We all know that using a password manager like LastPass, 1Password, or Dashlane is better for our privacy and security than having dozens of passwords to remember. But did you know that these programs can actually help when it comes to our online shopping? If you're shopping on Amazon, the home of the dot-dot-dot sales tax loophole, then your password manager can help you avoid being charged yet another unnecessary fee. Here are some examples: You have an account with LastPass and are logged into your Amazon account at this time. You go to checkout by clicking "Buy" in your browser's toolbar. The popup window says "You need PayPay account approval". Click the button to apply for it. Your password manager is set up with PayPay, so you go to the password manager's "Add Account" menu and type in PayPay. When you click on an item listed on Amazon, your password manager will automatically fill in the address information of the merchant instead of using your default address or your credit card information. Your account is set up with 1Password. You are logged into your Amazon account at this time. You go to checkout by clicking "Buy" in your browser's toolbar. The popup window says "You need PayPay account approval". Click the button to apply for it. Your password manager is set up with PayPay, so you go to the password manager's "Add Account" menu and type in PayPay. When you click on an item listed on Amazon, your password manager will automatically fill in the address information of the merchant instead of using your default address or your credit card information.
Shopper Beware: Amazon’s Tax-Avoiding End-Run Around US Tax Laws by April Visconti at Mint.com Amazon's End Run Around U.S. Tax Laws by Jesse Eisinger at ProPublica As Amazon becomes more powerful as a retailer, its tax practices have come under increasing scrutiny. Most recently, the Senate Permanent Subcommittee on Investigations launched an inquiry into how Amazon's subsidiaries shift profits to low-tax jurisdictions and use those subsidiaries to sell products without collecting sales tax. In addition, a U.S. Senate investigation has revealed that Amazon is collecting sales tax on some items even though it does not collect the tax and then paying the state little or nothing for these taxes — a practice known as "double taxation." This double taxation occurs because Amazon collects sales taxes in some states but not others and then transfers the funds among its various entities. As most people know, collecting sales tax can be complicated and time-consuming. If you do not pay the correct amount of tax due, you may face penalties and interest. The main reason why Amazon does not collect the tax is that doing so would only make the company more vulnerable to litigation, according to current and former executives. However, when it comes to paying state sales taxes, Amazon has negotiated favorable agreements with many states in which it agrees to pay just a fraction of what it owes. The difference between what Amazon pays and what it owes in sales taxes is then passed on to consumers in the form of lower prices. For example, shoppers may be paying $10 for an item sold for $5 but are getting charged 8 cents in sales tax by Amazon even though this same item would have cost $1 less if its price were adjusted for sales tax.
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