Illinois tries to make its spending woes America’s problem

posted at 4:00 pm on April 23, 2011 by Patrick Ishmael

Illinois has budget problems. It also has a job problem. So as blue-state governments are wont to do, Illinois’s political class took on the “how could we possibly make things worse?” challenge and… successfully made things worse, imposing an internet sales tax on online retailers that has not only cost the state jobs, but ultimately makes Illinois a less attractive place to live and do business.

As NPR reported last Friday in a segment entitled “Illinois-based Amazon affiliates go dark,”

TONY ARNOLD: Brad Wilson runs the aptly named BradsDeals.com — a coupon web site based in downtown Chicago.

BRAD WILSON: Ultimately, Amazon and Overstock hold the trump card in this situation.

Wilson says after today — Amazon will boycott business with BradsDeals — and roughly 9,000 other retailers in Illinois to skirt the tax. Illinois residents can still go online and get the latest best seller from Amazon, they just won’t be getting that book from any Amazon affiliate in Illinois.

WILSON: We’re looking at a lot of options that I wouldn’t want to have ever had to think of, unfortunately.

Wilson says he’s considering picking up shop and relocating to another state to make up for the money he’ll lose. He wouldn’t say how much.

“But Patrick,” you say, “surely Illinois would just lift the job-destroying taxes they’ve imposed.” But nay, friends, we must remember the challenge. Why would Illinois’s political class fix its state’s problem, when they can make its problem America’s problem.

Which is why, as the segment notes, Sen. Dick Durbin will imminently introduce legislation to do just that.

The e-tax man cometh.

As early as this week, Sen. Dick Durbin (D-Ill.) told The Post he will propose sweeping legislation to tax all online purchases — in a move aimed at closing state budget shortfalls.

Such a tax would plow more than $1 billion in tax revenues into the state coffers for the 2012 budget, according to some estimates….

Durbin’s bill, dubbed the Main Street Fairness Act, is being portrayed as an end to the tax holiday that online shoppers on major Internet vendors like Amazon.com, Overstock.com and even Apple’s App stores have been enjoying for years.

Leaving Illinois because its economic policies are destroying you? No worries. Illinois will come to you.

Online companies already pay state taxes in the states in which they reside, but many politicians, including those in New York, Illinois and Connecticut, recently have been pushing to collect taxes from customers on purchases made outside the state if the sites have vendors that physically reside within their states.

Durbin’s proposal, which he plans to introduce as soon as tomorrow, intends to push Internet vendors to collect state taxes on items purchased out of state.

Rather than cutting its budget and enacting legislation that would make Illinois both hospitable to business and beneficial to consumers, Illinois has done precisely the opposite, destroying Illinois businesses before Illinoisans’ eyes and driving jobs to other states. As Jazz Shaw noted in January, other states have gone out to “pluck business” from Illinois, with Chris Christie himself even cutting an ad to make the case that Illinoisans can do better…. in New Jersey.

Illinois is welcome to mismanage its state budget and economy on its own dime and time, but Congress shouldn’t assist the state in its odyssey.

This post was promoted from GreenRoom to HotAir.com.
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And so it begins…..

BigWyo on April 23, 2011 at 4:02 PM

Why just kill jobs in Illinois when you can kill them nationwide? The new civility…

Fallon on April 23, 2011 at 4:05 PM

Once this sort of thing happens, we will have the mass migration of these businesses to internet hosting centers offshore. So rather than getting a few percent of something, these states will be getting 100% of nothing.

crosspatch on April 23, 2011 at 4:08 PM

Isn’t that the best kind of tax revenue? The kind that doesn’t require government to spend a penny of their extortion proceeds on the people they took it from.

RBMN on April 23, 2011 at 4:10 PM

I hate Illinois Nazis Democrats.

Capp on April 23, 2011 at 4:12 PM

Companies will hopefully move to states with no sales and income taxes.

dogsoldier on April 23, 2011 at 4:17 PM

Should call it the “Who is John Galt?” legislation.

Neo on April 23, 2011 at 4:22 PM

As has been pointed out in the past, liberals want to make everyone equal. In almost all cases, they don’t want to make everyone equally happy, they want them to have shared misery.

Such is this case. Rather than get rid of onerous taxes, they want to extend onerous taxes to everyone.

SouthernRoots on April 23, 2011 at 4:22 PM

How long before Obama further molests the “regulate interstate commerce” clause to require all states to have the same taxation rates to limit competition between states?

cntrlfrk on April 23, 2011 at 4:24 PM

I confess, I am a little unclear on what they are trying to do.

