The Phony “Fairness” of the Internet Sales Tax

May 18, 2013 by Fergus Hodgson

For a few years now, legislators in the United States have been worrying themselves over the fact that some people have been able to avoid paying sales taxes to them. The internet and competition between jurisdictions have enabled that, and the more the merrier, I say. Constituents already suffer from onerous taxation, and paths for them to get out from underneath the burden should be welcomed not condemned.

Of course, the politicians don’t see it that way, at least the ones who have sales taxes in their states. They’ve been flailing about with “Amazon” taxes which have failed terribly. In North Carolina, for example, their attempt to tax people buying online from out of state saw tax revenues decrease rather than increase. Surprise surprise, many people chose to relocate and terminate their relationships with the state altogether.

Now these legislators are pushing Congress for blanket legislation from the federal level, the Marketplace Fairness Act. The bill, which the Senate has already passed, is both economically shortsighted and dangerous, since it is one step closer to a national sales tax. If passed, retailers in all states, at least those with an online or mail-order presence, would have to begin collecting taxes — regardless of the laws in each particular state.

One federal legislator to support this bill is Louisiana’s Mary Landrieu, and she appeared on Jeff Crouere’s Ringside Politics of WGSO 990AM. Given that she offered the standard proponent justifications, let me address the two most important ones here.

Read more:  http://thestatelessman.com/