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Yet another reason why I often wish I lived in Massachusettes

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40hz:



FAIRFIELD COUNTY, Conn. – Starting in November, Connecticut residents will no longer be able to escape paying the state’s 6.35 percent sales tax on Amazon.com, as the online retailer will begin collecting sales tax on Connecticut residents.

The reason is that, over the next two years, Amazon will invest $50 million in the state and create hundreds of new full-time jobs here, Gov. Dannel Malloy announced Monday afternoon.

“All in all, this is a win for our state’s taxpayers, our Main Street retailers, and our workforce,” Malloy said in a statement. “Amazon’s multimillion-dollar investment and the hundreds of jobs that will come with both the construction and operation of their future facility will unquestionably boost our local economy.”

Under federal law, out-of-state retailers can’t be required to collect sales tax in Connecticut. Malloy called Amazon’s agreement to begin collecting tax revenue in the state “a great step” but said the federal government needs to take action on the issue.
Lt. Gov. Nancy Wyman also applauded the deal, saying it is two more “significant steps” the state is making toward maximizing the revenue stream and job creation.

“This will both put people to work and help balance the budget, and we welcome Amazon as our newest partner in our effort to create long-term prosperity for Connecticut,” she said in the statement.

Amazon will start collecting state sales tax on Nov. 1.
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Ok...

So come November, CT residents get to buy something at discount from Amazon - but still have to pay for shipping plus CT's sales tax (note: shipping and handling charges are also taxable in CT) - and still have to wait an average of five days to receive their purchase once it actually ships?

Yeah, Big Win!

Be interesting to see how many of those "hundreds of jobs" actually do get created - or how long they remain in CT if/when they are. (Especially considering the number of companies that came to CT and received huge tax breaks in exchange for creating jobs - and either didn't - or promptly rolled up their carpets and left once the incentives expired.)

And nice to see CT is handing a "big win" to its "Main Street retailers" by putting what amounts to an import duty on Amazon purchases with the cost to be born by its own residents.

Way to go Governor Malloy!

Now could the govenor please explain how all this is a "big win" for the taxpayers? Because I have heard zero discussion about reducing the state's income or other taxes now that this new revenue source is coming online in 9 months.

About the only "tax' discussion I've heard recently was a proposal up in Hartford that the the state reinstate tollbooths on its highways....
 :-\

xtabber:
Amazon will also start collecting Massachusetts sales tax on Nov. 1, 2013.

I'd guess that within a few years, that will be the case with all states that have sales taxes, as it should be.

That said, sales taxes are one of the most regressive forms of taxation. To his credit, Governor Patrick has proposed to reduce the sales tax in Massachusetts and increase the income tax to make up for it.

Of course, you could always move to New Hampshire, which has neither sales nor income tax, but as a friend who moved there from New Jersey some years ago found out, they have many other ways of collecting from you (fees, excise and personal property taxes, etc.). He complained later that he was paying more overall in NH than in NJ, and getting far worse services to boot.

But, as a MA resident, who has also lived in CT, NJ and NY, I can assure you that Massachusetts does have a lower overall tax burden than those states, and generally better state services too.  So much for "Taxachusetts."

40hz:
I'd guess that within a few years, that will be the case with all states that have sales taxes, as it should be.
-xtabber (February 05, 2013, 08:51 AM)
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Am I missing something here?

Of course, you could always move to New Hampshire...
--- End quote ---

Not likely. It's "Just like Alabama - but with snow" as the saying goes. Pretty place to visit. And the people are (mostly) very nice. But that's about it AFAIC.

But, as a MA resident, who has also lived in CT, NJ and NY, I can assure you that Massachusetts does have a lower overall tax burden than those states, and generally better state services too.  So much for "Taxachusetts."
--- End quote ---

Agree. It's not so much I object to paying taxes (I don't) but I do object to what they're sometimes used for.

In CT's case it's a problem because our government has plundered state employee pension funding and neglected critical infrastructure maintenance as long as it possibly could,. And now it's thrashing about for ways to recoup.

I lived in MA for six years and was always impressed with the level of services the state provided. I never once felt I wasn't getting good value for my tax dollars there. Which is more than I can say for my home state.

 ;D

Renegade:
Reminds me of the title of an old Judas Priest tune, "Never Satisfied". Different context though.

Also reminds me of a Beatles tune:



Reply (in the Basement): https://www.donationcoder.com/forum/index.php?topic=33931.0

(I'm surprised that I managed to remain this calm! :) )

wraith808:
I'd guess that within a few years, that will be the case with all states that have sales taxes, as it should be.
-xtabber (February 05, 2013, 08:51 AM)
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Why should it be?  40 put it well- this is basically "an import duty on Amazon purchases with the cost to be born by its own residents."  It's purely to mollify the local retailers.

And really, I think that the retailers screwed themselves with this deal.  They said that Amazon competes on an unfair playing field- and they really will be.  That's why they gave in after so long lobbying against very successfully- they had a long game.  If you can order an item, and get it on the SAME DAY without going out, and be able to choose from a wider variety... yeah.  What will the local retailers cry about then?

And I'm not unsympathetic, working in retail through college for a small gaming shop, then part time for 10+ years after that.  You have to get creative, and give people a reason to buy from you, and most don't want to work for it.

Again, it's the litigator's version of competition, to compete based on blaming your opposition, rather than on your own merits.  It doesn't work, and in many cases, it accelerates your own decline.  As shown by the fact that at least in my case, I'm more pissed at the local business associations now after their 'success'.

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