This probably varies by state but if I buy something on Amazon, I am responsible for paying a Use Tax(really just the sales tax) here in PA.

While I generally dislike the idea of taxes, I am not sure why Internet and mail order in general is ‘exempt’ from sales taxes. It used to be that the cost of collecting and filing it for the various states would have be quite burdensome. But I would think that the states could get together and provide a easy way to do this.

OBQuiet on April 23, 2011 at 4:28 PM

So as blue-state governments are wont to do, Illinois’s political class took on the “how could we possibly make things worse?” challenge and… successfully made things worse, imposing an internet sales tax on online retailers that has not only cost the state jobs, but ultimately makes Illinois a less attractive place to live and do business.

What?

Somehow, democraps are going to destroy all business in this country. Hey, the government prints the money, it’s not really yours.

Kini on April 23, 2011 at 4:29 PM

What?

Kini on April 23, 2011 at 4:29 PM

Is this what you’re wondering about?

Patrick Ishmael on April 23, 2011 at 4:32 PM

I confess, I am a little unclear on what they are trying to do.

OBQuiet on April 23, 2011 at 4:28 PM

Think of it like staying in a NY city hotel.
You have:
Federal Tax
State Tax
County Tax
City Tax
Occupancy Tax
General Purpose Tax
Tax on the Tax paid

It doesn’t stop this creative tax on anything.

Kini on April 23, 2011 at 4:33 PM

Hey Illinois biatches: no taxation without representation!

Shay on April 23, 2011 at 4:34 PM

Patrick Ishmael on April 23, 2011 at 4:32 PM

I must admit, I’ve never heard of a sentence structure like that before.

Sorry, but I was having trouble comprehending. My Bad.

Kini on April 23, 2011 at 4:36 PM

anti-dog-eat-dog rule… Atlas Shrugged

mjbrooks3 on April 23, 2011 at 4:38 PM

Kini on April 23, 2011 at 4:36 PM

Yeah, it’s pretty archaic. Probably should have gone with something more accessible.

Patrick Ishmael on April 23, 2011 at 4:38 PM

another parallel to Atlas Shrugged.

theguardianii on April 23, 2011 at 4:40 PM

Meanwhile………

Durbin Meets With Small Business Administrator to Discuss Illinois Exports
******************

539,300 Illinois jobs are supported by exports
================================================

[WASHINGTON, D.C.] – United States Senator Dick Durbin (D-IL) today met with the Administrator of the Small Business Administration, Karen Mills, to discuss ways in which Illinois companies can grow their businesses by selling to customers abroad. Illinois exports generated approx $4.1 billion in state tax revenue in 2008 and currently support 539,300 Illinois jobs.

“Since 95% of the world’s consumers live outside the United States, our small businesses need to be able to export effectively to take advantage of the growth that the world markets can support,” said Durbin. “If small businesses in Illinois can sell more of what they produce, they will hire more workers. And if more people can find work, more people will have the steady income they need to purchase goods for their family which in turn will help small business grow even faster. Today, Administrator Mills and I talked about jumpstarting this job-creating cycle in order to get our economy moving.”

Earlier this year, the President announced his National Export Initiative with the goal of doubling United States exports over the next five years. He has asked the Small Business Administration to work with other agencies such as the Department of Commerce, the United States Department of Agriculture, the Department of State and the Department of Treasury to provide a plan for reaching that goal.

One of the three areas the President proposes to address is improving access to credit. Through his role as Chairman of the Appropriations Subcommittee on Financial Services and General Government, Durbin has been able to help make Small Business Administration credit easier for small businesses to access. He has worked to increase the amount small business can borrow, increase the amounts the Small Business Administration will guarantee so that lenders will loan more to small business and waive loan fees for borrowers.

http://durbin.senate.gov/public/index.cfm/pressreleases?ID=f5469aa4-55a1-461b-955c-53c95b11e500
========================

Dick Durbin
************

http://durbin.senate.gov/public/index.cfm/

canopfor on April 23, 2011 at 4:46 PM

Should call it the “Who is John Galt?” legislation.

Neo on April 23, 2011 at 4:22 PM

I am reading the book now and that was the first thing I thought of when I head this BS

KBird on April 23, 2011 at 4:49 PM

As an adjunct to this story, my accountant told me last week that IL is now actively enforcing the self-reporting provision of it’s already existing “out of state sales tax”. Our state tax forms have for years contained a section for residents to self report all out of state purchases, including internet, and calculating the IL state sales tax for payment. Till now, we’ve always just ignored that or entered zero; however, this year’s form call for a default payment based on a percentage of income as presumed purchases – and the state is going to audit any left blank. We’re seriously considering moving to IN after having lived here all our lives.

