Ebay profiting on tax collection

[gsxrida1980]

Frequent topic, yet to date it has no resolution.

Ebay profits by collecting from sellers a percentage on the taxes it collects on each transaction. 

Defenders say it costs this amount for Ebay to remit taxes to the various states. For example, a $1k item with $100 in taxes costs Ebay $15 (15٪) to account for and remit those taxes? Doubtful.  Further, there are economies of scale that being this cost way down when submitting taxes linked to many transactions to a single state.

In the end, discovery via class action

litigation will show that Ebay is profiting off the taxes it collects. Worse yet, the profits increase with the the size of the transaction. Ebay's effort to collect and remit taxes does not increase with the size of the transaction. 

Lastly, this form of fraud discourages transactions by punishing sellers of higher priced items that are charged higher fees on taxes collected. The Internal Revenue Service can be expected to take issue with this. 

My group may even assert discriminatory claims on this basis in our federal court Complaint. If you are an Ebay seller, I encourage you to join our class action filing.

[slippinjimmy]

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@gsxrida1980 wrote:

My group may even assert discriminatory claims on this basis in our federal court Complaint. If you are an Ebay seller, I encourage you to join our class action filing.

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That is hilarious!

In what way is eBay's fee structure "discriminatory"?

[inhawaii]

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@gsxrida1980 wrote:

Frequent topic, yet to date it has no resolution.

Ebay profits by collecting from sellers a percentage on the taxes it collects on each transaction. 

Defenders say it costs this amount for Ebay to remit taxes to the various states. For example, a $1k item with $100 in taxes costs Ebay $15 (15٪) to account for and remit those taxes? Doubtful.  Further, there are economies of scale that being this cost way down when submitting taxes linked to many transactions to a single state.

In the end, discovery via class action

litigation will show that Ebay is profiting off the taxes it collects. Worse yet, the profits increase with the the size of the transaction. Ebay's effort to collect and remit taxes does not increase with the size of the transaction. 

Lastly, this form of fraud discourages transactions by punishing sellers of higher priced items that are charged higher fees on taxes collected. The Internal Revenue Service can be expected to take issue with this. 

My group may even assert discriminatory claims on this basis in our federal court Complaint. If you are an Ebay seller, I encourage you to join our class action filing.

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It doesn't need resolution, It's not fraud.

I understand you don't "like" it, that doesn't make it fraud.

It's legal.

It's what ebay wants to do.

You agree to it when you sell here.

[gsxrida1980]

What is hilarious is your impulsive thoughtless reaponse....

Sellers with higher priced items have affixed to their products higher taxes borne by buyers. Lower priced offerings from sellers are charged less in taxes. If sellers of higher priced items are charged higher fees on taxes just because of the price of their item, the fee structure discriminates against sellers for no reason other than the price of their product.

Glad you brought it up. There could even be claims here for unfair trade practices now that I think of it.

This one could be huge.

[slippinjimmy]

You forgot "it's so unfair" and "I am treated so badly".

[pastimpressions]

My Heavens,

It is not illegal merely to profit beyond the actual cost of a good or service to provide that good or service.

That is how all businesses function, grow, employ et al.

Otherwise, effective immediately, all sellers on this platform are not permitted to charge one penny more for any goods they sell here than it actually costs to sell and ship an item.

Zero profit.

Any takers?

[bashort]

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@gsxrida1980 wrote:

Frequent topic, yet to date it has no resolution.

Ebay profits by collecting from sellers a percentage on the taxes it collects on each transaction. 

Defenders say it costs this amount for Ebay to remit taxes to the various states. For example, a $1k item with $100 in taxes costs Ebay $15 (15٪) to account for and remit those taxes? Doubtful.  Further, there are economies of scale that being this cost way down when submitting taxes linked to many transactions to a single state.

In the end, discovery via class action

litigation will show that Ebay is profiting off the taxes it collects. Worse yet, the profits increase with the the size of the transaction. Ebay's effort to collect and remit taxes does not increase with the size of the transaction. 

Lastly, this form of fraud discourages transactions by punishing sellers of higher priced items that are charged higher fees on taxes collected. The Internal Revenue Service can be expected to take issue with this. 

