Friday, December 9, 2022
Hawai'i Free Press

Current Articles | Archives

Friday, April 19, 2013
Internet Sales Tax: Taxation Without Representation
By Heritage Foundation @ 4:04 PM :: 3225 Views :: Taxes

Beware the Internet Sales Tax

www.Heritage.org

The Internet sales tax is back, and it could be the next big vote in the Senate.

The proposed law would enable states to force businesses to collect sales tax from customers who live in their state—even when the businesses have no connection to that state.

As Heritage President Jim DeMint has said, this 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.

InternetSalesTax_v2
Tweet this

Under current law, retailers are required to collect sales taxes only in states where they have a physical presence. But Senate Majority Leader Harry Reid (D-NV) is pushing for a vote on a new Internet sales tax that would hit all online businesses—no matter where they’re located.

DeMint says:

Consider the absurdity of such a law. When a customer buys a product in a store, does the cashier ask for the customer's home address? Of course not. The store simply charges the state and local sales taxes applicable for its physical location, no questions asked.

“Brick-and-mortar” stores like Wal-Mart are in favor of the Internet sales tax, because they see these online retailers as competitors. But the other big proponents of the tax are state governments, which would be able to reach into other states for revenue.

States are struggling with their own budgets—but they should have to make the hard decisions to manage their budgets, rather than trying to collect taxes from citizens of other states to help cover their expenses. As DeMint said:

Politicians want this bill passed to raise new tax revenue for broken state governments facing budget shortfalls. But legislators in state capitals don't want to make the hard decisions to cut spending or raise taxes on their constituents—they fear the voter backlash. So they'd like their allies in Washington to make it legal for them to tax people who can't vote against them.

This taxation without representation might boost some state tax collections, but it wouldn’t help the economy. Heritage legal expert David Addington has written that “hobbling out-of-state businesses that sell through the Internet or mail order catalogs does not help the national economy.”

Instead, the Internet sales tax would “increase the amount of tax dollars millions of Americans pay, encourage states to increase the size and scope of their governments, favor some states over others in granting federal authority, and discourage free-market competition in interstate commerce,” Addington wrote.

It’s simply another bad idea coming out of Washington at a time when consumers and businesses are struggling to get by.

---30---

Read the Morning Bell and more en español every day at Heritage Libertad.

FEATURED POSTS

QUICK HITS

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

ACA Signups Hawaii

Alliance Defending Freedom

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Astronomy Hawaii

Back da Blue Hawaii

Ballotpedia Hawaii

Better Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

ChinaTownWatch.com

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

MentalIllnessPolicy.org

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

No GMO Means No Aloha

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Save Dillingham Airfield

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT