Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: H James Morris who wrote (17864)	9/22/1998 6:37:00 PM
From: Glenn D. Rudolph	Read Replies (2) \| Respond to of 164684

Also, re the tax problem, remember congress has given them a 2 or 3 year moratorium before they would consider taxing the Internet. So that gives Bezos quite some breathing room, before he has to face that bullet. The Internet lobby worked hard on that one. James, I believe you interpreted this incorrectly. This was no additional taxes on the internet. It had nothing to do with state sales taxes or use taxes. It appears that the appeal won by Quill indicated a nexus was required for state sales tax. However, the amount of revenues being lost by the states will likely have them impliment a Use Tax. The Use Tax is not forbidden via the moratorium to the bes of my knowledge. Also, re the tax problem, remember congress has given them a 2 or 3 year moratorium before they would consider taxing the Internet. So that gives Bezos quite some breathing room, before he has to face that bullet. The Internet lobby worked hard on that one. This is true but all revenues are derived via charge card form. It has to cost them about 2% for fees to their clearing house. That is 24% per year not compounded. Glenn

To: H James Morris who wrote (17864)	9/22/1998 7:06:00 PM
From: IceShark	Respond to of 164684

HJ, The one thing I do like in the Amzn business model is they get your cash the minute you buy the commodity. The cash is in their account, regardless of how long it takes them to get you the commodity. True about cash, but that is also true about every other book store, outside of bum checks. The issue is negative inventory carry and how much benefit that really provides. I argue it is less than the buzzword spewing anals expose. Also, re the tax problem, remember congress has given them a 2 or 3 year moratorium before they would consider taxing the Internet. So that gives Bezos quite some breathing room, before he has to face that bullet. On this you, like many others, are flat out wrong. I'm so tired of explaining this issue. The moratorium is on new taxes. The only thing preventing any state from collecting USE, read that word twice, tax on AMZN sales is the cost of collecting the tax v. the amount collected. Ask GTW about how they got their nuts put in a vise. Regards, IS P.S. Every state that has a sales tax also has a use tax, I'm fairly certain. At least everyone that I've ever looked at - they all seem to have adopted a "uniform" law that is entitled "Sales and Use Tax".