My group may even assert discriminatory claims on this basis in our federal court Complaint. If you are an Ebay seller, I encourage you to join our class action filing.

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very simple, they do it because they can

[stainlessenginecovers]

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@gsxrida1980 wrote:

Frequent topic, yet to date it has no resolution.

Ebay profits by collecting from sellers a percentage on the taxes it collects on each transaction. 

Defenders say it costs this amount for Ebay to remit taxes to the various states. For example, a $1k item with $100 in taxes costs Ebay $15 (15٪) to account for and remit those taxes? Doubtful.  Further, there are economies of scale that being this cost way down when submitting taxes linked to many transactions to a single state.

In the end, discovery via class action

litigation will show that Ebay is profiting off the taxes it collects. Worse yet, the profits increase with the the size of the transaction. Ebay's effort to collect and remit taxes does not increase with the size of the transaction. 

Lastly, this form of fraud discourages transactions by punishing sellers of higher priced items that are charged higher fees on taxes collected. The Internal Revenue Service can be expected to take issue with this. 

My group may even assert discriminatory claims on this basis in our federal court Complaint. If you are an Ebay seller, I encourage you to join our class action filing.

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So are you the hired expert on how much a company should charge to keep track of and remit 14000 sales tax reports per year? (3600 counties 4 times a year)? 

Does this 'attorney' also plan on suing every processor that has processed credit cards since the 1940's for EVERY Brick & Mortar Store in the country since the time it takes to process 1 transaction is the exact same, (they get $82 to process that credit card for a $2500 TV yet only get 60c when processing a $21 sale for Toilet Paper)

This company can charge you 400% of the total sale including anyone that sells something within 1000 miles of you within a 24 hour period. 

They are private, they may not get any customers, but they can 'charge' as they see fit and since CC processors have been charging on the 'Total' a customer pays since the advent of the charge card....

[chapeau-noir]

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@gsxrida1980 wrote:

What is hilarious is your impulsive thoughtless reaponse....

Sellers with higher priced items have affixed to their products higher taxes borne by buyers. Lower priced offerings from sellers are charged less in taxes. If sellers of higher priced items are charged higher fees on taxes just because of the price of their item, the fee structure discriminates against sellers for no reason other than the price of their product.

Glad you brought it up. There could even be claims here for unfair trade practices now that I think of it.

This one could be huge.

 

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The fee  charged  is the same for expensive and inexpensive items, hence discrimination against people who sell more expensive items cannot be proved.

[mustang707]

Make sure you also notify Walmart, Target, McDonald's, Home Depot and all companies that accept credit cards because those companies are also paying a fee on sales tax. It's what payment processors do.

[bonjourami]

Why shouldnt they make a profit when they do all the work? As do all other major outlets that are collecting state taxes. At least you didnt scream 'illegal', so thank you for that!

[monica-sells]

this........

"...Does this 'attorney' also plan on suing every processor that has processed credit cards since the 1940's for EVERY Brick & Mortar Store in the country since the time it takes to process 1 transaction is the exact same, (they get $82 to process that credit card for a $2500 TV yet only get 60c when processing a $21 sale for Toilet Paper)..."

couldn't explain it better myself

your argument holds no water...although you did sling around some official sounding phrases

[monroe67]

"You forgot 'it's so unfair' and 'I am treated so badly'."

I'm waiting for "communist".

[mam98031]

@gsxrida1980 

Yes there is a resolution, it is just that you don't like it.  There is a difference.

Ebay is a for profit company.  Why should they no be paid for services rendered?  Are you of the opinion that Ebay didn't spend any money developing the software to maintain sales taxes across the website and for each state.  Not to mention having to maintain it with the 1,000's of counties within the states that change their sales tax all the item.  Then the state to manage and keep everything rolling along the way it should.  None of this is free and it all costs Ebay real money.

 Not everything is a lawsuit, even when it is difficult to understand.

[monroe67]

"Lastly, this form of fraud discourages transactions by punishing sellers of higher priced items that are charged higher fees on taxes collected. The Internal Revenue Service can be expected to take issue with this."

Seems  that some "scholarly" research and "logical" thought went into your post.

Can you help me understand how the Internal Revenue Service of the United States is concerned with or has any authority over sales taxes that are imposed by individual States and/or Territories?