US Senate Passes Internet Sales Tax
What happens in Washington, DC affects everyone. In this specific case – businesses created and maintained online.
Last evening the United States Senate passed the deceptively named Marketplace Fairness Act. Unfortunately the Arkansas delegation, Senator Mark Pryor and Senator John Boozman, joined the majority in voting for the tax increase. CLICK HERE to view the roll call vote.
While proponents of this legislation maintain the argument that the bill simply “closed a loophole” in the tax code, that’s not really the case. In the Supreme Court ruling on Quill Corp vs. North Dakota (1992), the justices found state governments cannot force businesses to collect and remit sales taxes unless they have a physical presence in the state. In this case, we’re all looking at a pretty big issue – “taxation without representation.”
Another issue involves the administrative burden that will be placed on online realtors. That is to say – tax code compliance. Traditional brick and mortar businesses don’t have to deal with over 9,600 different tax jurisdictions throughout the country. Tax rates and bases are in an almost constant state of flux. How does that come close to “evening the playing field?”
In an economy where businesses are still struggling to make ends meet, why continue to try to tax entrepreneurs into success and prosperity? At the end of the day, the burden on businesses simply doesn’t match the over positive, over zealous talking points from the left.