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NeedToUseYou -> RE: ebay taxed?/ the net is sure fluid (2/26/2007 2:01:49 AM)
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We already pay taxes, on our ebay sells. Really if you are a business selling on ebay in any volume, you should just the same as any other business. If you don't as a business, then it is the same as not paying taxes on a regular walk-in business. And I hate all taxes, but business taxes are legitimate taxes even under the original constitutional tax rules albeit to high if you ask me. And you'd have to have your head in the sand to think that they'd never come after ebay. Another reason we did it by the books from day one.
What's the difference between auctions and any other place. I buy computer stuff at NewEgg.com, they have to pay taxes on profit. People seem to have this perception that Ebay is all small sellers out of the garage. But there a lot of sellers selling well over 100000 a month. Some sell over a 1000 items a day on one account. Those guys are selling conservatively 300000 a month if each item sold for 10.00(doubtful it would be that low). Quite a few sellers also have multiple selling ids broken down to category. So, you can't tell how much any body is selling and who is really selling it by looking at their feedback or individual id auction count. My guess is 60% of ebay sells are done by less than 5% of the sellers.
Now a person selling a few things a month or year is different, that is a hobby but selling 100's or 1000's of items a day is no doubt a business. Most local stores don't move that much product in a day.
I think sometimes people don't understand that ebay is the largest selling venue on the planet. And everyone from sears,circuit city, best buy, etc.... have opened up shop either directly or outsourced it. And they aren't the largest sellers by far.
So, I say investigate, all they want. Because at the end of the day, the only people with anything to worry about are the full time sellers that don't pay a dime of tax. I highly doubt they are going to chase down people that sell less than 50 things a month, it wouldn't be worth there time at all. And in all reality, it would make the most sense to just go after those selling more than 10000 a month. Or else you'd involve to many people and it'd be a nightmare.
I'm not certain why this is bad.
I mean would anyone here be okay with all the local stores not paying taxes, if so then it's a consistant view, but otherwise it's built on misperception of who is actually selling most of the items on ebay.
Another tactic used by sellers is to dump an id once it gets to much feedback to give the perception of being a little guy seller and spreading it out over 5 or more ids. Because some people like buying from individual sellers and not businesses.
Anyway, I've practically lived on ebay for 3-4 years now, sad I know. But if I know one thing it's how ebay works, and who is doing the vast majority of sells their.
Basicly if someone was stupid enough to sell a substantial ton of stuff there that is easy identified as being sold for a profit motive. Then I'd say they deserve what they get. Just like if any retail store didn't pay taxes.
Note you only have to pay taxes on profit, no one is entitled to pay taxes when the item sold for less than it cost to buy originally. So, people selling their old stuff outta of their garage for the most part are legal, already.
This law even if it passes would only impact those making a profit on ebay consistantly. And that is sorta the definition of business.
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