Hucklebuck on April 23, 2011 at 4:52 PM

Turban Durban. As much of a parasite as the rest of these criminals.

pat on April 23, 2011 at 4:52 PM

another parallel to Atlas Shrugged.

theguardianii on April 23, 2011 at 4:40 PM

theguardianii:Speaking of which……..enjoy!
===================================================

Atlas Shrugged Part I’s Makers Speak!
************************************

Q&A with Producers & Actor
by Reason TV
Posted Apr 22nd 2011 at 12:36 pm
*****************(Video 39:13 Minutes)

http://bighollywood.breitbart.com/reasontv/2011/04/22/atlas-shrugged-part-is-makers-speak-qa-with-producers-actor/

canopfor on April 23, 2011 at 4:53 PM

Deja Vu all over again Durbin. May even pass … Senate.

The difference this year is that folks have memories. It won’t be that Amazon cost jobs.

Caststeel on April 23, 2011 at 4:54 PM

I prefer a sales tax to an income tax, because it lacks the class warfare element of progressivity. So I’m in favor in favor of what Illinois is doing.

The pretext that somehow it is to difficult to collect taxes for all the jurisdictions is getting rather thin since you can just check a box on the website when you set up your internet billing system and it does it for you.

pedestrian on April 23, 2011 at 4:54 PM

The last state down the drain has to pay,mmmmnn, mmmm, mmmm, Obama!

And they thought that those covered wagons heading out on the Oregon trail were committing suicide…heh!

Maybe we can do a mea culpa or two and convince the king to take us back?

Don L on April 23, 2011 at 4:59 PM

I prefer a sales tax to an income tax, because it lacks the class warfare element of progressivity

Yeah, sure it just penalizes the poor and the fixed income retirees that have finally acheived freedom from the progressive taxation game.

Don L on April 23, 2011 at 5:02 PM

Drop dead Illinois.

Heckle on April 23, 2011 at 5:04 PM

I prefer a sales tax to an income tax, because it lacks the class warfare element of progressivity. So I’m in favor in favor of what Illinois is doing.

pedestrian on April 23, 2011 at 4:54 PM

You’re not from illinois, are you? I’m from the state with the lowest state-level tax burden in the union, and when I get zapped 10+% on something just because I purchase it on the internet from a certain brick-and-mortar retailer in different state… It kind of puts the whole “equality under the law” idea to the test.

gryphon202 on April 23, 2011 at 5:05 PM

They will never learn because their ideology doesn’t permit the lesson. End of story. The world around them will be blasted into desolation and they still would not learn.

Sidebar — has anyone else noticed a set of physical features common to the modern career politician, mostly left but also right. That is, faces which increasingly resemble slabs of rotten veal. Durbin, Gingrich, Collins, Reid… Notice the deathly, grayish pallor, the lidded eyes, the cheerless even lifeless expressions. Have you ever seen a crop of unhealthier and unhappier looking people? Perhaps it is their insides turning outward finally.

rrpjr on April 23, 2011 at 5:06 PM

I think what’s more important is Patrick’s point.
If more states think like Durbin’s logic, then any out of state online commerce could be taxed. How would the states audit that? I could envision state level mini-IRS’s popping up to watch online transactions.

Orwell’ing? I could see Net Neutrality being the first step into online government auditing, at the federal and state level.

Kini on April 23, 2011 at 5:08 PM

I am so f*****g thrilled to claim Illinois as my former home state.
durbin, Quinny-kins, etc can go blow.

annoyinglittletwerp on April 23, 2011 at 5:22 PM

So as blue-state governments are wont to do, Illinois’s political class took on the “how could we possibly make things worse?” challenge and… successfully made things worse, imposing an internet sales tax on online retailers that has not only cost the state jobs, but ultimately makes Illinois a less attractive place to live and do business.

Wow! They did the same thing over and over again and expected a different result.

But Leftists will tell is perfectly okay to same basic thing on a National level, because it has to work one of these times…

Chip on April 23, 2011 at 5:28 PM

I’m sure CA will be next to pull this stunt.
They are in worse shape than IL.

OmahaConservative on April 23, 2011 at 5:34 PM

that’s the chicago way

Defector01 on April 23, 2011 at 5:36 PM

We’re seriously considering moving to IN after having lived here all our lives.

