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The Madera Tribune

E-commerce taxes wasted

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webmaster | 04/27/13

Legislation making its way through Congress would force online retailers to collect sales tax on merchandise sold to out-of-state customers. The Marketplace Fairness Act, Senate Bill 743, would require Internet retailers to collect state and local sales tax based on the zip code of its patrons. Online companies with less than $1 million annual out-of-state sales would be exempt from the law. If the Senate passes this law, a similar piece of legislation will be introduced in the House.

According to the Associated Press, President Obama has already endorsed this proposed law as a way to level the playing field between brick-and-mortar stores and virtual retailers operating on the web. This notion is complete garbage. Fairness to retailers isn’t the motivation behind this law. What is important is grabbing tax dollars for the states.

Democrats and Republicans are arguing over the idea that this is a new consumer tax. Under the present system, consumers are supposed to report the purchase and pay the tax along with state income taxes, said the AP.

On Thursday, the Senate voted 63 to 30 to end debate on the matter and to vote on it when they return from a week off on May 6. Opponents are hoping the senators will hear from their constituents during the recess, as the measure needs only a simple majority to pass...


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