Sunday, March 24, 2013

Senate Approves Internet Sales Tax by 3-to-1 Margin

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Activist Post

The U.S. Senate voted yesterday to approve the concept of an Internet sales tax by an overwhelming 75-to-24 margin.

The vote was largely symbolic and non-binding, but its support has some wanting to bypass the committee process for the easy passage of the Marketplace Fairness Actaccording to The Verge.

The law, which opponents more accurately call the "National Internet Tax Mandate", would allow states to demand sales taxes from online retailers.

More exactly, "the Marketplace Fairness Act grants states the authority to compel online and catalog retailers ("remote sellers"), no matter where they are located, to collect sales tax at the time of a transaction," according to a lobbyist website supporting the idea.

In its current form, Internet retailers with less than $1 million in sales would be exempt, which at first glance seems palatable. But consider that if a retailer only makes a 10 percent profit margin, then they only take home $100K net profit before expenses. That's hardly a large company with the resources to learn a new system or hire someone to handle the extra bookkeeping.

Even foreign retailers (no matter where they are located) will have to charge, account for, and remit sales taxes for customers who may reside in a participating U.S. state. It doesn't matter that the retailer has no attachment to the customer's state or country for that matter. Can anyone see how this may hinder commerce freedom for U.S. customers?

"Collecting sales tax is—or rather should be—simply part of selling online, just as it's part of selling on Main Street," argue the lobbyists, adding "Collecting sales tax? That’s just part of doing business."

Furthermore, the customer must now pay sales tax on every single item they buy while residing in a certain state regardless of where they bought it from. The lobbyists say you should be okay with that because "As a consumer, the sales tax you pay funds projects and services in your community."

Large e-tailers like Wal-Mart, Best Buy, Home Depot, and Target have lobbied for the tax. Of course, they also have brick-and-mortar storefronts, but their online sales have jumped in recent years.

This new regulation tax is precisely how small businesses are regulated out of the brick-and-mortar marketplace. They start with small, seemingly reasonable requests which are sometimes quasi-voluntary like this proposal, then bit by bit the regulations become mandatory and they keep squeezing for more.

The lobbyists for this bill argue it will be good for all businesses. "Thousands of businesses are forced to do business at a competitive disadvantage because they have to collect taxes and online sellers do not, which in some states can mean a 5 to 10% price advantage," they claim.

However, clearly they weren't talking about small online retailers who employ untold millions of workers.

It's dangerous to even open the door to this type of intrusion into the Internet free market. Internet entrepreneurs everywhere should be protesting this law.

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Anonymous said...

How exactly is this good for business when it is the government, not the company who receives the money? Also, some small businesses may have went from offline to online because they were struggling and now that option is gone. Not to mention now these businesses may lose customers because of the risen prices. They can't afford to lose customers! Way to go, government guys. Way to kill business and make it harder for the small companies to make ends meet. Hey, maybe instead of sucking everyone dry you could give the smaller businesses some tax breaks, instead of the big boys for a change? You know, the ones who really need it? Stop using taxes to "fix" things, you have to stop screwing around with the IMF and for fuck sakes get rid of the Federal Reserve and create a real American bank you can borrow at little to no interest instead of borrowing at high interest from people who are destroying your economy! Taxes won't do shite if the backbone of your economy is cracked! It'll only make things worse as it has been ever since your economy was compromised! Getting into the debt-based system was a bad idea and many countries fell for it (including mine, Canada)! Well, enough - get out of it and rebuild your infrastructure, and stop doing things that are killing small businesses, they are part of the backbone too!

Anonymous said...

Classic AcivistPost reporting, classic!

The ubiquitous anonymous nameless Senate. Yes those damn invisible Senators with no names or party affiliations. Damn them and their clever apologists and scribes!

Whenever Obama and Democrats do some dirty deal, the AP story on that will headline that fact and repeat it ad nauseum in the article.
Whenever a majority of Republicans vote on some dirty deal..........well, let's just blame Congress or the Senate.
Not that vile Democrat news sites don't play the identical game, they do. But any media continually perpetuating the divide and conquer game, keeping the left right divide going.....are part of the establishment.

This new tax needed Republican support, so the Republicans supported it. Republican media do damage control with excuses or by refusing to cover it. Typical.

Anonymous said...

Why not just get rid of sales tax altogether. That would make it easy and would give people more money intheir pockets to spend and help the economy.

Anonymous said...

let's call it the republican internet tax whenever we mention it, just as they call the estate tax the "death tax" and the democratic party the democrat party

Anonymous said...

Who cares what ratio of RINOs vs. DINOs voted for yet another fleecing of Americans? Come on Anon at 8:36 AM and 12:15 PM, get a grip!

What we need is some kind of leadership to oppose this, i.e. organizers for grassroots activism the way internet censorship legislation was assailed. For years, the main opponent to the internet sales tax proposals was Jeff Bezos of Amazon. Clearly, Bezos was brought into the globalist fold with a combination of incentives (bribes and threats) and shortly thereafter Amazon announced an initiative to build more distribution centers to achieve same day delivery service. Now that Bezos has been assimilated, TPTB are forging ahead to see how much public resistance they get.

We need to hammer the House with calls, emails, and faxes. Does anyone have a strategy as to how to get the ball rolling in some kind of coordinated manner?

Miguel Grande said...

We are already taxed. When my online company sells a product, I have to pay by debit card, that transaction includes approximately 3% tax that goes to the Banksters. My customer pays me with a credit card and again the Banksters get their 3%. That's 6% of my net income. They tax us coming and going.

The brick and mortar companies have the advantage of accepting cash.

Anonymous said...