Hucklebuck on April 23, 2011 at 4:52 PM

Come on over Huck, we’ve got our problems too in Indiana but nothing even close to what Illinois is doing to you!

Tim Zank on April 23, 2011 at 5:42 PM

Illinios Revenue
*****************

http://www.revenue.state.il.us/#t=tab1

Tax Rate Finder
===============
http://www.revenue.state.il.us/Publications/taxratefinder.htm

State and Local Taxes
=====================

http://www.revenue.state.il.us/Publications/listofalltaxes.htm

Welcome to the Illinois Tax Rate Finder
=======================================

https://www.revenue.state.il.us/app/trii/

canopfor on April 23, 2011 at 5:44 PM

Illinois Revenue
********************

http://www.revenue.state.il.us/index.htm#t=tab1

canopfor on April 23, 2011 at 5:47 PM

They won’t be happy till we stop buying things entirely.

(Which, by the way, I already started doing, two years ago.)

Alana on April 23, 2011 at 5:51 PM

Sen. Dick Durbin (D-Ill.) told The Post he will propose sweeping legislation to tax all online purchases

Tax bills must originate in the House, DICK.

BDavis on April 23, 2011 at 5:53 PM

OT – Funny how this is not getting covered by the media:

NAACP official convicted of voter fraud
In Tunica, Mississippi, ten guilty verdicts of voter fraud were returned yesterday against NAACP officer Lessadolla Sowers. She was sentenced to five years for each count without the possibility of parole and will serve the terms concurrently. Sowers manipulated the absentee ballot process in the 2007 election. Absentee ballots in Mississippi are notoriously subject to voter fraud. The District Court opinion in United States v. Ike Brown provides another outrageous example of systemic voter fraud in the casting of absentee ballots in Mississippi. Brown was also a NAACP and Democratic party official. The Tunica Times (subscription required) is the only media outlet covering Sowers’ conviction. No surprise there. And don’t expect the voter fraud deniers at the Brennan Center or Tova Wang at Demos to devote much attention to Sowers and her five year vacation in the pen.

Do a google search. Two articles. PJmedia and the local paper. If this was a right winger, it would lead the nightly news. We’re living “1984″.

Django on April 23, 2011 at 5:53 PM

It simply baffles me how stupid these people really are when the results are so freaking clear. I mean, if you everytime you raised taxes you witnessed a verifiable exodus, wouldn’t it sooner or later become clear to you????

My Gawd. It’s got to be on purpose, no one can be that dumb.

Tim Zank on April 23, 2011 at 5:55 PM

Chris Christie is wasti8ng his time and his state’s money. NJ is one the the most expensive states in the union in which companies can do business.

If a company is leaving Illinois, Tennessee, South Carolina or Texas makes far more sense. Even Michigan and Ohio are better options than NJ.

bw222 on April 23, 2011 at 5:57 PM

We go back a year,er,Six Months!!
=================================

Here Are The 11 U.S. States Most Likely To Default And Need A Government Bailout
Oct. 10, 2010
************************

States are at the center of the unemployment crisis, and that’s because many have serious debt problems, impeding their ability to keep workers employed.

But just how bad are those debt problems? It could drive some states to default if conditions get worse or force a federal government bailout.

Here’s CMA Datavision’s list of the worst state risks, ranked by cumulative probability of default (CPD). That default risk is measured through fluctuations in the state’s CDS rating, and the height of that rating. The spread of each 10-year CDS is also listed as well as the implied credit rating of the state.(More……….)
====================================================

#11 Pennsylvania
#10 Florida
#9 Ohio
#8 Massachusetts
#7 Rhode Island
#6 New York
#5 Nevada
#4 New Jersey
#3 Michigan
#2 California

#1 Illinois
———–
Cumulative Probability of Default (CPD): 21.0%

CDS Mid 10 Year (in bps): 260.0

Implied Credit Rating: bb-
==========================

http://www.businessinsider.com/states-need-bailout-2010-10?op=1

canopfor on April 23, 2011 at 6:16 PM

Durbin’s proposal, which he plans to introduce as soon as tomorrow, intends to push Internet vendors to collect state taxes on items purchased out of state.

This will be DOA on the Senate floor. Dumbass Dicky Durbin might be that stupid, not so much everyone else.

As for Illinois, will the last person out please turn out the lights.

GarandFan on April 23, 2011 at 6:31 PM

What’s his first name again?

