Comment Just give us one fucking sales tax rate already (Score 4, Informative) 293
Well, that is the current dream of many.. find ways to have all the benefits of operating in the US without paying for it. Taxes are something that it is in one's best interest to have other people paying.
I don't mind paying taxes, and wouldn't mind paying a standard VAT to sell anywhere in the US. But the local US sales tax laws are a complete clusterfuck. When I'm selling books in various locations, I have to dig up the tax rate for that location It's a hassle, but doable, but some states are really fucked up.
New York is one of them.
Sales tax varies depending on which county, in some cases which city or which part of the city you're in. Tax rates coded to zip codes don't work...some zipcodes span localities with wildly varying sales tax rates. I'lliinois is better, but still, rates vary depending on whether you're in Chicago proper, one of the suburbs, or one of the localities downstate.
Multiply this complexity by 50 states and you begin to realize what a complete clusterfuck it is for any small online buisiness to try and cope with. Shipping a package to Bumblefuck, Nebraska? What's the sales tax? How about Buttfuck, New York? Good luck.
Impose a national VAT of x percent, and kick back some or all of it to the states, and ban local sales taxes of any kind. This needs to be vastly simplified. Even if it were 50 states and 50 different sales tax rates that would be doable, but with many dozens of different sales tax venues with varying rates in New York alone, and plenty of states like Illiinois with a few cities that impose their own surtax to the state rate, figuring this crap out is a nightmare on the best of days. If every state is allowed to impose its taxes on all online folks, only the big players like Amazon will be able to cope. The rest of us, and most new startups, will crumble under the burden.