Failed Vice-Presidential nominee, Sen. Tim Kaine (Va.) has reintroduced a bill, the Marketplace Fairness Act (S.976), in the U.S. Senate that would impose an internet sales tax on Americans. Under the proposed legislation, states would be able to tax across their borders, and businesses would become tax collectors beholden to the states.
As it stands, you pay no sales tax when purchasing from a business that has no physical presence in your state. But that would change under this latest revenue grab.
This carries a litany of issues. It subjects a business of one state to the tax laws of another state- one they have no political representation in. What happened to no taxation without representation?
It shifts the tax burden onto businesses as they would now have to collect a sales tax in these types of transactions and report and file to dozens of other states. This all results in taking even more money out of your pocket.
Worst of all, it discourages tax competition and business incentives amongst the states, and instead encourages higher tax rates.
While presented as a protector of America’s small businesses, the bill would only subject our already struggling mom-and-pop shops to a greater regulatory and tax burden.
If the objective of the bill is to help small businesses, it clearly misses the mark. In fact, it’s clear the bill only serves big box stores wishing to stomp competition, and state and local governments who want more money in the piggy bank to fund big government.
The bill is bad for small businesses and consumers alike, more like the “Marketplace Unfairness Act”.