States should collect Internet sales taxes

Chief Editor Ted Como brings you the latest tech advice on Tech Bytes

Published Monday, February 2 2009 - (1) Comments

A recent Associated Press story on growing efforts by states to collect taxes on Internet sales failed to mention the most compelling reason states should do so: preserving jobs.
As per a 1992 U.S. Supreme Court ruling, states may not require businesses to collect Internet sales taxes unless they also maintain a physical presence in the state. But that's something Congress may overturn, and states struggling to make ends meet are pushing for that authority. And they should have it.
No one wants more taxes. But the only outcome from continuing to allow a growing segment of our economy to avoid sales taxes is higher taxes, as storefronts close because they can't compete. And as street retail continues to fail because consumers buy online to avoid sales taxes, more folks will be out of a job - and they won't be paying any local taxes if they have to move somewhere else to find work.
The playing field will never be level state-to-state. As the story points out, "collecting online sales taxes is not as simple as it might sound. A nationwide Internet business faces thousands of tax-collecting jurisdictions - states, counties and cities - and tangled rules about how various products are taxed."
Of course, that's not really a problem. Computers know instantly what tax rate should be charged and returning collected taxes may also be done automatically. Whatever sales taxes are collected by storefronts in any state should also be paid by anyone from that state purchasing goods online.
It's a question of fairness, and equal treatment. That said, we certainly need tax reform but that focus should be on the federal income tax. You can choose which state to live in and if you find the tax burden onerous, considering services it provides, you can always move.
For instance, California ranks first in the number of residents moving out of that state due to its tax mess-NewYork is right behind it. But unless you leave the country we all must deal - at this time of year - with the horrible mess the U.S. tax code has become.
You want fairness and equal treatment there? We can do that with just one number - the percent of your income that everybody pays in federal income taxes - no deductions, no exemptions.
* Win7Beta Out: Microsoft has released the first public beta test of the next Windows operating system -Windows 7. Unless you're a technophile who knows how to burn an ISO, and have a spare computer to test it on, you won't be interested in this. Otherwise, download it here: http://www.microsoft. com/windows/windows-7/beta-download.aspx.
Microsoft says the beta is full-featured, meaning it's got the major bells and whistles that will eventually be released in final form to the public. But of course, it also will have glitches which is why it's a test version. At the end of the testing period, it will cease to function.
Minimum system requirements are a 1GHz processor,
1GB of memory, 16GB of disk space and support for DX9 graphics. Word is that after July 1, Microsoft will offer free or discounted Windows 7 upgrades to users who buy Vista PCs.Win7 is scheduled for release late this year, or spring, 2010.
* 3D Glasses: Nvidia, known for graphics accelerators, has released an interesting product that claims 3D computing from wearing special glasses. The GeForce 3D Vision system includes a pair of glasses that connect wirelessly, with software that sends separate images to each lens. The images are sufficiently offset to fool the brain into interpreting the differences to depth, which creates a 3D illusion.
3D is usually created by using two cameras set a few inches apart but Nvidia claims the glasses will work with current programs that include depth information, such as first-person computer games where 3D could provide a distinct advantage.
Each lens of the glasses is a liquid-crystal shutter and opens and closes 60 times a second - fast enough that there's no flicker. The system costs $199, and requires a high-end desktop with a display capability that refreshes the screen 120 times per second - most graphics accelerators refresh at 60 times per second.
* Music Pirating: In its recent announcement that it would stop suing kids for pirating music, the Recording Industry (RIAA) said it has cut agreements with major Internet Service Providers to ferret out customers who maintain huge collections of illegal music online. RIAA said ISPs would work with it to shut down these music banks.
However, one provider, Verizon, says it plans no such relationship with RIAA and others, apparently, aren't talking. Without ISPs either identifying music bank owners, or at least advising those folks that they should shut down the banks, RIAA's effort is so much smoke.
That's not to say ISPs won't be cooperating with RIAA but if they are, they apparently want to keep it from their customers.
On the music copyright front, Apple has announced that it's dropping Digital Right Management form songs it sells through the iTunes Store, which offers some 10 million tunes. That means that songs you download from iTunes won't have copy protection built in, allowing you to share them with others.

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So, Mr. Como, the choice, according to you, is between more taxes or higher taxes. No, thanks, I vote for *no* more taxes. Keep internet sales tax free. No nation, state, city or county has ever taxed itself into proserity.

John Wayne | 2/3/2009 - 8:08 PM - ( Comment

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