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Daniel Pickett and Scott Neitlich

By Nick Eskey

When toy collecting started to become popular, prices were relatively cheap. Now with increased gas prices, higher standards of living, rise of product control, and other associated costs, prices have been steadily on the rise.

As a whole, Americans purchase toys for a number of reasons: For their kids, for their collection, or for profit. If you fall in the collecting bracket, then you know how taxing of a hobby it can be.

Discussing the current environment for collectors at the “Toy Collecting for the Modern Age” panel were a number of people involved in the toy industry. Present at the panel were Daniel Pickett, of “Action Figure Insider”; Scott Neitlich, a “Toy Guru” and also of Action Figure Insider; Jason Lenz, of “Bif Bang Pow”; Jeff Trojan, of “Playmates Toys”; Jim Fletcher, DC Collectibles; Kevin Kiniry, DC Collectibles; and Justin Donaldson, writer for “Funny or Die” and “Keen and Peel.” David Vonner, who works in designing toys, could not make it due to traffic unfortunately.

The men first discussed how they became attracted to, and involved in the game industry. Scott shared that he always wanted to work with toys, but thought he’d have to first get involved with television and movies first before he could have that option. He “skipped a step” as he put it by getting hired by Mattel after applying for 4 years. Kevin Kiniry claims it was an early experience of his mother taking away all of his toys and donating them to teach him a lesson that convinced him to work with toys for a living.

After sharing about themselves, Scott spoke of the state of the toy industry. Toy collecting is getting bigger, especially because we are finding more ways to display our collections, as well as the internet helping to create more interest. With things like videoed “unboxings,” more people are become involved in the fandom.

But prices are getting tougher to swallow. Many factors these days are contributing to this, like dock strikes, labor prices in China, cost of oil, politics, and others.

“These things are forcing [us] to make the toy smarter,” said Kevin. “How me make toys and the packaging mainly.”

Economically, many toy manufacturers are packaging toys in simpler boxes to keep costs low. Environmentally, this is also good, because it creates less waste.

These cost-cutting practices are especially good for smaller companies, as Jeff Trojan points out. “It’s a Big Fish versus Grass Roots. The big companies have more ability to absorb and to source cheaper labor. Small ones that haven’t made connections have to be really smart about their product.”

Scott Neitlich discussed that there are also the politics that go behind the toy veil. “Sometimes it’s an everyday struggle. The I.P. holder can decide to delay the product… Do you know how hard it is sometimes to get a toy to market?”

And though the toy might be out in stores, doesn’t mean it’s readily available. Resellers can be vicious in their hitting up stores, buying up as much product as possible, creating a scarcity for the consumer and collector alike. “This makes the price of the item even higher, sometimes making it near impossible financially to collect whole sets,” said Jason. “It’s not going to get any better unless both consumers and retailers works against their practices… [Even] in the digital age, toys are still going to be still going to be sought after… Toys are unique. They are physical. There’s no way you can touch a digital toy.”

“Book and DVD collections are disappearing because of digital,” said Kevin Kiniry. “And toy collections are getting bigger.”

So what are we to do about this ballooning toy situation? “We have to become smarter with what we buy,” said Scott Neitlich. “We’ll have to decide more selectively what we will collect.”

With toys becoming more geared towards adults as well as kids, creating a collectible toy market, they are being plagued with the same issues as any other commodity. But the excitement and joy a collection can bring definitely won’t sway fans away. If I’m to take one thing away from this panel, it’s that we all need to become responsible and smart in what we choose to buy.

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By Edward Zelinsky

As they scramble for tax revenue in a challenging environment, the states increasingly turn to so-called “Amazon” laws to force out-of-state internet and mail order retailers to collect tax on their sales. The Illinois General Assembly is the most recent state legislature to pass an Amazon statute. New York, Colorado, Rhode Island, North Carolina and Oklahoma have already enacted such laws while Amazon acts are pending in other state legislatures.

While they differ in important respects, all of these proposed and enacted laws share the premise that goods which are taxed when purchased in a conventional, bricks-and-mortar store should also be taxed when bought from an online or mail order retailer. This premise is compelling.

It is neither fair nor efficient for a sales tax to discriminate between close economic substitutes, taxing one but not the other. A sales tax should not tax green apples while exempting red apples. Such discrimination is inequitable to growers of green apples and distorts consumer choice by artificially increasing the after-tax price of green apples relative to the competing (and tax-free) product, i.e., red apples.

This is in essence the sales tax status quo under the U.S. Supreme Court’s decision in Quill Corp. v. North Dakota. Quill held that, under the U.S. Constitution’s dormant Commerce Clause, a state can require a retailer to collect and remit tax on its sales only if the retailer is physically present in the taxing state. Under this rule, firms like Amazon, Overstock.com and similar mail order firms need not collect tax on their sales since they lack physical presence in most states.

As a matter of law, when an electronic or mail order retailer does not withhold tax, the buyer of online or mail order merchandise is required to self-assess and pay the tax to his home state. In practice, it is virtually impossible for the states to enforce this obligation. Goods ordered over the internet or by mail order are thus effectively tax-free while the same goods are subject to sales tax when purchased in a conventional store physically present in the taxing state.

