Showing posts with label Amazon. Show all posts
Showing posts with label Amazon. Show all posts

Thursday, April 25, 2013

US Internet Sales Tax Push: WalMart+Amazon vs eBay+Yahoo+Overstock


It's rather apparent which side wins. In the US Senate, only those senators whose state does not have sales tax are opposing; everyone else is in for more grab from the consumers who buy online.

Why Amazon, one of the largest internet retailers? Because, in addition to the one given in the Wall Street Journal article below, the company wants to sell its own tax compliance service to other merchants.

In the WSJ article below (4/23/2013), there is not a single mention of "consumer":

Backers and Opponents of Online Sales Tax Ramp Up Lobbying

Both sides in the online sales tax debate were ramping up lobbying efforts and forming new alliances Tuesday in hopes of swaying a coming Senate vote on a bill that would effectively end tax-free Internet shopping in most states.

The bill, known as the Marketplace Fairness Act, would allow states to require online sellers around the country to collect sales tax for them on purchases made by their residents.

The legislation would effectively replace a 1992 Supreme Court decision that said a state can't force a retailer to collect sales tax unless the retailer has a physical presence in the state, such as a store or warehouse. That ruling has led to rapid expansion of online sales that often go untaxed.

The bill is supported by states and local governments, which say they are losing tax revenue under the current system, and by many traditional big-box and Main Street retailers who say online retailers have an unfair price advantage.

In an unusual alliance, Amazon.com Inc., AMZN +2.20% the big online retailer that has benefited from the current rules, has joined in support. Experts say Amazon plans to expand its physical presence in many states in order to speed up deliveries, thereby exposing itself to the tax-collecting obligation. It would prefer that its competitors operate under the same set of rules.

Even more unusual, the legislation draws bipartisan support.

"It's rare to have an issue like this that cuts across party lines, but I do think there is a growing consensus that the time has come to address this once and for all," said Jason Brewer of the Retail Industry Leaders Association, a group of major retailers that support the legislation, including Wal-Mart Stores, WMT +0.78% Target and Best Buy BBY +1.56% .

But with a final Senate vote coming perhaps as soon as Thursday, opponents led by eBay Inc. EBAY -1.15% and other Internet retailers are fighting back, seeking to build on a massive grass-roots push over the last few days.

EBay said on Tuesday that hundreds of thousands of its sellers and users had contacted lawmakers in Washington this week to push for changes to the legislation, in response to a plea for help over the weekend by the company's chief executive, John Donahoe.

A separate coalition of small online retailers expected several thousand of its members to email lawmakers in opposition to the bill.

Grass-roots lobbying over the issue "has ramped up significantly," said Phil Bond, executive director of the coalition, We R Here. "People have heard this before, that the legislation was coming, and it famously never happened. This time people realize we're really voting.…People woke up and got into action."

As part of their "last-ditch effort," opponents were pushing amendments to increase the legislation's requirements that states simplify their tax systems, said Steve DelBianco, executive director of NetChoice, a group of e-commerce businesses such as Yahoo Inc. YHOO +1.82% and Overstock.com, as well as News Corp NWSA +0.26% ., owner of The Wall Street Journal. Among the possibilities: exempting more small online businesses, reducing the number of state audits that businesses could face, and offering an opt-out provision for states that wanted to shield their businesses from the tax-collection requirement.

Online sellers were being joined by numerous conservative and antitax groups that have concerns about the bill, from Americans for Tax Reform and Heritage Action to the Home School Legal Defense Association. Big Wall Street banks and insurance companies also were raising concerns about the possible state taxation of financial services, although supporters of the bill said that objection was baseless.

After the Senate voted 74-20 Monday to move ahead with the legislation, even opponents said the chamber is likely to pass some version of the bill. The legislation faces an uncertain future in the GOP-run House.

(Full article at the link)


Uncertain? Who is the paper kidding? The House is run by the GOP House Speaker whose willingness to accommodate and compromise over the so-called "Fiscal Cliff" has led to effective tax increase of 2% for the dwindling middle class.

Wednesday, December 1, 2010

Amazon.com Defers to Senator Lieberman and Stops Hosting WikiLeaks

WikiLeaks 1, Amazon 0.

