Ebay - tax

[rockwalls]

The long arm of the taxman has stretched - watch out Ebay powersellers, the taxman hath cometh! It appears the Feds want a big piece of the pie....our government wants a list (email address, ph#, etc.) from Ebay with all of its' top sellers namely, those who are raking in a $1000 and over....however Ebay may fight to protect its' customers as they deem this an invasion of privacy....My thoughts: I'm not surprised but a bit tired of all this taxation that we hear often in the news....we're all taxed out.

What are your thoughts?

[Golftime]

I also hate being over taxed by the unfair graduated taxation system that we have. However taxing people who are running a business on Ebay is great. The key word there is business. Individuals who use Ebay and TGN like the classified ads to sell extra items should have no worrys. It is the cheaters who are hiding income that are being targeted. Even if you don't agree with the system it is still important to apply rules equally to everyone.

[Anthony]

I also hate being over taxed by the unfair graduated taxation system that we have. However taxing people who are running a business on Ebay is great. The key word there is business. Individuals who use Ebay and TGN like the classified ads to sell extra items should have no worrys. It is the cheaters who are hiding income that are being targeted. Even if you don't agree with the system it is still important to apply rules equally to everyone.

Absolutely right, however the Gov't has a history of catching the small fish and losing all the large one's. Don't be surprised if they are catching us and the "Powersellers" getaway.....

[JEBS]

Funny this news breaking at the same time as the feds anouncing their 14 billion dollar surplus.

[swaaain]

All I have to say is it is about time. I know a few people who use ebay as their source of income and live on Welfare. How fair is that, they make a living and take our money!!!!

If we want to have the health care system get better and all the other nice things we take for granted, we need to start cracking down on things like this.

Unfortunately, they can even think of cracking down on the small guys as well. Like when we sell off our overstock of toys, it can be considered income, because lets face it, we all know that some of us mak money of the clubs we hoe.

I saw a club on here just the other day listed for more than they paid for it. This is making a profit, and can be taxed.

Just my 2 cents and my accounting backgroung talking.

:D

Jeff

[cldale]

I also hate being over taxed by the unfair graduated taxation system that we have. However taxing people who are running a business on Ebay is great.

Unfair is a point of view. To someone who makes 30k/yr, 20% tax feels like a lot. To someone who makes 100k, 20% doesn't bite as hard. So you tax the 100k guy at a higher rate so you can reduce the taxation on the guy who makes 30k.

In economics parlance, they call this the "Marginal Utility of Income".

All I have to say is it is about time. I know a few people who use ebay as their source of income and live on Welfare. How fair is that, they make a living and take our money!!!!

Amen.

I'm in the highest tax bracket, and paying those taxes doesn't bother me, I don't really moan and complain because I know it goes to things I value like health care and education. What annoys me, and what I will complain about, is when people abuse the system, cheat out on their taxes, and otherwise try to rip everyone else off.

Its like the income trusts. The government has to protect the tax base to keep the burden as light as possible for the individual.

[JEBS]

Its like the income trusts. The government has to protect the tax base to keep the burden as light as possible for the individual.

I agree... but I did not like how they pulled the carpet from under so many. I feel sorry for so many seniors who have their lifes work undermined by creative investing. Usually they follow a plan given by their IA or planner not fully understanding the process or risk. Then things like a Nortel collapse and the income fund fiasco pushes these people who have built this country to work at Home Depot for a fraction of their worth. I cannot imagine the feeling of one day being finacially secure for your retirement and the next day not knowing if you will be able to keep your own house.

[The Troll]

All I have to say is it is about time.

I'm with you on that comment.

[el tigre]

Absolutely right, however the Gov't has a history of catching the small fish and losing all the large one's. Don't be surprised if they are catching us and the "Powersellers" getaway..... If you're pulling in over $1,000/month from Ebay, you're not a small fish.

Many of the really big "Powersellers" are probably paying taxes already, because they often have bricks-and-mortar stores and warehouses supporting the back-end of their business. If they collect sales tax for somebody, they're probably paying income tax to somebody too. I believe they are going after the medium-sized guys with a full-time Ebay business, but who are still working out of their home and under the radar.

The feds collect the tax revenue for all provinces except Quebec, and I'm sure that anybody they find cheating will get a visit from the provincial sales tax office too.

[cldale]

I agree... but I did not like how they pulled the carpet from under so many.

Oh, agreed completely. I thought it was the right move anyways, but they should have given more warning and not campaigned on leaving things as they were.

In think the last 10 years have been a wake up call for many that although the markets carry better returns, you should always make sure that you have enough to live on in guaranteed instruments of at least, very low risk investments that you won't lose your shirt on.

