Monday, June 06, 2005

State Extortion

It seems that states, 43 of them, feel they are not taking enough of their our money, and now they want a cut of everything that happens on the internet:

9News has learned that 43 states have joined together in a coalition to collect sales tax on all Internet purchases. You already pay sales tax when you go online to buy from an established business like Eddie Bauer or Wal-Mart. But a lot of small Internet businesses and individual transactions float under the radar. The coalition is seeking expertise from Colorado's high tech industry to get the tax collection done electronically.

Of course the is voluntary. Or is it?

The proposal is for the new system to initially be voluntary. "So (unless) Congress were to act and make this mandatory, there would be no penalties," says Peterson. But there's a plus for businesses who do adopt the software. The states say the electronic system is so good, they'll designate participating businesses "audit proof."

Interesting way to put a positive spin on it. Let me get this straight. You can choose to use the approved software (no kickbacks there, I'm sure), and you will not be audited, or you can go on your merry way and deal with the consequences, which we, the state, have no control over…

Last I checked, protection rackets, although 'voluntary', are illegal.

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