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10 Awful Things About the Internet Sales Tax

1. Shop China.  According to Sen. Ron Wyden (D-OR), “the way this bill is going to work, people are going to end up calling it the shop Canada bill or maybe the shop Mexico bill or, what is even more ominous, the shop China bill.”

2. Taxation without Representation.  As Heritage President Jim DeMint explains, the internet sales tax “violates the classic American principle of ‘no taxation without representation.’  Retailers would be forced to act as tax collectors for states in which they have no voice.” 

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3. Playing favorites.  The left disingenuously claims this bill is about leveling the playing field.  The exact opposite is true.  This bill was a direct result of lobbying by large corporations.  This bill is crafted to advance the interests of big government and big businesses

4. Growing state governments.  This bill would tax out of state internet companies who have chosen their business model based on rules that have existed for over 20 years.  It’s about cash-strapped states wanting more money to grow their governments, and some lawmakers see out of state internet businesses as easy targets because they have no voice to oppose this tax.  

5. Violation of citizens’ rights.  As Sen. Max Baucus (D-MT) explains, many American citizens chose to live in states without sales tax.  He also calls this bill a “clear infringement on states’ rights that we cannot stand for.” 

6. Audits.  This bill would require internet businesses to hire costly lawyers and accountants so that they could deal with burdensome paperwork and complex tax rules that would result from being taxed in America’s 9,646 different taxing jurisdictions.  In effect, online businesses will face a threat of 46 out-of-state audits.

7. Increased costs for consumers.  Who on earth would want to pay more money for goods they purchase online?  That’s precisely what this bill leads to – less money in the pockets of people and more money for big government.

8. Harm to small businesses.  Small businesses are the very fabric of this nation.  And most small business owners don’t have the administrative resources to comply with this ridiculous law.

9. Liberals love it.  This bill will certainly have a greater burden on low-income families and individuals when they do chose to shop online.  One liberal blog argues

poorer families pay a larger share of their income in sales taxes than better-off families do because they have to spend almost everything they earn.

Exactly.  This proves our point.  So why would we want to burden them with yet more sales tax?

Then they claim that some poor people don’t have computers or internet.  But regardless of your socioeconomic status, you can shop online.  If you don’t own a computer, you can use a friend’s or use one at a public library.  The bottom line is that, if low-income Americans are seeking bargains by shopping online, they’ll be getting hit the hardest. 

10. Obama endorsed it.  This President has raised taxes on Americans more than enough, to the detriment of the economy, and consequently, to the detriment of poor and middle income Americans.  It is no surprise he wants to harm small businesses and consumers yet again. 

Suggested Tweets
Internet Sales Tax is taxation without representation!

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The internet sales tax bill should be called the SHOP CHINA bill!

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The internet sales tax bill is all about serving the interests of big business and big government.

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Please Share Your Thoughts
  • RG_102

    I don’t care what the exemption is, this bill as it is IS BAD. I own a
    small business that would fall under the current proposed exemption of 1
    million in sales, but this bill would still create a HUGE liability for
    me… I can see it now, I will be getting letters from all 50 states,
    ANNUALLY, asking me to verify, and of course each state will have
    different forms, different ways they want me to verify that I do qualify
    for the exemption. This will be a nightmare, then if I ever do cross
    the 1 million dollar line the horror would increase exponentially. Has
    anybody ever had to deal with these states with “Simplified Sales
    Tax”??? They are anything but simplified.

    I agree that eventually
    the states are going to get there way and collect sales tax on ALL
    transactions, but I think it truly needs to be simplified. There should
    be ONE tax authority NATIONWIDE, ONE tax form to fill out, ONE tax rate… this one
    nationwide tax authority should then be responsible for dispersing the
    money to the proper states… NOT THE BUSINESS. The only info the
    business should have to supply is the zip code, sales for that zip code
    and tax collected for the zip code. Currently each states tax form in
    the “simplified” states are a nightmare, could you imagine having to
    fill out 50 of them? Being left open to possible audits from 50 states? NIGHTMARE!

    Another point, the bill mentions the states would have to provide software that simplifies the collection of taxes… this is a JOKE. The postal service can’t even get addresses correct on their website and you think each state government can? At least once a month I’ll have an instance where I try send mail via USPS.com only for the website to tell me the address does not exist… but guess what you can hand address a letter to the address and it gets there??? And this is the post office, no way states are going to get it correct. Taxes in these “simplified” states cannot even be calculated based on zip codes… you can have 2 customers in the same zip code who have DIFFERENT TAX RATES…. YOU CALL THIS “SIMPLIFIED”??? WHAT A JOKE!

  • Michael Long

    According to Fox, the legislation passed a test vote in the Senate Wednesday, 74 to 23, with 27 Republicans voting in favor.

    Since the majority of Senate Republicans voted for the measure, I’m not quite sure how you’re justified in placing all of the blame on the “left” side of the aisle.

    “This bill has nothing to do with imposing any kind of new tax or revenue generator,” said Sen. Bob Corker, R-Tenn. “What this law does is allow states that already have laws on the books to carry out the implementation of those” laws.”

    South Dakota Gov. Dennis Daugaard, a Republican, called it a “matter of equity and fairness.”