It would drive the small companies, the mom-and-pop internet companies out of business. Can you imagine filing taxes for all 50 states? And what happens when a mom-and-pop internet company gets one sale from North Dakota? Filing the paperwork for one state would not make the sale worthwhile. For large companies like Wal-Mart and Amazon.com, they have the personnel and computers in place.
And to write a law to exempt "small" companies would be found unconstitutional by the US Supreme Court. Amazon.com, Wal-Mart.com, others are in a win-win situation. It's probably why Warren Buffett and Bill Gates are also in favor of an internet sales tax.
CNNMoney.com is reporting.
I would assume if I made the MillionDollarWay a pay site, I would owe sales tax -- it's a form of newsletter, and I would have to file in as many as 50 states. I assume foreign countries might want their cut also, before it's all over.
And so it goes. It will be interesting to see if the House buys into this.
[Actually, it probably won't be that big a deal. TurboTax, others, would provide the necessary software, pretty quickly.]
