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The MFA is one such ploy wheeled in by politicos with the illusion of "fairness" when it's nothing more than a bill seeking enhanced revenues for the government trough. It may appeal to brick and mortar special interests seeking government enforcement to guarantee competitiveness against technological innovations, but it would succeed only in hurting Internet retailers and their customers. Passionate views, pointed criticism and critical thinking are welcome. Name calling, crude language and personal abuse are not welcome. Moderators will monitor comments with an eye toward maintaining a high level of civility in this forum. Our comment policy explains the rules of the road for registered commenters.
costly compliance burdens. And making it easier for state and local governments to tax out of state businesses with no physical presence in a state encourages revenue hungry states to project their taxing powers beyond their boundaries in dubious ways. If adopted by Congress, the approach taken by The Marketplace Fairness Act could pose a real drag on interstate e commerce."
Two admonitions hold true throughout history. The first is "Beware Greeks bearing gifts." The other is any piece of legislation containing the word "fairness" in its title.
Such is the case with the so called "Marketplace Fairness Act," which is co sponsored by Wyoming Sen. Michael Enzi. Under the guise of "fairness," this Trojan horse contains a multitude of harms to businesses, consumers and the fundamental right to avoid taxation without representation.
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On its surface the MFA sounds reasonable enough: Force Internet retailers to collect a state sales tax for each transaction. After all, traditional brick and mortar sales are required to do so in the states and municipalities where they are located.
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Additionally, traditional brick and mortar retailers have found the Internet a godsend for consumers unwilling or unable to visit their stores. For those customers who require immediate gratification for products they Nike Air Max 2017 Black Price
Unlike Internet retailers, traditional brick and mortar stores actually receive state and municipal services and infrastructure in return for the sales taxes they collect from consumers. Sales taxes derived from Internet sales return bupkis to retailers lacking a state nexus. How is this fair?
Cooper concluded: "Subjecting remote online retailers to potentially thousands of different tax rules creates complex and Nike 2016 Air Max Sale
Enzi's 'Marketplace Fairness Act' a Trojan horse
"Several states don't even have sales taxes, but online retailers in their borders would have to start collecting sales tax for all the other states," Stanek added. tax jurisdictions would place egregious costs on Internet retailers who, in turn, would be forced to pass those additional expenses on to their respective customers. "Myriad local governments would be able to apply their own rates and idiosyncratic rules, as well."
desire, the Internet also serves as a terrific marketing tool for retailers maintaining a physical presence in close proximity. economy during the past two decades. Since then, legislators and bureaucrats have grasped at every idea imaginable to stifle its growth by impeding the profitability of companies employing innovative ideas to service their customers by offering them real world choices for Nike Air Max 2017 Men Black Blue Running Shoes their purchases.
If passed, the MFA will increase taxes as "multiple jurisdictions lay claim to the same transaction and demand payment," according to Bartlett Cleland, policy counsel, The Institute for Policy Innovation, a Texas based free market think tank. Supreme Court determination in Quill Corp. v. North Dakota that requires a company maintain a physical presence or "nexus" in a state before it is held responsible for collecting that state's sales tax.
Digital retailers, the reasoning goes, have an unfair advantage over their physical counterparts. Perhaps more compelling for bureaucrats is the real beast in the belly that has nothing whatsoever to do with "fairness" and, conversely, everything to do with the loss of state revenues on uncollected taxes from Internet sales.
of this measure would be another step on the road toward government encroachment into everything we do, as well as a means for states to turn retailers into tax collectors, regardless of where the retailers are located," asserted Steve Stanek, research fellow, Budget and Tax Policy at the free market The Heartland Institute.
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