Blue Crab Boulevard

Jingle Bells, Spitzer Smells…..

I can hear a rewritten taunting song parody now. Eliot Spitzer, apparently determined to see his approval ratings hit single digits by Thanksgiving, has found a new, sure-to-be unpopular issue to take up. This one is a sure winner of a loser for Spitzer: collecting sales tax on internet purchases for New York residents.

New Yorkers going Christmas shopping online at Amazon.com will find an 8.375% surprise at the virtual cash register, courtesy of Governor Spitzer, who is moving aggressively to collect Internet sales taxes that have gone widely unenforced.

Under a new policy, major electronic retailers, such as Amazon.com, will be required to collect sales tax on all purchases from New York. The policy, based on a novel legal theory, could hasten the end of the Internet's era as a duty-free marketplace if other states follow New York's lead. With the policy, New York immediately took the lead among states that are seeking to tax online commerce.

"I'd say this puts us at the front," one state tax official, who requested anonymity, told The New York Sun.

Having pledged not to raise taxes, Mr. Spitzer is increasingly scrounging for ways to close a projected $4.3 billion deficit next year. State officials estimate that this latest initiative, which goes into effect in December, will bring in about $100 million more each year, split between state and local government tax revenue. Statewide, the sales tax averages about 8%, although in New York City it is 8.375%.

During this year's budget debate, Senate Republicans and business groups labeled many of Mr. Spitzer's revenue-raisers as tax hikes, while Mr. Spitzer insisted he was simply closing loopholes. They are likely to pounce on this effort as well.

Spitzer is putting the onus of collecting taxes on the online vendor. His plan hinges on the "affiliate" programs some e-tailers run. Spitzer's interpretation is that the affiliate is acting as an "agent" for the vendor.

Under this novel theory, any e-retailer who pays a New York-based Web site operator a commission would be required to start collecting sales taxes on any purchase from New York, regardless of whether it originated from an "affiliate."

Next up: Spitzer will plug the ultimate loophole: If you did not hand over your entire earnings to the state, you're obviously evading some tax somewhere! Genius, Eliot, pure genius. The next poll results should be something to see.

Spitzer is putting the onus of collecting taxes on the online vendor. His plan hinges on the "affiliate" programs some e-tailers run. Spitzer's interpretation is that the affiliate is acting as an "agent" for the vendor.

Under this novel theory, any e-retailer who pays a New York-based Web site operator a commission would be required to start collecting sales taxes on any purchase from New York, regardless of whether it originated from an "affiliate."

Next up: Spitzer will plug the ultimate loophole: If you did not hand over your entire earnings to the state, you're obviously evading some tax somewhere! Genius, Eliot, pure genius. The next poll results should be something to see.

Politics, Taxes | Gaius Wednesday, 14 November , 2007

By Mockinbird, Wednesday, 14 November , 2007 @ 11:36 am

Seems like Eliot is gonna have the 101st Fightin’ Keyboardist on his butt.
By dianainsa, Wednesday, 14 November , 2007 @ 12:14 pm

From experience I know that collecting sales taxes and remitting them to the State is a huge paperwork-laden burden on a business, we are all going to pay for Amazon’s extra costs incurred by this. I frequently wonder about the sanity of the East Coast voters, I could tell that Spitzer was a fool and I live on the opposite side of the country.
By martian, Wednesday, 14 November , 2007 @ 12:27 pm

New Yorkers love to elect idiot governors - look how long they re-elected Mario Cuomo! I grew up in New York and their penchant for electing idiots is one of the reasons I left!
By Jim, Wednesday, 14 November , 2007 @ 5:31 pm

Mr Spitzer has not had enough SHAME by proposing to give ILLEGAL ALIANS free passes and free drivers licenses. Now, he wants to collect taxes all over the internet and cause havoc and a complete mess in the last successfull thing going on, the internet. Mr. Spitzer sure spits a lot of garbage out of his mouth. I wonder if he even thinks about what he says or the implications. I think he should join up with President Bush since they both seem to be doing things without listing to the people they support. Mr. Spit is truely a hero of failure, a man of powerless power, a bender of the own law which he is supposed to uphold, and a deaf man to the people who he is representing.

Fortunatelly, there are enough brave people that I believe will step forward and CRUSH THIS FOOL OF POWERLESS POWER, the same way they SPOKE UP ON HIS SHAMEFULL PROPOSALS FOR Drivers Licenses to Illegal Alians!

PEOPLE MUST SPEAK UP AND NOT ALLOW HIM TO GO THROUGH WITH THIS. PEOPLE MUST GO TO COURT AND CHALLENGE HIM. PEOPLE MUST PROTEST AND OVERTAKE THEIR OWN LAND AND THEIR OWN INTERNET TERMINALS and toss out the Elliot Idiot and the thoughtless stupid ideas he spits out of his mouth.

That is my host opinion by the 1st admendment and my right to speak out and I will, like the countless people I know also will TOO!