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Thread: Sen Alexander: 'We must raise taxes so that we can lower taxes'

  1. #1

    Thumbs down Sen Alexander: 'We must raise taxes so that we can lower taxes'

    Lamar Alexander: 'We must raise taxes so that we can lower taxes' - What kind of political double speak is this?!?!

    http://www.knoxnews.com/news/2013/ju...d-to-lower-in/
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  3. #2
    He should use that as his campaign slogan. I'm sure it will go over well.

    I also find it highly unlikely that state taxes will go lower thanks to the internet tax. If anything, it will encourage the state to spend more.

  4. #3
    The most important part of the article.

    The National Conference of State Legislatures has estimated that Tennesseans avoided $748.5 million in sales taxes on online purchases last year — about $400 million that would have gone to the state and the rest to city and county governments combined statewide.

    Somehow we have to explain to the public what an accounting nightmare this stupid law will cause. That's because the tax isn't on where the business is located, but rather where the customer is located. If you own a business in Nashville you only have two or three sets of sales tax laws to deal with. If this law passes, you'll have at least 50, but potentially tens of thousands of sales tax laws. There are over 3,000 counties in the U.S. There are over 30,000 incorporated cities. Each of those taxing authorities could change tax laws at any time. So this will effectively cause double taxation of internet businesses. On the one had they'll have to pay sales tax. On the other hand they will have to pay usage fees to whatever system is set up to manage collection an payment taxes to thousands of entities.

    And why should the tax be paid where the customer is anyway? If I go to California and buy something and take it to Tennessee and give it to someone, I pay California sales taxes. If I order something online from a store in California I'm technically buying it in California even though I'm physically located in Tennessee. And say if I buy something in California from my computer in Tennessee and have it shipped to Texas? Or same if my billing address is Tennessee and I buy something from California that I'm having shipped to Texas, but I'm physically in London when I make the purchase?
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  5. #4
    Quote Originally Posted by jmdrake View Post
    And why should the tax be paid where the customer is anyway? If I go to California and buy something and take it to Tennessee and give it to someone, I pay California sales taxes. If I order something online from a store in California I'm technically buying it in California even though I'm physically located in Tennessee. And say if I buy something in California from my computer in Tennessee and have it shipped to Texas? Or same if my billing address is Tennessee and I buy something from California that I'm having shipped to Texas, but I'm physically in London when I make the purchase?
    See this:
    https://apps.tn.gov/usetax-static/help.html
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  6. #5
    Quote Originally Posted by sluggo View Post
    He should use that as his campaign slogan. I'm sure it will go over well.

    I also find it highly unlikely that state taxes will go lower thanks to the internet tax. If anything, it will encourage the state to spend more.
    It will likely increase taxes in TN, down the road. Some of the money will be used to increase the size of the government workforce. As the cost of their medical benefits increase year after year, it will put strain on future TN budgets. Eventually, they will retire, and their pensions and health benefits will strain the TN budgets. When they retire, they will likely be replaced by additional workers that will also have health benefits and eventually retire. So by supporting the Internet sales tax collection, Alexander is supporting higher property, sales and corporate taxes in TN. Then again, he has a history of supporting higher taxes in TN. As governor, he worked very hard to push for higher taxes.
    Lifetime member of more than 1 national gun organization and the New Hampshire Liberty Alliance. Part of Young Americans for Liberty and Campaign for Liberty. Free State Project participant and multi-year Free Talk Live AMPlifier.