Yellowdog12 on April 23, 2011 at 6:52 PM

hhumpfff……you mean they’ve already maxed out the RE Taxes on the land owned by the “evil” ethanol corn farmers…..

there’s a tax even the GOP Tea Party seems to see as fit….
the heck with eating……

ECON 101….if you want less of something tax it…..

sbark on April 23, 2011 at 7:03 PM

I run a business that does 100% of its business online. Internet sales tax would be a freaking nightmare. We would be responsible for collecting sales tax from a variety of states and municipalities. Do you know how different sales taxes their are? In some states the tax rate varies depending on the type of good you purchase. Some local governments also collect sales taxes. Even with a streamlined approach my company would need to collect taxes for 50 states, fill out the proper paperwork, write checks and mail it out every month. That is a lot of work and it is costly and that is in the best case. Large companies like Amazon would be able to do this through software, but smaller businesses would face a tremendous burden.

Right now, my business collects sales tax only from NC residents because this is where our nexus is. We don’t have any other facilities so we don’t owe anything to any other state. I don’t see any logical reason that we should either. We don’t maintain a physical presence in any other state, so we don’t use any outside state services. When I ship products to IL, NY or CA I’m not using any of their state services. No police, fire or other government agencies. My products do travel over their roads, but the trucking companies pay taxes for this.

Some states have tried to get around this tax issue by other means. CA fined my company because we didn’t have a license to do business in their state. So, now every year I renew a license (with an associated fee) to the state of CA, for no other reason than they will confiscate our products if they catch them in the state without a license.

Internet sales tax is driven by two parties. States that cannot control spending and companies that have a large presence in every state. Amazon is against it, because they have facilities in a few states. Walmart and Barnes & Nobel are big proponents because they are in every state and they figures if they have to collect sales taxes, then everyone should–never mind the fact that they actually uses resources in every state.

ReaganWasRight on April 23, 2011 at 7:12 PM

Why would anyone anywhere pay an extra 5-9% for a product simply to fill another states tax coffers…Taxation without representation as the out of state victims have no political influence where they are being robbed.

JIMV on April 23, 2011 at 7:20 PM

What’s his first name again?

Yellowdog12 on April 23, 2011 at 6:52 PM

If he were named, Richard Lester Durbin, could we call him Dick Les for short?

P. Monk on April 23, 2011 at 7:33 PM

Illinois residents are required to pay taxes on anything purchased in another state (whether via internet or while traveling) that is considered “disposed” in Illinois. IOW, if you buy a soda in Indiana and toss the can in Illinois, or but a fishing pole in Minnesota and put it in your basement you are required to pay sales taxes on that purchase.

For ease the state e-file system will allow you to fill in a flat amount and tax advisers are saying to just pay it so you aren’t subject to fines in the event of an audit.

Fat Wallet has already relocated 40 miles north to Wisconsin. Caterpillar, long an Illinois stable company, and one incorrectly touted by Obama as being fixed by his stimulus has threatened to leave IL because of the policies of the administration. Yet the state of Chicago continues to vote D.

LifeTrek on April 23, 2011 at 7:34 PM

Such a tax would plow more than $1 billion in tax revenues into the state coffers for the 2012 budget, according to some estimates….

Won’t do any good…naturally they’ll just waste it and expand government to do God knows what. The ability of politicians (Dems, Liberals in particular) to spend taxpayers’ money knows no bounds.

Dr. ZhivBlago on April 23, 2011 at 7:35 PM

I prefer a sales tax to an income tax, because it lacks the class warfare element of progressivity. So I’m in favor in favor of what Illinois is doing.

You did happen to notice that Illinois just raised my income tax, didn’t you?

It isn’t going anywhere.

98ZJUSMC on April 23, 2011 at 7:47 PM

Hey DICK

I AM OUT OF MONEY!

Gothguy on April 23, 2011 at 7:50 PM

I confess, I am a little unclear on what they are trying to do.

This probably varies by state but if I buy something on Amazon, I am responsible for paying a Use Tax(really just the sales tax) here in PA.

OBQuiet on April 23, 2011 at 4:28 PM

When I buy something on Amazon, I only pay Texas state sales tax if the retailer has a brick and mortar location inside Texas. Thus, I have bought many things there without paying sales tax or shipping charges.

I know one of Dallas’ former, duh liberal, mayors wanted this tax and I believe that guy (Ron Kirk) works for Øbama these days.

