California Tax Enthusiasts Target eBay Sellers
by Capitol ConfidentialLast week, Capitol Confidential reported on a new scheme being pursued by California Democrats to force out-of-state, online retailers to collect and remit California sales taxes.
But in a new development, it is now being reported that the proposal has attracted support from Republican State Sen. Roy Ashburn, making it technically bipartisan.
In addition, while proponents have been arguing that if pursued, this tax maneuver will not hurt smaller, online retailers, Capitol Confidential has learned that the preferred language of some movers and shakers in fact fails to exempt smaller retailers and would draw a surprising category of those selling to consumers online into the California sales tax net: Out-of-state small and medium-sized businesses that market through eBay.
Those familiar with one proposal floated this week say it would exempt from the requirement to collect and pay out California sales tax retailers who advertise with or market through California-based websites and who have not sold $10,000 or more worth of goods in aggregate to Californians during the prior 12 months.
However, even in a rough economy, experts say many small businesses who sell through California-based eBay could exceed that threshold.
If that is correct, such individuals speculate that it could hurt eBay, a big employer in the state, in addition to about 25,000 small online advertising businesses who carry ads by the likes of Amazon.com and Overstock.com.
Not only would that potentially threaten California’s existing revenue stream, were ads at California-based sites and eBay listings yanked and were revenue at these businesses to correspondingly drop. It would also potentially threaten further job losses in a state already suffering from 12.3 percent unemployment, say critics of the proposal.
Apart from Ashburn, the tax plan lacks open support from Sacramento Republicans. Gov. Schwarzenegger vetoed a similar proposal last year.
However, some technology industry advocacy groups, as well as business groups, have in the last two weeks begun vocally speaking out against it nonetheless.
“It’s all loss and no gain for the state,” wrote Performance Marketing Association Executive Director Rebecca Madigan in a recent op-ed.
Tech America’s Dan Squiller meanwhile opined that those considering the proposal “are dangerously close to making a tough economy even tougher for many of California’s struggling tech employers.”
That is an argument that opponents hope will resonate in a state suffering from serious economic woes, despite consistent bipartisan worry about the budget gap.
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65 Comments
No matter how much business gives to progressives (both in campaign funds and tax revenues), they really don't like capitalism.
In their minds, progressives should make all goods (they are the only ones smart enough to make the right goods), sell all goods on eBay (everyone else is just ripping off the people), and all the revenues need to go to the state (and they will decide who gets the benefit cause they know better than the rest of us).
Grew up in CA, I know how they think.
It's not enough that California has chased off all industry producers, I guess it is now targeting any entity (other than the governement) that employs people. Soon all employers will have to leave this once great state.
The real winners of Ebay, aside from Ebay themselves are UPS and FedEX who make Boat Loads of Dollars though the shipping.
Those who sell on Ebay do OK. Should you Tax them. You will hurt UPS USPS and FedEx more then any Ebay Seller.
Democrats, I thought the idea was to destroy the Middle Class and Capitalism. Not the Union UPS and USPS. Go Figure.
It's only going to get worse people. With budget shortfalls and a fledgling economy, state and local governments are going to start going after anything they can and cannibalizing their local economies in the process.
How about the CA legislators pass a law that the legislators can not even think about writing a new law until the state has a balanced budget and 40 billion in reserve funds….No budget= no new laws!
As California goes…so goes the rest of the country…God, I hope not!
California is the epitome of progressive stupidity and class warfare.
Gotta love that everyone pretends this isnt going to hurt the consumer in any way. Lets face it, businesses DONT PAY TAXES. Yes, they get taxed on things, but when those taxes increase, it is just deferred to the consumer. Taxes are figured into the cost of a product and whenever that changes, the price changes.
And dont hope for one second that it is only going to effect only california. If it passes, I can almost guarantee that the companies will spread the tax out across all its market base to minimize the impact it has on a portion of its base
Who the heck thought up that dumb-ass saying anyway?
Again when have more taxes helped. This will only drive more people away from CA and to other means of buying and selling. I moved away from Ebay years ago because I didn't like their business policy of assuming the seller was at fault for everything. Bad handling on Ebay's part drove this customer away.
Boy, oh boy…the sunshine idiots are in full swing.
Go ahead; tax these sales at a 50% rate with your progressive toilet mind swirly going into overdrive dreaming of all that tax revenue.
How will the Marxist cook their books to show a “potential” revenue windfall? As we all know there will be no windfall from these taxes.
