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Tax & Spend Rangel Wants Your Diamond Engagement Ring Money!
U.S. Congressman Charles B. Rangel received enthusiastic applause as he opened the Jewelers Association New York Summer Show on Sunday with a message of support for the Brick & Mortar Jewelers on the issue of taxing online diamond retailers.
House Ways & Means Chairman Charles Rangel at the Podium.
Rangel, the chairman of the House of Representatives' Ways and Means Committee, indicated his support for brick-and-mortar jewelers. In particular, he touched on legislation in the current session of Congress that would allow individual states to collect sales tax from Internet retailers.
"Whether it's the Ways and Means Committee or whether it's national policy, we have to concentrate on small retailers, making it possible for them to be able to play with a level playing field," he said, referring to the legislation that would help achieve this goal.
From our vantage point, taxing Internet diamond and jewelry sales will not by itself level the playing field for B&M Jewelers as Internet prices will still be lower.
Gotta love those Polticians
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Comments
In Australia, like a lot of other countries in the world, there's a GST that is taxed by the Federal government.
Here, it's a flat 10% for everything except for basic food (bread, milk, vegetables etc). However, there are no customs duties or state taxes, so all the consumer pays is 10% no matter what state they're in.
However, in New Zealand, there's a 12.5% GST + a 7% duty. What this means is that in most cases it's cheaper to fly from NZ to Australia (about a 3 hour flight I believe) and buy your engagement ring in Australia. Not only will you avoid NZ taxes, but since you're going back to NZ, you also miss out on the 10% Australian GST.
Posted by: Nikhil Jogia on July 30, 2007 8:06 PM
The problem, Nikhil, is that our Politicians here in the States have an insatiable appetite for instituting and then raising taxes. Once the barn door is opened a tad, the roof will eventually blow off.
The B&M Jewelers whining to "level the playing field" vis-a-vis Internet Diamond Merchants by slapping a tax on us will not be assuaged. Our prices will still be lower as even with a Customer Showroom and Staff, our expenses are still lower than theirs.
They should look in the mirror and realize that they are not providing the product information nor educated and informed sales staff many consumers are seeking, and therefore consumers are more comfortable and confident shopping for diamond engagement rings and jewelry on-line because we provide in-depth and comprehensive information on the products we sell and we know our stuff.
B&M's elevating themselves by going this route is a surer way of "leveling the playing field" than by lobbying politicos to put on a confiscatory tax.
Posted by: Barry G. on July 30, 2007 9:55 PM
$$$$???
Posted by: john rrobinette on August 28, 2007 6:40 PM