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Key Vote

    FreedomWorks Key Vote NO on an Internet Sales Tax

    Dear FreedomWorks member,

    As one of our millions of FreedomWorks members nationwide, I urge you to contact your U.S. Senators and urge them to vote NO on the Marketplace Fairness Act,S. 743, a bill that would allow states to collect internet sales taxes without regard for state borders.  

    While this internet sales tax scheme has been branded as helping “marketplace fairness”, all it really accomplishes is raising taxes and placing an untenable burden of compliance upon small businesses who sell their products online.  Under the interstate agreement being authorized by the “Marketplace Fairness Act”, a business selling products online would be required to figure out where their customers live and to charge them sales taxes based upon their residence, not where the business is located.  The cost of complying with the thousands of state and local sales tax regulations will be difficult for smaller online businesses to absorb.

    Perhaps more importantly, taxing across state border violates the long-held “physical presence standard” that restricts state from taxing sales that do not originate from a physical “nexus” within that state’s borders.  Allowing states to violate the physical presence standard will literally allow for taxation without representation, as consumers pay taxes to other states without ever getting the benefit of the use of those dollars.  Allowing states to tax each others’ citizens also removes an important incentive for tax competition between the states.

    The only winners in this deal are state governments, which are happy to use the new revenue to increase their spending, and large retail stores, who will be able to absorb any compliance costs while watching their smaller competitors struggle. 

    I urge you to call your U.S. Senators and ask them to vote NO on the Marketplace Fairness Act, H.R. 743.  We will count the vote on this amendment as a KEY VOTE when calculating the FreedomWorks Economic Freedom Scorecard for 2013. The Economic Freedom Scorecard is used to determine eligibility for the FreedomFighter Award, which recognizes Members of Congress with voting records that support economic freedom.

    Sincerely,

    Matt Kibbe,

    President and CEO,

    FreedomWorks

    2 comments
    Adele Baker
    04/23/2013

    If you think Sharon`s story is surprising..., a month-ago mom in law easily made $7546 just sitting there from home and they're classmate's aunt`s neighbour has done this for 5 months and brought in more than $7546 in there spare time from a mac. apply the guide at this address, kep2.ℂom

    SRW's picture
    Sten Wilson
    04/20/2013

    The legislation requires states to provide free tax processing software to merchants. Last time I checked FREE does impose burdens. In fact online businesses win once again. All tax processing will become entirely automated. Legacy tax burdens of 1992 are now a relic and no longer stand as sound footing for any argument opposing granting States' rights to choose collection of existing sales/use taxes already due.

    What many fail to recognize are the millions of less fortunate families, without access to available credit and the Internet, are paying higher taxes at local registers. Higher taxes resulting from states having to increase sales tax rates, income tax rates and various state fees to make up for the billions of sales tax dollars being knowingly and unknowingly evaded by Internet consumers. Higher property taxes are forcing higher rents. Higher rents which unfortunately are forcing very real and scary unfavorable circumstances upon millions of unintended victims. CT families last year lost clothing and mortgage exemptions resulting from the legislature imposing the largest tax increase in CT's history. Companies actually left the state leaving many unemployed.

    Continuing to segregate sales tax policy application any further is no longer a solution. Best tax practices always maintain equal application of tax liability which ultimately lowers individual tax burdens. Choosing to saddle less fortunate families with sales tax your organization promotes it's members to continually evade is not a solution nor is it patriotic.

    There are no burdens for Internet retailers. The legislation requires states seeking collection authority to provide FREE software to merchants. Personally, my small Internet business is currently enabled to calculate, collect and remit sales tax for any jurisdiction in any state. The amazing realization is it is now easier to process sales tax for any jurisdiction than dealing with shipping to over 40,000 different zip codes.

    I am grateful to be enabled by modern technology to efficiently remit my customers’ honorable sales tax contributions back to their taxing jurisdictions. I am grateful because those contributions provide jurisdictions the ability to fund vital and necessary police, services and infrastructure. Police, services and infrastructure ensuring my out of state goods arrive on customers’ doorsteps efficiently, affordably and safely.

    For me, collecting and remitting sales tax already due translates to healthy vibrant communities representing stronger market opportunities for every businesses. I believe this simple and efficient process when understood will be unanimously accepted and embraced by every business owner seeking greater efficiency and profits.

    Technology and simplification make it much, much simpler for any business to easily automate and remit sales tax regardless of size. Thanks to amazing modern technologies, that many seem to believe does not exist, my small business with sales far below the proposed small seller exception now enjoys lower costs and greater efficiencies. In other words, thanks to simplification standards and modern technology, I now have more time and profits available to grow my business now that I am no longer burdened with costly legacy 1992 sales tax processing burdens.

    I strongly support and urge Congress to immediately pass the Marketplace Fairness Act.

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