But we digress :)

[avidgolfer]

I like equality. Whether you earn income through ebay, mail order, retail business, you should be taxed the same. Right now, it is safe to say that not all ebay retailers pay their share of taxes... or the government wouldn't go through this drastic step.

I can't believe the moaning of people when the government decided to pay down the debt. Governments can not continue to incur deficit and accumulate debt in tough times and spend surplus money during good times without repaying the debt. Imagine if a household did that and continue to accumulate debt in credit cards and line of credits? Never to pay back the principal. That's silly. IMHO, the federal government should pay down the debt, and provide tax cuts/programs using the money saved from reduced interest payments on the debt.

[cldale]

I can't believe the moaning of people when the government decided to pay down the debt. Governments can not continue to incur deficit and accumulate debt in tough times and spend surplus money during good times without repaying the debt. Imagine if a household did that and continue to accumulate debt in credit cards and line of credits? Never to pay back the principal. That's silly. IMHO, the federal government should pay down the debt, and provide tax cuts/programs using the money saved from reduced interest payments on the debt.

Yes, when JMK suggested that governments should allow themselves to run a deficit he intended it to be repaid in times of surplus, basically, spend into a deficit to boost the economy and soften the downswing of the cycle, and tighten your belt and pay down your debts in the upswing.

I for one am happy whenever they pay down the debt. Its less of a burden that my children will have to bear in the futures. Personally, I would take the interest savings and direct those funds towards the debt so that you get escalating repayment, but whatever, I am just happy they are repaying the debt.

[mirak]

Unfair is a point of view. To someone who makes 30k/yr, 20% tax feels like a lot. To someone who makes 100k, 20% doesn't bite as hard. So you tax the 100k guy at a higher rate so you can reduce the taxation on the guy who makes 30k.

In economics parlance, they call this the "Marginal Utility of Income".


It's socialist B-S It should be the same rate for all, period. Having a system that taxes more the ones that make more produces a mediocre society that thinks "why bother trying to do better, if the government its going to take it away from me"

[Flog]

It's socialist B-S It should be the same rate for all, period. Having a system that taxes more the ones that make more produces a mediocre society that thinks "why bother trying to do better, if the government its going to take it away from me"

I have my doubts about that. I'm sure there are a few lazy people who don't want to excell because it just takes too much effort, but for the most part people still take home more money if they make more. What you're suggesting is a way of putting lower income poeple on the street. Want to increase poverty? That's exactly what would happen under your watch because an even rate of taxation means a higher taxation at the lower income end of the scale than already exists-- a scale that many people barely get by on as it is. Want to put single mothers and old people on the street because it makes it a bit easier on the top tax bracket? Anarchy would result. Anarchy.
Unreal.

[el tigre]

It's socialist B-S It should be the same rate for all, period. Having a system that taxes more the ones that make more produces a mediocre society that thinks "why bother trying to do better, if the government its going to take it away from me" When the tax rate starts approaching 100%, then you'll have a valid point. Until that time, I don't think you'll see too many people turning down salary raises so they can pay less tax.

Personally, I have absolutely no problem with paying taxes at a higher rate than my daughter - who's working part-time in order to scrape together grocery money each week while attending university 600 km from home. The tax refund she gets each year makes a big difference to her life. There was a time when I needed that kind of help, and you never know - I might need it again.

[mirak]

When the tax rate starts approaching 100%, then you'll have a valid point. Until that time, I don't think you'll see too many people turning down salary raises so they can pay less tax.

Personally, I have absolutely no problem with paying taxes at a higher rate than my daughter - who's working part-time in order to scrape together grocery money each week while attending university 600 km from home. The tax refund she gets each year makes a big difference to her life. There was a time when I needed that kind of help, and you never know - I might need it again.

Real low income I can understand, but other than that....

I hate to see those guys, who on top of their regular day job, have a part time to try to do better, only to get hammer at tax time... Or those middle management jobs where the guys make 40-50 K Get a promotion with a respective increase (both work and cash) and later on they find out that just crossed over to a new bracket and their increase turned to +$30 net on their pay cheques but the work increase is real....


Just my two cents (if I offer 3 I could be taxed and still end up in two)

[cldale]

Real low income I can understand, but other than that....

I hate to see those guys, who on top of their regular day job, have a part time to try to do better, only to get hammer at tax time... Or those middle management jobs where the guys make 40-50 K Get a promotion with a respective increase (both work and cash) and later on they find out that just crossed over to a new bracket and their increase turned to +$30 net on their pay cheques but the work increase is real....