Amazon.com, capitulating to the pressure from neocon Senator Joe Lieberman, forced WikiLeaks to stop using Amazon's computers to distribute State Department communications and other documents that are "embarrassing" [to who?]. No comment from Amazon's CEO Jeff Bezos on complying with Lieberman's request.

Well, I wouldn't feel so bad any more if Congress decides to tax sales of goods and services over the Internet and hit the bottom lines and the top lines of Internet retailers like Amazon. I think I will cancel my subscription at Amazon...

WikiLeaks apparently responded by saying:

"If Amazon are so uncomfortable with the first amendment, they should get out of the business of selling books," WikiLeaks said in another tweet.
After a few hours of down-time and after Amazon.com lost my respect, WikiLeaks reopened on servers in Sweden. And WikiLeaks to Amazon:
"WikiLeaks servers at Amazon ousted. Free speech the land of the free – fine our $ are now spent to employ people in Europe."

Tuesday, April 20, 2010

Amazon Fights for Customers' Privacy and Rights Against N. Carolina Taxmen

Amazon fights demand for customer records
(Declan McCullagh, 4/19/2010 CNET News)

"Amazon.com filed a lawsuit on Monday to fend off a sweeping demand from North Carolina's tax collectors: detailed records including names and addresses of customers and information about exactly what they purchased.

"The lawsuit says the demand violates the privacy and First Amendment rights of Amazon's customers. North Carolina's Department of Revenue had ordered the online retailer to provide full details on nearly 50 million purchases made by state residents between 2003 and 2010.

"Amazon is asking a federal judge in Seattle to rule that the demand is illegal, and left open the possibility of requesting a preliminary injunction against North Carolina's tax collectors.

""The best-case scenario for customers would be where the North Carolina Department of Revenue withdraws their demand because they recognize that it violates the privacy rights of North Carolina residents," Amazon spokesperson Mary Osako told CNET." [The article continues.]

Support Amazon, buy from them. Better yet, buy from Amazon through my blog!

By the way, Google has started to post the number of government requests worldwide for censorship and for turning over the personal information of Google's users, at www.google.com/governmentrequests.

Tuesday, January 19, 2010

Battle of Tech Titans: Apple, Google, Amazon

Two weeks ago Google (ticker symbol: GOOG) introduced its high-end smart phone Nexus One, in competition with Apple Inc.'s iPhone.

Now, Apple Inc. (AAPL) is getting ready to introduce its long-rumoured color tablet device, in direct competition with Amazon.com (AMZN)'s Kindle.

Apple, HarperCollins seen in tablet talks
(1/19/2010 San Jose Business Journal)

"Apple Inc. could be getting ready to give Amazon.com and its Kindle significant new competition with the introduction of color and multi-media features for e-books.

"The Cupertino company is in talks with giant publisher HarperCollins Publishers Inc. about bringing such features to its titles on the tablet computing device that is expected to be introduced next week, the Wall Street Journal reported.

"Apple (NASDAQ:AAPL) has yet to officially confirm that a tablet exists but invited the press to an event in San Francisco next week to "Come see our latest creation."" (The article continues.)

What is the big deal about companies offering competing products, you ask? That's the way it is for almost all industries. But I don't think that happened before among Nasdaq high-beta tech companies with high PE ratio like Apple, Google, and Amazon.

In the past, they tended to stay out of each other's turf, so to speak.

Google's phone has so far received a mixed review from the users, who complain about poor service and poor connectivity. But so did Apple's iPhone when it was first introduced, along with some incredulous scream from analysts "A cell phone? What is Steve Jobs thinking?? Apple had better stick to its core business (i.e. making computers)."

When Amazon's Jeff Bezos first introduced Kindle, he was roundly ridiculed. "E-book? We know how the previous attempts turned out." In the last quarter, Amazon announced that it sold more books for Kindle than the physical books.

Now Google wants to take a bite out of Apple, and Apple out of Amazon.

(Where are the erstwhile gadget makers of the world, the Japanese? Sony? Casio?)

Judging solely by how the shares of these companies are behaving today, the perceived winner so far seems to be Apple, up $6.54 to $212 (10:50 AM EST). Google is up $1.66 to $581.66, Amazon down $1.24 to $125.88.