The Conservative Review pointed out how the Trump backed Internet Sales Tax is just another way to Tax U.S Citizens.
There is no commonsense political argument for cross state taxation
Let’s face it: This is not about solving some problem in the marketplace. The internet is doing just fine without more government taxation and regulation. This is all about state governments that are hungry for more tax revenue for their rapacious welfare states, but are too scared to directly tax their consumers. They can always cut spending or increase the state income tax, property taxes, or other fees if they need revenue. Alternatively, they can convert the sales tax to a direct tax on the consumer or a direct tax on the merchant. Instead, the reason they want to collect an unaccountable pass-through sales tax across state lines is precisely the reason why the Founders deemed it unconstitutional: It’s taxation without representation.
Some so-called conservatives who are pushing a federally sanctioned internet sales tax claim to be bothered by a question of free market fairness. After all, isn’t the current sales tax system unfairly beneficial to online retailers, who offer the same products to consumers as brick-and-mortar stores without having to charge sales tax as the brick-and-mortars do?
Let’s first acknowledge that far from crushing mom-and-pop shops, the internet has actually leveled the playing field for them. The internet has allowed smaller businesses to compete everywhere, even if they lack the capital necessary to build a national network of wholesalers, distributors, and retailers like the Walmarts of the world.
The bill floating around in Congress (H.R. 2193) would encumber online businesses with the technicalities of establishing a tax collection system that would satisfy nearly 10,000 unique tax jurisdictions in this country. That is a recipe for killing jobs and raising the cost of goods. It’s for good reason that in 1992 the Supreme Court referred to such a scheme as a “burden” and a violation of due process. Big online retailers like Amazon are willing to shoulder this burden in return for driving smaller online businesses out of the market or into their own platform. In that sense, this is a consummate example of big government colluding with big business. It should be called the Amazon Enrichment Act. Which is why, contrary to President’s Trump’s suggestion, Amazon has switched sides in this debate now that the company has a physical presence in every state.
Some suggest that new software would allow small businesses to tabulate the taxes instantaneously. But as Mark Faggiano, CEO of a major tax software company observed, there is no system on the market that can “solve the problem of integrating every ‘shopping cart’ platform for selling goods online into one software application” and render the taxes for jurisdictions that distinguish between a KitKat bar, which is not taxed in some places like New York, and a Milky Way, which is taxed.
President Donald Trump “feels strongly” that the U.S. should permit collection of state and local sales taxes on purchases made over the internet, Treasury Secretary Steven Mnuchin said on Thursday.
Mnuchin, speaking at a hearing before the House Ways and Means Committee, said he has spoken with Trump about the issue, and that the president “does feel strongly” that state and local taxes should be applied to the purchases.
Amazon is doing great damage to tax paying retailers. Towns, cities and states throughout the U.S. are being hurt – many jobs being lost!
— Donald J. Trump (@realDonaldTrump) August 16, 2017