CHICAGO IS SUING Ebay and for failing to collect a chunk of amusement taxes on concert and sporting event tickets.
While Ebay sells stuff without really thinking about it, Chicago thinks any little tax it can think of should figure prominently in the auction site's thoughts.
Chicago's amusement tax ordinance, which is designed so that any one who is amused should give money to the city, specifically states that Internet sites that resell tickets should pay up.
The Internet auction leader has told the city to go forth and multiply, claiming the eight percent tax on fun does not apply to it. Ebay is not funny.
Alderman Edward Burke thinks that Chicago could be losing $16 million a year on Internet-based sales by ticket resellers who don't collect the amusing tax.
EBay has said paying taxes could cripple small Internet businesses. In 1992 a US Supreme Court ruling said that states were not allowed to force businesses into collecting sales taxes unless the company has a physical presence in the area. ยต
L'Inq
AP
Maybe it's not true for all tickets sold on ebay, but I imagine the majority are going to be resales, not the primary point of purchase. So the tax will have been collected at the ticket-booth, not when the ticket is then sold on ebay.
Wouldn't the 8% have been collected on hte original sale? 

Is Chicago arguing that they should get 8% of the resale price (double-taxation on the base price) or just 8% of the increase in price?
I understand this may be a little off topic but it is totally applicable to this subject of taxes. If only the Americans knew the truth about the personal income tax they pay there would second revolution with hangings on the White House lawn. 

The Grace commision( appointer by Ronald Regan) " 100% of all federal income tax that is collected is absorbed soley by the interest on the federal debt before one nickle is spent on any services tax payers expect from government" 

" The Constitution is nothing but a god damn piece of paper " G.W.Bush November 2003 

On August 31,2005 federal judge Emmet Sullivain ruled the government does not have to answer the American people's questions, even though it is guaranteed in the First Amendment.

The US Constitution forbids a direct unaportioned tax on the wages and salaries of american citizens.

Sen. Hillary Clinton and Sen. John Mc Cain have been asked about the tax law and have refuse to answer. Why because there is no law. Corruption starts at the top.

"None are more hopelessly enslaved than those who falsely believe they are free"
~Goethe
They raised all the tax they can, LOL bottled water tax. Now they want some interweb tax. Illinois is corrupt top to bottom. And they get re-elected. The people likes to bend over...
I wonder if Chicago is notifying Ebay of its new $.05 tax on each bottle of water. I would hate to see taxpayer's money wasted on sueing them 4 years from now. Not that I personally buy bottled water on ebay, but its plausable none-the-less. Now if the water bottle is colorfully decorated and makes you smile, what to do then?
Your telling me that in Chicago if you smile in the street you get a tax charge. Man it'll be like Demolition Man with them swear ticket booths.

Man Walks down street around 8am walks past a lovly looking smiles and says good morning.

Next a fire hydron suddenly spits out a ticker Mr. Smiler you have been find $5 for smiling to the lady in te street. Hate to see what happens if you have a funny thought oh they dont have tech to get inside your head YET!.
... never found a tax they didn't like, never found a lawsuit they didn't favor. Sue the car mfgs for drunken drivers, sue the cutlery mfgs for stabbings, sue the baseball bat mfgs for beatings...

Its not MY fault - it is someone ELSE's fault, and I'm gonna SUE that bastage!

Jim
Well, they say that when you buy a can of vegetables at Wal-Mart, 40% goes to federal, state, and local governments, mostly in the form of so-called "corporate" taxes. So it doesn't surprise me that the crooks in Illinois would try to collect that 8% more than once.

As for Blip... well, maybe he should actually read the Constitution at least once. It's not all that long. And Bush has been fairly decent about defending the Constitution--far better than most politicians, even if he did sell out the Constitution by signing McCain-Feingold.