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by ceejayoz
411 days ago
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> Why is this silly? Because it's an immense amount of paperwork, compliance, legal risk, etc. all to avoid just setting a more reasonable state/federal level of taxation. The US has a deeply weird attitude towards any changes to taxation. > And why should we eliminate sales taxes, etc. for online sales? No one's proposing that. Online sales just introduce the issue of not knowing the tax jurisdiction that's applicable for a brand-new shopper. |
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We have reasonable levels of taxation right now. 0% federal rate, because the Constitution does not allow for a federal sales tax. States can set their own rates based on their own needs, just like every member of the EU can set its own rate. And counties and cities can tag-along with their state's sales tax.
This was complicated back in the day when it was all paper tables. Software makes it easy. Excel makes it easy, and the dedicated sales tax SaaS make it even easier.
At my last company, we handled hundreds of thousands of sales a day globally and my tax department spent less than four hours each month on sales tax/VAT compliance because we used Avalara to handle sales tax rate lookups and compliance. (The four hours were for filing the VAT returns in the two dozen countries we couldn't file through Avalara.) To put it in terms a programmer would understand: each month, my entire department spent less time on sales tax compliance than the average Typescript programmer spends on compiling.
Online sales just introduce the issue of not knowing the tax jurisdiction that's applicable for a brand-new shopper.
That has been an issue for decades, and people got along just fine in the days when they had to do it by hand.