[I Was Naked]
When I Wrote ThisEBAY and the IRS
2007-03-16
A U.S. congressional committee is looking at unreported income, and online sales are a major concern. EBay sales in 2006 were over $25 billion and there is no way to know how many sellers pay taxes on their online earnings. Since most taxes are paid on income reported to the IRS, like the interest on a savings account or stock dividends or salaries, Congress wants to find a reporting system for online sales. Tax laws now apply to brokers, but eBay and auction sites are not, by current definition, "brokers." That may change and eBay and others may have to report sales information so the IRS can collect taxes. ( As reported by Kovels.com)
Now this is just my opinion and argument against the IRS taxing this stream of income and the can of worms that could happen in this ridiculous cash strapped nation.
Unless you are a manufacturer, using EBAY as a source for selling and distributing NEW products, the tax has already been paid on items bought and sold on Ebay. Seriously I would love to apply that logic to everything, as the goverment continues to tax every item every time it changes hands. So as the value of said item depreciates, the government still gets residual income over the life of said item. Where else does that happen in life? I think the only one who should pay taxes are the owners of the site, and their taxable income is only for the fees that are charged by Ebay for listing your items.
What's next if they pass this law? You're having a yard sale at your house, and the Gman shows up at the end of the day for their cut out of your paltry sum. You know that you are selling things at a loss, just to get them out of your house, attic, garage. You already paid the tax when you purchased these items at the store.
I realize it takes money to run a nation. But they are running out of things to tax, and the people of this country, regardless of your income, are strapped for cash. Everything is relative to your income, and people have to stop looking at the "wealthy" as the source of all evil. Good for you if you can afford to drive and maintain a luxury car and house. Good for you if you just want to hang in your mobile home and keep life simple and everyone in between, we all have expenses to deal with, everything has a cost assigned to owning property.
What we need is an overhaul of the IRS and the taxing propensity and glut of a top heavy government. What we don't need is some chucklehead looking at a website and figuring out a way for the government to get a piece of that pie. This has been an ongoing battle since Al Gore invented the internet..lol..oh that one still makes me giggle. But stick to the factors all ready determined for online sales. If you have a brick and click store the items are taxable. But unless you declare your home as your sole source of business income, items sold online should not be taxed.
Witqueen (2007-03-16)
Then all the drug users better watch out, because if the push for legalizing marijuana happens, and the government regulates it...guess how high (pun intended) those taxes will be?
Jones (2007-03-16)
The IRS just wants to make some money on all the illegal merchandise being sold :P
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