U.S. Ecommerce To Be Broadly Taxed?

fl!ptop writes "ZDnet has a story about U.S. Senators proposing sweeping changes to how Americans are taxed for online purchases. As proposed, businesses would be required to collect sales taxes and send them to the state the purchase was shipped to. As a small business owner that primarily sells via ecommerce, I am shuddering at the prospect of having to deal with government sales tax forms and coupon books for 30 or more states. Will I have to register with each state's tax department? As an ecommerce Web developer, I'm also wondering what implications this will have on maintaining code that calculates sales taxes, expecially in states like Ohio where they differ by county and municipality."

Free startup idea

[winkydink]

Start a company that acts as an intermediary and provides the taxation service for small businesses.

Throw in some mumble about Ajax and Web 2.0 and watch the VCs line up to throw money at you and beg you to have sex with their women-folk.

30 states?

[Andrewkov]

Last time I checked there were a lot more than 30 states .. I'm not even American, and I know that.

Nothing creates business opps like

[Alex P Keaton in da]

Nothing creates business opportunities like gov't regulations. You will see clearing house companies spring up to process taxes for you. Funny about Ohio- when you buy someting in a county with lower taxes, and take it home, you are supposed to send the state the difference.
btw- Counties in Ohio have different tax rates. It has nothing to do with municipalities, so you only need to know the tax rates for each of our 88 counties... (Mine is Summit county, 6 3/4 percent)

Now SEE!?!?

[the_skywise]

That's what I'm talking about!

How's somebody in California supposed to keep track of all that! :)

Re:Free startup idea

[Mantrid]

Better yet patent the idea of doing that and let that stew for a few years then torpedo every website :)

Re:30 states?

[sglane81]

Last time I checked there were a lot more than 30 states .. I'm not even American, and I know that.

States like Alaska, Hawaii, and Europe don't count. Go learn some geography.

Re:Free startup idea

[pete6677]

Just patent the idea of paying sales tax altogether and collect royalties from any business that wants to operate without being prosecuted for not paying taxes.

No Federal Taxing!

[Anonymous Coward]

I'm telling you, besides a flat tax, we need to elminate federal taxes being collected from individuals. We should pay the State, and the State can dole out their funds to the Feds. This is the only way we can get the greedy working for us rather than in coordination against us.

~Gildas