" It’s a matter of fairness, plain and simple; if local Utah
businesses must collect this tax day in and day out, all businesses should have
to."The difference here is that B&M have one location, one
tax rate, and fill out one tax form. If MFA passes, then Utah online bushiness
will have to deal with 11000 tax districts, many tax rates, and file 45 or more
monthly returns.'Oh, software will solve that' they say.
Right. More out of pocket IT costs and audit risks.
" All it takes is moving a regional office or establishing a P.O. box in one
of these states, and once again, the playing field remains unlevel."Not true. MFA does not remove the physical presense standard. Amazon
has warehouse locations to shorten shipping times. Moving them to non-sales tax
States would be self defeating.
Mr. Lang,You are kidding, right? Like you, I am a small
business owner. I own a local building that will soon open a local retail. Each
month I faithfully pay my state, local, and federal taxes. If this
"loophole" is closed, I will have to do that at least 45 times a month,
even if no tax is due. Each State will require a tax return. I will need to
integrate my system to collect taxes- except that NONE of the major software
providers integrate with some of the big shopping carts, Amazon, Ebay, Buy.com,
and Sears(all of which I sell on). This means that I will need to pay a
developer tens of thousands of dollars to do so. I will probably need to hire an
accountant full time(and probably go under doing so). The tax is due
no matter what. What you're asking is for government to have audit control
over my business from 45 States. Right now, it is the duty of the consumer to
pay the tax. Why should I be forced to work for free for your State?
Aren't Utahans already required to pay tax on out of state purchases when
they file their state income tax?Is Mr Chaffetz suggesting that his
constituents are not following the law?
Our government(s) only represent the business interests and not the welfare of
the people. Recently I experienced the argument against the fairness of
business by collecting sales tax on retail purchases from out of state sources.
I needed a brake cable for my walker. I'm sure that there are
many local locations where I could get it. The only problem is our household is
temporarily devoid , I hope, of drivers and a vehicle due to a auto accident.
Then I realized that even if we had car and driver, the expense of going to a
local store would increase the price of the item. To be fair the
local store should discount the item because of the extra cost of going to the
store. Coupled with the higher price for the item the customer pays double the
price of the mail order item. However fairness to the consumer is not a concern
because our representative represents only the business interest. Perhaps I am wrong, but adding sales tax to the online item will not really
help the local store. Perhaps the only winners will be the politicians in our
Chaffetz getting something done? That's news to me. He is such a
partisan, I have a hard time thinking he can forge any coalition to get
legislation moved through the Senate and to the President's desk. Throwing
bombs doesn't lead to anything productive, and Chaffetz is one of the
leading bomb-throwers. Similar thinking voters and party members may like it,
and the media may give him coverage (just like they cover Miley Cyrus for being
outrageous and entertaining), but it's not a good tactic to actually get
something done. Passing a bill in committee, or even in the House, may make him
feel good, but in the end it is nothing unless it gets passed into law.
This is a great example to illustrate how free market economics work, and how
"taming" the free market is in everyone's interest.Let's say the origin-based alternative scheme is passed. What's to
prevent very large internet vendors, like Amazon, from moving their operations
out of the country to avoid taxation altogether? A large warehouse
and shipping operation sprouts up across the border in Mexico, Texas governor
Rick Perry announces a new airport just north of the border in Texas to handle
the FedEx and UPS flights, and stick it to other states, and shippers across the
nation would immediately have a vested interest in supporting Mexican
retailing.Meanwhile, small retailers here would continue to be
hammered, and with more stagnant growth in wages and salaries in the US, we have
less money to pay for F-35 fighter jets.My friend in Germany puts it
succinctly: "Americans will chase the bottom dollar until they have no
No new taxes!No compromise!
Is Rep Chaffetz losing his Tea Party addiction?His Tea Party
credentials may be lost if he pursues this. It is a matter of "faith"
among such Tea Party promoters as the Heritage Institute, the Heartland
Institute, the National Taxpayers Union and R Street all oppose any such
legislation. Any tax increase is opposed by Republicans dominating the
Congress. And lastly, isn't Rep Chaffetz amongst those who
insist on the right of voters to decide such things? The latest polls reveal
that the majority of Americans like the internet tax exemption. It is not
viewed as a fairness issue, but an additional burden on the "people".
Now, I personally believe that the internet tax sham is terrible.
It was created to assist e-business to get its start. However, the e-business
is doing well now. Time to let it go. However, Rep Chaffetz is trying to have
his cake as a Tea Party darling, and then play Mr. Nice Guy as well. Hypocrisy