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Internet Sales Tax Comes to a Vote

Written by Gary North on April 23, 2013

The Senate Democrats are about to consider voting on a sales tax imposed on Internet purchases.

The bill was released for the Senators to read only on April 21, Sunday. Harry Reid — Sen. Don’t Read — has it on a fast track.

The bill is S. 743, the Marketplace Fairness Act. In this case, “fairness” means “customers should pay more. That’s fair.” This includes customers in states that have no sales tax. They will if this bill becomes law.

If the House votes for it, the law will impose sales tax collection requirements on any U.S.-based firm that sells anything out of state. If the company sells $1 or more a year, it becomes subject to the tax.

Companies located outside the U.S. will not have to pay. The law cannot be enforced outside the USA.

This means that consumers will be charged to buy items sold by firms that have no physical presence in their states.

This is just one more tax. The White House supports it. This is President Obama’s position.

Although States presently have the authority to tax the sale of goods or services sold from out-of-state vendors, they are prevented under current law from requiring the collection of such duly-enacted taxes.  As a consequence, while local small business retailers follow the law and collect sales taxes from customers who make purchases in their stores, many big business online and catalog retailers do not collect the same taxes.  Because these out-of-state companies are able to play by a different set of rules, this disparity undermines the ability of cities and States to invest in K-12 education, police and fire protection, access to affordable health care, and funding for roads and bridges.  This bill would eliminate the unfair advantage currently enjoyed by big out-of-state online companies over local neighborhood-based small businesses.

In recent years, collection technologies have improved and States have made significant strides to cut red tape and simplify their tax systems.  At the same time, Internet-facilitated sales continue to grow as a share of total transactions, contributing to ongoing State budget pressures.  In recognition of these developments, a broad and growing group of bipartisan State and Federal leaders — including governors, mayors, business and labor groups, and members of Congress from both parties — has called for commonsense Federal legislation to make the system more fair.

Continue Reading on online.wsj.com

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14 thoughts on “Internet Sales Tax Comes to a Vote

  1. Everyone needs to watch the movie Atlas Shrugged! Fair Market Act, business killing policies,they are in this movie based on a book written in 1957 ! The Democrats and this Dictator-in-Chief Barack Hussien Obama seem to be following the blueprint the book and now movie attempts to warn us about!

  2. Dick Grace says:

    No politician ever met tax they didn't like. This should just about finish the destruction of our country.

  3. luckyk351 says:

    Another disgusting attack by King Harry dont Read, aide to Emperor Obama. When the communist first took over this country his big statement was open government, No bills would be passed until the people had seen what was in them. So every major bill they have brought up since has been thousands of pages long and delivered to congress with something like 24 -48 hours to read, Now I have never even heard of a speed reader, who could read several thousand pages in a day. I some how doubt if the members of congress can even read, if they allow this sort of practise to continue. To me this is not only unbelievable but there is probably a dozen or more laws which prohibit this sort of action. Can we not recall this fraudulent crook out of congress and get to work on impeaching his crooked leader. Chief Liar

  4. If I understand correctly most states that have a sales tax also have a use tax of an equivalent amount, hence, buying something on the internet doesn't absolve a person from paying the use tax. Obviously, people aren't volunteering to pay their use taxes like they do income taxes and these wicked politicians want to expand power again so that coercion can be used. I think most people want their states to be able to provide the legitimate services needed by government, and I think most people would voluntarily pay a use tax toward those ends provided that they weren't assaulted constantly by civil government at every level. I can't blame people for not paying use taxes that may be owed, they are trying to find some way to protect themselves from civil government, and while I agree that it may be a hardship upon local competition the people are trying to find a way to protect themselves from civil government. When good citizens no longer feel an obligation to pay lawful taxes it is because they are being abused, if State's want to overcome this problem then massive spending cuts are needed and rising to defend their citizens rights against the Federal government will go a long way toward voluntary compliance. They could start by eliminating tax funding of education and set a plan out to completely dissolve this corrupt system, remove their State from administration of most, if not all, Federal programs, eliminating 70 to 80% of their tax abuses now imposed, and then rising to interpose and defend their citizens against the massive abuses they suffer at the hand of the Federal government – I think good people would line up to pay use taxes voluntarily to insure their State had sufficient revenues to fulfill its legitimate constitutional obligations. Of course, liberals would have nervous breakdowns, or maybe even leave state's that fulfilled their legitimate constitutional obligations – that would be another huge benefit, I understand Massachusettes is a lovely place for liberals to live and they could use the taxes. I think my idea is better.

  5. geneww1938 says:

    This evil bill should be killed rapidly. This bill is much worse that just private sales between individuals will be taxed!!!

    Another claw into our private world

  6. allosaur says:

    Sometimes I wish I were really an allosaur and that I slipped through a time portal to wind up on a rampage in Washington D.C. Hey, SYFY,! You could make quite a feel good movie.,

  7. G. Kuhns says:

    In recent years the internet has been a boon to bargain hunters. Many things we buy online are not available in local stores. Yet, if this law passes, consumers will be required to pay another sales tax. That's really what the bill is about – revenue and regulation.

    Every tax is a transfer of power and rights from the people to the government. We the people should be getting fed up with it. "Marketplace fairness" indeed! It's about political power stifling innovation and competition in the marketplace. It's one more way to hinder economic growth and hurt the middle class; one more step along the path to trace, track, and register every citizen's online activity.

  8. Each state gets enough fkg tax money from corporate taxes, small business taxes, income taxes, property taxes and sales taxes from the local population. Let them fix the fraud, waste and abuse and maybe they'll be able to LOWER taxes.

  9. Hey Dick,_I'd tend to modify that to: "No Democrat or liberal ever met a tax they didn't like…!

  10. ChristyK says:

    It isn't just liberals and democrats. Most Republicans are nearly as bad. One of the Senators sponsoring this bill is Senator Enzi (R- WY). Look beyond party. Look at all the politicians and how they actually vote, not what they say.

  11. Public_Citizen says:

    Lets see, the tax applies to any mom and pop shop in the USA but not to any small business located in say Hong Kong or China.
    So the small businesses in this country that are already on the edge get slammed and their competitors overseas get a free ride.
    Everybody selling on eBay with a US address gets put out of business and their direct competitors in China are now the only game on your computer.
    Yeah, this makes perfect sense – NOT.

  12. Don't forget Pelosi's great speech before they passed BOCare……."you have to pass if first before we let you see what's in it."

  13. I think this could be one step that BO is taking to illiminate the states all together.

  14. Seymour Kleerly says:

    You're brilliant!