From the July 20th Numismatic e-newsletter: Should state sales taxes be collected on online purchases of coins and bullion? Here are some answers sent from our e-newsletter readers to Editor Dave Harper.
No. No. No.
No, I don’t think states ought to tax online sales of bullion.
Every time states get into revenue trouble, legislatures rush around thinking up new ways to tax their citizens.
Instead, state legislatures ought to think up new ways to cut costs such as allowing non-union contractors to bid on state projects and services, or requiring all but the truly disabled to work in some capacity for the state.
Cease handouts, make the citizenry work for their subsidy check, cease tax incentives to businesses and close the most wasteful and least beneficial bureaus, departments, administrations, services, etc.
John E. Fuldner
San Diego, Calif.
I not only support a small tax on bullion purchases, but I also support the proposed tax on all stock transactions, as well as returning to the pre-Reagan tax rate on the highest tax brackets.
Robert A. Steinegger
Paying taxes on bullion sales is like paying taxes on cashing a check at the bank. I am not amused.
Lewisburg, W. Va.
Sales tax should not be collected on all Internet sales.
In most states, if an individual makes a mail order sale, then that is not affected by the sales tax if the recipient is in another state. Only if buyer and seller are in the same state does a sales tax apply.
It might be reasonable if that same rule applies to Internet sales. However, to my more Libertarian way of thinking, this push by various government entities is more about regulating commerce and taxing it to bring it into the mainstream (consider the tax reporting and Form 1090 issuing requirements in the Affordable Health Care Act).
One of the commercial operations likely to suffer is a venue like eBay. The Internet has allowed “shops” to open without needing bricks and mortar. That really ticks off the politicians because they can’t fleece that business as readily as a storefront.
No sales tax on online purchases of coins and bullion.
Coins change hands repeatedly, adding sales tax for every transaction will artificially increase their cost and consequently reduce the volume of trades. Bottom line – it will hurt the business.
No. States should not collect sales tax on purchases of online coins, bullion and other products.
This is one more example of how politicians continue to strip Americans of the freedom of their hard earned money.
Currently it is the liberals with their “feel good” tax and spend us off a cliff strategy. The liberals continue to fool the American people with “much needed social programs and reforms” and many get wrapped up in the emotion of the sentiments and continue to vote the liberals back into office. The bad news comes in the form of more taxes and increased prices.
On the flip side, we have the conservatives. The conservatives tend to be the superego in the conversation when it comes to responsible spending, unless it comes to making war.
I do not endorse either political party, but I do hope that 51 percent or more of the American public has wised up to the nefarious liberal behavior this election year.
Coin collectors tend to enjoy history and the story behind the coins. One only needs to turn to history to see how we have ended up with yet again another tax. And without political change, you can bet on more taxes beyond the Internet tax.
Absolutely not. However, that isn’t going to stop cash-hungry states and other government entities from taxing anything and everything. Possibly, there should be a tax on cash. Pull $100 out of the teller machine (at your own bank to avoid transaction fees) and pay a tax on your own cash.
I have tried to think of something that is not yet taxed and cash was one of the only things I could come up with.
Paying for products with silver by weight or coin face value may be the only way to reduce the overt taxation on us all.
A product that has the value of $5 in silver coins and sold for that $5 and taxed on $5 would reduce the quantity of dollars collected as tax based on a fixed percentage of tax on sale price.
That is probably illegal to do, but I am not sure.
Anyway, I doubt anything is going to stop this from coming to fruition.
I do not think that there should be a tax on anything bought on the Internet.
Who should pay? The location where the selling server is located? The location where the buying server is located? The proxy server?
If there is a sales tax put on the purchasing of coins and bullion, I will wait and purchase items at the different coin shows that I attend.
Donnie M. Davis
Unfortunately, our legislators can’t seem to find ways to cut spending so their thought is “what else can be taxed?”
Until Congress begins to find ways to cut spending, this will not be the last of new tax proposals we will see.
Glendale Heights, Ill.
I don’t think there should be sales tax on any U.S. coins, bullion or currency.
No state sales tax should be collected on online purchases of coins and bullion.
Once again, my frugal side comes through. Sales taxes should not be collected on the sale of any numismatic purchase.
I can see that the extra bookkeeping by dealers is valid to help prevent fraud (money laundering). This can also prevent tax evasion in its own right, to a degree.
I can also, like on the stock market, see paying a capital gains tax on net profit only. A sales tax will also cut into the initial investment dollars.
Being exempt from sales taxes was one of the only advantages of shopping on the Internet.
I like to actually hold the item in my hands prior to purchase, not look at a picture. Living in the great state of New York, I know all too well the subject of taxes.
Every state pays way too much in taxes and, if they can find another avenue to raise more revenue, they will. One thing we don’t need is more taxes.
Michael P. Schmeyer
Halsey Valley, N.Y.
Online purchases should be tax exempt, period.
Silver and gold bars, coins and all raw gold and silver should be tax exempt.
Do you pay taxes on stocks or bonds? Wake up, America. If we have money to buy anything, the government is going after it.
With the big dollars involved, and a lot of times, small profits, this is going to be bad.
You just can’t raise everything 9 percent. The only solution I can see is somehow buying and selling through a state that doesn’t kill us with sales tax, maybe something like 1 percent, and make life easier for sellers and buyers.
Or maybe back to the good old days of shows where there is good security and everybody has a bundle of cash on them.
New York City, N.Y.
No. Sales tax is creeping in to this arena and should not be charged.
Historically, we have not been taxed when buying money, nor the standard by which money has been backed.
These repetitive buy-sell items (coins and bullion) have been exempt since the Mint was founded.
Stocks, also traded frequently, are not slapped with a sales tax. Why should coins and bullion? They qualify for 401(k)s
and IRAs. Come on.
If I purchase an 1892-S Morgan dollar at auction for $45,000, a 9.5 percent sales tax adds $4,275 to the transaction.
What a travesty.
The chilling effect on our economy would be a disaster. It is time to stand up and refuse to be fleeced again.
Dr. Marshall Kamena
I have collected coins since I was 7 and now I am 62.
I feel that it is fundamentally fair for Internet sales to be taxed just like it is right for hometown-based businesses to collect sales tax.
I will stand up and be counted and pay my tax on the Internet.
Also, it is sad that so many governors have ignored this “fair” method of taxation to entice business to their state.
Fred W. Jackson
The states should not be able to collect sales taxes from Internet sales of coins or bullion.
In the state I live in, they do not charge tax on these items at the local shops or shows.
This will convince me to not make a sale online.
John J. Walsh
Of course not. This will have minimal effect on the state generating funds.
The extra money generated will be offset by less purchases from disgruntled purchasers.
If the state has an agenda of needing more money to offset their spending, perhaps the elected officials should exercise better judgement on how the tax payer money is used.
The majority of politicians are more interested in being liked and re-elected than in spending the taxpayers’ money wisely.
Most career politicians are more interested in getting a generous salary, health benefits and all the perks of his political position than in doing what is correct for the many people (taxpayers) they work for.
A shorter political term can be helpful in keeping the true politicians’ motives focused on the good, smart decisions that will benefit the masses of taxpayers.
Name and address withheld
No, but since all money and all products come from the government, let’s charge a 100 percent tax.