Illinois to tax online purchases
In truth, Illinois is in dire financial straits - perhaps the worst in the nation. But taxing internet sales is not going to bring in much revenue since companies like Amazon who authorize sales associates are closing up shop in the Land of Lincoln. From the blog Points and Figures:
Unfortunately, the people of Illinois voted for this crap. Governor Pat Quinn is trying to get through an increase in state income taxes. However, that's too transparent. So, now he is moving to confiscate 6.25% from each and every internet purchase you make. From the Internet Retailer:
"Illinois would levy taxes on Internet purchases under a plan that won final General Assembly approval today with an 88-29-0 vote in the state House. The law would make Illinois the latest state to try to squeeze revenue from online retail purchases, though other states have faced court challenges and the threat of lawsuits after trying to collect taxes from web sales. And some online retailers have simply cut off affiliates in states that have passed similar laws."
I received this email from Amazon about their associates program:
We regret to inform you that the Illinois state legislature has passed an unconstitutional tax collection scheme that, if signed by Governor Quinn, would leave Amazon.com little choice but to end its relationships with Illinois-based Associates. You are receiving this email because our records indicate that you are a resident of Illinois. If our records are incorrect, you can manage the details of your Associates account here.
Illinois has a $15 billion budget shortfall and newly elected Governor Quinn plans on hiking the state income tax from 3% to 5.25% while increasing cigarette taxes a whopping $1 a pack.
So this gets Illinois out of debt? Uh-huh; and then some:
The moves, if they pass the House and Senate before next Wednesday, could erase the state's expected $15 billion deficit, generate a $700-million-plus windfall for schools and grant property tax relief, sources said.
You read that correctly; they are going to massively increase taxes AND increase spending.
It's an addiction for which there is no rehab possible.