CEA Changes Course on Internet Sales Tax Collection

December 14, 2011 -

In the late 1990's and early 2000's a politician proposing an internet sales tax would have been ridden out on a rail. It used to be that lawmakers were scared of the subject. Now even retail associations - some of which represent huge internet companies - say they support the idea. One of those trade groups, the Consumer Electronics Association, has changed sides this week.

CEA has opposed efforts in the U.S. Congress to require Internet sellers to collect sales taxes for years, but the group has "changed its mind" on the topic. Gary Shapiro, CEA's president and CEO, said Tuesday that the group’s opposition to Internet sales taxes was because the internet was "still in its infancy." They now support a unified national collection policy that "applies regardless of whether a product is purchased online or in person will help ensure all retailers -- big, small or online -- operate fairly and competitively in the marketplace," Shapiro said.

CEA is the first tech trade group to support online sales tax collection. Online retailer Amazon supports tax collection as well. Shapiro also points out that Internet sales tax collection would help state budgets and retain local jobs.

Not everyone thinks having a sales tax for the Internet on a national level is a good idea; trade group NetChoice, whose members including Facebook, Yahoo and eBay, continues to oppose Internet sales tax legislation. Steve DelBianco, NetChoice's executive director, says that online sales tax legislation would clear "the field of small businesses who use the Internet as a last-ditch survival strategy against the overwhelming competition from big-box stores."

But Shapiro thinks that no matter what anyone wants, an Internet sales tax law is "inevitable" within the next few years. CEA does at least say that a sales tax collection system would have to provide exemptions for small businesses, but what they see as a small business might not fit lawmakers' definition...

"It has to happen," he says.

Source: Network World


Comments

Re: CEA Changes Course on Internet Sales Tax Collection

Taking bets on whether it was a true change of heart or if something shadier took place (threat, bribe, membership by someone having a huge interest in the matter, etc.)

Re: CEA Changes Course on Internet Sales Tax Collection

Makes little difference to me either way.  I live in the home state of both Amazon and Valve, so I am already paying sales tax on over 90% of my online spending. 

 
Forgot your password?
Username :
Password :

Poll

Is King right? Should all games adopt the free-to-play model?:

Shout box

You're not permitted to post shouts.
MaskedPixelantehttp://www.joystiq.com/2014/04/18/playstation-99-cent-sale-discounts-tokyo-jungle-super-stardust/ Weekend long PSN flash sale. So much stuff is 99 cents for the rest of the weekend.04/18/2014 - 5:59pm
Adam802http://www.polygon.com/2014/4/18/5627928/newtown-video-game-addiction-forum04/18/2014 - 4:14pm
Matthew Wilsonit is a video talking about why certain games/products/consoles do well, and others do not. he back it up with solid research.04/18/2014 - 3:56pm
Andrew EisenI'm not keen on blind links. What is it?04/18/2014 - 3:45pm
Matthew Wilsonthis is worth a whatch https://www.youtube.com/watch?v=MyXcr6sDRtw&list=PL35FE5C4B157509C904/18/2014 - 3:43pm
MaskedPixelanteNumber 3: Night Dive was brought to the attention of the public by a massive game recovery, and yet most of their released catalogue consists of games that other people did the hard work of getting re-released.04/17/2014 - 8:46pm
MaskedPixelanteNumber 2: If Humongous Entertainment wanted their stuff on Steam, why didn't they talk to their parent company, which does have a number of games published on Steam?04/17/2014 - 8:45pm
MaskedPixelanteNumber 1: When Night Dive spent the better part of a year teasing the return of true classics, having their big content dump be edutainment is kind of a kick in the stomach.04/17/2014 - 8:44pm
Matthew Wilsonhttp://www.giantbomb.com/articles/jeff-gerstmann-heads-to-new-york-takes-questions/1100-4900/ He talks about the future games press and the games industry. It is worth your time even though it is a bit long, and stay for the QA. There are some good QA04/17/2014 - 5:28pm
IanCErm so they shouldn't sell edutainment at all? Why?04/17/2014 - 4:42pm
MaskedPixelanteNot that linkable, go onto Steam and there's stuff like Pajama Sam on the front-page, courtesy of Night Dive.04/17/2014 - 4:13pm
Andrew EisenOkay, again, please, please, PLEASE get in a habit of linking to whatever you're talking about.04/17/2014 - 4:05pm
MaskedPixelanteAnother round of Night Dive teasing and promising turns out to be stupid edutainment games. Thanks for wasting all our time, guys. See you never.04/17/2014 - 3:44pm
Matthew WilsonAgain the consequences were not only foreseeable, but very likely. anyone who understood supply demand curvs knew that was going to happen. SF has been a econ/trade hub for the last hundred years.04/17/2014 - 2:45pm
Andrew EisenMixedPixelante - Would you like to expand on that?04/17/2014 - 2:43pm
MaskedPixelanteWell, I am officially done with Night Dive Studios. Unless they can bring something worthwhile back, I'm never buying another game from them.04/17/2014 - 2:29pm
PHX Corphttp://www.msnbc.com/ronan-farrow/watch/video-games-continue-to-break-the-mold-229561923638 Ronan Farrow Daily on Video games breaking the mold04/17/2014 - 2:13pm
NeenekoAh yes, because by building something nice they were just asking for people to come push them out. Consequences are protested all the time when other people are implementing them.04/17/2014 - 2:06pm
Matthew Wilsonok than they should not protest when the consequences of that choice occur.04/17/2014 - 1:06pm
NeenekoIf people want tall buildings, plenty of other cities with them. Part of freedom and markets is communities deciding what they do and do not want built in their collective space.04/17/2014 - 12:55pm
 

Be Heard - Contact Your Politician