West Virginia Tries To Stretch Its Taxing Authority Far And Wide
from the take-and-grab dept
Yesterday we brought attention to Baltimore's shameless scheme to line its coffers by trying to impose a large telecom tax on VoIP providers, like Vonage. It seems that government just can't resist putting its hands in whatever cookie jars it can find. But at least Baltimore's scheme seems to be rooted in a legitimate law (however misguided it may be). Compare that to West Virginia, which would like to tax the profits (via Hit & Run) of any company that has customers in the state. Right now it's going after Delaware-based credit card company MBNA, in a move that appears to be in blatant violation of the law. MBNA may take the case to the Supreme Court, but if the Supreme Court refuses to hear it, or rules in favor of of West Virginia, it could set off a major round of states trying to tax the profits of companies that sell in their state. Obviously, this would have major implications for all kinds of companies, including tech firms, whose business is often unrelated to their specific geography. The big winner in this has to be Baltimore, which looks much better in light of what its neighbor is doing.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.
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So they're suing a company with no customers anymore?
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You have no idea...
http://wizardprang.wordpress.com/2006/11/15/bofa/
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borders
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Shiva analogy not in the best taste....
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Shiva analogy not in the best taste....
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Re: Shiva analogy not in the best taste....
Interesting, many americans think Shiva is a symbol of greed with many arms to reach and grab/hoard with.
The context used was not in bad taste, it was just plain incorrect.
(BTW- I don't think Joe is incompetent, just that he made a rather common mistake)
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Re: Re: Shiva analogy not in the best taste....
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Re: Shiva analogy not in the best taste....
When most people hear Shiva, at least those unfamiliar with Hinduism, most would envision a multiple armed goddess, which may be why the author used Shiva as an analogy. I really dont feel the author's intention was to slight or disrespect anyone's beliefs or feelings, or Shiva for that matter.
May the coming year bring you Peace and Prosperity
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Re: Shiva analogy not in the best taste....
Susheel, it certainly wasn't intentional. We've changed the headline. Apologies for any offense.
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Did you read the actual case or did you did just read the rantings of the tax opponent on the Baltimore Sun. Come on. The company does substantial business in West Virginia and should pay taxes on the proceeds it gathers there. It is not like they are getting tax revenue from transactions from other states, they getting tax revenue from the income they earned and solicited in West Virginia.
Still feel the same? If so, I guess you are a bigger fan of coporate tax shelters than I am. The Commerce Clause was not to be used to prevent a state from collecting revenue earned and generated within the state, but to prevent tariffs. In this instance, they are not treating an out of state company different than they are treating a company whose HQ happens to be in West Virginia.
"in a move that appears to be in blatant violation of the law" Really? How? What precedent are they violating? What federal statute on the books are they violating? I guess it easier to make baseless accusations than actually back it up.
If you actually read the lawsuit, they will explain their reasoning. Did you consider that the company may not appeal because they think their facts are bad. From the numbers listed, they had a fairly large business going on in West Virginia.
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Shiva
"Shiva is responsible for change both in the form of death and destruction and in the positive sense of the shedding of old habits. In Satyam, Shivam, Sundaram or Truth, Goodness and Beauty, Shiva also represents the most essential goodness."
From http://www.sanatansociety.org/hindu_gods_and_goddesses/shiva.htm
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Re: Shiva
Not exactly on topic here.
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Re: Re: Shiva
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Re:
Then charge a sales tax on each sale. What West Virginia is proposing is an income tax on companies located outside of West Virginia. I'm sure you see a problem with that, right?
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Re: Shiva
May you too have a happy holidays and good luck in the new year.
This said, regardless of the author's intention, his use of 'Shiva' is based on misinformation and only serves to perpetuate this misinformation. I don't think Joe needs to conflate Shiva with 'take-and-grab' tactics in order to make his point. He has every right to, of course, but it it is in bad taste and wholly unnecessary.
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Shiva
Thanks for changing the headline. I knew it wasn't intentional, so I hope I came across as respectful in my objections.
Thanks again!
Susheel
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Question is, what happens when I go to a different state or country? Are charges that were added on while I was vacationing in Vegas taxed by the state I live in, or does what happens in Vegas stay in Vegas?
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Taxes
Think of Amazon. They do millions of dollars of business every week in various states, and pay no sales tax (and charge none) because the product is shipped to you, but the actual "sale" takes place online, outside of any state's jurisdiction.
So being able to tax a company that doesn't have employees in your state sets a dangerous precedent for any company that conducts business online. And it opens the flood gates.
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that shit is wack
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