Kafir on April 23, 2011 at 7:52 PM

Democrats do not care about newly created jobs or the income taxes that are generated by newly created jobs. They would rather generate taxes by simply raising taxes. If raising taxes kills jobs and job creation, it doesn’t matter to them. The more unemployed people there are, the more people there are who will depend on Democrats for their maintenance, and the more people there are who will vote for Democrats. It makes sense to them and it makes sense to those who vote for Democrats. The Democrats keep telling us that they care about poor folks and that they will decrease the tax burden of the poor. The poor don’t pay any taxes, but they still eat up the nonsense spewed by the Democrats. The poor pay their taxes by losing their jobs and by being unable to find jobs due to the foolish policies of the Democrats. Losing a job is like having an instant 100% tax. And the Democrats are the ones charging that tax, not the other side.

By the way, please forgive the name calling but I can’t help it: Durbin is a dip stick.

stefano1 on April 23, 2011 at 8:22 PM

Apple’s App stores have been enjoying

Nonsense. Apple collects state sales tax in every state that it has an Apple store. That’s right around ~60% of states currently, probably covering 80%+ of US citizens.

strictnein on April 23, 2011 at 8:22 PM

One of Bush’s squish liberal speech writers, Gerson, wrote a whiny piece lamenting the adolescent fixation on the economics of Atlas Shrugged, and he might have a great point except that liberals repeatedly conspire to make Ayn Rand look like a friggin’ prophet.

Jaibones on April 23, 2011 at 8:32 PM

Leaving Illinois because its economic policies are destroying you? No worries. Illinois will come to you.

Too late, that happened on 19 Jan 2009.

TugboatPhil on April 23, 2011 at 8:49 PM

If he were named, Richard Lester Durbin, could we call him Dick Les for short?

P. Monk on April 23, 2011 at 7:33 PM

He is known as Little Dick.

dthorny on April 23, 2011 at 8:55 PM

Illinois is welcome to mismanage its state budget and economy on its own dime and time, but Congress shouldn’t assist the state in its odyssey.

Which, using the logic of Illinois Democrats that mandates they do precisely the wrong thing, Congress will likely do.

Midas on April 23, 2011 at 9:36 PM

No way the House goes along with this…

ladyingray on April 23, 2011 at 9:57 PM

I might be willing to endorse this–if Illinois makes crossing into their state for purposes of evading a quorum call a capital offense, to be carried out on the spot using honey and fire ants. Seems like a fair trade.

M. Scott Eiland on April 23, 2011 at 10:05 PM

I officially moved my web based business OUT of IL two weeks ago.

Suck on that, Dick.

southsideironworks on April 23, 2011 at 10:46 PM

NC tried this a few years ago, and Amazon immediately shut down the Affiliates system for NC registered websites. It was nice getting a consistent revenue stream that covered my blog operating expenses, and was pretty much guaranteed with sales of Kindles.

Anyhow, doubtful this passes the GOP controlled House. I wonder if Obama will put it into effect with a signing statement anyhow?

William Teach on April 23, 2011 at 10:58 PM

All revenue bills must be initiated in the House. How is this not a revenue bill?

Does Durbin not know or care? It this just political theater?

INC on April 23, 2011 at 11:44 PM

Not to give anybody a bad Idea, but I keep expecting the California National Guard to be ordered to hold up the Nevada casinos.

Slowburn on April 24, 2011 at 12:01 AM

I prefer a sales tax to an income tax, because it lacks the class warfare element of progressivity. So I’m in favor in favor of what Illinois is doing.

The pretext that somehow it is to difficult to collect taxes for all the jurisdictions is getting rather thin since you can just check a box on the website when you set up your internet billing system and it does it for you.

pedestrian on April 23, 2011 at 4:54 PM

You obviously don’t live here in Illinois or you’d know that Illinois just raised it’s state income tax by 5% back in January. So now we have the “best” of both worlds…large sales tax (to include out of state purchaes) AND state income tax. Yay Illinois. With this philosophy, we’ll be paying sales tax on stuff we buy when out of state on vacation next. I can see it now; “How many Big Macs did you buy while on vacation? Let’s see, that’ll be $6000 in sales tax please.”

Big John on April 24, 2011 at 12:07 AM

ReaganWasRight on April 23, 2011 at 7:12 PM

Come on ReaganWasRight, you’re a business owner, you can just pull the extra overhead money off of the money tree out behind your office. /sarc

I’ll never forget when I worked for a modest-sized manufacturing company here in my home state of Illinois back in 1995. They had to hire a full-time account just to handle the sales taxes in the dozen or so states where they had offices. There were these massive bookshelves lined with tax code books (I’m sure it’s all digital now). No offense to the fine accountant, but that added ZERO value to the company’s products and services.