Just my two cents (if I offer 3 I could be taxed and still end up in two)

I'd hate to see those guys too, since they would be figments of someone's imagination. You'd need to accept a raise of like $2k/yr to end up with $30 net pay on your weekly paycheque. If you are willing to accept that for greatly increased workload... well, thats your own fault for not being good at evaluating what your time is worth.

In your 40-50k range, you still benefit from a progressive system. You have to remember, the base tax rate (on income below ~34k) would go up a LOT to compensate for the reduced revenue from the higher income earners. So your 40-50k hypothetical man would probably see his take home pay shrink.

I'd be curious to know what the income level would be where you'd be indifferent between the two systems. If you assume the switch is revenue neutral I would assume its around where the median income is (~72k/household?). So you'd end up penalizing the majority of canadian households with your more "Fair" system.

I put my money where my mouth is. I am in the highest marginal bracket, I benefit the MOST from any tax cuts or flatting of the marginal tax curve, but my life is awesome... I have so much to be thankful for and I am only 29. Being born in this country under the system in place meant that with my ability I was able to get a scholarship, go to a top school, and get a good job despite growing up in a trailer park in Saskatchewan.

[Golftime]

I have my doubts about that. I'm sure there are a few lazy people who don't want to excell because it just takes too much effort, but for the most part people still take home more money if they make more. What you're suggesting is a way of putting lower income poeple on the street. Want to increase poverty? That's exactly what would happen under your watch because an even rate of taxation means a higher taxation at the lower income end of the scale than already exists-- a scale that many people barely get by on as it is. Want to put single mothers and old people on the street because it makes it a bit easier on the top tax bracket? Anarchy would result. Anarchy.
Unreal.
My problem with the tax system is how it discriminates against single income versus double income families. One income of 100k is hit much harder that two incomes of 50k, yet the family expenses are the same. I know that it is our choice to only have one person working but that is not possible.
This seems like one of those discussions that can go on forever with no resolution.

[focal]

back quickly to the ebay....why not charge GST on all the transaction fees on ebay instead?

now there's a good chunk of change the gov't could pick up...but another option is for them to LOOK up these power sellers on their own accord without asking ebay. Look up the seller's feedback history, and then call them on their sales and see if they are declared.

[Kace]

back quickly to the ebay....why not charge GST on all the transaction fees on ebay instead?

Because you can't charge GST on something that GST has already been charged on. ie. used/previously purchased items.

[xander.uk]

Sounds like you guys are trying to catch the U.K up with all your taxes :(

SADLY you still have a very long way to go to catch us :(

We are apparently going to tax people for being taxed next :mad:

But i do agree that its about time they took an interest in whats happening on e-bay!

I also know of people who make alot of money from ebay whilst claiming to be too disabled to work and claiming even more money on the side :mad:

[mirak]

back quickly to the ebay....why not charge GST on all the transaction fees on ebay instead?

now there's a good chunk of change the gov't could pick up...but another option is for them to LOOK up these power sellers on their own accord without asking ebay. Look up the seller's feedback history, and then call them on their sales and see if they are declared.
I have been an eBay seller for the last few years, don't sell to the level I used too (I grossed 65K USD 3 years ago, and that's just my side business) I incorporated as a company since I do this as a business (even if it's just a part time for me) and because of that I have been required to charge GST / HST and PST.

I was very concerned at the beginning, thinking that it was going to affect my sales, but people in Canada understand that it's a government requirement and are willing to pay sales taxes.

I always get upset when I see people based in Canada not charging such taxes, makes the playing field uneven..... (I'm referring to people that does this as business, not the occasional seller) In a way I'm happy the government will do something about them...

As per my previous posts I am in favor of a single tax rate... but on the same note I'm in favor that everybody pays his share... I hate the feel that I'm paying too much, because there are many that don't pay any...

[focal]

Because you can't charge GST on something that GST has already been charged on. ie. used/previously purchased items.

I meant the service fees that ebay charges for listing and % of sales

[mirak]

Ebay is set up as a company in europe to avoid charging / paying taxes.

Heres' the address on my invoices

eBay International AG
Helvetiastrasse 15/17
3005 Bern
Switzerland

[cldale]

Golftime,

I agree, income averaging should be used for single-income families. The way things are setup now its almost as though the government is encouraging that kids be raised by day-care centers instead of their own parents.


My problem with the tax system is how it discriminates against single income versus double income families. One income of 100k is hit much harder that two incomes of 50k, yet the family expenses are the same. I know that it is our choice to only have one person working but that is not possible.
This seems like one of those discussions that can go on forever with no resolution.