Monday, July 27, 2015

Internet Sales Tax Bills, Nexus, and Everything else Wrong with the World.

Rarely to I get "pollitical"... and I hope this isn't taken as such.

But myself and my company were recently affected by these nexus/interent sales and use tax laws in a very negative way.  And we don't see it getting better.

I've been doing a lot of reading and this one hits home, so I thought I would share.

This was in response to this post:
http://dailysignal.com/2015/06/23/whats-wrong-with-the-latest-internet-sales-tax-bill/

My reply (on Google Plus only because to reply on the website to post you have to have a Facebook account, which I destroyed over 3 years ago at the same time I smoked my last cigarette after 30 plus years...  guess which was easier...)

States are already forcing small out of state businesses without a "real nexus" to collect and pay sales tax on their sales.   Can we find a list of these states... nope.  We just wait for the letter from the state with a questionnaire and let them decide if they feel we have nexus in their state or not.

For some states, that simply means the very fact that someone from their state purchased something from you, you have nexus.  Pretty convenient... for the state, but not for the small business owner.

If a federal law is passed that makes this process "easy" it may be a better thing.

Or it may be moot as it seems state laws override federal laws.

There are too many pundits making comments on these things vs those of us that are being affected by the already outrageous state laws that override the rulings of the SCOTUS and defining "nexus" in a way that suits them best.  Not in a way that encourages small business.

When a state such a Wisconsin sees that individuals and companies in their state are not claiming sales and use tax on items they purchase from out of state, they then go after the companies that sold it to them.

Ask me how I know.  Ask me if it's fair.  Ask me after paying thousands of dollars in income and sales taxes to Wisconsin, not to mention the penalties and accountant fees how I really feel.   Then ask me if I get to vote in Wisconsin.  Nope.  How is that not Taxation Without Representation?

Which brings me to a bigger point.  The entire tax code itself has turned into a 10000 headed monster that is just too complex.

Something needs to change.  And pundits, politicians, organizers and lawyers on either side of the fence that have never worked a real job or ran a real business are NOT the people we should be electing.