Ahhh, my vaunted Senator Durbin. I’d tell you all what I think of him, but they’d have to bleep out the rest of my comment. A pox on Durbin and the rest of the taxaholic Dhimmicrats.

FlatlanderByTheLake on April 24, 2011 at 1:24 AM

Remind me….what happened to the community-organizer / present-voting Junior Senator from the most corrupt city in said state (and probably the nation)?

Also Remind me….what does he want to do to YOUR taxes?

Tim_CA on April 24, 2011 at 3:11 AM

I prefer a sales tax to an income tax, because it lacks the class warfare element of progressivity. So I’m in favor in favor of what Illinois is doing.

The pretext that somehow it is to difficult to collect taxes for all the jurisdictions is getting rather thin since you can just check a box on the website when you set up your internet billing system and it does it for you.

pedestrian on April 23, 2011 at 4:54 PM

It isn’t just ‘checking a box’. Every month, quarter or year 9depending on the whims of the particular jurisdiction) I would have to fill out the paperwork and generate a check for that jurisdiction. The paperwork would be enormous. I’d effectively be out of business.

I’m going to give you the benefit of the doubt and assume that you are simply ignorant on a cosmic scale.

trigon on April 24, 2011 at 3:44 AM

How would that work in Montana? We don’t have sales tax but do have income tax. This law seems to be unequal treatment but why let that stop the feds.

Kissmygrits on April 24, 2011 at 8:49 AM

The hacks on Bacon Hill here in Mass are pushing the same thing under a cloak of “fairness” to the brick/mortar stores. Yes, that’s the only reason. It’s not really about raising hundreds of millions in tax $ for the pigs on Bacon Hill. 1 party rule just doesn’t work out so well for the sucker taxpayers.

shanimal on April 24, 2011 at 9:51 AM

Every time I see this turds face I know any associated article is bad for the USA.

Wade on April 24, 2011 at 10:34 AM

And yet, fools such as Durbin get reelected cycle after cycle. It’s maddening. The people who are affected most by these idiot politicians do not go out and vote because they are too busy making a living. This leaves the elections up to the moochers, the unions and the greedy geazers.

paraff on April 24, 2011 at 10:34 AM

I live in Illinois. The Democrats are seriously ruining this state. Even with pay increase, with higher taxes and increased health care costs, our family take home pay is actually less than last year. Time to get the heck out of here!

Cpoy2 on April 24, 2011 at 11:28 AM

I can see the point of having no sales tax on items bought on the internet places B&M stores at a disadvantage (a saving o 6 to 8%), , but I can also see the point of ReaganWasRight of how the proposed legislation is placing a tremendous burden on online companies.

Ro me, when the legislation passed, it will likely still impact mostly on discretionary purchases, and I’ll add the tax to calculate the true cost of purchase and decide whether I want to pay the item. With people thinking along those line, it would mean less sales, less revenue for both the merchants and the government. Talk about the Dems always negative impact on businesses.

bayview on April 24, 2011 at 12:44 PM

If it’s being done in the name of “fairness,” that alone should be a giant red flag. Nothing the government does in the name of “fairness” ever turns out well.

gryphon202 on April 24, 2011 at 6:17 PM

Well we see how well its working out for other places …Cal….New York …etc ….and we see the results of having a better business clime as Texas does

Aggie95 on April 24, 2011 at 6:40 PM

I live in Illinois. We are doomed. Eventually, the rest of you shall be doomed too.

Old Fritz on April 24, 2011 at 10:05 PM

I can see the point of having no sales tax on items bought on the internet places B&M stores at a disadvantage (a saving o 6 to 8%), , but I can also see the point of ReaganWasRight of how the proposed legislation is placing a tremendous burden on online companies.

bayview on April 24, 2011 at 12:44 PM

I may be biased since my company sells online from only one state, but I’m not sure brick and mortars are really at a disadvantage. For example, Walmart may charge sales tax on online sales, but they fulfill the order much closer to the actual purchase. This can save a lot on shipping. So, if someone in CA orders from Walmart, it is probably shipped within a 100 miles of their house (probably closer). If someone from CA orders from me, then that item will travel 3000 miles from NC. That is several orders of magnitude more expensive to ship, thus canceling out most of the gain by not charging sales tax. Of course brick and mortars have the advantage of allowing customers to see items in person and having a face-to-face person to talk to if there is ever a problem.

