide the revenue to expand Internet
>> government regulation and compliance.
>>
>> Sadly, it had to happen.
>>
>>
>> ------------------------
>> Keith Smith
>> ---------------------------------------------------
>> PLUG-discuss mailing list - PLUG-discuss at lists.phxlinux.org<http://mc/compose?to=PLUG-discuss@lists.phxlinux.org>
>> To subscribe, unsubscribe, or to change your mail settings:
>> http://lists.phxlinux.org/mailman/listinfo/plug-discuss
>>
>>
>>
>>
>> --
>>
>> (503) 754-4452 Android
>> (623) 239-3392 Skype
>> (623) 688-3392 Google Voice
>> **
>> it-clowns.com
>> Chief Clown
>>
>>
>>
>>
>>
>>
>>
>>
>>
>>
>>
>>
>>
>>
>> ---------------------------------------------------
>> PLUG-discuss mailing list - PLUG-discuss at lists.phxlinux.org<http://mc/compose?to=PLUG-discuss@lists.phxlinux.org>
>> To subscribe, unsubscribe, or to change your mail settings:
>> http://lists.phxlinux.org/mailman/listinfo/plug-discuss
>>
>>
>>
>> ---------------------------------------------------
>> PLUG-discuss mailing list - PLUG-discuss at lists.phxlinux.org<http://mc/compose?to=PLUG-discuss@lists.phxlinux.org>
>> To subscribe, unsubscribe, or to change your mail settings:
>> http://lists.phxlinux.org/mailman/listinfo/plug-discuss
>>
>>
>>
>> -----Inline Attachment Follows-----
>>
>> ---------------------------------------------------
>> PLUG-discuss mailing list - PLUG-discuss at lists.phxlinux.org<http://mc/compose?to=PLUG-discuss@lists.phxlinux.org>
>> To subscribe, unsubscribe, or to change your mail settings:
>> http://lists.phxlinux.org/mailman/listinfo/plug-discuss
>>
>>
>> ---------------------------------------------------
>> PLUG-discuss mailing list - PLUG-discuss at lists.phxlinux.org<http://mc/compose?to=PLUG-discuss@lists.phxlinux.org>
>> To subscribe, unsubscribe, or to change your mail settings:
>> http://lists.phxlinux.org/mailman/listinfo/plug-discuss
>>
>>
>> ---------------------------------------------------
>> PLUG-discuss mailing list - PLUG-discuss at lists.phxlinux.org<http://mc/compose?to=PLUG-discuss@lists.phxlinux.org>
>> To subscribe, unsubscribe, or to change your mail settings:
>> http://lists.phxlinux.org/mailman/listinfo/plug-discuss
>>
>>
>> ------------------------------
>>
>> PLUG-discuss mailing list - PLUG-discuss at lists.phxlinux.org <http://mc/compose?to=PLUG-discuss@lists.phxlinux.org>
>>
>>
>>
>> To subscribe, unsubscribe, or to change your mail settings:
>> http://lists.phxlinux.org/mailman/listinfo/plug-discuss
>>
>>
>> ---------------------------------------------------
>> PLUG-discuss mailing list - PLUG-discuss at lists.phxlinux.org<http://mc/compose?to=PLUG-discuss@lists.phxlinux.org>
>> To subscribe, unsubscribe, or to change your mail settings:
>> http://lists.phxlinux.org/mailman/listinfo/plug-discuss
>>
>>
>>
>> -----Inline Attachment Follows-----
>>
>> ---------------------------------------------------
>> PLUG-discuss mailing list - PLUG-discuss at lists.phxlinux.org<http://mc/compose?to=PLUG-discuss@lists.phxlinux.org>
>> To subscribe, unsubscribe, or to change your mail settings:
>> http://lists.phxlinux.org/mailman/listinfo/plug-discuss
>>
>>
>> ---------------------------------------------------
>> PLUG-discuss mailing list - PLUG-discuss at lists.phxlinux.org<http://mc/compose?to=PLUG-discuss@lists.phxlinux.org>
>> To subscribe, unsubscribe, or to change your mail settings:
>> http://lists.phxlinux.org/mailman/listinfo/plug-discuss
>>
>>
>>
>> -----Inline Attachment Follows-----
>>
>> ---------------------------------------------------
>> PLUG-discuss mailing list - PLUG-discuss at lists.phxlinux.org<http://mc/compose?to=PLUG-discuss@lists.phxlinux.org>
>> To subscribe, unsubscribe, or to change your mail settings:
>> http://lists.phxlinux.org/mailman/listinfo/plug-discuss
>>
>>
>> ---------------------------------------------------
>> PLUG-discuss mailing list - PLUG-discuss at lists.phxlinux.org
>> To subscribe, unsubscribe, or to change your mail settings:
>> http://lists.phxlinux.org/mailman/listinfo/plug-discuss
>>
>
>
> ---------------------------------------------------
> PLUG-discuss mailing list - PLUG-discuss at lists.phxlinux.org
> To subscribe, unsubscribe, or to change your mail settings:
> http://lists.phxlinux.org/mailman/listinfo/plug-discuss
>
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://lists.phxlinux.org/pipermail/plug-discuss/attachments/20130508/67a90d5e/attachment.html>