Lost Online Sales Taxes Not As Big As Thought

from the and-we-should-trust-any-of-these-numbers-why? dept

A billion here, a billion there... it's not real money, so who cares? State governments have been going bonkers for years about all that "lost revenue" from those damn geeks buying products online and not paying the necessary sales tax. There are all sorts of laws and schemes afoot to try to collect more of those taxes from asking you to be honest to making merchants calculate and collect the taxes for you. While many smaller e-commerce firms are scared what that might cost, the state governments keep trotting out huge sales tax loss numbers. Well, now, it turns out that the numbers they've been trotting out have been wrong. No surprise there. Any time you try to figure out "losses" from an expense that isn't really there, people are simply making up numbers. However, the researchers who conducted the original studies are now saying that (oops) those original numbers were off by quite a bit. They still claim there are losses, but they're much, much less than what they originally reported last time they were asked to make up some numbers.
Hide this

Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.

Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.

While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.

–The Techdirt Team


Reader Comments

Subscribe: RSS

View by: Time | Thread


  • identicon
    dorpus, 16 Jul 2004 @ 11:16am

    Consumer Protection

    However, this could harm consumers too. What if people buy "tax-free" cars online, and they turn out not to meet inspection standards of the state? The consumer is liable to get arrested or severely penalized. Same goes for unsafe products sold online.

    link to this | view in chronology ]

    • identicon
      Anonymous Coward, 16 Jul 2004 @ 12:44pm

      Lies, Lies, Lies

      This sounds like the RIAA and their over inflated "losses".

      link to this | view in chronology ]

    • identicon
      Anonymous Coward, 16 Jul 2004 @ 1:14pm

      Re: Consumer Protection

      > The consumer is liable to get arrested or < br>> severely penalized

      Yeah, I always have trouble explaining to prospective employers my arrest record for failing my state's car inspection. The reason was that the car I bought was from another state, and the inspection standards for the different states are SO different. Little did I know that being street legal in 'bama would mean jail time in California. Lesson learned. At least I didn't pay taxes on it.

      Next time I'll pay cash to the used car dealer in central Los Angeles. That way I will have it inspected in-state, and still avoid paying taxes, like all those millions of illegals here who buy and sell things without paying sales tax, dwarfing on-line sales.

      link to this | view in chronology ]

      • identicon
        dorpus, 16 Jul 2004 @ 2:38pm

        Re: Consumer Protection

        >Little did I know that being street legal in 'bama would mean jail time in California.< br>
        Oh yeah, if you're caught driving a car that isn't street-legal, and you're caught more than once, you can get in some deep doo-doo. And with an illegally purchased car, you would be in the dilemma of being unable to register it.

        >That way I will have it inspected in-state, and still avoid paying taxes, like all those millions of illegals here who buy and sell things without paying sales tax, dwarfing on-line sales.

        Lots of them end up in prison too.

        link to this | view in chronology ]

    • identicon
      alternatives, 17 Jul 2004 @ 2:27pm

      Re: Consumer Protection

      However, this could harm consumers too. What if people buy "tax-free" cars online, and they turn out not to meet inspection standards of the state? The consumer is liable to get arrested or severely penalized.

      Errr, where do you come up with your 'theories'?

      Please show where the sale of the care *HAS* to later 'pass state inspection'?

      Please show a case where the seller of a car stated it would pass inspection that later failed inspection fell into a catagory of "buyer beware".

      Why not just back up ONE of your claims with actual facts.

      link to this | view in chronology ]


Follow Techdirt
Essential Reading
Techdirt Deals
Report this ad  |  Hide Techdirt ads
Techdirt Insider Discord

The latest chatter on the Techdirt Insider Discord channel...

Loading...
Recent Stories

This site, like most other sites on the web, uses cookies. For more information, see our privacy policy. Got it
Close

Email This

This feature is only available to registered users. Register or sign in to use it.