What will happen is the progressive dip$h!ts will go begging to “uncle sugar” with their filthy hands and We the Taxpaying Citizens of the US will have to pony up another hundred billion or so to bail their sorry A$$ out. It appears that the State of the tree fairies WANT to become wards of the state themselves.
I say, let them rot, go bankrupt and hopefully the “big one” will hit soon. We from the east of your crappy state will wave bye and sing kumbaya to you.
What happens to CA if EBay say stuff it. Typical politicos. The real problem is with the state legislature. It just refuses to face up to its responsibility to cut spending. Wait a minute. I get it now. The legies don't want to lose the support of the unions and the illegals. If that happened, they would have to get real jobs.
eBay should flip California the finger and move to another state.
If you want more money to spend, cut the damn state employees pay and benefits. Try that! There's real money there.
We have no income state tax here in TN. Nissan already left the "golden coast" to come here. All aboard the express train leaving CA bringing business to my state and others without insane punitive tax policies. LEft behind will be the gov't union employees and parasites (same thing I know). Who will then pay for all those unicorns?
What does that even mean?
If you want more money to spend, cut the damn state employees pay and benefits. Try that! There's real money there.
It this better?
Balancing a budget requires paying the bill down with more taxes.
My dumb ass fellow New Yorkers are more than happy to follow the CA lead.
God help us.
Hey State Legislators, I've got a creative idea: Why not cut spending?
You can thank me later…
-BV in LA
New York City wants to slap an 8% tax on bagels now!
WTH??
In most cases the sellers on ebay are crooks, misinformation, bad items, at least 15% of items I paid for I never received.
Thanks for the heads up. I've been on eBay since 2003, so I'll have to amend my template. Instead of, "CONTINENTAL US BUYERS ONLY" I'll have to add, "EXCEPT CALIFORNIA."
Great idea!!
All states could cut spending by at least 50% by eliminating useless programs and jobs that are not really needed but then all the politicians families and friends would be out of a job. Need a job? Donate directly to a politician and they will find you a job in the Government, cost a friend of mine $6,000 and he got a $72,000 a year Government Job.
"progressive stupidity"
A true redundancy.
Some things are so true you sometimes have to same them twice!
Gird your loins everybody. Local, State, and Federal governments are all so broke they're just looking around to find our where the money is, so they can tax it.
Nothing will be safe. It will not get better. Protect your 401Ks and IRAs now, because it's coming.
.
Congrats to California, they have just come up with another method of driving business and jobs out of their state. I bet ebay and Overstock are already looking for property in Texas. Stupid is as stupid does and CA keeps doing it….
Idiot… Balancing a budget requires ADULTS stepping in and slowing the growth and spending by out of control state assemblies. Cut expenses and ALL capital budget projects to near zero. How about the elimination of all NON-ESSENTIAL state workers. Privatize sanitation, maintenance, school busing…the list is endless. Gee…IN OTHER WORDS use the PRIVATE SECTOR MODEL for successful businesses !
Head back to Econ 101, fool !
Better read up on Argentina's fiscal tax grabs between 1950 and 1990. Wake up, people ! Hide those 401's and other retirement accounts… Mattress sales should be skyrocketing !
Getting blood out of a turnip
Never works out well
It's even worse than "just" affecting Cali – they want to tax purchases made in OTHER STATES, and have those businesses collect Cali sales tax. If that's not BLATANTLY un-Constitutional, then nothing ever will be.
When you want to dig your way out of a hole, you don't use explosives.
And Arnold was elected on the line, "whenever you go to the toilet, you pay your taxes."
So what happened to that guy?
The same left in Cali. is the same left bringing this country down the same path of destruction for this great nation. We need to let our voices be heard over and over, every election, every time. Let U.S. show them what real change looks like. Remember in November, over and over. We cannot let up for one minute. We will reject their alinsky tactics, again and again. To quote a famous wrestler," Just bring it".
http://remembernovember.com/
Here is a theme song for U.S. all. http://bandofpatriots.us/
I shop on eBay all the time. I love the fact that I can find stuff on there that I can't find anywhere else. Too bad this is happening to eBay but I have to blame the voters for this.
EBay is moving to UTah. There is a list on the web of all the companies that are leaving, Calif.
A lot of Companiesalready exclude California as a State to do business in. California has LESS Liberty than Cuba and 100 times the regulations and banned items of any other State or Country. I would not live in California, even if you gave me a Free home. Good luck to you SAPS, keep voting Democrat and soon they will tell you when to SH*T.
