Utah small businesses are watching Washington

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  • xcergy Landrum, SC
    June 8, 2014 5:26 p.m.

    " 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.

  • xcergy Landrum, SC
    June 8, 2014 5:20 p.m.

    " 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.

  • PaulB Holland, MI
    June 8, 2014 1:56 p.m.

    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?

  • JoeBlow Far East USA, SC
    June 6, 2014 2:15 p.m.

    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?

  • Ultra Bob Cottonwood Heights, UT
    June 6, 2014 9:25 a.m.

    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 state government.

  • Esquire Springville, UT
    June 6, 2014 8:54 a.m.

    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.

  • 10CC Bountiful, UT
    June 6, 2014 8:17 a.m.

    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 jobs".

  • The Real Maverick Orem, UT
    June 6, 2014 8:04 a.m.

    No new taxes!

    No compromise!

  • ordinaryfolks seattle, WA
    June 6, 2014 7:18 a.m.

    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 lives on.