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<p>[QUOTE="-jeffB, post: 2038289, member: 27832"]My biggest concern is that it would impose an unsupportable accounting burden. It's hard enough to keep track of state, county, and local tax rates within my own state, not to mention tax holidays (although our new legislature has helpfully eliminated those).</p><p><br /></p><p>The proponents of this measure claim that states will need to agree to simplified taxation systems, and that software to compute taxes will be cheap and reliable. I won't believe either one until I see it. I see a very poor track record of <i>simplifying</i> tax regulations at any level of government. I'm in the software business, and the idea that you could build a <i>cheap</i> software package that will keep up with frequent legislative changes, accurately assign every saleable item to each state's proper category, and pass the required regulatory testing is just laughable.</p><p><br /></p><p>I agree that there's an unbalanced playing field right now, and I don't believe "let the local retailers start doing online business if they want to compete" is a reasonable remedy. I don't know what the solution is. I like my own state's "calculated use tax", which is based on a flat percentage of your taxable income, but I'll admit that I like that because I probably come out well ahead under it. It does almost nothing to level the playing field; it just protects the state's revenue stream. (If I decide to pay the flat rate instead of tracking every online purchase, additional online purchases don't change my tax liability, so there's still the incentive to "avoid taxes" by buying online.)[/QUOTE]</p><p><br /></p>
[QUOTE="-jeffB, post: 2038289, member: 27832"]My biggest concern is that it would impose an unsupportable accounting burden. It's hard enough to keep track of state, county, and local tax rates within my own state, not to mention tax holidays (although our new legislature has helpfully eliminated those). The proponents of this measure claim that states will need to agree to simplified taxation systems, and that software to compute taxes will be cheap and reliable. I won't believe either one until I see it. I see a very poor track record of [I]simplifying[/I] tax regulations at any level of government. I'm in the software business, and the idea that you could build a [I]cheap[/I] software package that will keep up with frequent legislative changes, accurately assign every saleable item to each state's proper category, and pass the required regulatory testing is just laughable. I agree that there's an unbalanced playing field right now, and I don't believe "let the local retailers start doing online business if they want to compete" is a reasonable remedy. I don't know what the solution is. I like my own state's "calculated use tax", which is based on a flat percentage of your taxable income, but I'll admit that I like that because I probably come out well ahead under it. It does almost nothing to level the playing field; it just protects the state's revenue stream. (If I decide to pay the flat rate instead of tracking every online purchase, additional online purchases don't change my tax liability, so there's still the incentive to "avoid taxes" by buying online.)[/QUOTE]
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