And here is what the Dems in Colorado tried and ultimately did earlier this year: http://econsultancy.com/blog/6176-the-fight-again...
hate to have a link to this site, but article is informative about the results: http://www.huffingtonpost.com/2010/03/08/amazon-r...
California and New York……Perfect together……
Put an 8% Tax on llegals and they would have a surplus budget…..
They have progressed from "Citizens" to "Subjects"…. Woe to them…….
You mean they have not moved YET ???
Maybe things have changed from when you were in CA, but from my perch seems like Progressives don't want anyone to make any of the goods, they just want them to appear magically in their closets so they can give them to all the "disadvantaged" persons (and use what's left over to spay & neuter your dog)
The coming hyperinflation cannot arrive soon enough – I can't wait for the free market to hit government's reset button.
Gonna be a nasty few years though…. Good luck
LET THEM TAX! Go right ahead! And EBAY will say SO LONG SUCKERS and walk out of the state.
Progressives in California trying to solve their financial problems is like someone in a leaking boat punching more holes in the boat to "let the water out".
Yep. California is determined to push E-bay to another state. Kiss 25,000 jobs goodbye, and say hello to "DEFAULT".
I am not so sure they will tell us when to sh;t. But a Certified Government Bottom Wiper who monitors the squares of TP use might not be out of the question in our near future.
Humorously, E-Bay has a solid out on a California tax for its purchases. At least half of E Bays servers are not located in California. I know because I work for the company that has the contract and have been to the location myself and seen the servers.
Seems like a simple argument to say that the transaction did not happen in California and is thus outside the juridiction of California for the purposes of the tax since the auction was housed in another state. I suspect they would win a court case if it came right down to it.
Republicans believe every day is the Fourth of July, but the democrats believe every day is April 15.
Ronald Reagan
Enough said.
Isn't it about time to put California on eBay….. with free shipping?
You'd have to make it attractive (i.e. Seller pays buyer), otherwise who'd take on their debt load?
ah, the land of fruits and nuts, at it again– first, they bankrupt the state by looking the other way when kickbacks to unions and welfare to illegals flow like honey– then, they literally blame it on people who don't even LIVE there (i.e. Ebay merchants in other states not to mention around the world)– Memo to Ebay Inc.: don't you think it's now time to reevaluate the location of the corporate headquarters?
I feel so much better now, having spent what was left of my 401K to save my house after 9 months of Obummers funemployment and 12 months of underemployment. They can't steal what is not there anymore. Bastards.
Ebay should not leave California. It should relocate to Alberta, and do a deal with the provincial government there. Such as no GST on goods not sourced in Canada, or exported from Canada. Or Aussie (again free trade agreement — and the Kiwis have a free trade agreement with Aussie and China. Got to keep those containers shifting around the pacific, y'all know)
Good rule of law, conservative government. and a nice skepticism about the capital. Just like California used to be.
don't think you'd see many "hits" on that item……….
just to put it into perspective: the drug mafias in Mexico have way, way more US currency stashed away in their collective hideways, than the present balance of the treasury of the state of California ……….
I guess your right…. and the bill to have CA fumigated before it could be sold would be astronomical. I doubt you could get past customs or the EPA on exporting toxic waste anyway. Oh well…. I guess we are stuck with it.
This is easy. Ebay sellers do not have to sell to people in California. And once Ebay folds, another company will start in another state….OR …..offshore. Think about offshore eBay
Not only this-Ive heard the communist suckass George Miller(commie-Calif) has some kind of plan in place to basically STEAL everyones 401k plan. The only way it will end,Im afraid, is revolution.
Read below Gwar-Calif Commiepinko George Miller already has a "proposal" in place where the govt can steal your 401k-basically by a social-security type Ponzi scheme.
Let me guess billy-as an "assistant to the assistant to the assistant" of some obscure state rep.
Yep_id bet every state rep has over 150-200 "staff" personnel. Like they really need that much.Just like Im sure Mocchelle Maobama truly needs 26 different "aides".
Sorry to hear of your less than luck with Ebay, I have been a buyer and seller on there for a good few years now, and in one case I was the seller and encountered a nasty buyer, Ebay backed me 100%. But of Kalifrutay were to apply a tax I WILL change my views on using them. Perhaps net companies need to consider moving their data centers to more friendly states, I would think most would like the tax revenue from basic profits of the company along with the employment boost.
EBAY Please leave California! Leave! Walk out! Take your business and employees and move to Texas where they want to do business. Let California STARVE
Are you kidding – eBay has sold its soul to Marxists ideals long ago – why do you think Meg left?
+1000
Ebay should move!
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