Seeking Alpha

The NRF stirs the online sales tax pot

  • The National Retail Federation calls on Congress to pass legislation that would require online and remote sellers to collect local and state taxes.
  • Top NRF exec David French told a House committee that out-of-state sellers sometimes have a 10% price and market advantage over brick-and-mortar local merchants.
  • The Senate already passed legislation that would give each state the right to require sales tax collection, but legal battles have gone both ways. In Illinois, the State Supreme Court invalidated an online tax law.
  • Related stocks: AMZN, OSTK, NILE, SALE, ECOM, EBAY.
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Comments (10)
  • Ford289HiPo
    , contributor
    Comments (696) | Send Message
     
    Taxes, taxes, taxes....that's the only thing in some people's repetoire. What's next? Taxing poison ivy?
    12 Mar 2014, 12:37 PM Reply Like
  • nun
    , contributor
    Comments (109) | Send Message
     
    What the NRF demands is unconstitutional. If their complaint is that there's a 10% price disadvantage in some states, then the state should lower or eliminate it (their state sales tax). Problem solved.

     

    Besides, plenty of people will still order online even with the sales tax they want collected. Many consumers want to shop at home to save time and gas.
    12 Mar 2014, 01:02 PM Reply Like
  • David at Imperial Beach
    , contributor
    Comments (4358) | Send Message
     
    It really just levels the playing field. You usually have to pay for shipping and handling separately online and that's usually at least as expensive as the sales tax.
    12 Mar 2014, 01:27 PM Reply Like
  • Esekla
    , contributor
    Comments (3978) | Send Message
     
    The fact that the Senate passed the Market Place Fairness act is irrelevant since that bill has already expired in the House without consideration. Amazon was a proponent of that bill, and of a solution at the national level in general. The House is holding a hearing on alternative today. In the meantime, AMZN has been in the process of reverting to mean as documented here:

     

    http://seekingalpha.co...
    12 Mar 2014, 01:29 PM Reply Like
  • johnfrisoli
    , contributor
    Comments (2) | Send Message
     
    If this is done brick and mortar stores will have the advantage...they don't charge for shipping.
    12 Mar 2014, 01:31 PM Reply Like
  • Fugawee
    , contributor
    Comments (2) | Send Message
     
    Really!! Did anyone really miss when all of the bureaucrats were laid off?
    12 Mar 2014, 01:31 PM Reply Like
  • Fugawee
    , contributor
    Comments (2) | Send Message
     
    Really! Did anyone truly miss a beat when all of the Bureaucrats were laid off? That's even with the Dem's trying to make it goofy painful.
    12 Mar 2014, 01:31 PM Reply Like
  • robax6
    , contributor
    Comments (46) | Send Message
     
    NRF has transparent motives since they only represent brick and mortar stores.
    But congress cannot give the states authority to collect taxes from other countries without starting some kind of trade wars.
    I conclude online sales tax would just hurt all the online stores in the US and drive e-commerce to other countries.
    12 Mar 2014, 04:30 PM Reply Like
  • Distressed Debt Analyst
    , contributor
    Comments (509) | Send Message
     
    Is anyone aware of a good security to use if one wants to take short positions on brick and/or mortar? Mortar I can see, but brick...
    13 Mar 2014, 03:05 AM Reply Like
  • memshu
    , contributor
    Comments (578) | Send Message
     
    DDA
    one suggestion i have seen was to short mall REITs
    i have not done any work on this myself
    13 Mar 2014, 04:31 AM Reply Like
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