Topic: Sales Tax

New European Union VAT regulations taking effect on January 1, 2015, require merchants to collect and report sales tax based on the customer's location rather than the seller's. A KPMG promotional video outlines the compliance nightmare for small businesses, who must now navigate varying tax rates across all member states. The hosts characterize the "One Stop Shop" scheme as a burden designed to favor giant corporations.

A donation from Sir Dwayne Melancon prompts a discussion about the unique economic relationship between Oregon and Washington. The hosts explain that Oregon has no sales tax but prohibits citizens from pumping their own gas, while Washington has no personal income tax. This creates a border dynamic where residents cross state lines to optimize their shopping and tax exposure.

Japan has increased its sales tax from 5% to 8% for the first time in 17 years, a move by Prime Minister Shinzo Abe to combat deflation. The hosts question the wisdom of raising taxes during a "worldwide depression" and compare Japan's rates to the 20% sales tax in France.

Senate Bill 336, the Marketplace Fairness Act of 2013, is introduced as a federal effort to mandate the collection of sales tax for online purchases across state lines. The hosts note that major retailers like Walmart and Target support the bill to eliminate the price advantage of online-only competitors. They mock the list of Senate sponsors, including Senators Enzi, Durbin, and Alexander.

Governor Jerry Brown signed a law requiring out-of-state retailers to collect sales tax if they have a physical presence in California, leading Amazon to cancel all affiliate contracts in the state. The hosts discuss the impact on their personal income and the constitutional implications of "taxation without representation" regarding online affiliates.

A resident of California received a surprise "use tax" bill for 9.7% of the value of art shipped from the Netherlands for an expo. The tax applies to items purchased over the internet or from out-of-state sources, functioning similarly to a sales tax. The recipient describes the difficulty of fighting the bill even after the unsold items were shipped back to the artist.

A debate on John Stossel's program regarding a "consumption tax" is analyzed. The proposed tax is distinguished from a Value Added Tax (VAT) by being an "expenditure tax" that shields savings and investments. Critics argue this system would require the government to track all personal spending and would ultimately favor Wall Street by penalizing those who do not invest in traditional financial products.

During a live White House internet event, economist Austin Goolsbee is asked about the "unfair advantage" of tax-free internet sales. Before he can provide a substantive answer, President Obama appears to "interrupt" the session, which the hosts interpret as a staged maneuver to avoid a difficult policy question.

The hosts discuss the legacy of author Upton Sinclair, who wrote "The Jungle" and ran for Governor of California on a platform that included repealing the state sales tax. They contrast Sinclair's anti-tax socialist stance with modern Democratic and Progressive platforms that often advocate for increased taxation. They suggest the shift occurred because modern politicians view tax revenue as a pool of capital they can later access through private-sector roles after leaving government.

A report highlights that President Obama has participated in 45 sporting events since taking office, far outnumbering his news conferences. Additionally, an Illinois sales tax holiday is criticized for exempting luxury items like Armani ties and lace lingerie while still taxing essential school supplies like geography books.

Fox News analyst Charles Krauthammer predicted on Bill O'Reilly's program that the U.S. will eventually implement a national sales tax to address the growing deficit. He argued that with the national debt reaching $8 trillion and healthcare costs adding trillions more, a "river of revenue" will be required. Krauthammer suggested a presidential commission would recommend this tax after the upcoming elections.

A broad discussion on the cumulative tax burden in the United States covers sales tax, state income tax, and specific levies on air travel. One host recounts paying a 9.5% state tax plus a 2.5% "tourist tax" at a San Francisco restaurant despite being a local resident. They argue that total taxation likely exceeds 70% when accounting for excise taxes on fuel, hotels, and communications.

Speaker Nancy Pelosi suggested on the Charlie Rose show that a Value-Added Tax (VAT) might be considered for the United States. The hosts complain about the high tax burden in California, which they estimate at 65% to 70% when combining income, sales, and fuel taxes. They criticize San Francisco's spending on a new bus terminal.

Governor Arnold Schwarzenegger is attempting to close a $42 billion budget gap in California through significant tax increases. Proposed measures include raising the state sales tax to 8.25%, increasing vehicle license fees, and adding a 12-cent tax per gallon of gasoline.