This de facto tax discrimination between conventional and electronic sales is no more fair or efficient than a sales tax which taxes green apples but not red apples.

The states (supported by bricks-and-mortar retailers) have asked Congress for federal legislation permitting the states to require out-of-state retailers to collect taxes on their electronic and mail order sales, even if such retailers lack in-state physical presence. So far, Amazon and its allies have successfully lobbied Congress to resist the states’ pleas.

Frustrated by Congress’ inaction, state Amazon laws are a form of self-help, designed to require out-of-state retailers to collect state taxes on their sales despite Quill. The Amazon laws of New York, North Carolina and Rhode Island create statutory presumptions that in-state affiliates create sales tax jurisdiction over the out-of-state internet firms with which such affiliates are associated. Taking a different approach, Colorado’s Amazon law requires internet retailers to report their Colorado sales both to the Colorado purchasers and to the Colorado Department of Revenue.

For two reasons, these state Amazon laws are neither a practical nor a legal solution to the problem of untaxed internet and mail order sales. Laws like Colorado’s, which require reporting by out-of-state firms, are unconstitutional under Quill, as the U.S. District Court for the District of Colorado recently held. Laws like those of New York, Rhode Island and North Caroli

Classic childhood toys that occupied the glory of after-school hours have long since vanished from retail shelves or been confined to obscure spots in the toy aisle. Collectors who search thrift stores, online sites, and bargain retail can own some of these entertaining gems and have a piece of childhood’s colorful past.

View-Master

While an old-school concept that hearkens back to Victorian picture postcards, the appeal of the View-master is still a part of childhood curiosity. The tiny paper disks with their transparent images of everything from the Eiffel Tower to the Muppets are transformed into colorful, dimensional scenes when viewed through the binocular holes. A flick of the lever transports you to the next image with an oh-so-familiar click for grown-up fans.

Easy-Bake Oven

While a less popular choice under modern Christmas trees, the classic Easy-Bake oven, once a staple of childhood, is still a memory haven for countless grown-up kids. From mini chocolate cakes to sprinkle-covered muffins, the menu may not have been the greatest, but the sheer fun of making and baking your own creations in a miniature oven is a treasured childhood experience for plenty of young chefs and bakers.

Playskool People

These colorful peg people, with their ink-dot features and missing limbs, are much sought-after by collectors who remember well the fun of inserting these tiny figures — extras like the miniature rocking horse, tractor, or school bus populated a world of adventures. Designed for tiny figures, the soft plastic characters ranged from Charlie Brown-like kids to a dog complete with spiky collar.

Light Bright

Compared to modern technology, the Light Bright is hardly dazzling, but many fans remember the excitement of inserting those brightly colored pegs in countless design sheets and even creating their own with blank pages. Sitting in the dark to gaze at the brilliant glow from those lighted pegs was as much a part of childhood fun as glow-in-the-dark ceiling stars and Glow-Worm dolls.

Collecting those childhood treasures (or breaking out a few from storage boxes) keeps alive those classic memories from toys that were all the rage in days gone by. Share the joy with younger generations who are missing out on the crazes of past decades.

Classic childhood toys that occupied the glory of after-school hours have long since vanished from retail shelves or been confined to obscure spots in the toy aisle. Collectors who search thrift stores, online sites, and bargain retail can own some of these entertaining gems and have a piece of childhood’s colorful past.

View-Master

While an old-school concept that hearkens back to Victorian picture postcards, the appeal of the View-master is still a part of childhood curiosity. The tiny paper disks with their transparent images of everything from the Eiffel Tower to the Muppets are transformed into colorful, dimensional scenes when viewed through the binocular holes. A flick of the lever transports you to the next image with an oh-so-familiar click for grown-up fans.

Easy-Bake Oven

While a less popular choice under modern Christmas trees, the classic Easy-Bake oven, once a staple of childhood, is still a memory haven for countless grown-up kids. From mini chocolate cakes to sprinkle-covered muffins, the menu may not have been the greatest, but the sheer fun of making and baking your own creations in a miniature oven is a treasured childhood experience for plenty of young chefs and bakers.

Playskool People

These colorful peg people, with their ink-dot features and missing limbs, are much sought-after by collectors who remember well the fun of inserting these tiny figures — extras like the miniature rocking horse, tractor, or school bus populated a world of adventures. Designed for tiny figures, the soft plastic characters ranged from Charlie Brown-like kids to a dog complete with spiky collar.

Light Bright

Compared to modern technology, the Light Bright is hardly dazzling, but many fans remember the excitement of inserting those brightly colored pegs in countless design sheets and even creating their own with blank pages. Sitting in the dark to gaze at the brilliant glow from those lighted pegs was as much a part of childhood fun as glow-in-the-dark ceiling stars and Glow-Worm dolls.

Collecting those childhood treasures (or breaking out a few from storage boxes) keeps alive those classic memories from toys that were all the rage in days gone by. Share the joy with younger generations who are missing out on the crazes of past decades.