Why are you explaining why this is bad for small business and at the behest of the big box. The Senate knows that, please wake up every move is to tax more to take more freedom away and to redistrribute what remains left to the international bankers. Why complain when this has been to MO for many many years.

Anonymous said...

They think we are stupid. It has nothing to do with providing services! This is about MONEY and Big Box stores! This money will go to waste- period!
I will now start buying at the mom and pop stores locally in my small town and the home depot and walmart and others can go suck a grape.
Tax, Tax, Tax, Tax, Tax, until you tax us under the table!
Better yet- stop buying and spending for a while and put the hurt to the big stores in protest!

Anonymous said...

charging it is unconstituional that is why they cannot do it. Thank God for the founding fathers. when scum like our congress is foaming at the mouth. they will never be able to get the money for this tax so they should shut up and do something constructive like repeal the AMT tax and stop giving millions and billons to middle east countries and reopen control towers here and let white house tours resume... bunch of lying hypocrite and granstanders !

Tatiana Covington said...

Let the senate abide by my decisions.

Anonymous said...

The problem with this and every other scenario that involves the government wanting more money from taxpayers is that they will NEVER have enough. They can't even manage what they already get. Enough is enough already.

Anonymous said...

More taxation will affect job creation in a big way down the road. Expect more stalled economy, and more government spending sprees courtesy of this taxation. Big corporations aren't currently creating many jobs. It's the little and growing companies that create positions with their success and expansion, and make up the future economy; unless you squelch that.

Anonymous said...

Every tax initiative that is Government-driven, is driven by lobbyists. Taxes are NEVER beneficial to the Public. Because taxes are a transfer of wealth, with nothing being given in return to the person paying it.

Taxes are just another way of getting free money, for doing nothing. The government spends every waking moment plotting ways to extract more free money from the Public, but in the process not provide anything of value in return.

All stories that try to justify the attaching of tax to a purchase, are fictitious and lies. The stories are based on a "concept of duty." Americans are bombarded by stories of duty to feeding into the tax coffers of politicians.

Real value would be, paying no tax but rather, taking that "tax" money and buying more products or services. Taxes are fraud. You are supporting fraud when you pay taxes of ANY type. You are giving away free money to people you should never trust or listen to.

Anonymous said...

That's right mr. big guberment man...if there's any inkling of someone buying something and your mobster ass isn't getting a piece of the action, it must bu stopped...further crushing any sign of economic upward movement...dolts...

Anonymous said...

Any small seller of products and or services whether ONLINE or Physical Store is hurt by such a Main Street Fairness Act. Amazon would not be hurt by this but millions of little mom and pop shops both ONLINE and Offline are hurt by this type of pseudo legislation. If a buyer comes from out of state to your little mom and pop shop you will have to figure out the buyers residential address each time and charge them the Sales Tax and then send it for their one customer in the state the funds to that State. If you also have an online presence you will have to figure out and submit sales taxes to states you have never set foot into even. This is an entirely wrong and messed up effort to make things better? For Who? What is needed is a special rule for online sales transactions and out of state ones with a FIXED single % Rate across the board and sent to one governmental body such a national internet sales tax approved but federally controlled party. For example a 3% sales tax rate not 5% here, 7.25% there, 6% over here, 4.25% yonder, 0% in another location. It would be way more EFFICIENT, LESS DISRUPTIVE, LESS INTRUSIVE, and progressive vs regressive. Then the States and 7,500 or so jurisdictions would go to that entity to get the funds they need to provide their services to. Any extra funds would be set aside for circumstances like SANDY, and other natural disasters that effect many states, or many in one region to help them get back on their feet and fix their infrastructures. But NO STATE USE TAXES being "innocently" taken from retailers in other states with no physical presence in that State. Easier to Administer, Progressive, vs Regressive. IF the state wants to collect sales tax from out of state retailers this would be Rule they would need to follow.

Morgan Mandel said...

Just another way to get more taxes out of us.

Anonymous said...

Will this effect ebay or craigslist? I would not pay taxes if I had a choice. I would rather volunteer in my community.

Anonymous said...

The only purpose of taxes is to take money out of circulation which reduces the economy and thus the livelihood of everyday citizens. There is no other function.

Anonymous said...

Just shut up and pay, serfs.

We are your rulers. We write little pieces of paper that say you owe us! Ha Ha. Fools.

Anything for more money, we can throw away, that's
our motto.

Red light cameras.... got em. ha ha
Internet taxes... woo hooo gonna get em...
UN taxes.... all right! screw the people.
Taxes on guns and ammo that you already own,
or draconian measures if you don't pay?
Yeeeeeeeaaaaaaa. Keep that money coming. And turn those nasty guns in, they are the only thing we fear. We want YOU to fear us, not the other way around, numbnuts.

More vacations for me and mine.... woo hoo, yes. The more expensive the better. YOU pay the bill. We are the MAN, you are the toilet paper, get it??????

Shut up slaves, serfs and fools.

We are god and you are nothing. Get used to it.

Anonymous said...

What is a "net profit before expenses?"

Anonymous said...

Under the rule of law all actions are voluntary, including paying taxes.

This out of state internet sales tax is completely unconstitutional because "No tax or duty shall be laid on articles exported from any State." Article 1, Section 9

Supreme Court ruling "Our tax system is based on voluntary assessment and payment and not upon distraint". Flora v U.S. 362 U.S. 145 (176). Also there is no written law or code, State or Federal that states that the assessment and payment of a tax is involuntary or mandatory. Involuntary servitude is only allowable if duly convicted of a crime.

Anonymous said...

This is about control period.
Our handlers don't like internet news(calls them conspiracy theories).
Tax the internet commerice and you get more control.

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