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The simple solution ...
The trick to collecting taxes for online sales is to make it simple. Just like when the consumer shops at a brick and mortor store. Consumers fail to pay use taxes because it is to complicated. Who is going to keep track of every penny they spend online and report it?

So the solution is simple. What is the common factor in all internet sales? You've got it if your answer is credit card. Credit card ... bingo! The credit card processor KNOWS when you make a purchase. They know the amount of that purchase. And they know where YOU live. So what if all credit card sales went like this. You pay ANYWHERE with a credit card. The merchant DOES NOT charge tax, but rather FLAGS a taxable and non-taxable amount when clearing your credit card. The bank then adds the appropriate tax for YOU, and routes it to an escrow account for your state. At the end of the quarter or whenever, the states get a wire transfer from the credit card company.

The consumer wins. They no longer have to worry about tracking use taxes.

The merchant wins. They no longer have to deal with a large percentage of sales taxes.

The credit card company even wins. The make credit card transactions easier for everybody, and they can probably find some way to charge for the service. And they already have the database infrastructure to make it happen.
Posted by: George Mitchell   Posted on: 04/15/05 You are currently: a Guest | Members login | Terms of Use
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Enough with the Taxes  jfp | 04/15/05
Yeah.  CompTech1024 | 04/15/05
As A Democrat and Socialist I know We Need the TAX MONEY  RobertoSalazar | 04/18/05
Suuuuuuurrrrrrrreeeeee they do  Squawkbox | 04/15/05
State income  RicD_ | 04/15/05
Good point  Squawkbox | 04/15/05
All hail the Football...lol  jheine | 04/15/05
Taxes  SC-man | 04/15/05
Grab your shorts  Squawkbox | 04/15/05
Regarding Those Mom/Pop E-Bayers  markdoiron | 04/15/05
Mom/Pop E-Bayers  Squawkbox | 04/15/05
Cut spending? Have you lost your mind???  No_Ax_to_Grind | 04/15/05
Have you lost your mind???  Squawkbox | 04/15/05
Harmless but still Annoying  Nientech | 04/15/05
You hit my gripe spot big time  Squawkbox | 04/15/05
Hang in there....  shostopper | 04/15/05
Texas does not have a prop provision enforce  Squawkbox | 04/15/05
I can see a use for RFID tags  osreinstall | 04/15/05
RFID Magic  jnonneman | 04/15/05
Ummmmmm NOPE  Squawkbox | 04/15/05
Low Expectations  jnonneman | 04/15/05
Lack of motivation on my part  Squawkbox | 04/15/05
what's the problem?  mgarfein | 04/15/05
The problem.  Letophoro | 04/15/05
Congratulations  Squawkbox | 04/15/05
Look at it this way ...  ac2_z | 04/15/05
This Is Meant More For Large-Scale Distributors  itanalyst | 04/15/05
Wrongo Fungo  Squawkbox | 04/15/05
Free money  tic swayback | 04/15/05
How about outsourcing the government  BostonITGuy | 04/15/05
Outsourcing the Government  jlmowery@... | 04/15/05
Ummm have you heard what the UN wants to do?  Squawkbox | 04/15/05
Bull.  Sotek | 04/16/05
Here ya go Read em and weep  Squawkbox | 04/16/05
And some sauce for your bull  Squawkbox | 04/16/05
Maybe if they stopped  skeptic tank | 04/15/05
The simple solution ...  George Mitchell | 04/15/05
nope  ac2_z | 04/15/05
It's a possibility, but...  jnonneman | 04/15/05
No way...  No_Ax_to_Grind | 04/15/05
Dang it George are we not taxed enough?  Squawkbox | 04/15/05
Taxes are nothing.  Sotek | 04/16/05
Excuse me, where do you live?  Squawkbox | 04/16/05
I think that really depends on where you live ...  George Mitchell | 04/17/05
Directed taxes  Dave F_z | 04/17/05
Move the power back to the taxpayer...  Squawkbox | 04/17/05
FLAT taxes  voska | 04/18/05
You just don't know how much I agree with that as well ...  George Mitchell | 04/17/05
Sorry people but its got to happen and its going to happen ...  George Mitchell | 04/15/05
Sadly you are right  Squawkbox | 04/16/05
The root of the problem ...  George Mitchell | 04/16/05
Amen George Amen  Squawkbox | 04/16/05
George - you are SO close!  Roger Ramjet | 04/18/05
Losing taxes? Ummm, the money wasn't thiers to start with.  No_Ax_to_Grind | 04/15/05
Umm, so what happens when all sales move to an off shore server?  No_Ax_to_Grind | 04/15/05
Ding Ding Ding  Squawkbox | 04/15/05
Sounds about right  Roger Ramjet | 04/18/05
Border less States in a bordered Country  Dave F_z | 04/16/05
The fatal flaw  Roger Ramjet | 04/18/05

What do you think?

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