It is obvious that the internet has revolutionized the way we do business, creating thousands of jobs while providing convenience to shoppers across the nation. Yet an internet tax proposal by Congress, or the so called “Marketplace Fairness Act” or MFA, will force businesses to collect out-of-state sales tax, forcing shoppers like you and me to pay more for the products we use every day.
For example, say you are a Pennsylvania resident who buys a TV in Delaware, you get taxed at Delaware’s sales tax rate of 0 percent regardless of the fact you live across the border where Pennsylvania has a sales tax. Millions of transactions like this happen all the time, so why should similar sales over the internet be different? Under the MFA, if that Delaware-based business sold the TV to you online, Delaware will have to collect Pennsylvania`s sales tax because you live in that state, including additional taxes that exist in the Keystone state`s boroughs and cities. There are almost 10,000 different tax zones across the nation, so how can the federal government expect small businesses to comply with the regulatory nightmare that is these ever-changing tax laws?
Rather than forcing businesses to raise prices because of other states` with bad tax policies, those states with high taxes should cut taxes and regulations that stifle entrepreneurship and business growth. I urge people to call their representative in Congress and tell them not to support an internet sales tax that is bad for both businesses and consumers.
Submitted by Virtual Newsroom