  7. #6
    Quote Originally Posted by jmdrake View Post

    And why should the tax be paid where the customer is anyway? If I go to California and buy something and take it to Tennessee and give it to someone, I pay California sales taxes. If I order something online from a store in California I'm technically buying it in California even though I'm physically located in Tennessee. And say if I buy something in California from my computer in Tennessee and have it shipped to Texas? Or same if my billing address is Tennessee and I buy something from California that I'm having shipped to Texas, but I'm physically in London when I make the purchase?
    I agree with you. But if the Internet sales tax was written like that and passed, all of the online companies would move to NH, OR, DE or MT where we don't have general sales taxes. That would mean other states might lose 100,000s of workers and it would devastation many state economies. So something like that would never have support in Congress. They are doing it this way because it is a way to increase taxes that can likely pass Congress and that Obama will sign.
    Lifetime member of more than 1 national gun organization and the New Hampshire Liberty Alliance. Part of Young Americans for Liberty and Campaign for Liberty. Free State Project participant and multi-year Free Talk Live AMPlifier.

  8. #7
    Quote Originally Posted by Matt Collins View Post
    Lamar Alexander: 'We must raise taxes so that we can lower taxes' - What kind of political double speak is this?!?!
    The usual, standard-issue kind:

    War is peace.
    Freedom is slavery.
    Ignorance is strength.
    Raising taxes makes it possible to lower them.
    Destroying villages is necessary in order to save them.
    Etc., etc., etc., ...
    The Bastiat Collection ˇ FREE PDF ˇ FREE EPUB ˇ PAPER
    Frédéric Bastiat (1801-1850)

    • "When law and morality are in contradiction to each other, the citizen finds himself in the cruel alternative of either losing his moral sense, or of losing his respect for the law."
      -- The Law (p. 54)
    • "Government is that great fiction, through which everybody endeavors to live at the expense of everybody else."
      -- Government (p. 99)
    • "[W]ar is always begun in the interest of the few, and at the expense of the many."
      -- Economic Sophisms - Second Series (p. 312)
    • "There are two principles that can never be reconciled - Liberty and Constraint."
      -- Harmonies of Political Economy - Book One (p. 447)

    ˇ tu ne cede malis sed contra audentior ito ˇ

  9. #8
    Quote Originally Posted by Keith and stuff View Post
    I agree with you. But if the Internet sales tax was written like that and passed, all of the online companies would move to NH, OR, DE or MT where we don't have general sales taxes. That would mean other states might lose 100,000s of workers and it would devastation many state economies. So something like that would never have support in Congress. They are doing it this way because it is a way to increase taxes that can likely pass Congress and that Obama will sign.
    Or those states could pull their heads out of their asses and do what NH, OR, DE and MT did.



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  11. #9
    Quote Originally Posted by Dr.3D View Post
    Or those states could pull their heads out of their asses and do what NH, OR, DE and MT did.
    But that's not how states work. States increases sales taxes, not eliminate them. Republicans and Democrats are increasing sales taxes in CA, NV, KS, MN, VA, WA and trying to increase sales taxes in GA, NC, LA, IL, MD and likely other states.
    Lifetime member of more than 1 national gun organization and the New Hampshire Liberty Alliance. Part of Young Americans for Liberty and Campaign for Liberty. Free State Project participant and multi-year Free Talk Live AMPlifier.

  12. #10
    Quote Originally Posted by Keith and stuff View Post
    But that's not how states work. States increases sales taxes, not eliminate them. Republicans and Democrats are increasing sales taxes in CA, NV, KS, MN, VA, WA and trying to increase sales taxes in GA, NC, LA, IL, MD and likely other states.
    Yes, they are like a tumor that keeps growing and growing and someday will kill their host.

  13. #11
    Quote Originally Posted by Keith and stuff View Post
    It will likely increase taxes in TN, down the road. Some of the money will be used to increase the size of the government workforce. As the cost of their medical benefits increase year after year, it will put strain on future TN budgets. Eventually, they will retire, and their pensions and health benefits will strain the TN budgets. When they retire, they will likely be replaced by additional workers that will also have health benefits and eventually retire. So by supporting the Internet sales tax collection, Alexander is supporting higher property, sales and corporate taxes in TN. Then again, he has a history of supporting higher taxes in TN. As governor, he worked very hard to push for higher taxes.
    And that, is the problem they do not see. Higher taxes=higher spending. They never look at ways to be more efficient.

  14. #12
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