The fact is there are advantages for both models. What we’re seeing here is states looking for new ways to screw the tax payer as well as large businesses leveraging their position to take advantage of the situation. None of this is good for the consumer.

If it ever does happen, I’m curious how the states will prosecute and audit these laws. What’s to stop me from telling NY or CA to kiss my a** when they want to audit me. They have no authority over me.

One of these days a state will figure out that businesses thrive without excessive taxation and regulation. This actually benefits them revenue wise in that prosperous businesses pay more income taxes and their employees make more creating gains in personal income taxes.

ReaganWasRight on April 24, 2011 at 10:11 PM

I am loathe to agree with anything my POS senator says, but there is something fundamentally unfair about some businesses having to charge and collect the state sales tax, and other businesses getting a pass. I’m sure whatever solution Durbin proposes will be bad, wrong, and exacerbating – but it is a problem that needs addressing. BTW, Illinois assessed a surcharge for unpaid internet taxes for the first time this last tax year.

Sheerq on April 24, 2011 at 10:35 PM

…to continue, it the new tax was based on income (you made X, you owe Y).

Sheerq on April 24, 2011 at 10:36 PM

A bill with a name
Like “The Main Steet Fairness Act”…
A guaranteed scam.

Haiku Guy on April 24, 2011 at 11:03 PM

Why just kill jobs in Illinois when you can kill them nationwide? The new civility…

Fallon on April 23, 2011 at 4:05 PM

“All socialism does is spread misery equally”
-Rush Limbaugh

A truer statement you cannot find.

Although I would not move my business to New Jersey like Christie suggests. Notice how Christie said “as long as I’m governor, I will not raise your taxes.” I wouldn’t trust New Jersey to elect another Christie after he’s done. It’s like thinking Massachusetts is capable of electing another Mitt Romney!

scotash on April 24, 2011 at 11:48 PM

I’m sure CA will be next to pull this stunt.
They are in worse shape than IL.

OmahaConservative on April 23, 2011 at 5:34 PM

As tempting as it is to gloat over finally finding someone more stupid than our own state government here in Kalifornia, in actuality, they have been going after out of state firms for years here in CA. And, we are supposed to pay a “use tax” on anything purchased out of state, although people seldom do. Still, a business can get investigated and dinged by the state for failure to pay the use tax.

Don’t even get me started on how Kalifornia apportions taxes to companies based in-state that generate a portion of their incomes out of state. Not only do you pay taxes in that state where you did business, but Kalifornia also collects taxes on those revenues, even if they were completely transacted out of state.

There is more, but you get the picture on why no sane person would want to set up shop in Kalifornia if they had any other choice. Believe me, I’d love to get out of here if I could.

tballard on April 25, 2011 at 1:26 AM

Illinois sucks. Get used to it.

long_cat on April 25, 2011 at 3:17 AM

The Brick & Mortar stores have as much right to sell their wares online as the internet businesses do. I’m sure a large percentage do. This would be stupid and would end up harming business and generating less revenue for the states than leaving it as it is. It wouldn’t be long before businesses set up operations out of the country or finding a way around this. Democrats are just dumb.

Conservalicious on April 25, 2011 at 5:41 AM

It costs the American taxpayer $300 Billion(a third of a TRILLION) ANNUALLY to collect income tax. That says it all…..We went broke with politicians buying votes for reelection.

And Dick Turban, the only guy in Washington I can think of who’s more anti-American is Obamalinsky. Difference being Turban is party over country and only desires reelection. Obamalinsky is a Marxist ideologue hellbent on pleasing his master George Soros. (Cue music-”What a wonderful world”)

adamsmith on April 25, 2011 at 5:43 AM

Yeah, it’s pretty archaic. Probably should have gone with something more accessible.

Patrick Ishmael on April 23, 2011 at 4:38 PM

Negative! Dumbing down is what needs to be done for liberals. We’ll just check the dictionary and thank you for increasing our lexicon.

John Deaux on April 25, 2011 at 8:30 AM

Durbin’s bill, dubbed the Main Street Fairness Act, is being portrayed as an end to the tax holiday that online shoppers on major Internet vendors like Amazon.com, Overstock.com and even Apple’s App stores have been enjoying for years.

Power is in words. Not being taxed is like a holiday and undeserved except on rare occasions? How about this instead: taxing is like strangulation and chokes the life out of a country?

Herb on April 25, 2011 at 10:58 AM